April 21, 2011
Toronto, ON – An article by Roger Martin, Dean of the Rotman School of Management at the University of Toronto, which appeared in Harvard Business Review, was honoured with a second place prize in the 2010 McKinsey Awards. The article, The Age of Customer Capitalism,<http://hbr.org/2010/01/the-age-of-customer-capitalism/ar/1> from the magazine’s January-February 2010 issue argued that the current era of shareholder value capitalism should be abandoned and that we should move to customer-driven capitalism.
Martin wrote in the article that determining what your customers value and focusing on always pleasing them is a better optimization formula. In the article Martin uses historical stock prices from the S&P 500 to show that the focus on shareholder value hasn’t done shareholders any favors. They have actually earned lower returns since corporations adopted it as their guiding principle. Two companies who have placed customers at the forefront of their operations, Johnson & Johnson and Procter & Gamble, have generated shareholder returns that are at least as high as, if not higher than, those of leading shareholder-focused companies.
The annual McKinsey Awards, judged by an independent panel of business and academic leaders, commend outstanding articles published each year in Harvard Business Review. The awards were established in 1959 to recognize practical and groundbreaking management thinking by determining the two best articles each year in Harvard Business Review. Past winners include such distinguished notables as Peter Drucker, Michael Porter, Rosabeth Moss Kanter, and George Stalk. This year’s announcement appears in the May issue of the magazine.
Clayton M. Christensen received the first prize for his article “How Will You Measure Your Life?” Christensen is the Robert and Jane Cizik Professor of Business Administration at Harvard Business School and a four-time recipient of the award.
A second place prize was also given to Vijay Govindarajan and Chris Trimble’s “Stop the Innovation Wars.” Govindarajan is the Earl C. Daum 1924 Professor of International Business and founding director of the Center for Global Leadership at Dartmouth’s Tuck School of Business, and Trimble is on the faculty at Tuck and an expert on making innovation happen in large organizations.
The 2010 award winners were selected by a diverse and distinguished panel of leaders from business, finance, and academia:
Gerald Chertavian, Founder and CEO, Year Up; David Collis, Thomas Henry Carroll, Ford Foundation Adjunct Professor of Business Administration, Harvard Business School; Alfred Lin. Former CFO, Zappos.com; Aditya Mittal. CFO, ArcelorMittal; Ann Moore, Former Chairman and CEO, Time Inc.; and Vivian Schiller, Former President and CEO, National Public Radio.
Harvard Business Review is the leading destination for smart management thinking. Through its flagship magazine, 11 international licensed editions, books from Harvard Business Review Press, and digital content and tools published on HBR.org, Harvard Business Review provides professionals around the world with rigorous insights and best practices to lead themselves and their organizations more effectively and to make a positive impact.
The Rotman School of Management at the University of Toronto is redesigning business education for the 21st century with a curriculum based on Integrative Thinking. Located in the world’s most diverse city, the Rotman School fosters a new way to think that enables the design of creative business solutions. The School is currently raising $200 million to ensure Canada has the world-class business school it deserves. For more information, visit www.rotman.utoronto.ca<http://www.rotman.utoronto.ca>.
For more information:
Manager, Media Relations
Rotman School of Management
University of Toronto
Follow Rotman on Twitter @rotmanschool