WEEK 2: IMPORTANCE OF STAKEHOLDERS
Stakeholders are people who are interested in the decisions and actions of a
business (employees, society, and competitors).
It is important to know who has stake because if their interest is strong enough,
they will do what they can to influence you. If you do not satisfy large numbers of
stakeholders, they may boycott or protest.
How to do a stakeholders exercise:
For each stakeholder determine:
1) How they see
2) How they think
3) How they act and react
4) What can be learned
5) How it will change what we do
See last page**
By looking at the perspective of others, it is a form of market research where you
learn to understand your customers, competitors, suppliers, etc.
You can even determine the position of non-stakeholders and see how they may be
viewing your business from the outside
HOW TO LEARN FROM STAKEHOLDERS:
CREATING STRETCH BENCHMARKS
By having a benchmark based on best practices or superior accomplishments,
people can achieve an exceptional level of performance
People are able to measure and compare themselves with others
The aim is to set the bar higher and higher to which performance should be judged
Steps to continual improvement:
1. Set a benchmark
2. Learn the skills to perform at that capacity
3. Achieve and surpass those expectations
The point of benchmarks is to reach for a level you may think is impossible to attain
You can set benchmarks by looking at:
Competitors
Other businesses
Dissatisfied Customers
Achievements of Role Models
Your own aspirations
You have to make sure you are not copying someone else’s benchmark from the
past, because what worked yesterday may not work today
How can you stretch your benchmarks?
Develop skills in learning to learn
Promote quality and continual improvement as core values Target ineffective performance controls
Use the rules in one situation to reinvent another
Challenge favoured ways of thinking
Create the freedom to unlearn
CULTIVATING TRUST
Trust is very important and has to be developed over time. In order to create trust,
you can:
1. Honour you commitments
2. Demonstrate empathy and caring
3. Be honest and open. Share information
4. Be generous with credit where credit is due
5. Be fair
6. Walk the talk
AVOID BUREAUCRATIC FRAGMENTATION:
People in a company often feel they are competing against one another, which
makes things less productive
How does the problem happen?
Divisions become power centers
Goals of the departments become more important that company goals
More conflict develops when people are rewarded for sub-goals
Signs that bureaucracy is a problem:
Fragmented thinking and closed boundaries (every division thinks they’re
the most important and outsiders are not trusted)
Fragmented goals and conflicting priorities (each department has their own
goals, what is good for one group is often bad for another)
Fragmented rewards (bonuses are given within a division and corporate-
wide rewards are non-existent)
THINKING WIN-WIN
This occurs when both parties of a disagreement benefit in some way. It is a process
where you search for mutual gain. You can achieve win-win by:
1. Think win-win by having a positive attitude (state of mind)
2. Separate the people from the problem and think of interest rather than
position (by doing so, you will have a bigger pie to share)
3. Keep an eye out for potential deal-breakers
To maximize the chance of win-win, remember that:
Perceptions can be easily as important as reality (attitudes and reactions)
Emotions can be positive or negative (determination or anger)
Quality of communication can make or break a deal (make sure both point of
views are understood) PROMOTE DIALOGUE AND COLLECTIVE LEARNING
Let one person learn from another through listening to their opinion
Hear something from their perspective and learn collectively
IMPROVING DECISION MAKING
There are usually many routes to success, and the more open you are, the more
paths will open. The key is to balance insi
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