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On #6: Shareholder Pleasing is not the Goal

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Henkelman
Interim Manager, Netherlands

On #6: Shareholder Pleasing is not the Goal

Well I think Porter is missing an important point when he says pleasing shareholders is not a goal. I am not a professor on a university but my school is 30 years practice in multinationals. If a CEO is going for other goals then the goals from the shareholders, then he should be in another business.
Porter, great guy, but how many companies run under his power. That's why Mintzberg has a point. Managers do not learn the skills in schools. Experience is the most important value.
Shareholders own the company and the CEO must follow their strategy and not his own. And if pleasing is a goal then: those who pays makes the difference.
 
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Rudolf Graves
Consultant, Suriname
 

Shareholder Pleasing is not the Goal

I think that Porter has a point that shareholder pleasing may not lead to short term value creation. The CEO has an important task in setting achievable goals that serve the long term strategy of the company.
Ultimate (long term strategy) the company must survive and the financial history is full of examples of companies with high promising returns for pleasing shareholders but that eventually did not survive (Enron, Worldcom etc).
A company will survive if its customer base is good: stable and growing. Because finally it is the customer who pays and that makes the difference.
Shareholders often are focused on the short term results and return on their investments.

 

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More on Seven Surprises for New CEOs:
Summary
Discussion Topics
topic Chief Enabling Officer
topic Don't underestimate the emotional and positional power a CEO has
topic Even CEOs Need Support from their Team
topic Even CEOs Need Time to Learn...
topic Undercutting CEO Power
topic Alternate Meanings of CEO: Chief Excitement Officer
topic Being a Chief Executive Officer (CEO) is Easy
👀On #6: Shareholder Pleasing is not the Goal
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topic 7 More CEO Surprises
topic CEO: the Strategist of Business
topic Combine Top Down with Bottom Up Thinking
topic Assimilating the Right Type of Information
topic The Top Leader's View: A Leadership Labyrinth
topic CEO's Dilemma: Infinite Business Possibilities in a Finite Company!
topic On #3: It's Hard to Know what is Really Going On
topic On #7: Even a CEO is Still Only Human
topic CEO is a Facilitator and Needs Followers
topic Surprises to a CEO: You Need to Deal with Undercurrents
Special Interest Group

SIG Leader

Do you know a lot about Seven Surprises for New CEOs? Become our SIG Leader

Knowledge Center

Seven Surprises for New CEOs
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