This is our second installment in our Back to Basics theme, covering the topic of your stakeholders. Last week, we began with the Balanced Scorecard and the customers.
The next piece of Back to Basics is the value that we deliver to the stakeholders.
When we talk about your stakeholders, who de we mean?
Simply put, your stakeholders means the employees, the company leadership, the owners, the shareholders, and the suppliers of your business. Since you have all learned that I like to begin with definitions in order to have clarity in each topic, your stakeholders are the individuals and groups who invest in your business with their time, their money, their ideas, and their resources. The customers benefit from the commitment of your stakeholders, and your stakeholders benefit from the growth and development of your company and your customer loyalty.
Here we go back to metrics and standards of performance, also known as Key Performance Indicators. These Key Performance Indicators are Revenue, Profitability, Expense Control, Asset Management and how the department and business performs.
One of these metrics is Return on Assets (ROA). That leads us to next step in the Back to Basics – investments. The owners of the business have to continue to reinvest in the Company if they want growth. The effectiveness of the business to steward the company assets will allow the owners to determine the level of risk they want to take on relative to the future growth opportunities. If the management does not deliver performance then owners will not have much interest in reinvestment.
So how does this tie in to everything we do here at LWS?
Employee Development is a straightforward investment into the business, its stakeholders, and its vision for the future. Employee Development correlates to employee satisfaction, which has a demonstrated impact on customer satisfaction. Satisfied employees = satisfied customers.
As you can see, getting Back to the Basics comprises many aspects of your business. But you will find that the results are well worth the work.
The time is now.