Now we are going to prioritize the stakeholder Needs and Value-adds based on how they affect the value stick. What we want to know is what needs and value-adds your stakeholders have will make them more likely to want to continue working with your business. When we used the value stick in relation to customers, we used the top half. Now that we are addressing stakeholders, we are using the bottom half of the value stick. Our goal is to always decrease stakeholder willingness to sell. What that simply means is how do we retain our partners, employees, and owners by making them less likely to want to leave?
We can only increase the business's profit margin by raising the price for our customers and reducing the costs of our stakeholders. We have to protect our stakeholder satisfaction and surplus; we need to make sure they are getting as much value as possible from our business. That means our partners, employees, and owners need to profit from working with us and be satisfied with the experience. It's never a good idea to cut costs without also decreasing willingness to sell because you'll be eating into stakeholder satisfaction and surplus. This leads to high turnover and losing critical people.
Our focus here is not to pay stakeholders less, but our goal is to improve the retention of key stakeholders by increasing their satisfaction and surplus. High turnover and an inability to attract and retain key talent are huge problems for most businesses. Ensuring that you are creating, delivering, and capturing value effectively in a relationship with stakeholders is critical to driving long-term organic growth and building a scalable business.
Refer back to the stakeholder value, mat part one. Get rid of any Needs or Value-adds that are entirely unreasonable. For instance, employees may want to get paid full-time to work part-time, but that's impossible for most businesses or a good idea. In the boxes provided, rank the needs and value ads (from the stakeholder value map - part 1) for each type of stakeholder based on how much they decrease stakeholder willingness to sell. List the needs and value ads that will decrease willingness to sell the most at the top and the least at the bottom.
Now you should have a prioritized List of your stakeholder most important needs a Value-adds.
Now we are going to prioritize the stakeholder Needs and Value-adds based on how they affect the value stick. What we want to know is what needs and value-adds your stakeholders have will make them more likely to want to continue working with your business. When we used the value stick in relation to customers, we used the top half. Now that we are addressing stakeholders, we are using the bottom half of the value stick. Our goal is to always decrease stakeholder willingness to sell. What that simply means is how do we retain our partners, employees, and owners by making them less likely to want to leave?
We can only increase the business's profit margin by raising the price for our customers and reducing the costs of our stakeholders. We have to protect our stakeholder satisfaction and surplus; we need to make sure they are getting as much value as possible from our business. That means our partners, employees, and owners need to profit from working with us and be satisfied with the experience. It's never a good idea to cut costs without also decreasing willingness to sell because you'll be eating into stakeholder satisfaction and surplus. This leads to high turnover and losing critical people.
Our focus here is not to pay stakeholders less, but our goal is to improve the retention of key stakeholders by increasing their satisfaction and surplus. High turnover and an inability to attract and retain key talent are huge problems for most businesses. Ensuring that you are creating, delivering, and capturing value effectively in a relationship with stakeholders is critical to driving long-term organic growth and building a scalable business.
Refer back to the stakeholder value, mat part one. Get rid of any Needs or Value-adds that are entirely unreasonable. For instance, employees may want to get paid full-time to work part-time, but that's impossible for most businesses or a good idea. In the boxes provided, rank the needs and value ads (from the stakeholder value map - part 1) for each type of stakeholder based on how much they decrease stakeholder willingness to sell. List the needs and value ads that will decrease willingness to sell the most at the top and the least at the bottom.
Now you should have a prioritized List of your stakeholder most important needs a Value-adds.