Strategy or Stakeholders: Which Comes First?
How far should organizations go in abiding by stakeholders' interests? According to stakeholder theory, strategy should take into account, if not be built around, stakeholder interests. Nonsense, argues Robert Kaplan. Such an approach is not only wrong-headed, it's impracticable. Companies can account for any stakeholder considerations they view as important through their Balanced Scorecard and strategy map-and hold performance to them without compromising strategy or their ability to adjust it to changing conditions.