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.
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