Leadership style is also connected to how you assign real value.
Earlier this year, I overheard the CEO of a large and successful company being described like this:
He might not be good at communicating or keeping her employees happy, but at least he is best at the most important thing; to create shareholder value.
This company is doing very well financially and has a high star in the business world. Yet the description above really does not fit in, in 2021. Within an outdated business mindset, it might still hold a lot of truth to it. And sadly, old fashion shareholder value still weighs in rather heavily. Then again, couldn’t we also coin employees as some of the most central shareholders? They do hold a “share” in running the business machinery, and remain a very central stakeholder in the daily business.
This is where the internal focus easily can get lost. If your “value creation goggles” are only set on looking outwards, you can easily forget the people closest to you. The business would not run without its employees, and their perception and day-to-day experience of the working relationship directly impacts their motivation and work results.
Thankfully, most companies have realized this for a long time. New start-ups even make sure to put this in the driving seat of their employing strategies, knowing that this aspect simply is what can make or break them. Today´s new workers won´t settle for suboptimal like other workers have done before them. If you assume they do, you will notice a different reality in your turnover numbers.
Simply put: Your stakeholders are usually a more complex and diverse group than at first eye sight. It comes down to encompassing the ones that might be so close to you that they aren´t on your radar. Real value lies in how you mange these connections.
And with a purpose clearly outlined, the profits might feel even more rewarding when you know that both your employees and external stakeholders are on board.
Read more about how engaged employees produce shareholder value here.