From maximizing shareholder value to delighting the customer

Purpose – The paper was written with the intention of drawing attention to a fundamental dysfunction that is widespread in large organizations today – a myopic focus on maximizing shareholder value. Design/methodology/approach – The paper identifies the source of the dysfunction, the reasons why it has spread, and explains the corrective measures required, namely, a shift in goal from maximizing shareholder value to delighting the customer. Findings – The dysfunction is widespread and dangerously counterproductive to long‐term business success. Research limitations/implications – Further quantification is needed, both of the business results over time of firms that have failed to make the shift and of those firms that have made the transition. Practical implications – The paper proposes transformation of business practices throughout the world – the adoption of radical management and goals that produce stakeholder value. Originality/value – The findings and implications of the paper, which draw on recent work by writers such as Roger Martin, will be controversial to many business executives and academics.