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.
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
Cyril Morgan, and
Jeffrey Bracker (eds.), Strategic Management ( Chicago: Dryden, 1990), pp. 807-20.
William Copulsky, "Balancing the Needs of Customers and Shareholders," Journal of Business Strategy, November/December 1991, 44-47.
Bernard Arogyaswamy and
Ken Gartrell, "Leading Strategies: The Trade-offs of Financial, Production and Marketing Activities," in
, ed., Handbook of Business Strategy 1986/1987 Yearbook, ( Boston: Warren, Gorham and Lamont, 1986), pp. 501-18.
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.
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
Peter Drucker in Innovation and Entrepreneurship ( New York: Harper &