Effective innovation can boost stock price
Beyond competitive advantage, there is still evidence that innovation can
boost stock price. An article in a 2001 issue of Harvard Business Review
(Bemick, 2001) demonstrates how Alberto-Culver Company profited greatly
when president and CEO, Howard Bernick, and vice-chairman and president
of consumer products worldwide unit, Carol Bernick, made changing
company culture a top priority. Today, innovation is a way of doing business
for Alberto-Culver. Innovation is top of mind for everyone in the
organization, and maintaining an innovation culture is part of everyone's
responsibilities. Employees are measured and rewarded for enforcing and
stimulating a positive culture within the organization. As a result, between
1994 and 2001, Alberto-Culver gained approximately 83 per cent in sales
and 336 per cent in pretax profits while cutting employee turnover in half.