To achieve zero blind spots and make zero mistakes, a leader must see through the eyes of all six key counterparties: customers, suppliers, employees, owners, regulators, and the community. By systematically structuring every decision to be a 'win-win' for each of these groups, a business can create a robust, sustainable, and ethical competitive advantage.
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Frontline employees have the most information about customer needs, while leaders have all the authority. To deliver exceptional service, empower the people interacting with customers to make decisions in the moment. This closes the gap and allows the organization to be truly responsive.
The 20th-century view of shareholder primacy is flawed. By focusing first on creating wins for all stakeholders—customers, employees, suppliers, and society—companies build a sustainable, beloved enterprise that paradoxically delivers superior returns to shareholders in the long run.
The fundamental goal is to become a "better competitive alternative" for a specific customer—being so superior that they bypass competitors to choose you. Achieving this state is the business equivalent of the house advantage in a casino (“the house vig”) and the only reliable way to build a lasting enterprise.
Business is a unique domain where you can pursue selfish goals (building a large, profitable company) and selfless ones at the same time. By building a successful company with ethical, people-first practices, you force competitors to adopt similar positive behaviors to compete, thereby improving the entire industry for everyone.
When facing emotionally difficult decisions like firings or reorgs, it's tempting to optimize for making people happy. The correct mantra is 'serve the business, not the people.' A successful business ultimately benefits everyone involved. This principle provides clarity and helps you make the right, albeit painful, call.
The debate between being product-led vs. sales-led is a false dichotomy that creates friction. Instead, frame all functions as fundamentally 'customer-driven.' This reframing encourages product teams to view sales requests not as distractions, but as valuable, direct insights into customer needs.
David Solomon rejects the common framing of prioritizing customers, employees, or shareholders. He views leadership as conducting an orchestra, where the goal is to keep all three stakeholder groups in harmony. Neglecting one will inevitably cause the entire performance to suffer.
A business decision aims to gamify and optimize a specific outcome. A principle decision is based on core values, made without knowing the outcome, to be remembered favorably regardless of the result. Sticking to principles may mean losing a short-term battle but ultimately wins the war by building trust.
While customer empathy is common, the real breakthrough in solving complex problems comes from fostering empathy between internal business units, such as sales and operations. This transforms internal friction and blame into a shared, collaborative mission.
This framework structures decision-making by prioritizing three hierarchical layers: 1) Mission (the customer/purpose), 2) Team (the business's financial health), and 3) Self (individual skills and passions). It provides a common language for debating choices and ensuring personal desires don't override the mission or business viability.
