High-Commitment High-Performance (HCHP) Leaders

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High-Commitment High-Performance (HCHP) Leaders
Jaap de Jonge, Editor
How can CEOs under fierce pressure from capital markets avoid the trap of focusing solely on satisfying the shareholders? In the HBR of July-August 2008, Eisenstat, Beer, Foote, Fredberg and Norrgren of TruePoint present some useful guidance on how “High-Commitment High-Performance (HCHP) Leaders” are able to resolve the tension between people and performance:
1. They feel personally responsible to act as stewards of their firms’ future.
2. They earn the legitimacy to hold the strategic and moral center by a. Earning the trust of their organizations through open communication b. Being deeply engaged with their people c. Establish a focused agenda for change d. Building collective leadership capabilities
3. They develop an emotionally resonant shared purpose with a three-part promise: The company will a. Help build a better world and b. Help deliver a performance employees can be proud of c. Provide an environment in which they can grow.

Responsibility & profitability
Ali asghar Mazinanian
The culture of the companies including the company policy makers must emphasize the establishment of criteria that result in both shareholders and customers benefits. Customers and employees are on one side of the weighing balance and shareholders' benefits on the other side of this balance.
Depending on the opportunities and threats of the societies or companies, this balance may not be leveled all of the time but never fluctuates highly. Customers should feel that they do not lose their money on buying companies' products and employees should feel that they are a part of the company, company's loss is their loss, company's profit is their own profits. Best wishes

CEO Role
Ashraf Gamal El-Din
The CEO role should be to maximize shareholder value in the long term. The Chairman and the Board must always keep sure that the CEO is doing just that. Under some conditions, however, the CEO may be forced to balance between the long term value creation, and the short term objectives of some stakeholders, usually shareholders.

Profit & Responsibility
A company must be profitable not only in order to survive but also in order to create wealth that must go back to society. Not making profit means that the business is draining resources from the society and is eventually occupying a space that another firm could occupy more efficiently. So the first way to be responsible is to make profit in order to enrich the society.
On top of this, today you can not even imagine a corporation without social sensitivity which needs articulation in facts and not just words or PR actions. Here lies in my view the CEO responsibility with staff, stakeholders and the social body.

Stakeholder Theory
Muhammad M. Seleem
Stakeholder enrichment is a consequence of shareholder-value and not an exclusive corporate goal. According to Young & O'Byrne (2000), stakeholder satisfaction is justifiable as long as it maximizes shareholder-value.

Stakeholder Value Perspective
Steve Smith
People who invest their money in companies do not do so for the "social responsibility issues" unless they have targetted a Green Company. They invest their money for good returns in the sector, industry and company selected based upon their knowledge but at best their gut feel due to the companies financial performance. The only time "social responsibility issues" become important is when a private sector company deals with a public sector agency. There are companies who solely deal with the public sector, this is where social responsibility does have an impact on the overall performance of a company and hence the CEO, because without it the public sector agency will not do business with them. In my experience local SMEs put the larger companies to shame because it forms a larger part of the SMEs time and funds to address the social responsibility issue.


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