Shareholder Value Thinking:
Jean-Philippe THOME, CEO, France, Member
I come back some years later to confirm to Philip (U.K) the destructive power of "Shareholder Value". Due now to my relatve broad experience in both Big Groups and SMEs (I'm 60 now!)dedicated to advanced research and innovation, I've seen in all my experiences that SHV is in any case incompatible with innovation.
Innovation is the future of industry (everything which is not progressing is regressing!) SHV is the present whatever Philip said! Innovation is risk oriented while SHV is totally financial security oriented. The value of an innovative company is driven by the ability to manage both risks and time (The right product to the right market at the appropriate time). While SHV implies an ROI agenda which doesn't in any case allow any deviation.
I had the big chance to meet CK PRAHALAD (Book:"Competing for the Future") in Ann Arbor University. He demonstrates in his book how big traditional "finance"-driven companies failed compared to innovative risk oriented companies.