Shareholder value is a myth - says who? Neutron Jack!

Jack Welch, the idolized management guru, Neutron Jack who mercilessly shutdown businesses which didnt add shareholder value, the same Jack who possibly influenced several MBA classrooms with his 'investor/shareholder returns should be focus of the business' thought gave an interesting interview in FT.

Jack says:

"On the face of it, shareholder value is the dumbest idea in the world," he said. "Shareholder value is a result, not a strategy...your main constituencies are your employees, your customers and your products."

I still believe that there should be a minor tweak to the order of main constituencies - customers should come first, followed by employees and finally products. If every company strategizes "customer care" as a core competency and willing to risk short term gains, success is definitely on the cards. But then, getting to that decision and living by that commitment needs lot maturity.