ICPSK ANNUAL CONFERENCE

Transcription

1 INTEGRATED THINKING: A RELATIONAL APPROACH 22ND INTERNATIONAL ICPSK ANNUAL CONFERENCE COSMA GATERE FEDORA CONSULTING GROUP

2 What s WRONG with Traditional Financial Reporting? Made money the measure of ALL things. Catered only to interests of shareholders owners of Financial Capital, forgetting other capitals No concern for other stakeholders Little concern for Environmental, Stakeholder and Governance (ESG) factors key modern day stakeholders.

3 Forgot It s NOT all about the money Failed to answer a key question How do you define your company s value BEYOND REVENUE? TODAY S COMPANIES ARE ABOUT Value/s not just income a lagging indicator Stakeholders not just shareholders Stakeholder Communication not compliance (Social) Purpose not just profit Business Sustainability over long not short term

4 Corporate Reporting Evolution Financial Reporting Financial & Separate Sustainability Reporting Integrated Reporting

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6 WE ARE HARD-WIRED FOR RELATIONSHIPS. Why haven t organisations, which are ultimately about relationships between people, discovered they also need STRONG RELATIONSHIPS between stakeholders to thrive and survive.

7 OUR culture values faith science

8 80% of all military suicides over 35yr period ending in 2006 were war veterans. Why? Upon returning home real struggle was not from the trauma on the battlefield, but from the individualistic societies they were trying to reintegrate into.

9 Relationships are Crucial for learning, happiness, resilience and longevity. We re lonelier and unhappier than we were before age of the internet and mobile phone. Loneliness Biggest Public Health Crisis in UK. Ministry of Loneliness. Many followers, few friends Hi-tech, low touch

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11 Face-to-Face Contact Matters

12 Empty Digital Conversations

13 Have we Been Accurately Measuring Wrong Things? The gross domestic product (GDP) does not allow for the health of our children, the quality of their education or the joy of their play. It does not include the beauty of our poetry or the strength of our marriages, the intelligence of our public debate or the integrity of our public officials. It measures neither our wit nor our courage, neither our wisdom nor our learning, neither our compassion nor our devotion to our country, it measures everything in short, except that which makes life worthwhile. Robert Kennedy Gross National Happiness Index Human Development Index

14 A RELATIONAL LENS Pensions Justice Healthcare Finance Policing Econ Dev t Education Cities

15 There are tools available now to measure relationships

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17 Either management must have an ongoing communication with stakeholders or a Corporate Stakeholder Relationship Officer (CSRO) should do so. The CSRO informs management of the stakeholders NIE s (needs, interests and expectations) and does a written report to the board on the quality of the relationships. At every board meeting there should be an agenda item Stakeholder relationships. This will result in the board having an oversight which is informed in regard to managements proposals on strategy. Mervyn King, SC

18 Relational Proximity Approach Measures quality of internal / external relationships along 5 rel. dimensions Deep understanding of organisation s rel. health and rel. strengths / weaknesses. Two-directional analysis. Each side assesses the other on each rel. dimension. Develops an action plan focusing on 2 or 3 dimensions needing attention. Reduces risk operational, financial and reputational.

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20 Communication Control 5 Relational Domains Continuity Commonality Content

21 Stakeholder relationships are key Stakeholder Interests Return, Reward, Stability, Confidence Quality, Convenience Story, Value Purpose, Pay, Skills, Care Legal, Fair, Safe, True Jobs, Reliability, Integrity, Wealth Profit, Growth, Opinion, Trust Stakeholder Community Investors Customers Employees Regulator Community Suppliers Stakeholder Contribution Finance, Patience, Insight, Oversight Demand, Feedback Ideas, Loyalty Skills, Effort, Ideas, Faces Rules, Reason, Clarity, Advice Identity, Skills, Services, Support Quality, Convenience Innovation, Value

22 Map, Measure & Dialogue Map Relationships Measure Make Changes Dialogue on Specifics Relational Analytics 2016

23 Strong relationships deliver Stronger stakeholder ownership sustainable success Builds trust & understanding of mission Enhanced stakeholder participation Effective programme management Enhanced operational outcomes Investor/Partner confidence Staff engagement Fewer project risks Fosters mutuality, shared purpose 8

24 Reviews into almost any corporate failure show that weaknesses in relationships between the company and its stakeholders are identified only after things have gone wrong. Would Volkswagen or Arthur Andersen have landed in their current situations if their internal and external stakeholder relationships had been better founded and managed? How about corporate retail and financial sector failures in Kenya? How about the link between political scandal and corporate failure in managing all stakeholder interests?

25 1. Pinpointing Problem 5. Product Review 2. Probing 4. Participation 3. Planning

26 Restoring confidence in corporate, political and other institutions will require more than clever PR. It requires systematic measurement and reporting on the quality of relationships with all major stakeholders so that companies can take specific steps to address the key issues seriously. Leaders of companies, must act in the best interests of the company all stakeholders.

27 Organisational Health Check If social isolation is bad for your health, is organisational isolation (from stakeholders) bad for organisational health? If one of the best predictors of longevity and health is the quality and strength of personal relationships; can we extrapolate and say the best predictor of an organisation s vitality and longevity is the quality and strength of its relationships with stakeholders? dimensions needing attention.

28 MULTI- STAKEHOLDER Engagement & Communication

29 there are no only SYSTEMS of success

30 WISHING your organisations and yourselves, Prosperity, Vitality and Longevity as you WORK AND THINK RELATIONALLY