You understand the value of your organizational goals, but do you know the value of your own goals as a stakeholder? 

This is a common (but costly) blind spot for most business owners. Before we dive into the process of setting your stakeholder goals, let’s first look at why it’s important to have them in the first place.  

What Exactly Are Stakeholder Goals?

Stakeholders are vested. They are the select few in your organization who benefit from the success of the organization (or suffer from failures). When stakeholders are unclear about their vision, it makes facing important decisions complicated and counterproductive. 

Think about your most important organizational questions: Should you move to a new office space? Should you expand your business by adding new employees? 

These decisions are all a means to an end, but what end?  

Now think about some of your personal questions: Am I running the company to raise its value so I can sell it down the road? Or am I running the company to elevate my lifestyle and those people around me now? 

These are two completely different destinations that require two completely different paths. 

If we’re not clear about our goals as a stakeholder, complications are not just possible, they are inevitable. And these types of problems always trickle down and spread throughout the organization, threatening productivity and overall morale. 

Why Stakeholders Don’t Establish Their Own Goals

So, why don’t most stakeholders have clear goals? Essentially, many don’t think personal goals are allowed. It simply feels selfish to have them. 

It’s as if stakeholders are asked to put their own vision to the side in order to focus on the company’s vision. The irony is that if nothing is important to the stakeholder, nothing is important to the organization. 

By first asking yourself what’s important, you can establish a clear direction, focused narrative, and north star for the whole organization.  

It turns out that being selfish is the most altruistic thing you can do for your organization.

Why? Because it provides clarity for your employees on what is expected of them. It provides a compass for navigating difficult times. And it centers the company on a singular aim versus being scattered and ineffective. 

Simply put, your stakeholder goals form the basis for other decisions down the road. 

How to Apply This in Your Organization

Let’s shift from the abstract to how this plays out in real life, starting with something every owner has to decide: their own income. 

As a stakeholder, how much do you pay yourself? It seems like a simple decision, but it’s deceptively complex.

How do you take your draws? How do you distribute the profits after you pay yourself? Without goals for yourself, you have no criteria for making decisions aside from what feels right in the moment. 

I’ve seen stakeholders who vastly underpay themselves, which then trickles down to how employees are compensated. This hurts their chances of getting the right people in critical roles in the business. I’ve also seen stakeholders who vastly overpay themselves and quickly drain the equity of the business on the front end. 

If you make the decision to take lower draws for yourself now because you want to sell the company in the future, it gives you clarity and peace of mind. If you decide to take dividends and a higher drawbecause you want to enjoy the lifestyle your company provides now, it gives you clarity and peace of mind.

At the end of the day, it is your decision. The choice is yours.

These Goals Are Non-Negotiable

One of the most important things you need to understand is that these goals must be non-negotiable.

When you lack your own personal goals, you make the mistake of handing over power and certainty. This takes the form of “our goals” as an organization. 

By framing it as “our goals” instead of “my goals”, you unknowingly open the organizational goals up to interpretation and debate.  

This is the exact opposite of what you’re aiming for, and it can quickly create confusion in your organization. You must know — without a doubt — that you have the right to have your own goals and that your organization will suffer if you don’t. 

The next step is to give your CEO or General Manager the task of setting their own stakeholder goals. Otherwise, you can’t expect them to lead effectively. Your principals are effective when they are inspired, and they are inspired when they are clear on their personal goals. 

I know this process may seem counterintuitive at first, but I’ve seen too many organizations suffer from this lack of clarity. It’s a common blind spot that can be alleviated easily by becoming aware of the issue. 

You may decide to start by looking at your own compensation, or you may decide to focus on empowering your CEO or other stakeholders. The point is to make stakeholder goals non-negotiable and start now.

Confusion costs you and your organization time. Clarity saves you time. Employees are asking for clarity so they can succeed fully in their roles and live the lifestyle they want. 

Claim the authority you have as a stakeholder by taking the time to set your goals now. It is the one action you can take to save you time and energy down the road. Know that it’s not selfish and that it’s the best decision you can make for yourself, your company, and those who work around you.