How to Create a Stakeholder Strategy

first responsibility of business leaders is to grow the long-term value of their companies.

All that data was clear: The companies that create the greatest total value across all dimensions of performance don’t do so at the expense of shareholder value. For example, the Drucker Institute’s annual rankings, published in conjunction with thecombined with S&P Global analyses, show that a portfolio of the 200 most effective creators of stakeholder value in the S&P 500 Index consistently delivers total shareholder returns as high as those of the entire index.

With a focus on architecture, graphic elements, and line work, Nina Papiorek’s photographs convey a sense of minimalism and organization within an urban environment. It then plugged in the Drucker Institute’s weights for all stakeholders and multiplied the converted performance scores by the weight in each category to get the units of value created for each. For instance, Health Tech’s customer performance rating of 33, multiplied by the 15% weight, yielded a score of 4.95 in that category.

With these sobering insights, Ward and his team focused on understanding the connections among stakeholders. For example, which management practices were causing employee frustration? How did that, in turn, affect value creation for customers, and what impact did that have on financial results? They had never attempted to understand the links among stakeholders or to prioritize and weight the importance of various stakeholders when trying to resolve conflicting interests.

Experiments and statistical analyses showed that investments in customer value had the greatest impact on other stakeholders and on net value creation, while investments in local communities had the least impact and longest lags. So the team decided to give customers a weight of 30%, employees 25%, shareholders 20%, suppliers 15%, and communities 10%. It then identified four to six criteria for developing a performance score for each stakeholder .

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Coke 'exploring ways to leverage AI' (because every company needs an AI strategy now)“The company is also exploring ways to leverage AI to improve customer service and ordering as well as point-of-sale material creation in collaboration with its bottling partners,” Coca-Cola said in its earnings release.
Source: YahooNews - 🏆 380. / 59 Read more »

How HBO survived mergers and strategy shifts to dominate prestige TVFor 50 years, HBO has been been known as the gold standard in television despite its tumultuous business history.
Source: CNBC - 🏆 12. / 72 Read more »

VC firms create $60 billion-plus climate tech alliance with backing from the UNA coalition of more than 20 venture capital firms launched Tuesday with the goal of getting the VC industry to increase its commitments to climate tech. Called the Venture Climate Alliance, the coalition of more than 20 climate tech and generalist funds seeks to get the VC industry to increase its commitments to climate tech, a branch of technology devoted to finding solutions to the climate crisis.
Source: CNBC - 🏆 12. / 72 Read more »