Appendix 8 – Practical Case Story

Appendix 8 – Practical Case Story

To illustrate implication of the best practice template a practical case-story is described.

Stakeholder 1 and 2 shared environmental objectives and mapped their estimated potential.

TWO suggested initiative A despite own negative profitability issues and the negative consequence B. The A initiative influenced ONE positively and B actually created a positive consequence C. TWO also suggested initiative D with positive profitability, but this had negative influence E on ONE.

Below each of the parties Shareholder/Stakeholder Value Map:

It was evident that there was no apparent business case for either of the parties. However, the Managing Director’s were eager to start a partnership.

ONE & TWO agreed to share cooperative profit according to 50% of profit to be split based on who suggested the initiative, and 50% of profit to be split as 50/50 partnership. They also agreed that not only direct influence of initiative, but also cost and benefits of indirect consequences were to be shared.

A shared calculation for cooperative profitability was put up:

Stakeholder ONEProfitStakeholder TWOProfit
Direct influence of A+ 10,000Initiative A suggested– 5,000
Consequence of B -> C+ 5,000Consequence of A -> B– 1,000
Consequence of D -> E– 5,000Initiative D+ 6,000
Sub+ 10,000Sub+/- 0

The cooperative profit of 10,000 was shared

Stakeholder ONE suggested a shared value of: 0

Stakeholder ONE received: partnership value 2,500

Stakeholder TWO suggested a shared value of: + 10,000

Stakeholder TWO received: initiative value 5,000 + partnership value 2,500 = 7,500

Besides the gained profitability ONE could also report on increased environmental stakeholder satisfaction (X), and an upcoming innovative cooperative initiative in partnership with TWO, concerning a niche market opportunity (Y) that competitors were unable to copy.

These benefits also influenced ONE’s Shareholder Value positively:

The shared loose-loose perspective in the partnership motivated both to find a win-win solution, as demonstrated in the Shareholder/Stakeholder map below: