Why Founders Need to Balance Stakeholders Like Switzerland
“Our employees are our greatest asset.”
“The customer is always right.”
“The purpose of a limited company is to make money for its shareholders.”
Each of these statements have been put forward at various times as being ‘the’ business gospel i.e. the one truth to operate the business around.
The obvious challenge here is that these are contradictory statements and it is near impossible to satisfy all three simultaneously.
Most founders are going to be naturally inclined to favour one of these above the other two; this can create an unsustainable situation where one or more of the other stakeholders become disengaged.
A relatively small adjustment can rebalance this situation
Reframe: Founders Need Neutrality to Lead Sustainably
The reality, and the ideal scenario is that each of the 3 key stakeholders groups - employees/client/shareholders - are equally important to creating a sustainable business
Be more like Switzerland and aim for neutrality. Take a balanced stance where all 3 stakeholders get the same attention and level of prioritisation.
You need engaged and motivated employees
You need loyal and aligned clients
You need committed and invested shareholders
Rethink: Are You Favouring One Stakeholder Group?
Ask yourself:
What is my natural inclination, do I have a bias here?
How am I measuring the level of engagement and satisfaction in each key stakeholder group?
Do I really understand the needs of each group and what we need to do to meet or ideally exceed their expectations.
Refocus: Build a More Balanced Founder Mindset
Make this a topic of conversation either at your next leadership meeting or full team meeting to see how much alignment is in place across the company. Are they seeing the same as you are seeing?
Spend time with each group to understand their future needs and any current frustrations. Show them that you care.
Pause and think about the potential impact on each group before making a major business decision. Practice objective detachment in your decision making.
