Page 75 - Operations Strategy

50 CHAPTER 2 • OPERATiOns PERfORmAnCE
the operation’s activities – the company must minimise vehicle pollution, minimise
wastage of materials or energy, ensure that its operations do not disrupt the life and
well-being of those who live nearby and so on. But although each of these groups, to
different extents, will be interested in operations performance, they are likely to have
very different views of which aspect of performance is important. Table 2.1 identifies
typical stakeholder requirements. But stakeholder relationships are not just one-way. It
is also useful to consider what an individual organisation or business wants of the stake-
holder groups themselves. Some of these requirements are also illustrated in Table 2.1.

table 2.1 typical stakeholders’ performance objectives
What stakeholders want from the What the operation wants from
Stakeholder operation stakeholders
Shareholders Return on investment (ROI) Investment capital
Stability of earnings Long-term commitment
Liquidity of investment

Directors/top management Low/acceptable operating costs Coherent, consistent, clear and achiev-
Secure revenue able strategies
Well-targeted investment Appropriate investment
Low risk of failure
Future innovation
Staff Fair wages Attendance
Good working conditions Diligence/best efforts
Safe work environment Honesty
Personal and career development Engagement
Staff representative bodies Conformance with national Understanding
(e.g. trade unions) agreements Fairness
Consultation Assistance in problem solving
Suppliers (of materials, services, Early notice of requirements Integrity of delivery, quality and
equipment etc.) Long-term orders volume
Fair price Innovation
On-time payment Responsiveness
Progressive price reductions
Regulators (e.g. financial Conformance to regulations Consistency of regulation
regulators) Feedback on effectiveness of Consistency of application of
regulations regulations
Responsiveness to industry concerns
Government (local, national and Conformance to legal requirements Low/simple taxation
regional) Contribution to (local/national/ Representation of local concerns
regional) economy Appropriate infrastructure
Lobby groups (e.g. environmen- Alignment of the organisation’s activi- No unfair targeting
tal lobby groups) ties with whatever the group are Practical help in achieving aims (if the
promoting organisation wants to achieve them)
Society Minimise negative effects from the Support for organisation’s plans
operation (noise, traffic etc.) and
maximise positive effects (jobs, local
sponsorship etc.)

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