Stakeholder centricity:
the heart of your business
Explained by financial sector case studies
Barrett Values Centre
2014 I...
PwC
Ambition
• High performing
organization
• Purpose driven, values
led
• Behaviour as the
differentiator in the
‘moments...
PwC
Financial services continues to be the least trusted industry globally
• Financial institutions have been working hard...
PwC
What builds trust?
Stakeholder centricity: the heart of your business
4
June 2014
Research shows four key elements
• B...
PwC
PwC’s stakeholder centricity approach
5
Relay to stakeholders what path you
walk through integrated reporting
Assess, ...
PwC
Financial institutions steering on stakeholder centricity:
1. Define and have clarity on their purpose & key values
2....
PwC
Moments that Matter are the moments that create
value for stakeholders
Culture is build in Moments that Matter (MtM).
...
PwC
Quantifying and qualifying stakeholder interests
is key towards sustainable value creation
Fact based, defined
by logi...
PwC
Example of an insurer: moments that matter
Stakeholder centricity: the heart of your business June 2014
9
PwC
Transformation towards a stakeholder oriented
culture requires integration of three leadership styles
10
June 2014Stak...
PwC
Stakeholder Centricity: Putting it into practice
BRAIN bank N.V.
• BRAIN bank is a global financial institution
of Dut...
PwC
Stakeholder Centricity: Putting it into practice
Discussion in subgroups
We have 6 subgroups representing the
differen...
PwC
Stakeholder Centricity: Putting it into practice
Discussion in subgroups
We have 6 subgroups representing the
differen...
PwC
Stakeholder Centricity: Putting it into practice
Discussion in subgroups
We have 6 subgroups representing the
differen...
PwC
PwC’s Sustainable Business Modeling to
scientifically underpin stakeholder centricity
Eg. Effect of intervention on si...
Contact
Wendy van Tol
Partner – Change & Leadership
wendy.van.tol@nl.pwc.com
Olivier Sueur
Director – Risk & Compliance
ol...
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Stakeholder Centricity- The Heart of your Business: Wendy van Tol & Olivier Sueur

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Stakeholder Centricity- The Heart of your Business: Wendy van Tol & Olivier Sueur

