New Study Outlines Benefits and Roadmap for Stakeholder-Based Value Creation

An organization dedicated to helping CMOs (chief marketing officers) and other growth leaders drive more humanized growth for their organizations sponsored a study on the impact of stakeholder management and value creation strategies conducted by the University of Oxford Said Business School.

Findings: Underperformers Versus Overperformers
The Recommended Framework

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“The concept of business growth has undergone a profound transformation. Companies are increasingly seen as integral parts of a larger societal ecosystem, responsible for creating value for all stakeholders, colleagues, customers, the community, and capital markets. Leaders need a practical roadmap to make the shift from shareholder primacy to value creation for all stakeholders.”

That’s the premise of the study, “The IRG Impact Study: Driving More Humanized Growth.” The Institute for Real Growth is a Holland-based organization that says it “addresses the needs of colleagues, customers, communities, and the capital markets.” It hosts senior leadership programs, events, and webinars around the world.

The study seeks to identify the characteristics of a stakeholder driven value-creation strategy through 475 C-suite vision interviews; 120,000 social media posts using AI analysis, and more than online 750 survey respondents. It reportedly encompasses 61 markets; five functional deep dive conversations with CEOs, CFOs, CCOs, CMOs, CHRO, and board members; eight country deep dives, including US, United Kingdom, Netherlands, Turkey, China, India, France and Australia, and cross-industry insights for business to consumer and business to business.

Findings: Underperformers Versus Overperformers

The study finds the following differences between underperforming versus overperforming companies:

9% of underperformers focus on engaging stakeholders, versus 64% of overperformers.
3% of underperformers represent stakeholders in decision-making, against 61% for overperformers.
23% of underperformers take a long-term approach, as opposed to 70% of overperformers.
7% of underperformers say purpose guides decision-making, versus 71% of overperformers.
9% of underperformers use systemic change to drive stakeholder value, against 69% of overperformers.
7% of underperformers work inter-dependently, versus 67% of overperformers.

The study finds that 90% of leaders at overperforming companies approach stakeholder value creation as a business growth opportunity in contrast to only 50% of leaders at underperforming businesses.

The Recommended Framework

The report says that five drivers provide a framework for understanding and implementing strategies for value creation for all stakeholders.

1. Ground. Human-first stakeholder understanding, engagement and representation. The authors say this begins “with an aligned understanding of the organization's impact on stakeholders and a recognition of the importance of stakeholders in shaping a company's success. Overperformers prioritize long-term thinking, reimagine an emerging world and define an aspiring company role - a clear corporate purpose. Overperformers adopt a utopian future-focused vision, inspiring all stakeholders and aligning their minds, heart, and will with the company purpose.”

2. Reimagine. Future backwards vision and aspiring company role. The authors conclude that “overperformers prioritize long-term thinking, reimagine an emerging world and define an aspiring company role - a clear corporate purpose.”

3. Focus. Holistic strategy with transformative change areas. Humanized Growth overperformers, they assert, “develop a holistic and integrated strategy that embraces complexity and reduces whack-a-mole decision making by taking short-term decisions in the context of the long-term strategy. They manage and measure the areas of transformative change and performative change (day-to-day operations) separately.”

4. Organize. Fostering interdependence and collaboration across ecosystem. Humanized Growth overperformers, the study finds, “develop a holistic and integrated strategy that embraces complexity and reduces whack-a-mole decision making by taking short-term decisions in the context of the long-term strategy. They manage and measure the areas of transformative change and performative change (day-to-day operations) separately.”

5. Unleash. Role modeling Da Vinci Humanized Growth leadership—developing leaders with a clear sense of purpose. “Humanized Growth overperformers develop a holistic and integrated strategy that embraces complexity and reduces whack-a-mole decision making by taking short-term decisions in the context of the long-term strategy. They manage and measure the areas of transformative change and performative change (day-to-day operations) separately.” Da Vinci refers to a leadership training approach.

The report concludes:

“Overperformers create an environment where colleagues feel safe to share ideas and collaborate. Unleashing the collective power of the ecosystem behind the corporate vision, these leaders prioritize active listening, vulnerability, servant leadership, and open communication. Their approach fosters an inclusive culture that aligns colleagues and partners with the overall business purpose.”

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