Harmonizing Relationships with Your Stakeholders

Earlier I stated on a number of occasions that the common mission of any organization (and even its raison d’être) is to satisfy the aggregate needs of its stakeholders – financial, functional and emotional (for some stakeholders – also spiritual). In other words, to create the maximum possible amount of aggregate value. Both in absolute terms and relative to its competition.

However, it works both ways. Any organization wants its stakeholders to create the maximum possible amount of aggregate value for itself. Businesses by definition want its stakeholders to create the maximum possible amount of financial value for its shareholders. Both in absolute terms and relative to the ‘competing stakeholders’.

In fact, the potential amount of aggregate value to be received is the basic criterion for assembling a portfolio of corporate stakeholders when the company in question has some freedom to do so (government entities, for example, are given, not chosen).

Which means that every organization (including your company) objectively needs and wants to be in the state of harmony with its stakeholders in terms of value created (‘given’) and received. ‘I give, I receive; I receive, I give – in perfect balance’.

Therefore, for each of its stakeholders, your company must find answers to the following questions – and act on them:

1.      How to get the maximum amount of financial and aggregate value from each stakeholder (your needs and desires obviously come first)?

2.      How to create the maximum amount of financial and aggregate value for each stakeholder?