How to respond to shareholder activism
By: DesJardine, Mark
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Material type: 
BookPublisher: Harvard Business Review Description: 102(4), Jul-Aug, 2024: p.115-122.Subject(s): Activist shareholders, Strategic change, Organizational shifts, Managerial response, Corporate governance, Business model improvement, Investor pressure, Performance failures, Activist playbook, Engagement strategy, Narrative framing, Value creation, Proxy campaigns, Board dynamics, Leadership mindset, Stakeholder influence, Defensive strategy, Opportunity framing, Corporate restructuring, Strategic alignment
In:
Harvard Business ReviewSummary: Activist shareholders are often seen as villains by managers and boards. Their demands for strategic and organizational shifts—which can feel personal to managers—often challenge the soundness of a company’s strategy. However, leaders who treat activist shareholders solely as a risk or an annoyance are making a mistake. Although they may be aiming to protect their companies, they’re missing out on an opportunity to tap one of the few free resources companies have to bring about value creating strategic change and build stronger business models.To better respond to—and take advantage of—the campaigns of activists, leaders must learn to think the way they do. Most activists tend to follow a predefined process to identify and engage target companies. This article presents the three main components of the activist playbook—linking performance failures to organizational weaknesses, developing a plan of action, and creating a narrative in support of change—and describes how managers can anticipate and respond to activist campaigns.- Reproduced
https://hbr.org/2024/07/how-to-respond-to-shareholder-activism
| Item type | Current location | Call number | Vol info | Status | Date due | Barcode |
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Articles
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Indian Institute of Public Administration | 102(4), Jul-Aug, 2024: p.115-122 | Available | AR132690 |
Activist shareholders are often seen as villains by managers and boards. Their demands for strategic and organizational shifts—which can feel personal to managers—often challenge the soundness of a company’s strategy. However, leaders who treat activist shareholders solely as a risk or an annoyance are making a mistake. Although they may be aiming to protect their companies, they’re missing out on an opportunity to tap one of the few free resources companies have to bring about value creating strategic change and build stronger business models.To better respond to—and take advantage of—the campaigns of activists, leaders must learn to think the way they do. Most activists tend to follow a predefined process to identify and engage target companies. This article presents the three main components of the activist playbook—linking performance failures to organizational weaknesses, developing a plan of action, and creating a narrative in support of change—and describes how managers can anticipate and respond to activist campaigns.- Reproduced
https://hbr.org/2024/07/how-to-respond-to-shareholder-activism
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