Triple Crown Leadership

Triple Crown Leadership

A New, Overarching Goal for Boards

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Author and Speaker, Bob Vanourek, uses this picture of the values of Triple Crown Leadership to express the importance of excellence, ethics and endurance in any organization.

The Three Es of Triple Crown Leadership

One of the painful results of boards embracing the goal to “maximize shareholder value” is shown in the Edelman Trust Barometer:

  • Only 53% of respondents trust business
  • Only 18% of the general population trust business leaders to tell the truth

The overarching goal for corporate boards should not be to maximize shareholder value. Instead, boards should set as their primary objective to:

Build an excellent, ethical, and enduring organization.

Excellent means achieving extraordinary results for customers, employees, and shareholders.

Ethical means achieving those results the right way, with integrity, not cutting ethical corners.

Enduring means achieving those results sustainably, being conscious of the firm’s impact on the planet, and acting responsibly to ensure precious resources are not wasted. Enduring also means acting sustainably inside the firm, not burning people out, nor engaging in unsustainable financial practices.

Such an overarching goal will not appeal to the short-term day traders. But the overarching goal to build an excellent, ethical, and enduring company, oft repeated and pursued by company leadership, will have great appeal to a large and growing base of customers, employees, and shareholders. Why? Because trust will be built.

Many customers will reward the firm with their loyalty. Many talented employees will make a deeper commitment and unleash their creativity. Many long-term oriented institutional investors will have confidence the firm is creating extraordinary value over time.

 

Boards should set as their primary objective to build an excellent, ethical, and enduring organization.

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Bob Vanourek is the former CEO of five firms from a start-up to a billion dollar NY stock exchange turnaround. He is the co-author of the award-winning book Triple Crown Leadership: Building Excellent, Ethical, and Enduring Organizations. He is one of Trust Across America’s Top 100 Thought Leaders in Trustworthy Business Behavior. www.triplecrownleadership.com

A quote from leadership speaker and author Bob Vanourek is featured on the cover of Trust Inc: A Guide for Boards and C-Suites.

This article is one of several Bob Vanourek wrote forTrust Inc., A Guide for Boards and C-Suites, published by Next Decade, Inc. 2014 and edited by Barbara Brooks Kimmel, Executive Director, Trust Across America – Trust Around the World.

 

 


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2 thoughts on “A New, Overarching Goal for Boards

  1. Trust and integrity … feel good mantras that many leaders wear like a cloak but quickly take off when it interferes with their egos and/or personal agendas. Yet some of these leaders play dumb about what has to be done to make an organization successful. If leaders just focused on trust it would improve the moral and work effort of an organization. It seems like common sense but why is this so difficult to comprehend? The idea of quick wins interferes with trust and integrity … especially when there is pressure from the higher ups pressuring lower managers to meet the deadline “as any cost”.

  2. Good points, Michael. I agree “trust” is a more practical term to use and one that most people will recognize versus more ethereal concepts like “integrity” or “ethics.” I have been an Alliance member of Trust Across America for a few years and find it most valuable. http://www.trustacrossamerica.com
    We have to get out of the short-term mentality, which Gregg and I refer to as “suicide by quarter.”
    Thanks for commenting.

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