Think the Dow’s 30 powerhouses are all unstoppable money machines? Think again. Some are value-destroying black holes; others are relentless value creators. The data? Ruthless. The takeaway? Crystal clear: Master these three battle-tested value principles or watch your empire crumble.
- Customer Obsession Trumps Profit Chasing: Prioritizing real value for buyers crushes short-term greed every time.
- Autonomous Networks Crush Hierarchies: Flat, flexible teams outmaneuver rigid command chains.
- Adaptive Mindsets Demolish Rigid Routines: Fluid thinking adapts to chaos; mechanical processes shatter.
These aren’t isolated hacks—they amplify each other like a chemical reaction. Nail all three? You have a chance to become a permanent value-creator. Botch them? You’re a relic like Boeing or 3M, hemorrhaging returns. Mixed bag? Expect mediocre muddling.
The ultimate irony: firms laser-focused on stakeholder value make much more money than firms focused primarily on making money.
Evaluating The 30 Firms In The DJIA
To help understand the implications of the value-creating principles, the 30 firms were evaluated on each of the three principles on a scale of 1 to 5 and the scores aggregated and compared to the firm’s 10-year total return (TSR from: SeekingAlpha).
Consistent Losers
1. Boeing [BA]
: [Overall 5.1/15.0] Safety fiascos torch trust in B2B deals (2.0/5.0). Bureaucratic silos crush network flow (1.5/5.0). Slow innovation buries agility (1.6/5.0). TSR vs. S&P 500: 78%/234%—crashing harder than its planes.TSR/S&P500 78%/234%
2. 3M [MMM]: [Overall 6.7 /15.0] Diverse lineup undermined by penny-pinching (2.2/5.0). Industrial bureaucracy chokes teams (2.2/5.0). Innovation sparks flicker in a mechanical maze (2.3/5.0). TSR vs. S&P 500: 89%/234%—stuck in neutral while rivals race.
3. Verizon [VZ]: [Overall 6.4/15.0] Customer value 2.3/5.0 (telecom pricing over personalized service). Autonomous networks 2.0/5.0 (corporate hierarchy in operations). Adaptive mindsets 2.1/5.0 (regulated processes limit flexibility). TSR/S&P500 66%/234%
4. Honeywell [HON] Customer value 2.8/5.0; Autonomous networks 2.2/5.0; industrial value mixed, bureaucratic layers present: Adaptive mindsets 2.3/5.0 TSR/S&P500 return: 155%/232%
Mixed Performers
5. Caterpillar [CAT]: [Overall 6.2/15.0] Customer value 2.4/5.0 (B2B equipment reliability over delight). Autonomous networks 1.8/5.0 (manufacturing hierarchy for scale). Adaptive mindsets 2.0/5.0 (standardized processes dominate). TSR/S&P500 673%/234%
6. Sherwin-Williams [SHW]: Overall 9.5/15.0 – Paint solutions emphasize pro-grade quality amid cost pressures (3.5/5.0). Traditional layers limit networked flexibility (2.8/5.0). Acquisitions and sustainability tweaks adapt steadily (3.2/5.0). TSR/S&P500: 389%/234%—coating consistency with moderate shine.
7. IBM [IBM]: [Overall 7.4/15.0] Customer value 2.5/5.0 (legacy services with buyback focus). Autonomous networks 2.5/5.0 (mixed bureaucracy in tech). Adaptive mindsets 2.4/5.0 (gradual cloud shift from mechanistic). TSR/S&P500 182%/234%
8. Chevron [CVX]: [Overall 6.9/15.0] Customer value 2.6/5.0 (energy contracts with profit priority). Autonomous networks 2.1/5.0 (safety-driven hierarchy). Adaptive mindsets 2.2/5.0 (process standardization over learning). TSR/S&P500: 210%/234%
9. Procter & Gamble [PG]: [Overall 8.1/15.0] Customer value 2.7/5.0 (consumer goods with cost efficiency). Autonomous networks 2.8/5.0 (layered global structure). Adaptive mindsets 2.6/5.0 (brand innovation amid routines). TSR/S&P500: 198%/234%
10. Coca-Cola [KO]: [Overall 8.0/15.0] Customer value 2.8/5.0 (iconic branding but short-term margins). Autonomous networks 2.5/5.0 (traditional distribution hierarchy). Adaptive mindsets 2.7/5.0 (marketing adaptability in processes). TSR/S&P500 134%/234%
11. Johnson & Johnson [JNJ]: [Overall 8.3/15.0] Customer value 2.9/5.0 (health products with regulatory focus). Autonomous networks 2.6/5.0 (regulated hierarchy). Adaptive mindsets 2.8/5.0 (R&D learning but mechanistic compliance). TSR/S&P500 152%/234%
12. Disney [DIS]: [Overall 10.1/15.0] Customer value 3.0/5.0 (entertainment experiences with content value). Autonomous networks 3.5/5.0 (creative team collaborations). Adaptive mindsets 3.6/5.0 (innovation in media shifts). TSR/S&P500 22%/234%
13. JPMorgan Chase [JPM]: [Overall 9.9/15.0] Customer value 3.1/5.0 (banking services with client focus). Autonomous networks 2.8/5.0 (regulated structure with teams). Adaptive mindsets 3.0/5.0 (adaptive finance strategies). TSR/S&P500 582%/234%
14. Merck [MRK]: [Overall 8.1/15.0] Customer value 3.2/5.0 (pharma solutions for patient needs). Autonomous networks 2.8/5.0 (R&D networks amid regulation). Adaptive mindsets 3.1/5.0 (clinical trial adaptability). TSR/S&P500 125%/234%
15. Travelers [TRV]: [Overall 9.5/15.0] Customer value 3.3/5.0 (insurance tailored to risks). Autonomous networks 3.0/5.0 (moderate team autonomy). Adaptive mindsets 3.2/5.0 (risk management learning). TSR/S&P500 248%/234% – an outlier example.
