STAKEHOLDER FOCUS – WHY IT MATTERS
Why stakeholder focus is the key to business success today
For a long time, the dominant belief was that companies primarily exist to serve their owners. "Shareholder value" was the guiding principle adopted by countless firms, boards, executives, and consultants. The goal of corporate leadership was clear: maximize profitability for shareholders. The logic seemed simple—if the owners thrive, the company thrives.
But that perspective no longer suffices. Since the early 2000s—and even more so in today’s volatile, interconnected economy—it has become clear: companies don’t survive by optimizing the balance sheet alone. They survive and thrive by focusing on all key interest groups, building trust, and doing solid work. And trust must be built both internally and externally—with all those who have a direct interest in the company: the STAKEHOLDERS.
Those who begin the journey out of crisis with their STAKEHOLDERS will emerge from it far stronger.
Who are these STAKEHOLDERS?
Stakeholders include customers, employees and leaders, suppliers and partner companies, owners and shareholders, banks and financial institutions, regulators, the media, and society at large.
Each of these groups can play a decisive role in a company’s survival—or actively accelerate its downfall.
This realization is at the heart of the method I’ve used to successfully guide companies through severe crises for more than 30 years.
A real-world example: when a customer becomes the tipping point
At a former client in the machinery and plant engineering sector, the crisis started quietly. A few key customers were unhappy: delivery dates weren’t met, quality issues increased.
One of them—a global market leader—suddenly reduced its orders without warning. When asked why, the reply was blunt:
"We no longer believe you’ll get this under control."
Without informing the company, they had already lined up a second supplier.
The impact was immediate. Within weeks, sales plummeted. Other customers followed suit—some out of concern, others interpreting the lead customer's departure as a signal.
Sales morale collapsed. Production introduced short-time work. The bank demanded additional collateral.
What seemed like a purely operational issue—delivery reliability! quality!—was in fact a breakdown of trust.
A stakeholder had turned away. And the entire system began to unravel.
Stakeholder Value before Shareholder Value
Moments like this reveal why stakeholder management cannot be treated as an afterthought.
Focusing solely on shareholder value—i.e., increasing financial returns for owners—only makes sense if the foundation is solid.
And that foundation is built on reliable, trust-based relationships with stakeholders.
When stakeholder value is created, shareholder value will follow.
A well-designed approach doesn’t start with the balance sheet. It starts with the problems stakeholders perceive—especially with the erosion of trust that may have been building for some time.
The first step must be a serious analysis:
- What do customers, employees, banks, or suppliers expect—both explicitly and implicitly?
- Where has trust been lost, but not addressed?
- Who ultimately decides whether a company survives or fails?
The power of stakeholder groups
- Customers cancel contracts or shift to competitors—often long before declining sales show up in the numbers.
- Employees disengage or leave key roles, paralyzing the organization from within. News of internal problems spreads quickly, making it difficult to recruit new talent.
- Suppliers and partners demand advance payment, stop critical deliveries, or impose tight deadlines—stalling operations.
- Owners and shareholders lose faith in the leadership team, block necessary investments, or withdraw strategic support.
- Banks and lenders tighten credit terms or demand immediate repayments—creating serious liquidity risks.
- Regulatory institutions increase compliance requirements, shut down business areas, or impose fines—potentially accelerating the crisis.
- The public, media, and local communities can damage the company’s reputation through protest, negative press, or social media backlash.
Stakeholder Value is the benchmark – everything else is a tool
At the core of every successful transformation lies **stakeholder value**—not as a buzzword, but as a practical operating principle.
Anyone leading change must start with the right questions:
- What do our stakeholders—customers, employees, banks, suppliers, owners—really expect from us?
- Why have these expectations not been met—intentionally or unintentionally?
- What risks does this create for our stability, trust, and long-term viability?
A stakeholder-centered analysis is not a nice-to-have.
It is the starting point of any serious restructuring or realignment.
It provides the foundation for clear, prioritized decision-making along a Stakeholder Value Trajectory:
- What needs to be secured in the short term, changed in the medium term, and reimagined for the long term?
- For whom? Why? And with what outcome in mind?
Stakeholder value isn’t created overnight — it is built step by step.
It’s the result of consistent leadership, aligned communication, and dependable execution.
STAKEHOLDER MANAGEMENT: The path forwar
Creating stakeholder value requires active stakeholder management: a structured, transparent communication plan that doesn’t just "manage expectations"—but takes them seriously, gives regular feedback, and sets and agrees on next steps.
Especially during unstable times, the approach developed by **Hanspeter Zürcher** has proven effective: the **“Island Method.”**
It provides orientation through tangible short-term goals—clear, predictable, and actionable.
In times of uncertainty, stakeholders need islands of clarity—milestones that prove progress is being made, moments where they feel seen and engaged in shaping the change.
That’s how trust is rebuilt, step by step—and **with trust comes momentum**.
STAKEHOLDER VALUE is the compass.
STAKEHOLDER MANAGEMENT is the path.
Together, they lead to a sustainable way out of crisis.