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Thank you for visiting our Strattomics – Building Stakeholder Commitment Web Page. This page is intended to provide readers of Strattomics with additional information, templates to complement our book and an opportunity to comment on the discussion.
The thinking behind the “Building Stakeholder Commitment” chapter flows from 'stakeholder engagement' becoming more broadly recognised recognised as an inclusive, and continuous process between an enterprise and those potentially impacted by the enterprise’s activities. Moreover, I believe strongly that there is an alignment between stakeholder holder interests in the longer term and business practices that enhance sustainability. In the following video clip below from the Financial Times, Paul Polman (the CEO of Unilever) speaks persuasively about the importance of being more strategic and long term.
Managing Stakeholder Expectations
The Stewardship Code published by the UK Financial Reporting Council provides insights into how engagement between one category of stakeholders – investors – and companies can be developed. It acknowledges the importance of broad engagement – including on matters such as Strategy, performance, risk, Capital structure, and Corporate Governance (including culture and remuneration). The Financial Times argued in February 2014 we should not rely on the activities of activist shareholders.
“Director Dialogue with Shareholders – What you need to consider” produced by PWC and Weil Gotshall & Mangers LLP provides a broad discussion of preferred practices and highlights a spectrum of considerations that Board Directors should reflect upon before engaging in dialogue with Shareholders.
Dealing with Activist Shareholders is likely to become a more common challenge that I consider a case of building shareholder engagement from the “back foot” ; albeit, easier if you already have engagement with stakeholders in your enterprise DNA. This link will take you to a short McKinsey video of Larry Kanarek – A McKinsey Director, discussing Activist Shareholders.
The download package includes a 4-step presentation to help you document stakeholder expectations
Securing more discretionary effort from your employees
Chapter 4 includes an encouragement to develop meaningful dialogue with each of the people you are directly responsible for – using the the insights on your people that you have gained and your understanding of your enterprise strategy (and in particular the strategic themes driving your goals and objectives). The underlying theme is that Leaders can open up opportunities for individuals to contribute more and my belief is that this represents a classic “Win Win” – individuals are happier because they have new avenues for personal growth and enterprises have more engaged people. In his book Leaders Open Doors, Bill Treasurer, discusses in much more depth the idea of Leaders creating opportunities for others.
Engagement of people is a key success factor in both continuous improvement and agility raising initiatives. A recent EY paper entitled Change 3.0 using social media to engage your workforce reminds us that “80% of enterprise change initiatives fail” and that poor engagement is a contributing factor. Social media is a channel that enterprises are using increasingly to promote effective engagement of staff. Try this short diagnostic to rate your use of social media in internal change initiatives.
Please see in the Download Package, two documents to help you develop Employee Engagement – the first is designed to help you understand each employee better, in the context of their peers and overall contribution. The second is a template for developing personal development plan.
For “Strattomics Chapter 4 Download Package” please complete the form below.
Please send me any comments, suggestions or questions you have for improvements to Chapter 4.