Building Shareholder Value Through Your People

Increasing shareholder value is the most important driver for organisations in the modern business world. Shareholder value is built through growing profit and building confidence in the organisation, which moves share prices upwards. Shareholders like this!

And the employees of an organisation have a crucial part to play in both elements of this.

They contribute to sales by selling more, both to new and old customers. They build the customer base by word of mouth from existing customers. New customers are pre-filtered because your existing customers tell them exactly what you do, so more customer interactions are converted, with less wasted time. This means that your costs are kept down.

Your people buy better because they build great relationships with suppliers - so they get the best deals. Both sides win, so the relationship blossoms.

Great people in your organisation work hard to keep costs low, because they are enabled to do so. They have freedom to be creative. They get very focused on the 'Does it create value?' question and work together, with the best results as their only goal.

With all this positive activity, the organisation looks and feels strong to it's customers, suppliers and shareholders. With this and a great profit performance, confidence grows.

Shareholders enjoy great improvements in the value of the growth in the price of the shares they hold and the dividends they receive.

Martin Haworth is a Business and Management Coach. He works worldwide, mainly by phone, with small business owners, managers and corporate leaders. He has hundreds of hints, tips and ideas at his website, http://www.coaching-businesses-to-success.com (Note to editors. This article may be edited for use in your publication or newsletter as long as a live link to the website is included)

...helping you, to help your people, to help your business grow...

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Smoke from Israeli bombardment rises from the northern Gaza Strip as seen from the Israel- Gaza border, Friday, Jan. 9, 2009. The U.N. Security Council called for an 'immediate' and 'durable' cease-fire in Gaza, but an intense bombardment of missiles from Israeli jets and helicopters early Friday and a barrage of Hamas rockets indicated there would be no rapid end to the fighting. (AP Photo/Ariel Schalit)AP - The U.N. Security Council called for an immediate cease-fire in Gaza, but an intense bombardment of missiles from Israeli jets and helicopters early Friday and a barrage of Hamas rockets indicated there may be no quick end to the fighting.



Rep. Jack Franks (D-Woodstock) votes to recommend the impeachment of Illinois Gov. Rod Blagojevich to the House during an Illinois House Impeachment Committee hearing Thursday, Jan. 8, 2009, in Springfield, Ill. The committee voted unanimously to recommend impeachment putting the matter before the full house.  (AP Photo/Seth Perlman)AP - Gov. Rod Blagojevich faces almost certain impeachment by the Illinois House, a historic step that would trigger a trial to determine whether the Democratic governor should be tossed out of office.



In this Monday, Dec. 29, 2008 file image provided by Greenpeace, coal ash slurry left behind in a containment pond near the Tennessee Valley Authority's Kingston Fossil Plant is shown  in Harriman, Tenn., after the dyke at left broke Dec. 22, 2008. Millions of tons of toxic coal ash is piling up in power plant ponds in 32 states, a practice the federal government has long recognized as a risk to human health and the environment but has left unregulated. (AP Photo/Greeenpeace, Wade Payne)AP - Millions of tons of toxic coal ash is piling up in power plant ponds in 32 states, a practice the federal government has long recognized as a risk to human health and the environment but has left unregulated.



Vice President Dick Cheney pauses during an interview with the Associated Press at the White House in Washington Thursday, Jan. 8, 2009. (AP Photo/Ron Edmonds)AP - Vice President Dick Cheney, warning against impulsive U.S. action in Iraq, says that whether the struggling nation backslides into a cycle of violence partly depends on how President-elect Barack Obama decides to pull out American forces.



In this Dec. 5, 2006 file photo, Leon Panetta, then a member of the Iraq Study Group, walks into a Washington hotel.    (AP Photo/Kevin Wolf, File)AP - President-elect Barack Obama is completing his national security team by announcing his unusual choices for CIA director and a national intelligence director who may face tough Senate confirmation questioning over how he confronted the Indonesian military when civilian massacres were occurring in East Timor.



Florida's Tim Tebow (15) throws a pass over Oklahoma's Auston English (33) during the third quarter of the BCS Championship NCAA college football game in Miami, Thursday, Jan. 8, 2009. (AP Photo/Mark Humphrey)AP - The game defied expectations. Tim Tebow fulfilled them. He rescued No. 1 Florida, running through and throwing over No. 2 Oklahoma for a 24-14 victory Thursday night that gave the Gators their second BCS championship in three years.



A man walks past an electric market board in central Tokyo, Friday, Jan. 9, 2008. Japanese shares edged down Friday in lackluster trade as investors turned cautious ahead of U.S. jobs data that's likely to point to a deepening recession in the world's largest economy. The benchmark Nikkei 225 stock average lost 39.62 points, or 0.5 percent, to close 8,836.80. (AP Photo/Koji Sasahara)AP - Most Asian stock markets fell Friday amid more corporate gloom and worries that a key U.S. jobs report could show recession in the world's largest economy is deepening.



President-elect Barack Obama speaks about the economy at George Mason University in Fairfax, Va.,  Thursday, Jan. 8, 2009. (AP Photo/Charles Dharapak)AP - President-elect Barack Obama implored Congress on Thursday to "act boldly and act now" to fix an economy growing perilously weaker. Democratic and Republican lawmakers complained about his tax policies, letting Obama know they intend to place their own stamp on the economic recovery effort.



