LEADERSHIP | SHAREHOLDER VALUE
Bouchard says companies are adopting a more balanced approach , seeking to create value for all stakeholders rather than prioritising shareholders . While he says that shareholder value should absolutely still be the main focus for CEOs , he believes that most leaders are getting it wrong , and that there should be a greater focus on allocating capital correctly .
“ Even in the Fortune 500 , I give a grade of C to over half of the CEOs I ’ ve observed or studied ,” declares Bouchard .
How CEOs can deliver shareholder value There are lots of financial , strategic , operational , governance and transformational levers COEs can use . As a human capital strategist , Spitzer says CEO skills are crucial . She says the non-technical shareholder value capabilities CEOs require are :
+ 360-degree view of strategy that includes both the normal stuff ( value drivers , markets , customers , competitors , products and services , financials , and risk ) and the new stuff ( human capital , environmental , societal , and governance )
+ Purpose-informed capital allocation and financial planning viewed that considers the impact investment decisions have on people and the planet , alongside profit
+ Ethical integrity and the ability to establish trust and credibility by exhibiting high standards and responsible leadership
+ Stakeholder engagement with a keen ability to listen , empathise , communicate , build relationships , and understand diverse perspectives
+ Adaptive leadership to navigate change , embrace innovation , drive transformation , and guide teams through uncertainty ; being open to new ideas , willing to challenge the status
quo , and capable of making tough decisions
+ Understanding the ROI of diversity and inclusion and promoting a culture that values and respects differences
+ Continuous learning to stay on top of industry trends , regulatory changes , and best practices
“ In addition , CEOs need fluency in cybersecurity , artificial intelligence , digital transformation , human capital management , and environmental , social , and governance ( ESG ), which present significant competitive , reputational , and financial threats ,” adds Spitzer .
58 September 2023