  1. 1. Stakeholder centricity: the heart of your business Explained by financial sector case studies Barrett Values Centre 2014 International Conference Building a Values-Driven Society Stockholm, 12 June www.pwc.nl
  2. 2. PwC Ambition • High performing organization • Purpose driven, values led • Behaviour as the differentiator in the ‘moments that matter’ We see two drivers for stakeholder centricity External burning platform • Trust is all time low • Shifting public moral • Complying to the rules is no longer enough Stakeholder centricity: the heart of your business 2 June 2014 Edelman Trust Barometer 2014
  3. 3. PwC Financial services continues to be the least trusted industry globally • Financial institutions have been working hard on restoring trust, the impact of these efforts is not significant • Globally trust in financial services industry is only one percentage point higher in 2014 vs 2013 (Edelman Trust Barometer, 2014) • Trust in EU Financial Services is lowest This calls for change in how financial institutions are restoring trust and building confidence. Trust is a must in the financial services industry Stakeholder centricity: the heart of your business 3 June 2014
  4. 4. PwC What builds trust? Stakeholder centricity: the heart of your business 4 June 2014 Research shows four key elements • Be clear on what you stand for and why you are relevant • Show you understand the needs, interests and expectations of others • Integrating stakeholder needs and their (long-term) goals into services, products, processes and behaviours • Reporting open and transparent about financial and non-financial value creation towards a broad stakeholder group
  5. 5. PwC PwC’s stakeholder centricity approach 5 Relay to stakeholders what path you walk through integrated reporting Assess, evaluate and adjust to bring the walk closer to the talk Support the walk with the right processes Walk the talk Be clear on purpose & values and how you are relevant to your stakeholders ACCOUNTABILITY CONTROL EXECUTION LEADERSHIP STAKE- HOLDERS PURPOSE & VALUES June 2014Stakeholder centricity: the heart of your business
  6. 6. PwC Financial institutions steering on stakeholder centricity: 1. Define and have clarity on their purpose & key values 2. Define their direct & indirect stakeholders 3. Organize permanent dialogue with these stakeholders to know and understand their needs 4. Take careful consideration of the possible conflicting needs: ◦ Step 1: Formulate all financial and non-financial needs and their impact short/long term effect ◦ Step 2: Needs are weighted for key stakeholders relevance and according to the purpose & key values using a materiality analysis Transformation towards an open system 6 June 2014Stakeholder centricity: the heart of your business
  7. 7. PwC Moments that Matter are the moments that create value for stakeholders Culture is build in Moments that Matter (MtM). MtM: • has unparalleled impact on the performance and the value creation process • exists in interaction with stakeholders The right behaviour in MtMs: • provides more control in restoring trust and building confidence of stakeholders • triggers a positive effect on a change in culture & behaviour • can be embedded in the organization by steering on KBI’s (Key Behavioural Indicators) Stakeholder centricity: the heart of your business June 2014 7
  8. 8. PwC Quantifying and qualifying stakeholder interests is key towards sustainable value creation Fact based, defined by logic using data analytics What we know is the right thing to do Moments that Matter Defined by emotion and feelings What we feel is the right thing to do “The difference between emotion and reason is that emotion leads to action, whilst reason leads to conclusions”. Stakeholder centricity: the heart of your business 8 June 2014
  9. 9. PwC Example of an insurer: moments that matter Stakeholder centricity: the heart of your business June 2014 9
  10. 10. PwC Transformation towards a stakeholder oriented culture requires integration of three leadership styles 10 June 2014Stakeholder centricity: the heart of your business SOUL – inspire stakeholders based on a belief in the purpose, values and strategy of the organization. SYSTEM – show the needed changes towards a stakeholder oriented culture by systems, processes and structures. STAMINA – embedding stakeholder centricity in the culture by steering on it in daily decision making and business operations.
  11. 11. PwC Stakeholder Centricity: Putting it into practice BRAIN bank N.V. • BRAIN bank is a global financial institution of Dutch origin, heavily impacted by the crisis. • The purpose of BRAIN bank is: meaningful financial advice to prepare for the future. • The key values of BRAIN bank are: responsibility, partnership and professionality. • To become a more robust company BRAIN decided to focus on profitable and strong clients and for the less profitable (non- target) clients, like some middle market clients, a discouragement policy is defined. • Employees feel uncomfortable applying the policy, because they feel forced to break contact with clients they have been serving and have known for many years. • Employees also complain about the almost impossible load of new national and international banking regulations and the impact of these regulations on their daily job. 11 June 2014Stakeholder centricity: the heart of your business
  12. 12. PwC Stakeholder Centricity: Putting it into practice Discussion in subgroups We have 6 subgroups representing the different stakeholder groups of BRAIN bank: 1. Clients: specifically entrepreneurs with medium sized companies 2. Employees 3. Management 4. Shareholders 5. Regulators 6. Society Round 1: What are your 3 key needs? • Brainstorm all possible needs of your stakeholder group (5 min). • Discuss output within subgroup (5 min) • Please write the 3 key needs on post-it notes and share them plenary. Stakeholder centricity: the heart of your business 12 June 2014
  13. 13. PwC Stakeholder Centricity: Putting it into practice Discussion in subgroups We have 6 subgroups representing the different stakeholder groups of BRAIN bank: 1. Clients: specifically entrepreneurs with medium sized companies 2. Employees 3. Management 4. Shareholders 5. Regulators 6. Society Round 2: Prioritize the long list of key needs according to the purpose and values • Vote on the items of the long list by dividing 2 green stickers and 3 red stickers. Stakeholder centricity: the heart of your business 13 June 2014
  14. 14. PwC Stakeholder Centricity: Putting it into practice Discussion in subgroups We have 6 subgroups representing the different stakeholder groups of BRAIN bank: 1. Clients: specifically entrepreneurs with medium sized companies 2. Employees 3. Management 4. Shareholders 5. Regulators 6. Society Round 3: Define the MtM in responding to the needs • Brainstorm on the MtM’s for the needs prioritized in round 2 • Pick one MtM and define what behaviour is needed Stakeholder centricity: the heart of your business 14 June 2014
  15. 15. PwC PwC’s Sustainable Business Modeling to scientifically underpin stakeholder centricity Eg. Effect of intervention on sick leave by increasing fruit consumption Reachable population 92% of Dutch population doesn‘t consume sufficient fruit Maximum effect 2.4% of sick leave is caused by insufficient fruit consumption Chance to succeed Intervention will reach 80% of population which doesn‘t consume sufficient fruit Impact An investment in fruit reduces sick leave by 0.1% Towards stakeholder centricity in the Financial sector 20 May 2014
  16. 16. Contact Wendy van Tol Partner – Change & Leadership wendy.van.tol@nl.pwc.com Olivier Sueur Director – Risk & Compliance olivier.sueur@nl.pwc.com See also www.pwc.nl/goodmarketconduct

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