A sign instructs job seekers at the California Employment Development Department in Sunnyvale, Calif., Tuesday, Jan. 6, 2009. The country lost nearly 2 million jobs through November and more bad news is expected this week when the government releases data on weekly jobless claims and December unemployment. No matter how bad those numbers are, and economists expect at least another 500,000 jobs were lost last month, the pain is stretching into 2009.  (AP Photo/Marcio Jose Sanchez)AP - Trying to survive a deepening recession, employers are cutting their work forces to the bone, leaving more Americans unemployed and with dim prospects of finding a new job any time soon.



Freida Pinto backstage with the best picture award for 'Slumdog Millionaire' at the 14th Annual Critics' Choice Awards on Thursday Jan. 8, 2009 in Santa Monica, Calif. (AP Photo/Dan Steinberg)AP - The critics have spoken, and "Slumdog Millionaire" is their final answer.



Jaclyn Holt (R) fills out an application form at a job fair organized by the New Hampshire Employment Security agency in Salem, New Hampshire December 17, 2008. (Brian Snyder/Reuters)Reuters - U.S. employers probably cut the most jobs in at least 34 years last month as the global economic crisis gathered pace and moves by policy makers took time to filter through to struggling companies.



A Palestinian boy looks at the al-Noor mosque destroyed after an Israeli air strike in Gaza January 8, 2009. (Mohammed Salem/Reuters)Reuters - Israel pushed ahead with its two-week-old offensive in the Gaza Strip, ignoring a U.N. Security Council resolution calling for an immediate ceasefire.



Reuters - A report being released on Friday alleges that the U.S. Treasury has failed to reveal its strategy for stabilizing the financial system, not answered questions asked by a government watchdog, and has done nothing to help struggling homeowners, the Wall Street Journal said.

A man works near a pressure gauge at a district heating plant in Skopje January 8, 2009. (Ognen Teofilovski/Reuters)Reuters - Europe sought a swift restoration of gas supplies on Friday after striking a deal with Moscow on monitoring gas shipments via Ukraine that have been halted by a pricing dispute with Kiev.



People taking the Long Island Foreclosure Tour arrive at a foreclosed home for sale in New Hyde Park, New York in this May 17, 2008 file photo. Citigroup could soon agree to principles that would let troubled borrowers save their homes through bankruptcy, sources familiar with the talks said on Thursday, while industry groups are easing their opposition to the plan. (Shannon Stapleton/Reuters)Reuters - Financial giant Citigroup Inc will support a proposal in Congress to rewrite U.S. bankruptcy law to help troubled mortgage borrowers avoid foreclosure, Chief Executive Vikram Pandit said on Thursday.



Illinois Governor Rod Blagojevich gestures as he announces former Illinois Attorney General Roland Burris as his choice to fill the vacant U.S. Senate seat of President-elect Barack Obama during a news conference in Chicago, Illinois December 30, 2008. (Frank Polich/Reuters)Reuters - A legislative committee on Thursday recommended the impeachment of Illinois Gov. Rod Blagojevich, citing widespread abuse of power including allegations he tried to sell the U.S. Senate seat vacated by President-elect Barack Obama.



Timothy Geithner (R), pictured in Chicago, November 24, 2008. (Jeff Haynes/Reuters)Reuters - President-elect Barack Obama's economic team is urgently overhauling the $700 billion financial rescue package to broaden its scope beyond Wall Street, The Washington Post reported on Friday.



Usama al-Kini, Al Qaeda's operations chief in Pakistan, is pictured in this undated FBI Most Wanted photograph. Al-Kini, also known as Fahid Mohammed Ally Msalam, and a top aide are believed to be dead, a U.S. counterterrorism official said on January 8, 2009, in what appeared to be the latest results of a campaign targeting the militant group's leadership. Operations chief al-Kini was thought responsible for attacks, including the bombing of a Marriott hotel in Islamabad that killed 55 people in September, and an unsuccessful attempt to kill former Pakistani Prime Minister Benazir Bhutto, who was later assassinated in a separate attack, the official said. (FBI/Handout/Reuters)Reuters - Al Qaeda's operations chief in Pakistan and a top aide are believed to be dead, a U.S. counterterrorism official said on Thursday, in what appeared to be the latest results of a campaign targeting the militant group's leadership.



An Israeli army tank takes position on a hill at the border between Israel and the northern Gaza Strip on January 8, 2009. Israel was under intense pressure Friday to end its two-week-old offensive in the Gaza Strip after the UN Security Council called for an immediate ceasefire as the death toll from the war rose past 760.(AFP/David Buimovitch)AFP - Israel carried out new deadly air raids on the Gaza Strip on Friday as the UN Security Council called for an immediate ceasefire to end the two-week-old conflict in the Palestinian enclave.



A man carries firewood in the suburbs of Sofia, Bulgaria. European states deprived of Russian gas amid freezing weather were Friday hoping for a resumption of deliveries after the European Union claimed a breakthrough in the crisis between Moscow and Kiev.(AFP/Dimitar Dilkoff)AFP - European states deprived of Russian gas amid freezing weather were Friday hoping for a resumption of deliveries after the European Union claimed a breakthrough in the crisis between Moscow and Kiev.




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