There has been a major switch between shareholder and stakeholder alignment in value creation. And it is still changing. How?
From a top-down, “create a vision, change the structure, roll out the new program, and get buy-in” to an “emergent, empowered, and purpose-led approach”. Nowadays, value creation cannot simply be limited to maximising share price or margins any more. It takes a holistic approach to ensure long-term value creation. An approach that considers the interest of all stakeholders.
However, strategic decisions involve countless trade-offs. The reality is that the interests of stakeholders can be at odds with one another. In the work we do, we always prioritise long-term value creation with leadership when there are trade-offs to be made. Why? It holds major advantages for resource allocation and economic health. Yet, leadership can mostly be distinguished between owners or leaders when it comes to value creation.
Owners focus on doing everything in-house. While leaders outsource functions that they cannot perform. Whether it is on knowledge, capability, or capacity level. Being an owner comes with a risk that internal challenges remain unchanged and a natural blind-spot to fundamentally improve the maturity of your organisation. Especially when you need to swiftly transition your company to prepare for a downturn.
To create lasting value to all stakeholders, you need to switch from an ownership to a leadership mindset. Now and in the future.
