How do you show your strategy's value to shareholders?

1 Align your strategy with your vision and mission

Your strategy should be aligned with your vision and mission, which are the core statements that define your organization's purpose, direction, and values. Your vision and mission should resonate with your shareholders, who are ultimately investing in your organization's future. By showing how your strategy supports your vision and mission, you can demonstrate your strategic intent and direction, and how you plan to achieve your long-term goals.

2 Use a balanced scorecard approach

A balanced scorecard is a tool that helps you measure and communicate your strategy's performance across four dimensions: financial, customer, internal processes, and learning and growth. By using a balanced scorecard approach, you can show your shareholders how your strategy creates value for them, as well as for your customers, employees, and society. You can also use a balanced scorecard to track and report your progress, challenges, and achievements, and to identify areas for improvement and innovation.

3 Tell a compelling story

Your strategy is not just a set of objectives, actions, and metrics. It is also a story that explains why your strategy matters, what it aims to accomplish, and how it will make a difference. To show your strategy's value to shareholders, you need to tell a compelling story that captures their attention, appeals to their emotions, and inspires their confidence. You can use storytelling techniques, such as creating a clear narrative, using vivid examples, and showing the impact of your strategy on real people and situations.

4 Engage in dialogue and feedback

Showing your strategy's value to shareholders is not a one-way communication. It is also an opportunity to engage in dialogue and feedback with your shareholders, who may have valuable insights, questions, and suggestions. By listening to your shareholders, you can understand their concerns, expectations, and opinions, and address them in a respectful and transparent way. You can also use dialogue and feedback to build trust and rapport with your shareholders, and to foster a sense of ownership and commitment to your strategy.

5 Adapt to changing circumstances

Your strategy is not a static plan that remains unchanged over time. It is a dynamic process that responds to changing circumstances, such as market trends, customer needs, competitor actions, and external events. To show your strategy's value to shareholders, you need to adapt to changing circumstances, and to communicate how you are adjusting your strategy accordingly. You can use scenarios, simulations, and experiments to test and refine your strategy, and to show your shareholders how you are prepared for various situations and opportunities.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?