Idea in Brief
The Problem
There has been growing recognition that the shareholder value movement went too far and that to create sustainable, responsible businesses, companies should provide benefits to all stakeholders. But the big challenge has been developing a strategy for doing so and a mechanism for implementing it.
A Critical Advance
Dozens of firms have helped substantially improve the quantity and quality of publicly available data about companies’ impact on their stakeholders. The data proves that the companies that create the greatest total value across all dimensions of performance don’t do so at the expense of shareholder value.
The Solution
Data can also greatly improve the strategy development process. First you need to make sense of outside perspectives of the value your company is generating. Then bolster data from those outsiders with insider insights, analyze the interdependencies among your stakeholders, and create your own strategy. Finally, build systems to implement and sustain it.