Motley Fool Money When More is Not Better
Oct 9, 2020
Roger Martin, a management consultant and author of 'When More Is Not Better,' dives into the pitfalls of America’s obsession with efficiency. He discusses how excessive focus on profit can undermine resilience in business. Martin argues for a balance between social responsibility and shareholder returns, suggesting that treating employees well enhances customer satisfaction. The conversation also touches on the need for businesses to adapt to economic challenges while maintaining a broader societal impact.
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Single Metric Focus
- Businesses shouldn't focus too much on any single metric, like shareholder value.
- Singular focus can create fragility and doesn't guarantee success.
J&J's Credo
- Robert Wood Johnson prioritized patients, employees, and communities over shareholders when he took J&J public.
- J&J thrived, demonstrating that focusing on stakeholders can benefit shareholders.
Southwest's Balanced Approach
- Southwest Airlines prioritizes low costs, high customer satisfaction, high employee satisfaction, and profitability.
- They achieve these seemingly contradictory goals through clever system design and employee empowerment.
