For anyone interested: From the Harvard Business Review (hbr.org/2020/01/are-you-undervaluing-your-customers), Rob Markey wrote
CONCLUSIONIt’s easy to blame companies’ short- termism on shareholder pressure and a bias toward quarterly financial reporting. But managers share the blame when they fail to educate investors about the customer value their company creates or when they resort to quick profits instead of investing in long-term customer loyalty. Several iconic founder-led companies have paved the way for decades. A handful of independent public companies are doing so too. And they deliver outsize growth, profitability, and returns to shareholders.
It would be irresponsible for any leader to ignore such a proven source of profitable growth. Boards and shareholders should demand that companies grow customer value, support the necessary investments, and push for new accounting standards that make the returns on these investments visible. All stakeholders will benefit: Customers will experience products and services that make their lives easier, richer, and more enjoyable. Employees will reap the benefits of making customers’ lives better. Management and investors will see increasing profits and shareholder value. And society will enjoy the economic growth that derives from innovation and investment. With transparency and reliable disclosure, investors and management teams can strike at the heart of short-termism and run their businesses for sustainable value.
