There are real lessons for managers and employees to learn from behaviour of stock market over last few years.

Someone running their own one-man business knows what is important to him as far as his business is concerned. He needs money to live on and he needs money to pay his bills on time. He needs income and cash flow. Until he comes to sell his business it really doesn’t matter to him what its capital value is. What he needs and wants in immediate is a flow of profits from his business. That is what matters to him.

If he wishes to sell up and retire, or if he wishes to raise money to reinvest in his business, then that is moment when it is important to know ‘value’ of his business. And it is not what he thinks it is worth, but what buyer or bank thinks it is worth.

And how will they decide this? They will look at his books and value business based on two fundamental elements – stock of course, and above all income.

So we come back again to income and profit that results from that income. There is no other way to truly value a business. This applies to businesses of any size, even largest of publicly quoted companies. And yet that is not what we have seen in recent years.

In recent past we have seen stock market prices of publicly listed companies rise and rise to unbelievable heights even when in some cases there are no profits either now or in foreseeable future.

The public of course has a herd instinct, and in times of large price movements does not want to be left behind, so will buy because everyone else is. In consequence price goes up beyond a sensible level.

The trouble is that if you have bought shares in a non profit making company you won’t be getting dividends and only way you will ever realise a gain is by selling shares. You can hold them as long as you like but as long as there is no profit and no dividend you will be out of pocket.

Knowing this, when think that they have reached their peak you will decide to sell. Unfortunately chances are that others will too. The mass selling begins. When prices come down same thing happens as when they went up, only in reverse. They fall beyond point where they should reasonably be.

Making money doesn’t make your reputation... your reputation makes you money. Gala Gorman

Whether your business is product or service-oriented, loyalty and dedication of your customers is greatly dependent on your reputation. Your most effective sales force is your existing customer base. Word-of-mouth or personal recommendation, serves to create an expectation that you must only live up to - rather than one that you must create from scratch. The assets of your business have traditionally included property, plant, equipment, and your customer base. Progressive organizations understand that concept of business assets should be expanded to include their good reputation. By being responsive to change, having ability to conduct a constructive dialogue with stakeholders, and taking advantage of networked resources, organization further extends their tangible and in-tangible non-traditional assets.

Companies are increasingly adopting socially responsible business practices based on sustainable development to ensure efficiency, stimulate innovation, and create top-line growth. This new approach to business requires leadership to re-think priorities with a focus on a longer-term agenda. The socially responsible leader understands that decisions made by management must focus not only on profit-making but also on reputation- building. Fortunately latter feeds former.

These are Top 10 priorities that will ensure a sustainable future for your business or organization. After thoughtful consideration, priorities must be established (re-established) and communicated to stakeholders. With every area of organization working in alignment with vision, mission and values, goals and objectives are more easily reached. To begin discovery process, use this list to honestly evaluate your organization’s priorities.

1.Define and demonstrate your values.

A.What products or services do you provide and how do they serve to demonstrate your values? You must first define your values and create your mission with a clear understanding of values you wish to demonstrate. If your products and services can’t be reconciled with your values, trust is eroded.

B.How will your products or services impact stakeholders? Your stakeholders include stockholders, but group also extends to staff, associates, vendors and community that is directly or indirectly impacted by what you produce. Stakeholders become a far-extending community of concerned parties.

C.What filter is in place for decision-making? Your filter is created from having a clear understanding of your values and mission. Decisions are run through this filter before being communicated or implemented.

2.Create a recognizable image.

A.What is your desired image? Once you have defined your values and mission, you have an easier job of creating your image. You know how you want to be perceived and recognized and, consequently, you can take action that will create desired result.

B.Are your logo and promotional materials consistent and memorable? Your logo is a powerful trigger that creates recognition for your organization. Careful thought and consideration should be given to your logo and how it communicates message desired.

C.Does your marketing support and extend desired image? Your marketing plan and program should serve to create and extend your brand recognition. All activities, whether they are marketing related or otherwise, should serve to create and support your brand environment.

3.Know your market and customer.

A.Who is your perfectly-aligned customer? You should be able to readily communicate profile of your perfect customer. By creating this profile, you set universal law of attraction into motion so that you can focus your energy on customers whose values and beliefs are in alignment with organization’s.

B.What does your perfectly-aligned customer expect from your services? If you are focused on serving a customer that is perfectly-aligned with your values, by understanding how they expect to benefit from your services you create a powerful business model. You walk a mile in customer’s shoes.

C.How might you extend your services to exceed expectations? Once you understand customer expectations, you can begin to discover ways to exceed them. It is important to maintain focus and know what you can realistically do without diluting your energy.

4.Strive for perfection.

A.Is perfection expected? Perfection isn’t conditional. It must be primary goal regardless of circumstances. Every level of organization should understand what it means to perfect its product or service.

B.How are mistakes or errors turned into learning opportunities? Mistakes and errors can be transformed into tremendous opportunities if they are given appropriate consideration. The root cause can be mined for its eye-opening insight into breakdowns in an organization’s systems and infrastructure.

C.Who decides if it’s perfect enough? There must be one clear standard that is demonstrated at every level of an organization. This standard applies regardless of time pressures or circumstances.

5.Treat your stakeholders like family.

A.Do you understand who your stakeholders are? Stakeholders is a fairly new term that extends far beyond an organization’s stockholders or owners. Even organization’s customers are stakeholders - they have a vested interest in organization’s continued existence and success.

B.Is community encouraged? For example, staff spends more of their waking hours with fellow workers than they do with their own family. By encouraging community through fostering relationships between stakeholders, organization creates loyalty, dedication, and commitment.

C.Are wealth creation and benefits shared fairly? Careful consideration should be given to distribution of wealth amongst those that are most instrumental in creating it - intrinsically and consequentially. All members of an organization’s family can expect to benefit from success created by sharing and progressing agenda.

6.Contribute to your local community.

A.Is your local community defined and understood? For some, local may be limited to a 10-mile radius. For others, local will encompass globe. In order to contribute effectively to your local community, you must understand its make-up.

B.Is community participation encouraged and rewarded? The organization should create a win/win relationship with its community. The community provides it with its means for creating success and it gives back to community appropriately by allocating and sharing its resources.