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 ONE | Profit | Stakeholder TWO | Profit |
Direct influence of A | + 10,000 | Initiative A suggested | – 5,000 |
Consequence of B -> C | + 5,000 | Consequence of A -> B | – 1,000 |
Consequence of D -> E | – 5,000 | Initiative D | + 6,000 |
Sub | + 10,000 | Sub | +/- 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: