Book contents
- Frontmatter
- Dedication
- Contents
- List of exhibits
- Preface
- Acknowledgments
- 1 How’s your due diligence?
- 2 Introduction to the system
- 3 A framework for performance measurement
- 4 What is Stakeholder Value?
- 5 Adding Value for Customers
- 6 Adding Value for People
- 7 Adding Value for Partners
- 8 Adding Value for the Community
- 9 Adding Value for the Owners
- 10 What to report and how to report it
- 11 How to get started . . .
- 12 The Performance Measurement Framework: Assessment and adoption
- 13 Practical aspects of managing Stakeholder Value
- 14 Performance measurement for Small and Medium Enterprises
- Appendix Don’t be fooled by statistics
- References
- Index
4 - What is Stakeholder Value?
Published online by Cambridge University Press: 05 December 2013
- Frontmatter
- Dedication
- Contents
- List of exhibits
- Preface
- Acknowledgments
- 1 How’s your due diligence?
- 2 Introduction to the system
- 3 A framework for performance measurement
- 4 What is Stakeholder Value?
- 5 Adding Value for Customers
- 6 Adding Value for People
- 7 Adding Value for Partners
- 8 Adding Value for the Community
- 9 Adding Value for the Owners
- 10 What to report and how to report it
- 11 How to get started . . .
- 12 The Performance Measurement Framework: Assessment and adoption
- 13 Practical aspects of managing Stakeholder Value
- 14 Performance measurement for Small and Medium Enterprises
- Appendix Don’t be fooled by statistics
- References
- Index
Summary
INTRODUCTION
Value. That amount of some commodity, medium of exchange, etc., which is considered to be an equivalent for something else; a fair or adequate equivalent or return.
Oxford English DictionaryIn the mid-1980s, AT&T was confronted by a paradox: on the one hand, customer satisfaction levels were running at about 95 percent; on the other hand, they lost 6 percent market share, where 1 percent was worth $600,000,000. For the first time in corporate history, AT&T laid people off – 25,000 worldwide from an overall staff of 300,000 – including managers recently rewarded for the apparently outstanding customer satisfaction performance.
An AT&T trouble-shooting team discovered that one of the critical factors explaining the paradox was the way in which customer satisfaction was being measured: AT&T’s overall focus was not concentrated on their customers’ perceptions of Value. And it turned out to be Value that had a connection to business results.
The concept of creating and adding Value for stakeholders is at the core of our approach to performance measurement.
What does Value mean to them?
And as we’ve seen in Chapter 3, just asking this simple question leads immediately to issues of market segmentation, regardless of the type of stakeholder.
The word “Value” obviously connotes some sort of exchange or trade: you get something you want, you give something in return.
- Type
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- Information
- Analytics for LeadersA Performance Measurement System for Business Success, pp. 35 - 40Publisher: Cambridge University PressPrint publication year: 2013