Customer-Driven Disruption

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CUSTOMER-FOCUSED STRATEGIES NEEDED TO AVOID DISRUPTION

TO AVOID DISRUPTION, IT’S not enough to understand customer needs—you have to devise strategies to address them. Too many leaders focus instead on investors and increasing short-term stock prices. Of course, companies must increase long-term shareholder value. But the way to do that is not through short-term, investor-focused strategies but by longer-term strategies for keeping customers happy.

Most leaders understand that they have to deliver what customers need, but their companies’ incentives and compensation don’t support that and their short tenure exacerbates the need for short-term performance. Most U.S. executives are rewarded with excessive stock awards and stock options with two ...