A New Way To Think audiobook cover - Your Guide to Superior Management Effectiveness

A New Way To Think

Your Guide to Superior Management Effectiveness

Roger L. Martin

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A New Way To Think
The Core Philosophy+
Historical Context of Capitalism+
The Flaw in Shareholder Value+
The Customer-Centric Alternative+
Leadership & Compensation+

Quiz — Test Your Understanding

Question 1 of 4
According to the text, what is a fundamental flaw in the strategy of maximizing shareholder value?
  • A. It discourages the hiring of professional management teams.
  • B. It relies on raising collective expectations indefinitely, which is impossible and leads to crashes.
  • C. It forces companies to lower product quality to maintain high profit margins.
  • D. It completely eliminates the ability to generate future cash flows.
Question 2 of 4
What alternative strategy does the text suggest for achieving sustainable corporate success?
  • A. Prioritizing customer satisfaction while ensuring shareholders receive an acceptable return.
  • B. Shifting entirely back to the 1932 model of managerial capitalism.
  • C. Eliminating shareholder dividends to reinvest all profits into marketing.
  • D. Maximizing short-term profits to fund long-term customer acquisition.
Question 3 of 4
What was the result of Paul Polman's strategy at Unilever?
  • A. The company's stock declined initially but stabilized after returning to a shareholder-first model.
  • B. The company experienced a 266% increase in stocks over a decade by focusing on long-term branding instead of prioritizing shareholders.
  • C. The company successfully maximized shareholder value in short bursts, leading to rapid market expansion.
  • D. The company struggled with unmeetable expectations due to its heavy reliance on stock-based compensation.
Question 4 of 4
How should companies structure CEO compensation to align with the customer-first approach?
  • A. By heavily weighting compensation toward short-term stock performance to guarantee immediate returns.
  • B. By tying compensation exclusively to quarterly customer satisfaction scores.
  • C. By aligning compensation with long-term business growth and avoiding short-term, stock-based rewards.
  • D. By providing only fixed salaries to prevent executives from manipulating stock prices.

A New Way To Think — Full Chapter Overview

A New Way To Think Summary & Overview

A New Way To Think (2011) presents a paradigm shift, arguing that companies could achieve sustainable success and shareholder returns by prioritizing customer satisfaction over the traditional focus on maximizing shareholder value.

Who Should Listen to A New Way To Think?

  • Business leaders
  • Shareholders
  • Customer experience advocates

About the Author: Roger L. Martin

Roger L. Martin is a distinguished academic and business consultant. He is a professor emeritus and former dean at the University of Toronto's Rotman School of Management, recognized for his influential work on business strategy and design thinking.

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