The shareholder value maximization principle that most businesses follow is increasingly coming under pressure from academicians and company leaders. Instead a purpose-driven, long-term approach with a view to maximizing benefits to all stakeholders is being vouched for now. To cater to various constituents of any company, the Flywheel philosophy has been adopted. It has three key constituents- customers, suppliers and team members. Three things to keep in mind are- performance, purpose and caring. Trust-based partnerships need to be forged along the way. The traditional transactional model here is giving way to a partnership model. Now the value creation is based on mutual interest rather than for self-interest alone. The time frame encompasses the short, medium and long term. Stakeholder relationships are now executed via a relational approach instead of an impersonal one. Value creation is through collaboration and not unilaterally by one side alone. Genuinely impactful practices lead trust being forged to perform, care and deliver purpose. It requires partnering with employees through proactive engagement. Communication with the top leadership has to be frequent to hone a partnership culture. Wellness programmes and reverse mentoring are innovative management training methods that can have theright impacts. Customers and suppliers also need to be part of the loop for decision-making.

Source:https://www.strategy-business.com/article/The-Flywheel-Philosophy?gko=2a0c6

Uploaded Date:23 October 2018