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  • New Leadership Paradigm

External Equilibrium

An organisation experiences external equilibrium when it is able to satisfy the needs of its external stakeholders.

The responsibility for managing external relationships falls on the leader, supported by the organisation’s public relations department. 

Maintaining the external equilibrium of the organisation involves satisfying the needs of:

  • Investors: Ensuring satisfactory shareholder returns.
  • Customers: Ensuring quality of products and services and expressing caring in all customer interactions.
  • Partners: Mutual reciprocity and support in attending to each other’s needs.
  • Local community: Contributing to the physical and cultural well-being of the local communities in which the organisation operates.
  • Society: Contributing to the long-term sustainability of the societies in which the organisation operates.

The keys to managing the external relationships of the organisation are authenticity, empathy and ethics.

Once again, it is a matter of trust. When dealing with external stakeholders your word must be your bond. You must always be honest with everyone, and you must always be the person who is accountable when things go wrong. As far as the outside world is concerned, you are the organisation. You must be completely ethical in all your dealings.


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