A STRATEGY AND VISION OF VALUE
Many of our readers are probably more than a little nonplussed and perhaps uncomfortable with our almost exclusive focus on value delivered to customers. Is customer value the sole rationale for a firm's existence? Granted, customers are important and satisfying their needs through a variety of means (including the 3Cs) is indispensable for a firm's survival and success. But if providing top value is necessary, is it also sufficient? After all, firms have owners (shareholders), employees, regulatory agencies, and other vital constituencies to satisfy, in addition to customers.
Does that mean that, in addition to customer value, shareholder value, employee value, governmental value, and a range of assorted value concerns need to be constantly monitored? If so, we could become like the (no doubt apocryphal) painters of the Golden Gate Bridge in San Francisco. Just as soon as they've completed painting the bridge, they have to start all over again at the other end! We would have to go from one value angle to another and by the time we reach the last one we'd have to start all over again with customer value, since tinkering with components of shareholder or employee value, inevitably would affect customer value (e.g., reducing the scale of after-sale services could reduce costs and increase profits, thus increasing shareholder value while diminishing customer value; increasing wages could increase employee value, raising prices and diminishing customer value, and so on).
If we treat the different types of value as being irreconcilable, we are