Great article, I couldn’t agree more.
Kayla Rimer
41

Thank you Kayla. It will take time for this to take hold as an established practice. There are just too many trailing indicators (profit, stock price, expected compensation) that still hold precedence in our society for this to be widely adopted.

However, there is hope, certain metrics are beginning to take shape like net promoter score (aka NPS) which measures the degree to which customers are willing to be champions for the companies that serve them.

There are also growing movements around self-organization (holacracyone for instance, also agile and scrum in the software world) that are beginning to pick up steam (agile and scrum already widely adopted).

The big issue is, a lot of the aforementioned traits like corporate empathy are not easily quantifiable. NPS is close but even that i think doesn’t really do true customer engagement justice.

It’s here I think the statisticians will have their work cut out for them. Not impossible, but a lot harder than looking up datasets in Factset or bloomberg. They will have to identify and qualify companies that have exhibited these traits of corporate empathy for a long period of time and then track them against other “control” performers.

Long story short, most people won’t believe this is important until the “numbers” say they do. Until then, I am happy to do the legwork on my own and arbitrage against firms and investors that are still relying on inadequate trailing indicators of quality products and services.

In meantime, if you are interested in the topic of reinventing the organizational paradigm, I recommend two books below. Good luck!

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