When we ask the question to senior people in the organization, the most of
them responds as “making profits”. Of
course it is one of the objectives and vital for survival. If CEO also thinks
in the same direction, somehow the organization can fulfill the objective.
But the sustainability becomes vulnerable. Hence, the CEO needs to redefine his
definition of running an organization as “To Enhance the value to all
stakeholders.”
This paradigm shift in thinking process will guide the CEO and
his team towards Process Excellence and stakeholder’s centric in whatever they
do..
The stakeholders can be customers, employees, suppliers,
financial institutions, Government, and statutory regulation bodies, and so forth.
Each stakeholder is expecting a different value of the organization.
For example,
The Customer is expecting value from the organization in
terms of best product with superior
quality and best price etc.
The Employee is expecting value in terms of pleasant / safe
working environment, good pay and career growth and learning experience etc.
The Vendor is
expecting value in terms of regular schedules / order inflow, regular payment
and cordial relationship etc.
The Financial institutions are expecting value in terms of
credit worthiness and repayment of loans etc.
The Government /Statutory bodies are expecting regular revenues from taxes, employment
opportunities and cordial industrial relationship, environment preserving etc.
Even though the value
expectations of each stakeholder are different, it can be met only when the
business is creating SURPLUS in the form of PROFIT
The central challenge for CEO or business owners is to
generate profit in a sustainable manner irrespective of outside factors like
competition, macroeconomic condition, supply demand balance etc and enhance the
value of all stakeholders.
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