A MORE holistic approach to doing business is the way of the future says the Committee for Economic Development of Australia research committee vice-president Russell Devitt.
Rather than adopting an adversarial approach, an inclusive
partnership between the different business stakeholders was the key for future success, Mr Devitt said.
“Its a question of getting support from individuals who constitute our shareholders, our clients, our employees and suppliers,” he said.
“Whereas in the past we had a control and demand model, in the new world we look at the organisation as something of an organism,” Mr Devitt told a recent lunch meeting organised by Australian Business in Europe and CEDA.
In the new business environment leadership was very important at all levels of an organisation, he said.
“We need to create an environment that allows people to reach their full potential. It means the company needs to nurture learning.
“We need to measure not only the short-term financial indicators of the past but ensure the company sticks to its vision.”
Mr Devitt said the inclusive approach meant a company first needed to look at what its unique purpose is, identify stakeholders, define a success model and measure performance against this model.
Responding to a question over the perceived problem between aims of sustainable growth and creating capital growth, Mr Devitt said shareholders would not benefit if sustainable development was ignored.
“An over concentration of return to shareholders may give value to shareholders in the short term but not in the long term,” he said.