16. Goldman Sachs [GS]: [Overall 9.2/15.0] Customer value 3.4/5.0 (wealth services with client value). Autonomous networks 2.5/5.0 (hierarchical trading). Adaptive mindsets 3.3/5.0 (market-responsive strategies). TSR/S&P500: 428% vs S&P500
17. Amgen [AMGN]: [Overall 9.9/15.0] Customer value 3.5/5.0 (biotech therapies for patients). Autonomous networks 3.0/5.0 (R&D team focus). Adaptive mindsets 3.4/5.0 (clinical innovation). TSR/S&P500 147%/234%
Consistent Winners
18. McDonald’s [MCD]: [Overall 10.3/15.0] Customer value 3.6/5.0 (fast food convenience and value). Autonomous networks 3.0/5.0 (franchise networks). Adaptive mindsets 3.7/5.0 (menu evolution). TSR/S&P500 302%/234%
19. American Express [AXP]: [Overall 11.1/15.0] Customer value 3.7/5.0 (premium card benefits). Autonomous networks 3.2/5.0 (client team autonomy). Adaptive mindsets 4.2/5.0 (reward adaptations). TSR/S&P500 395%/234%
20. Home Depot [HD]: [Overall 11.6/15.0] Customer value 3.8/5.0 (DIY tools and service). Autonomous networks 3.8/5.0 (store team flexibility). Adaptive mindsets 4.0/5.0 (supply chain agility). TSR/S&P500365%/234%
21. United Health [UNH]: [Overall 10.1/15.0] Customer value 3.9/5.0 (healthcare access). Autonomous networks 3.0/5.0 (provider networks). Adaptive mindsets 3.2/5.0 (policy adaptations). 10-year total return vs S&P500 235%/234%
22. Walmart [WMT]: [Overall 11.6/15.0] Customer value 4.0/5.0 (everyday low prices). Autonomous networks 3.5/5.0 (supply chain networks). Adaptive mindsets 4.1/5.0 (e-commerce pivot). TSR/S&P500 492%/234%
23. Nike [NKE]: [Overall 11.1 /15.0] Customer value 4.1/5.0 (iconic branding and consumer loyalty through premium athletic products). Autonomous networks 3.2/5.0 (collaborative design teams with moderate decentralization). Adaptive mindsets 3.8/5.0 (innovation in sustainability and digital personalization). TSR/S&P500: 152%/234% – an outlier example
24. Cisco [CSCO]: [Overall 11.8/15.0] Customer value 4.2/5.0 (network solutions tailored to enterprise needs for reliability). Autonomous networks 3.5/5.0 (tech teams with flexible collaborations in R&D). Adaptive mindsets 4.1/5.0 (agile responses to cybersecurity and cloud trends). TSR/S&P500 255%/234%
25. Salesforce [CRM]: [Overall 13.4/15.0] Customer value 4.3/5.0 (CRM tools enhancing client relationships and personalization). Autonomous networks 4.6/5.0 (decentralized innovation hubs for software development). Adaptive mindsets 4.5/5.0 (continuous learning in AI and customer success). TSR/S&P500 243%/234%
26. Microsoft [MSFT]: [Overall 14.0/15.0] Customer value 4.4/5.0 (ecosystem integration for user productivity and satisfaction). Autonomous networks 4.8/5.0 (empowered teams in cloud and AI divisions). Adaptive mindsets 4.8/5.0 (growth culture fostering rapid pivots like Azure). TSR/S&P500 1246%/234%
27. Visa [V]: [Overall 12.9/15.0] Customer value 4.5/5.0 (seamless payment experiences building trust and convenience). Autonomous networks 4.0/5.0 (partner ecosystems with moderate internal autonomy). Adaptive mindsets 4.4/5.0 (evolution in fintech and fraud prevention). 10-year total return vs S&P500 422%/234%
28. Amazon [AMZN]: [Overall 13.8/15.0] Customer value 4.6/5.0 (prime loyalty through fast delivery and vast selection). Autonomous networks 4.5/5.0 (small teams driving e-commerce and AWS innovations). Adaptive mindsets 4.7/5.0 (data-driven experimentation in logistics and services). TSR/S&P500 745%/234%
29. Nvidia [NVDA]: [Overall 14.0/15.0] Customer value 4.7/5.0 (AI hardware enabling cutting-edge tech solutions). Autonomous networks 4.7/5.0 (decentralized engineering for GPU advancements). Adaptive mindsets 4.6/5.0 (rapid adaptation to AI and gaming demands). TSR/S&P500 31,318%/234%
30. Apple [AAPL]: Overall 13.5/15.0 – Ecosystem innovations prioritize user delight over quarterly cuts (4.8/5.0). Functional teams balance hierarchy with creative autonomy (4.0/5.0). Swift pivots to AI and services shatter rigid norms (4.7/5.0). TSR vs. S&P 500: 803%/234%—tech titan reinventing daily.
And read also:
Ending Obsolescence: How Value Creation Principles Redefine Business