ne of the fundamental problems we have observed with American business is an overemphasis on fmancial measurements, compounded by the pressure to produce short-term gains. That tendency is encouraged by most management consultants, who focus exclusively onfinancial results or outcomes. They select companies with the best sales records, profit margins, and returns on investment. Having identified the best companies, based on these performance criteria, they then "back up" and try to determine the management practices that led to the results.
Today's economy calls for a new and broader definition of success that builds on the foundation of an effective organization-namely, its mission and its values. We have found that successful companies first emphasize values-the beliefi, attitudes, and feelings top management 'has about employees, customers, quality, ethics, integrity, social responsibility, growth, stability, innovation, and flexibility-rather than focus solely on results.
Such values-driven enterprises-dubbed "Fortunate 500" companies by John Naisbitt and Patricia Auberdene-are distinguished by the following operating phdosophy:
A fulfillug work environment for employees Service that transforms customers into "raving fans" Enhanced value for shareholders/owners A demonstrated spirit of shared responsibility with the community and other significant stakeholders.
If a company does these things, the hard numbers such as sales revenues and profitability will follow. We believe a company can become a Fortunate 500 company by identlfjrlng core values, communicating core values, and aligrung values and practices.