Who are the value drivers?
As we navigate the journey of designing, creating, and exchanging valuable products or services, there is a fundamental question we must ask ourselves: Who truly becomes our most important stakeholder?
Building an organization from an idea is no easy task. It requires the mastery of concepts that enable consumers to enjoy a vast universe of goods and services. Yet, amidst the complexities and successes, it is crucial to challenge our perceptions of leadership and stakeholders.
A recent article by a prominent aviation blogger discussed airline CEOs and their rankings. The absence of specific metrics or guidelines to determine the "best" leaders sparked a vibrant debate. Interestingly, many followers asserted that profitability should be the paramount parameter for evaluating leaders.
Reflecting on my experience in the airline industry since the mid-80s, I've witnessed tremendous change: technological advancements, regulatory shifts, disruptive business models, and more. Making money for shareholders, as a primary directive, has also evolved.
In 2005, I worked for Spain's second-largest passenger airline, where a new CEO sought to revitalize the organization's culture, plagued by years of losses, uncertainty, and inconsistent leadership. As he prepared to unveil his vision and strategy, he asked me to prepare a presentation on “how to improve the company’s culture”.
During my research, one airline stood out not just for its profitability, but for other vital metrics such as employee engagement, customer satisfaction, and community outreach. Southwest Airlines emerged as a true outlier in the industry, despite present challenges to its long-standing stellar performance.
I delved into numerous articles and books on the subject, including "Nuts”, which explores the core values and principles established by Southwest's co-founder, Herb Kelleher.
Kelleher believed that employees and the culture fostered within the organization were the key drivers of value. This principle, which has propelled Southwest's success for over five decades, remains counterintuitive for many leaders and organizations.
Over the past 23 years, we have witnessed astonishing changes in every aspect of our lives. As a result, the traditional "for-profit" model has evolved. In today's global community, with formidable challenges and risks ahead, creators of value must acknowledge the importance of a broader range of stakeholders in their narratives.
Concluding my presentation to the CEO and his team, I shared a widely recognized axiom: If you take care of the people, they will take care of the customers, who, in turn, will repeatedly create shareholder value.
A few months later, I embraced a pivotal career moment when I was appointed Chief People Officer in the company. It was a clear invitation to put into practice what I had preached.
I invite you to share your opinions and experiences. Which stakeholders truly deserve leaders' attention and focus within an organization? Are you willing to shift your perspective on this matter?
Let's engage in a conversation that challenges our assumptions and redefines the power of leadership.
#Leadership #StakeholderValue #EmployeeEngagement #OrganizationalCulture #SuccessFactors