Stakeholding


We are moving from a chain of command to a web of connection, from competition to collaboration, from markets to networks and stockholders to stakeholders, and greed to green.

 – Anodea Judith

Author & Evolutionary activist

Leadership speaks to Stakeholder, “Let us stand in the created future that wasn’t going to happen otherwise. A future which would address the core concerns of both of us. Let us take actions and decisions now to realize the future.”

At its essence Leadership remains an exercise in language which motivates all stakeholders to align into taking actions in the present to realise a common future.

I was recently engaged in a hub optimisation project for an orthopaedics implant supplier. It did not take too long for our team to work out the optimum inventory positions of around twenty thousand items as part of fifty kits. We were delighted to note that our recommendations held the potential of reducing the inventory carrying costs at the hubs by up to seventy per cent. The client’s corporate team was equally elated.  

I was therefore left disconcerted when a subsequent review revealed near zero implementation of the project recommendations and the associated cost savings. The Marketing team had effectively sabotaged the initiative. While the project criteria had been to ensure a 99% assurance of availability of all ortho kits, Marketing insisted that for its clients nothing below 100% was acceptable.

Looking back one could see that the project failed for its failure to identify ‘customer’ stakeholders like the Ortho surgeons and the hospital administrators and what might their pain points be.

Leadership in the new millennium is more about stakeholding than anything else. Today’s world is becoming increasingly granular. More and more individuals are jumping onto the technology bandwagon and getting networked with unknowable connections amongst them. And each of these ‘unknowable connections’ becomes a stakeholder with its ability to influence perceptions and thoughts.

Per Bak, the Danish Physicist, developed a theory of sand running through an hour glass. He concluded that while the sand pile seemed stable with a regulated sand flow, the pressures on each of the sand grains was constantly changing; the internal dynamics of the sand was complex, unknowable and could not be predicted.

The stakeholding world today is like that sand pile.It seems stable but in reality continues to shift in unknowable ways with instability being the only constant.

So how does one manoeuvre the unknowable, unpredictable quicksands of stakeholding? What can leadership do to ensure effective relational assimilation of all stakeholding concerns? You could make a good start with the following questions.

  • Who are your influencing stakeholders? They could be from your investors, your leaders, your staff, your customers, customers of your customers, your suppliers, your community, competitors, consumer groups, social media……. sounds daunting. doesn’t it? Well a good place to start is to observe the conversation networks and the language being used. Use this to discern the contradictions, conflicting ideas and harmonies that form part of the issue.
  • Ask of the identified influencing stakeholders about their interests and core concerns
  • What is the stakeholders’ critical analysis of the situation? How does the issue occur for them?
  • What solution hypotheses could you develop which could take care of the stakeholders’ interests and concerns?

In Learning……

Shakti Ghosal

http://www.empathinko.in

Does Leadership theory help Sales?


Leadership and Sales

Yesterday I got a call from the Training Manager of a leading pharmaceutical company. She wanted to know how a Leadership program could support the sales personnel to perform better.

“I do understand the importance of Leadership in rewriting the future of an organisation”, she said to me. “But to a sales guy all this seems airy fairy stuff with no value.  What he needs are tools and techniques which would allow him to effectively close some prospects and achieve his target.”

“So would that imply that the Sales personnel, in-spite of their selling experience and closeness to customers, are falling short of organisational expectations?”  I asked.

“Well that is what the corporate guys in Head Office seem to think”, the training manager confided.

I did not have the heart to tell her that the solution lay not in new tools and techniques but a shift in how and what shows up when confronted with a business challenge. And that in essence is what leadership is all about.

For a start, we need to un-hinge our self from a “fixated to the past” mindset.  To do that we need to first understand what this “fixated in the past” mindset is all about.

Our brains are hardwired to view an emerging situation through the lens of our past experiences.  What is merely needed is copy paste what worked in the past to find a solution in the future. We are thus conditioned to believe that a person with a ten year sales experience would perform better than someone with lesser experience.

But what the above mindset assumes is some kind of continuity of the environment and all that it represents.  The competition and its response. The buyer and his decision making behaviour. The technology and product gaps.  And so on.

The third millennium however is all about discontinuity, disruption and accelerating change. In every which way one could think of. Be it competition and emerging strategies, buyer psyche, technology and products. The beacons of our past experience are no longer effective to handle this.

So we come back to the aspects of Leadership that could support performance in this era of discontinuity, disruption and accelerating change. Be it in Sales or some other business domain.

  • The awareness that you do not know.  You cannot upgrade your performance if you already know all there is to know.
  • Say YES to being pushed away from the beaten track and into the discomfort of the unknown. It is such discomforts that unhinge you from fixated beliefs and mindsets.
  • Avoid assessments during a situation. This leads to hasty reactions based on the ‘what worked in the past’ mindset.   Effective reflection and assessment can only happen after a situation has occurred. And this is when the space for new learning opens up.

 

In Learning

Shakti Ghosal