Turning Steakholders Into Stakeholders

They're hungry for something new. Really hungry. So what do you do? Toss 'em a piece of meat. Red meat. That is why they're called steakholders, right?

Those pesky steakholders always want more. Something new. Something bigger. Something better. And in the end, they do make the world go 'round. So we toss 'em some meat.

But exactly who are "they"...
...shareholders?
...customers?
...employees?

And how should they be prioritized when it comes to dishing out resources or consideration in decision-making?

Some business leaders put shareholders ("the street") first. Cut costs so the quarterly numbers come in. Short term action, short term thinking. Short term gain, maybe.

Others put customers first. It sounds noble, but investing in them while your employees feel under-valued is not a recipe for long term success. At some point you won't recruit the best and brightest to take care of your hard-earned customers and things will unravel.

But what if employees came first? Is it possible that if we take care of our employees, they'll in turn take care of our customers, who in turn will take care of shareholders? If we hire and retain the best R&D scientists who then give customers the best products - who buy them at higher prices due to relevant competitive advantage - then the shareholders will be just fine.

By giving employees priority, you'll have true stakeholders - employees, customers, shareholders and whole communities that are involved because they have a vested interest.  Put your employees first and replace those hungry steakholders, who want returns at any cost, with stakeholders that are working for your success.


Copyright @ Keith Chaitoff 2010