BUSINESS LEADERS HAVE A CHOICE in how they compete. The popular way this choice has been framed is between a “high-road” and “low-road” option. High-road companies seek to compete through high productivity, innovation, and quality customer service that both require and support high wages and good job and career opportunities for employees. The low-road strategy seeks profits and shareholder returns by minimizing costs and controlling labor in ways that keep wages low for most employees and/or independent contractors.
Two decades of research on high-road companies have documented their ability to achieve world-class productivity and service quality in industries as diverse as steel, autos, airlines, telecommunications, apparel, health care, computers, and semiconductors. More recent case studies are documenting similar patterns of success in smaller businesses in manufacturing, retail, and health care.
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