sahrholder value

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I used to say “People who talk about ROI aren’t, getting it.” Today, I amend to say company “CEOs who talk about shareholder value aren’t getting it.”  Look at HPE (Hewlett Packard Enterprise). They divided from HP, sold off their services business, are selling their software business and tightening the company compression shorts to make themselves even more attractive to shareholders. Consolidations of this sort are focused on Wall Street. But in technology you need the best product not the leanest business. 

Look at Apple.  Do you think Apple’s people really care about shareholder value as they drive to work?  No, they’re thinking product. Product innovation. Product woosh. Today, The NY Times Farhad Manjoo dinged Apple for lackluster product design of the iPhone 7…and you know that had to hurt. From Tim Cook all the way down to the parking garage attendant. But Apple knows the design is good and they know what’s in the pipeline. Apple cares about product, not shareholder value. Leave shareholder value to the tech companies on the way down. 

Peace.    

 

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