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When Lafley took over as CEO, he made a subtle but important but change in a core, senior-management, performance-measurement criterion. He changed "Market Total Shareholder Return" (M-TSR)" to "Operating Total Shareholder Return (O-TSR)."
In the case of Rohm and Haas this process began in earnest in 1985 with the appointment of a Greek national, Dr. Basil Vassilou, to head our operations in Europe; followed by a Cuban, Henri Martinez, heading our Latin American operations starting in 1988; an Indian American (myself) heading up Asia Pacific operations in 1993.
Management set out to build the best customer experience possible by instituting a training program for sales staff and fully committing themselves to its implementation. The findings revealed that a group of companies emerged with higher total shareholder return (TSR) than their peers post-recession.
Indeed, our study shows that the biggest variations in TSR are not between industries but within them. But the TSR variations of companies within these industries were far greater: 44 percentage points in tobacco and 69 percentage points in computers and peripherals. For them, industry was not destiny. So how do the winners do it?
Management set out to build the best customer experience possible by instituting a training program for sales staff and fully committing themselves to its implementation. The findings revealed that a group of companies emerged with higher total shareholder return (TSR) than their peers post-recession.
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