“Profits are seen as the consequence of providing value to customers, not the goal of the firm”

What a revolutionary thought: “Profits are seen as the consequence of providing value to customers, not the goal of the firm”…!  🙂 

Once again, Steve Denning points out what should be bleeding obvious to anyone in business, but unfortunately is not: unless you are able to consistently produce real customer value, you will not prevail for long in any business where the customers have the option to take their business somewhere else. Any profits and “nice” Earnings-per-share wins will be only temporary.

Today’s corporations are run exclusively with an inside-out “profit first” mindset, where cost always dominates value (because that drives up the short term numbers for the next quarter so the financial street will be happy, and so the exec’s can collect their bonuses… 🙂 and the only stakeholders that count are the shareholders, not the customers, and absolutely not the employees.

It’s going to be very interesting to see for how long this “shareholders first” mindset will be able to survive before it shares the fate of the dinosaurs…

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About swdevperestroika

High tech industry veteran, avid hacker reluctantly transformed to mgmt consultant.
This entry was posted in Business, Leadership, Management, Organization and tagged , , , . Bookmark the permalink.

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