The Committed Enterprise: How to Make Vision and Values Work
This guide describes how to build unstoppable organizations, whether businesses or charities, hospitals or orchestras, by managing vision and values scientifically yet creatively.
TABLE OF CONTENTS The Committed Enterprise: How to Make Vision and Values Work
Chapter 15: A Renewable Process for Vision and Values
Overview
Chart 15.1: Average time spent with US company by major stakeholder
Technical note:
This chart is illustrative rather than exact, since comparable data on the loyalty of the three major stakeholders is unavailable. However, its basic message - that customers and employees are more loyal to companies than shareholders in the USA and UK - is sound.
-
The shareholder loyalty figure of 1 year is based on the 1999 Bain study in the USA. [1]
-
The employee figure of 5 years is average job tenure in the UK in 1999 ('Job Tenure 1975 98' by Paul Gregg and Jonathan Wadsworth, in The State of Working Britain, 1999, Manchester University Press).
-
The customer loyalty figure of 5 years is an educated guess, because this is a very complex area, and there is no commonly accepted definition of 'loyalty'. Discussion with experts confirmed wide differences in loyalty between individual product and service categories, making a single generalized figure unfeasible to calculate. The most demanding categories for loyalty are fast moving consumer goods (FMCG, e.g. detergents, coffee) since consumers vote through their purchases every few weeks. A 3-year study of 113 UK FMCG brands in 2000 projected that customers initially loyal to a particular brand, continued to include it within their purchasing portfolio for 8 10 years. [2]
When vision, values and short-term pressures collide
Many Chief Executives said there was no conflict between long-term vision and values, and short-term performance demands. This may be true from their perspective, but pragmatic moves can...
Copyright Hugh Davidson 2002 under license agreement with Books24x7
