Europe makes a fresh start - Roland Berger Strategy Consultants

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Europe makes a fresh start
Modern Europe paints the following picture. Any sense of explicit identification
with Europe is very limited indeed. Even so, shared religious,
family, democratic and other values are still held in high esteem. Contrary
to the assumption of a completely secularized modern world,
for example, 75 percent of Europeans today refer to themselves as
"religious". Shared historical developments have thus brought forth
a kind of canon of common values that have, however, not (yet)
caused the continent's inhabitants to see themselves first and foremost
as "Europeans".
(Atlas of European Values, University of Tilburg. See
http://www.atlasofeuropeanvalues.com/English_press.html)
Let us turn our attention to the distinguishing characteristics of the
European management model. In doing so, let us analyze the advantages
and drawbacks of this model relative to other models practiced in the
arena of global competition.
1. Consideration for all stakeholders and a commitment to durable value
growth
Companies operate within a web woven by different groups of stakeholders.
Owners, employees, creditors, customers, suppliers, the government,
society at large and even the media all pursue their own interests and
objectives. These objectives are condensed into the claims and expectations
they place on companies.
Shareholders, for example, expect the value of the capital they have
invested to grow. They are therefore interested in stock price gains and
dividend payouts. Employees seek job security and are keen to maximize
their quality of life and work. They therefore judge the company by different
criteria: How safe and interesting is their job? How much do they earn?
How much leisure time do they enjoy? What career prospects lie ahead of
them? How do they rate management performance? And what say can
they have in the affairs of the company? This list can be extended to
include other groups. Figure 3 summarizes the interests of the main
groups of stakeholders.