Value-Directed Management: Organizations, Customers, and Quality

By Bernard Arogyaswamy; Ron P. Simmons | Go to book overview

continue to flow downward, the energy needed to bring these ideas to fruition is long gone, if it was ever present. The situation is analogous to a person whose brain is functioning perfectly while his body is incapable of responding to the stimuli received.

How does one instill a sense of strategy achievement and generate the driving force of a strategy of value in the entire workforce? Certainly not by adhering to the traditional top-down strategy paradigm. Rather, a vibrant spirit of oneness with the firm and its strategy must be encouraged and created. Awareness, acceptance, and active pursuit of the firm's strategy have to be consciously and constantly cultivated. Moreover, and equally importantly, a cadre of zealous and imaginative workers driven by the value metaphor needs to be established in order for strategy to link the firm at all levels to the external environment. Strategy will then become a tangible, exciting activity with customer value as its prime mover, its living core.

In the next two chapters we accord top priority not only to the details of how value can be maximized, but also how the notion of value can be introduced into and permeate organizations. Subsequently, we discuss approaches to get employees to buy in to the need to assiduously enhance value and to participate in the strategy process, in developing and not just executing it.


NOTES
1.
James Lincoln's preoccupation with customer needs continues to be a cornerstone of the firm's strategy. Lincoln Electric has successfully maximized customer satisfaction while providing job security and encouraging participative decisions within the work force. See Arthur Sharplin, "The Lincoln Electric Company," in John Montanari, Cyril Morgan, and Jeffrey Bracker (eds.), Strategic Management ( Chicago: Dryden, 1990), pp. 807-20.
2.
William Copulsky, "Balancing the Needs of Customers and Shareholders," Journal of Business Strategy, November/December 1991, 44-47.
3.
Arlyn Melcher, Bernard Arogyaswamy and Ken Gartrell, "Leading Strategies: The Trade-offs of Financial, Production and Marketing Activities," in William Guth , ed., Handbook of Business Strategy 1986/1987 Yearbook, ( Boston: Warren, Gorham and Lamont, 1986), pp. 501-18.
4.
This argument applies to diversifications into related product areas (e.g., Matsushita's diversification into a range of electronics products and Procter and Gamble's ventures into a variety of consumer goods) and not to the type of product line expansion carried out by ITT. See Charles Hill and Gareth Jones, Strategic Management ( Boston: Houghton Mifflin, 1992) p. 226.
5.
Of course, this lack of commitment is not necessarily a disadvantage. In firms whose value creation ability is highly specialized and/or difficult to transfer to new product lines conglomerate expansion--commitment or no commitment --could be the only option. (Ibid., p. 228.)
6.
Peter Drucker in Innovation and Entrepreneurship ( New York: Harper &

-53-

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Value-Directed Management: Organizations, Customers, and Quality
Table of contents

Table of contents

  • Title Page iii
  • Contents vii
  • Figures xi
  • Preface xiii
  • Acknowledgements xvii
  • 1 - Foul Play or Fair Game? 1
  • Notes 11
  • 2 - The Many Faces of Value 15
  • Notes 33
  • 3 - A Strategy and Vision of Value 37
  • Notes 53
  • 4 - Interdependence: Eliminating Insulation 57
  • Notes 76
  • 5 - Integration: Creating a Shared Vision of Value 79
  • Notes 99
  • 6 - Involvement: Power Out, Value In 103
  • Notes 122
  • 7 - In Graining: Practical Ideals 125
  • Notes 159
  • Notes 177
  • 9 - Indicators: Evaluating the Ins 179
  • Notes 205
  • 10 209
  • Notes 214
  • Selected Bibliography 217
  • Index 223
  • About the Authors 231
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