In these tough times it has been proven that past results are no indicator for future performance. That’s why we believe that real sustainability depends on how well a company reconciles the tensions, which we refer to as the ’10 Golden Dilemmas’, between all stakeholders.
We have identified these ‘Ten Golden Dilemmas’, which exist between these five segments of our cycle. These dilemmas exist because resources are scarce. What is given to one segment of the cycle must be taken from another. Yet paradoxically, values are abundant or potentially so. The more innovative employees are and the faster they can learn, the better they will do on benchmarks. If these benchmarks are accurately aimed at what customers want, then customer satisfaction will rise, shortly after higher levels of quality are attained. The revenue generated by satisfied customers will increase shareholders rewards, raising their readiness to invest.
What is the purpose?
The value conflicts between these segments, precipitated by scarcity at moments of time, have to be reconciled over time. It is difficult enough to resolve these dilemmas theoretically, but even this would not be enough to render the assessment methodology operationally. In order to do this, we need to demonstrate to assessors how the values we seek to reconcile should be measured.
|On the one hand…||On the other hand…|
|1||Management: We need to become more results oriented.||Employees: We need to develop our people.|
|2||Employees: We need to reward our people.||Shareholders: We need to maximize financial results for our shareholders.|
|3||Shareholders: We need to maximize shareholder return from our existing business.||Society: We need to invest in a sustainable society.|
|4||Customers: We need to supply products and services that satisfy our customers’ wants.||Society: We need to supply products and services that satisfy our customers’ needs, reflecting our responsibility towards society.|
|5||Management: We need to create standardized products and services.||Customers: We need to respond to particular requests from our markets.|
|6||Employees: We need to take care of the well-being of our employees.||Customers: We always need to satisfy the customers’ demands.|
|7||Employees: We need to optimize our employees’ performance.||Society: We need to protect our employees, adhering to society’s norms and values.|
|8||Management: We need to focus on the organization strategy.||Shareholders: We need to comply with the demands of our shareholders.|
|9||Management: We need to focus on the day-to-day running of our business.||Society: We need to fulfill the raison d´être of our organization within society.|
|10||Shareholders: We need to generate capital growth for our shareholders.||Customers: We need to continuously develop loyalty with our customers.|