IMD-OWPLIVE22-PostEvent-Report

More organizations are adopting stakeholder-friendly mandates, but seeking consensus on every choice grinds decision speed to a halt. What is a good level of stakeholder engagement? ARNAUD CHEVALLIER Professor of Strategy Q&A →Leadership STAKEHOLDERS INCORPORATED: MAKINGBETTER BUSINESS DECISIONS WHAT IS YOUR HOT TOPIC? How much managers consider the concerns of their stakeholders when making business decisions depends on a number of factors, including their national and corporate cultures as well as their personality and experience. Over time, these considerations lead managers to develop a decision-making style that often becomes the default that they unconsciously use. However, a one-size-fits-all approach to making decisions will not work. If managers do not engage with stakeholders enough, it can lead to poor decision outcomes and faulty implementation of strategy. Conversely, seeking consensus on every choice grinds decision speed to a halt and may cause stakeholders to feel their time would be better used elsewhere. Ultimately, an ability to engage more or less, depending on the individual situation, is needed.

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