The systems used to involve stakeholders in change depend on the business. In some cases, where a person has a non-voting stake in the business, their opinions will not be considered when changes are being made. However, as most stakeholders will be expecting to contribute their opinions for developing a business, it’s important to have a tried and tested system in place.
Normally, a majority vote is used when passing controversial plans for change that have already been determined. If a company is looking for the opinion of stakeholders when plans are being established, some of the options that executives will have include raising it in a board meeting. As many stakeholders will be present, the pros and cons to certain changes can be weighed, and some directors who have experience in initiating this type of change may contribute ideas they have which are based on their previous involvement with other projects.
It’s important to value the perspectives of stakeholders. They should be able to have a say in the direction of a business, as if a wrong decision is made against their will, they would have lost money in a way that could have been avoided. This can result in the overall value of a business declining, with some investors withdrawing their stakes.
Gradual change can be better than fast change, as stakeholders can progressively see a new plan brought into place, and the financial implications that a development may have. Through being united in business, it’s likely that dividends will be better and the decision making by stakeholders will be more efficient.
Normally, a majority vote is used when passing controversial plans for change that have already been determined. If a company is looking for the opinion of stakeholders when plans are being established, some of the options that executives will have include raising it in a board meeting. As many stakeholders will be present, the pros and cons to certain changes can be weighed, and some directors who have experience in initiating this type of change may contribute ideas they have which are based on their previous involvement with other projects.
It’s important to value the perspectives of stakeholders. They should be able to have a say in the direction of a business, as if a wrong decision is made against their will, they would have lost money in a way that could have been avoided. This can result in the overall value of a business declining, with some investors withdrawing their stakes.
Gradual change can be better than fast change, as stakeholders can progressively see a new plan brought into place, and the financial implications that a development may have. Through being united in business, it’s likely that dividends will be better and the decision making by stakeholders will be more efficient.