A Leader's Five Key Stakeholders
Ensuring that a leader demonstrates all 8 Habits or Exercises Judgment or has Emotional Intelligence or any other set of personal characteristics is half right. The other half is ensuring that these competencies really deliver results through the value they create for others.
Who are these stakeholders and what do they want?
Employees want to work in a place where they can meet their personal needs and wants. Leaders who create job assignments, work environments, and visions help employees be both competent and committed to their work.
Customers want leaders to build compelling products and services so that they can trust and when they do, customers will give share of wallet.
Communities want leaders to build organizations that are socially responsible, through how they treat the environment and how they serve the larger community.
Investors want leaders to keep their promises, develop a compelling growth strategy, align core competencies to the strategy and then to ensure that people are committed to delivering on these premises. When they do, investors reward the organization with high levels of confidence in the future which translates into higher market value.
Regulators want leaders to govern themselves in accordance with high ethical principles and in a manner consistent with professional and legal standards.
However, in addition to these 5, you may also have to look at the 2 more distinctive groups -
1. Competitors: Leaders would to well to look at competition as well. What is required is healthy competition - one that is driven by superior quality, innovation, efficiency or responsiveness. The propensity among many leaders to deride competition leads to a vicious cycle of attack and counter-attack strategies that inevitably result in a lose-lose scenario. Within the context of free-market dynamics, leaders can consider mutual forbearance as an option vis-a-vis competition.
2. Suppliers and Channel Partners: The ability of a firm to create and deliver value depends to a significant extent on the other players of the value system. Helping suppliers to adopt practices such as TQM and TPM would enable a firm to move up the value curve. Similarly, customer responsiveness often depends on the channel partners. Thus, co-creating value (Prof. Prahalad and Prof. Ramaswamy) becomes a vital element in the value-creation process.
It can be argued that these groups are a part of the community. However, treating them as distinct entities would help leaders to look at each stakeholder group from an appropriate perspective and ask the three basic questions:
Who are they?
What do they want?
How can we deliver, either by ourselves or together?
Who are they?
What do they want?
How can we deliver, either by ourselves or together?
Labels: channel partners, communities, competitors, customers, employees, general, investors, regulators, self, suppliers
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