For a software system, this can include managers, designers, and users of a system. Since, by definition, stakeholders are those who are impacted by or have an impact on the project, their perspectives need to be taken into account in order for a project to be successful. A design must meet the business needs of the company, and must be supported by disparate members of the management team, in order to be actually implemented.
But to ensure continued stakeholder support, business leaders must consistently demonstrate their commitment by analyzing external and internal environments to ensure that the organization is addressing the right issues and achieving its objectives.
Sharing the results of these analyses with stakeholders helps maintain positive relationships by managing their expectations and agreed-upon objectives.
Increasing stakeholder value is the goal of these activities and is necessary to understand the values and issues stakeholders have in order to keep everyone on board. Achieving corporate business objectives is the best way to increase shareholder value, but there are other useful initiatives as well.
One of them is to demonstrate corporate compliance with established standards, regulations and business practices. They also want initiatives that reduce risks while also increasing performance and profitability. Finally, they want evidence that the firm is "playing by the rules" and maintaining best practices.
Suppose there are two competing manufacturing firms with an equal amount of market share. One firm decides to obtain ISO accreditationwhich denotes a companywide commitment to quality processes.
Does this mean the other firm is less productive or provides a lower-quality product? Not at all, but displaying graphics indicating ISO compliance demonstrates that the one firm is confident enough in its processes that it is willing to be evaluated against a very rigorous worldwide standard.
ISO compliance indicates that the firm has decided it will conform to accepted practices, regulations or standards. It does this to: Demonstrate to stakeholders that the business is run effectively and in accordance with established best practices, standards and regulations; Ensure that the firm is continually improving and refining its business operations, such as staff performance, commitment and motivation; Improve overall performance, remove uncertainties and expand market opportunities; Prove to its customers that the firm can be trusted to deliver on promises; Reduce the likelihood of potential internal and external audits from key customers, suppliers and other stakeholders; and Satisfy requirements from major customers that need evidence of competent performance.
Lack of corporate compliance with SOX legislation could affect stakeholder value, especially if the firm is cited. From a "good business practices" perspective, SOX compliance is pretty much mandatory. Stakeholders may want the organization to pay closer attention to these and other standards to be consistent with their expectations.
Transforming compliance into stakeholder value There is a range of different business issues that must be addressed to provide stakeholder value.
Some stakeholders may have specific focal points, such as IT or manufacturing processes. Others may take a broader, more strategic view. Assuming you want to increase shareholder value through compliance, the following steps can simplify the process.
Make sure you know their expectations, e.
This may include the need for compliance with specific laws, regulations and standards. Understand stakeholder influence on your culture. Your organization and its value set are key ingredients for success, and stakeholders can influence these values.
Listen to your stakeholders. Successful organizations typically get their energy, values, attitude and approach to the business from senior management, and this can also include stakeholders.
Find out what your stakeholders expect, and deliver it. Beyond simply obtaining certification of compliance, organizations must consider investing time and resources to stay compliant and demonstrate a commitment to continuous improvement. Assess and benchmark compliance.
Organizations can assess their compliance by engaging qualified third-party organizations to evaluate and certify compliance with specific standards and practices.Bain & Company is the leading consulting partner to the private equity industry and its key stakeholders.
We provide a full range of services across the investment life cycle, from deal generation to due diligence to portfolio value creation, exit planning and more.
Transcript How to Do a Big Data Project Big Data is sweeping the business world – and while it can mean different things to different people, one thing always rings true: data-driven decisions and applications create immense value by utilizing data sources to discover, present, and operationalize important business insights.
80 Fortress Investment Group reviews. A free inside look at company reviews and salaries posted anonymously by employees. Top Public Relations Agencies, India. Being one of the most reputed Public Relations Agencies in India, we at Value Communications, leverage customized PR solutions and media relations to nurture and strengthen the repute and brand image of our clients.
The pain is becoming all too common for many pharmaceutical executives. After a decade or more of investment in drug development and clinical trials, a company launches a promising new product only to see sales fall far short of expectations. The Customer is the ultimate driver of a business.
Customers buy products and services that give them more value and this value is what gives one company the winning edge over another.