Shareholder or stakeholder management:strategies for performance optimisation

This paper is based upon the findings of a CIMA research project into the way which corporate performance is affected by the performance measurement system adopted. It compares and contrasts the techniques in use in a sample of large companies that use a variety of techniques. We have classified these techniques into 3 types: • Value based management techniques • Stakeholder management techniques • Traditional accounting techniques. The analysis traces the interactions between corporate objectives, decision making criteria, performance measurement systems, and executive incentive schemes in order to develop an understanding of the effects of such techniques upon corporate performance. This paper seeks to provide some answers to the following two questions: • What approach leads to superior performance for a firm? • What is different between these approaches when they are used in practice, as distinct from theory? In doing so we have drawn upon both contingency theory and sociobiology theory to develop a framework for understanding the relationship between the choke of performance measurement system and the resulting performance.

Market oriented cognitive subcultures in a multiple stakeholder environment

The importance of an organisation wide market oriented culture revolves around the performance implications of a focus on customers. However, in contemporary multiple stakeholder environments different notions of ‘the customer’ can exist adding complexity and introducing the possibility of different market oriented subcultures. An analysis of managers’ cognitive maps within a single case study highlight different beliefs and values associated with two alternative market oriented subcultures externally driven by a focus on two different customer groups. The lack of management consensus was further emphasised by two other alternative internally driven subcultures within the same firm. The implications are briefly discussed.

An analysis of the role of soft systems methodology in the change process and the contribution of the facilitator within this process

This research aims to examine the effectiveness of Soft Systems Methodology (SSM) to enable systemic change within local goverment and local NHS environments and to examine the role of the facilitator within this process. Checkland's Mode 2 variant of Soft Systems Methodology was applied on an experimental basis in two environments, Herefordshire Health Authority and Sand well Health Authority. The Herefordshire application used SSM in the design of an Integrated Care Pathway for stroke patients. In Sandwell, SSM was deployed to assist in the design of an Infonnation Management and Technology (IM&T) Strategy for the boundary-spanning Sandwell Partnership. Both of these environments were experiencing significant organisational change as the experiments unfurled. The explicit objectives of the research were: To examine the evolution and development of SSM and to contribute to its further development. To apply the Soft Systems Methodology to change processes within the NHS. To evaluate the potential role of SSM in this wider process of change. To assess the role of the researcher as a facilitator within this process. To develop a critical framework through which the impact of SSM on change might be understood and assessed. In developing these objectives, it became apparent that there was a gap in knowledge relating to SSM. This gap concerns the evaluation of the role of the approach in the change process. The case studies highlighted issues in stakeholder selection and management; the communicative assumptions in SSM; the ambiguous role of the facilitator; and the impact of highly politicised problem environments on the effectiveness of the methodology in the process of change. An augmented variant on SSM that integrates an appropriate (social constructivist) evaluation method is outlined, together with a series of hypotheses about the operationalisation of this proposed method.

Stakeholder preference and stated vs. derived importance satisfaction research

This paper presents a case study that reveals how stakeholders in the research process, by recommending specific data collection and analytical techniques, exert significant ‘hidden’ influence on the decisions made on the basis of market research findings. While disagreements amongst stakeholders regarding research design are likely, the possibility that strategies adopted by companies are dependent upon stakeholder research preferences has not been adequately addressed in the literature. Two widely used quantitative customer satisfaction evaluation approaches, involving stated and derived importance, are compared within a real life market research setting at an international bank. The comparative analysis informs an ongoing debate surrounding the applicability of explicit and implicit importance measures and demonstrates how recommendations are dependent upon the methodological and analytical techniques selected. The findings, therefore, have significant implications for importance based satisfaction market research planning and highlight the need to consider the impact of stakeholder preferences on research outcomes.