Shareholder Value isn’t Everything

shareholder-value-chart

In his Master Class for the ExecuNet community, Dr. David Burkus, a highly regarded and increasingly influential business school professor who challenges many of the established principles of business management, said, “We tend to over focus on shareholder value. We need to re-correct to what triggers value and measure and manage to those things.”

It’s easy to measure in public companies and rather difficult in private companies. “Shareholder value is a result, not an action,” said Burkus. “It’s a result of engaged employees. It’s a product of engaged employees, satisfied customers and many factors.”

He continued to opinion that shareholder value should be viewed as an aftereffect of hitting goals around our people, customers and community. When you meet those things there will be shareholder value.

Watch this excerpt from Under New Management: How Leading Organizations are Upending Business as Usual to hear Dr. David Burkus talk in detail about what brings value.

 



William Flamme

William Flamme

William Flamme is ExecuNet's Marketing Content Manager, where he is responsible for developing engaging career, job search, and leadership insight and delivering executive-level content across the various properties under the ExecuNet brand. Prior to joining ExecuNet in 2008, Will earned a master's degree in education and taught fifth grade and sixth grade. As a teacher, he deepened his appreciation for the written word and mastered skills necessary for managing writers who sometimes view deadlines as homework.

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