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STAKEHOLDER DEFINITION  
 
   

Stakeholders are any person (natural/legal) who has an impact on an organization activities or who is impacted by an organizations activities.

The SFPM model realizes the importance of stakeholders on modern organizations and therefore ensures that the strategy and performance management systems take into account ALL stakeholders. This ensures that the organization is not unexpectedly affected by a stakeholder or stakeholder groups actions which have an impact on the organization.

The key aspect of our model is our approach to stakeholders. We do not only take into account and measure how we meet our stakeholder expectations, but we also take into account and measure the required stakeholder contributions. example. A stockbroking company offers 25% guaranteed return on investment to clients holding balances of $50,000 or more. This would translate into two measures. 1. Return on investment to stakeholder - 25% 2. Stakeholder Contribution - minimum balance of $50,000

 

 


 

"CEO's around the world accept that today the way to protect and deliver long term shareholder value is to find a way to deliver multiple stakeholder satisfaction.”-Epstein (2002)

© 1999 - 2007 Harmony Re. All Rights Reserved. CEO and Executive Tools for Performance Excellence.