Value Leadership: The 7 Principles that Drive Corporate Value in Any Economy

323 Pages·2003·1.19 MB·English

by  Peter S. Cohan

a 966045 FM.qxd 8/12/03 2:12 PM Page v
Peter S. Cohan
Value Leadership
The 7 Principles That Drive
Corporate Value in Any Economy
a 966045 FM.qxd 8/12/03 2:12 PM Page iii
a 966045 FM.qxd 8/12/03 2:12 PM Page i
Advance Praise for Value Leadership
“Peter Cohan has produced a thoughtful and well-written analysis of
what it takes to build and sustain a successful business organization.
He employs real-life business examples to illustrate his points and he
makes a compelling case for the principles which he believes can make
or break a company.”
—Samuel L.Hayes III,Jacob H.Schiff Professor of Investment
Banking,Emeritus,Harvard Business School
“Value Leadershipis an insightful and inspiring book.It recognizes
that restoring trust in corporate America will take more than legisla-
tion and compliance with regulations.It will demand a fundamental
re-examination ofcorporate values,cultures,and relationships.Cohan
presents a cogent,practical model for this process,which should inter-
est investors,executives,board directors,employees,policy makers,
and anyone who wants to see business generate value for society in a
sustainable and ethical way.”
—W.Michael Hoffman,executive director,Center for Business
Ethics,Bentley College
“Value Leadership evolves Cohan’s earlier paradigms into seven
extremely clear principles to help both graduate students and man-
agers in our executive education programs analyze companies in
today’s hot fields like genomics,bio-informatics,and photonics.I
think his principles,cases,and tools will also be quite useful for man-
agers,venture capital investors,board members,and others who have
to assess and guide growth businesses.”
—Barry Unger,chairman,science and engineering program,divi-
sion ofextended education and faculty ofphotonics,Boston Uni-
versity
“There are two things every executive should understand about Value
Leadership.First,the Value Quotient is a strategic assessment and
planning tool that is easy to understand and put to work.Second,it
actually does work—brilliantly.”
—Michael Alan Hamlin,author,The New Asian Corporation,and
CEO,TeamAsia
a 966045 FM.qxd 8/12/03 2:12 PM Page ii
“It’s so easy to commit conceptually to value leadership,but so hard
to implement that commitment in a sustained way and to achieve
best-in-class results. Cohan provides guidelines for a systematic
approach to both implementation and measurement ofvalue leader-
ship derived from his in-depth studies ofcompanies that demonstrate
sustained value leadership.The world needs more value leaders.Peter
Cohan can help.”
—Mark P.Rice,Murata Dean,F.W.Olin Graduate School ofBusi-
ness,Babson College
“Value Leadershipis an extremely important book because it lays out
a clear and navigable road map for companies to restore trust with
customers,employees,and investors.It thoroughly integrates uplift-
ing principles with a thoughtful measurement approach to ensure out-
standing results,providing a healthy antidote to the cynicism that has
grown so pervasive....I recommend this book strongly to boards and
management teams,who are almost universally dealing with these
issues.”
—Bill Kelvie,CEO,Overture Technologies
“Peter Cohan takes us back to the future with laser-like focus through
the prism of value (based) leadership.Cohan appeals powerfully to
our natural instincts to “do the right thing”and reminds us that hon-
esty,integrity,and character in their full splendor are the truly endur-
ing elements of successful American capitalism—and as important
and measurable as profits and growth.Value Leadershipis a much-
needed prescription at a unique time in American business and stands
apart from its genre by reminding us ofthe traits that make the pur-
suit ofprofits a noble cause.”
—Mahesh Krishnamurti,publisher and CFO,Worth Magazine
a 966045 FM.qxd 8/12/03 2:12 PM Page iii
Value Leadership
a 966045 FM.qxd 8/12/03 2:12 PM Page iv
Also by Peter S.Cohan
The Technology Leaders: How America’s Most Profitable High-
Tech Companies Innovate Their Way to Success
Net Profit: How to Invest and Compete in the Real World of
Internet Business
e-Profit: High PayoffStrategies for Capturing the E-Commerce
Edge
e-Stocks: Finding the Hidden Blue Chips Among the Internet
Impostors
Technology Leaders
e-Leaders
a 966045 FM.qxd 8/12/03 2:12 PM Page v
Peter S. Cohan
Value Leadership
The 7 Principles That Drive
Corporate Value in Any Economy
a 966045 FM.qxd 8/12/03 2:12 PM Page vi
Copyright © 2003 by Peter S.Cohan.All rights reserved.
Published by Jossey-Bass
A Wiley Imprint
989 Market Street,San Francisco,CA 94103-1741 www.josseybass.com
No part ofthis publication may be reproduced,stored in a retrieval system,or transmitted in
any form or by any means,electronic,mechanical,photocopying,recording,scanning,or other-
wise,except as permitted under Section 107 or 108 ofthe 1976 United States Copyright Act,
without either the prior written permission ofthe Publisher,or authorization through payment
ofthe appropriate per-copy fee to the Copyright Clearance Center,Inc.,222 Rosewood Drive,
Danvers,MA 01923,978-750-8400,fax [phone],or on the web at www.copyright.com.
Requests to the Publisher for permission should be addressed to the Permissions Department,
John Wiley & Sons,Inc.,111 River Street,Hoboken,NJ 07030,201-748-6011,fax [phone],
e-mail:[email protected].
Jossey-Bass books and products are available through most bookstores.To contact Jossey-Bass
directly call our Customer Care Department within the U.S.at 800-956-7739,outside the U.S.at
317-572-3986,or fax [phone].
Jossey-Bass also publishes its books in a variety ofelectronic formats.Some content that appears
in print may not be available in electronic books.
Library ofCongress Cataloging-in-Publication Data
Cohan,Peter S.,1957-
Value leadership :the 7 principles that drive corporate value in any
economy / Peter S.Cohan.—1st ed.
p.cm.
Includes bibliographical references and index.
ISBN 0-7879-6604-5 (alk.paper)
1. Leadership.2. Executive ability.3. Profit.4. Social
responsibility ofbusiness. I.Title:7 principles that drive corporate value in any economy.II.
Title:Seven principles that drive corporate value in any economy.III.Title.
HD57.7.C63 2003
658.4'092—dc21 2003006810
Printed in the United States ofAmerica
FIRSTEDITION
HB Printing10 9 8 7 6 5 4 3 2 1
a 966045 FM.qxd 8/12/03 2:12 PM Page vii
Q Contents
Introduction:What Is Value Leadership? 1
1 Where Do You Stand?
(Start with the Value Quotient) 25
2 People Matter
(Value Human Relationships) 53
3 Two Heads Are Better Than One
(Foster Teamwork) 81
4 Growth Matters
(Experiment Frugally) 107
5 Trust Is Vital
(Fulfill Your Commitments) 137
6 Success Can Breed Failure
(Fight Complacency) 165
7 Profit Is Vital
(Win Through Multiple Means) 189
8 Doing Good Matters
(Give to Your Community) 221
9 Actions Speak Louder Than Words
(Instill Value Leadership in Executives,Investors,and
Policymakers) 253
Appendix:Selection and Value Quotient Analysis
ofValueLeaders 275
Notes 291
Acknowledgments 302
The Author 304
Index 307