Question 90
of 100
We measure the investment
we make in meeting the needs of each major stakeholder group.
(Eg, we measure the apportionment between the major stakeholder
groups.)
We recommend that you answer the questions in the order determined by the "next" button below. However, to allow you flexibility, the links below allow you to jump to different Principles.
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you are answering these questions. We suggest that you first
answer for your most immediate work group, (If you are part
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of the larger group of which your work group forms a part.)
The information to the right is provided for
your guidance. You can answer the question without reading
any of it if you wish.
Information is presented under the following
headings.
Why this is important
Measure your
investment in each stakeholder group
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Avoid doing these poor practices
Not keeping track of specific investments made to each stakeholder
group.
Burying the investments in general expenditure. Not differentiating
investments.
Not measuring process outputs.
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Do these good practices
Investment in each stakeholder group is indexed and measured.
Expected benefit for each investment is widely known within
the company.
Performance against plans is reviewed regularly. A user-friendly
set of performance indicators used to gauge the level of implementation
and performance against plan.
Improvement indices are constructed for all key, core and support
processes.
Process improvement data is collected. Measuring the outputs
of all key, core and support processes.
Rate of improvement is measured for all key, core and support
processes.
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Principle 10: Value for All Stakeholders (Item 6)
Sustainability is determined by an organization's ability to create
and deliver value for all stakeholders.
You should measure the investment you make in meeting the needs of
each major stakeholder group. You should measure the apportionment of
investment between your major stakeholder groups.
The balance of investment of funds between the different stakeholder
groups is one of the most important made by a company. Most companies
do not record or monitor what is invested in each group.
How much are you investing in each of these stakeholders? Just what
is it costing you?
We often see companies that constantly wander down the path of a latest
fad – customer service, or looking after employees, or waste management
– without any understanding that these are strategies, or investments.
No effort is made to determine what is invested, what benefit is expected,
what success of the strategy/investment would look like or how they
would measure it.
Here are some examples of investing funding decisions for each stakeholder
group. Each should be measured and ongoing cost benefit analyses conducted.
Owners
Customers
- surveys, focus groups, market research to find what customers need
and want
- research
- product and service development
- funds spent on innovation, inventions, new products and services
- customer functions
- promotions, advertising
- customer related data storage and retrieval
- systems to make customer contact easy for customers
- customer satisfaction and perception measurements
Company
- salaries paid to senior managers
- maintenance expenditure
- capital expenditure
- diversification, mergers and acquisitions
- restructuring
- investment in and growth of knowledge and core competencies
- company improvement, process improvement
- risk management
- cost of quality, quality control, internal audit, complaint handling,
rework, scrap
- compliance with standards, standard operating procedures and company
policy
- litigation, insurance
- workers compensation
- internal measurement and reporting systems, Management Information
Systems, KPI
- benchmarking, competitive comparisons
Employees
- surveys, focus groups to find what employee need and want, determination
of morale
- increases in salaries & wages
- education, training and development
- safety
- workplace improvement
- internal newsletters, social functions & networks
Community
- tax paid
- waste stream quality improvement
- compliance with regulations and laws
- public relations, media, "company as good guy" advertising
Suppliers and alliance partners.
- systems to evaluate suppliers
- tendering processes
- quality control on your input stream from suppliers
- time and funds spent fixing your suppliers processes
- quality and process variation in your processes caused by your suppliers
- time and funds spent working for an alliance partner
This is a list of investment decisions. In each case, there is a cost
and a received benefit. An investment in improving the organization
returns benefits in terms of better profitability. It is clear from
the list that many are common sources of conflict. For example, unions
are often in dispute with companies about the effort invested in safety
or workplace improvement.
It is also clear that for some the costs can be small compared with
the benefits. For example, an investment in improving quality of processes
is usually rewarded with huge benefits in terms of significantly reduced
cost of production.
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