Page 217 - Performance Leadership

206 • Part III Principles from the Values and Social Dimensions

It is also possible to measure how successful the positioning of the
combination of innovation and inspiration is in the market. It would
be interesting to know if consumers buy Nike products when they start
practicing a certain sport (bringing the inspiration), or if Nike products
are seen as more advanced and are bought when the consumer reaches
a higher level of competence. This then would be seen as innovation
and an upgrade from other brands.
Without knowing Nike from the inside, examining and interpreting
its mission statement provides us with some powerful information
about its value drivers and how to manage the organization.
Key performance indicators of brand value for Nike would be:

• Percentage revenue of new products
• “Mind share”
• Cross-sell
• First product bought

Shareholder Value
Most performance methodologies focus on maximizing shareholder
value. If the mission statement states the same, there is alignment
between the organization’s mission and how to track the results. The
following mission statements focus on shareholder value only. A fash-
ion brand states, “Management’s most important objective is to maxi-
mize value for the company’s shareholders.” A hardware and building
supplies chain says: “The Board of Directors is committed to maxi-
mizing long-term shareholder value while supporting management in
the business and operations of the Company, complying with the high-
est integrity standards and laws of the jurisdictions within which the
Company operates.”
These mission statements are very straightforward. They address the
stakeholder, in this case, the shareholder directly. They are also for-
mulated in broad enough terms. However, these mission statements
are not particularly inspiring, nor do they give guidance on what the
right or best strategies are. For long-term sustainable performance, hav-
ing a strong identity is important; it guides difficult decisions in tough
times. What happens in pure shareholder-driven organizations, if in
this case the fashion brand predicts the trend wrongly? It is hard to fall