1. Stakeholder centricity:
the heart of your business
Explained by financial sector case studies
Barrett Values Centre
2014 International Conference
Building a Values-Driven Society
Stockholm, 12 June
www.pwc.nl

2. PwC
Ambition
• High performing
organization
• Purpose driven, values
led
• Behaviour as the
differentiator in the
‘moments that matter’
We see two drivers for stakeholder centricity
External burning
platform
• Trust is all time low
• Shifting public moral
• Complying to the rules
is no longer enough
Stakeholder centricity: the heart of your business
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June 2014
Edelman Trust Barometer 2014

3. PwC
Financial services continues to be the least trusted industry globally
• Financial institutions have been working hard on restoring trust, the impact
of these efforts is not significant
• Globally trust in financial services industry is only one percentage point
higher in 2014 vs 2013 (Edelman Trust Barometer, 2014)
• Trust in EU Financial Services is lowest
This calls for change in how financial institutions are restoring trust
and building confidence.
Trust is a must in the financial services industry
Stakeholder centricity: the heart of your business
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June 2014

4. PwC
What builds trust?
Stakeholder centricity: the heart of your business
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June 2014
Research shows four key elements
• Be clear on what you stand for and why you are relevant
• Show you understand the needs, interests and expectations of others
• Integrating stakeholder needs and their (long-term) goals into services,
products, processes and behaviours
• Reporting open and transparent about financial and non-financial value
creation towards a broad stakeholder group

5. PwC
PwC’s stakeholder centricity approach
5
Relay to stakeholders what path you
walk through integrated reporting
Assess, evaluate and adjust to
bring the walk closer to the
talk
Support the walk with the
right processes
Walk the talk
Be clear on purpose & values
and how you are relevant to
your stakeholders
ACCOUNTABILITY
CONTROL
EXECUTION
LEADERSHIP
STAKE-
HOLDERS
PURPOSE
& VALUES
June 2014Stakeholder centricity: the heart of your business

6. PwC
Financial institutions steering on stakeholder centricity:
1. Define and have clarity on their purpose & key values
2. Define their direct & indirect stakeholders
3. Organize permanent dialogue with these stakeholders to know and
understand their needs
4. Take careful consideration of the possible conflicting needs:
◦ Step 1: Formulate all financial and
non-financial needs and their impact
short/long term effect
◦ Step 2: Needs are weighted for
key stakeholders relevance and
according to the purpose & key
values using a materiality analysis
Transformation towards an open system
6
June 2014Stakeholder centricity: the heart of your business

7. PwC
Moments that Matter are the moments that create
value for stakeholders
Culture is build in Moments that Matter (MtM).
MtM:
• has unparalleled impact on the performance and
the value creation process
• exists in interaction with stakeholders
The right behaviour in MtMs:
• provides more control in restoring trust and
building confidence of stakeholders
• triggers a positive effect on a change in culture &
behaviour
• can be embedded in the organization by steering on
KBI’s (Key Behavioural Indicators)
Stakeholder centricity: the heart of your business June 2014
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8. PwC
Quantifying and qualifying stakeholder interests
is key towards sustainable value creation
Fact based, defined
by logic using data
analytics
What we know is
the right thing to do
Moments that
Matter
Defined by emotion
and feelings
What we feel is the
right thing to do
“The difference between emotion and reason is that emotion
leads to action, whilst reason leads to conclusions”.
Stakeholder centricity: the heart of your business
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June 2014

9. PwC
Example of an insurer: moments that matter
Stakeholder centricity: the heart of your business June 2014
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10. PwC
Transformation towards a stakeholder oriented
culture requires integration of three leadership styles
10
June 2014Stakeholder centricity: the heart of your business
SOUL – inspire
stakeholders based on
a belief in the purpose,
values and strategy of
the organization.
SYSTEM – show the
needed changes
towards a stakeholder
oriented culture by
systems, processes
and structures.
STAMINA –
embedding
stakeholder centricity
in the culture by
steering on it in daily
decision making and
business operations.

11. PwC
Stakeholder Centricity: Putting it into practice
BRAIN bank N.V.
• BRAIN bank is a global financial institution
of Dutch origin, heavily impacted by the
crisis.
• The purpose of BRAIN bank is: meaningful
financial advice to prepare for the future.
• The key values of BRAIN bank are:
responsibility, partnership and
professionality.
• To become a more robust company BRAIN
decided to focus on profitable and strong
clients and for the less profitable (non-
target) clients, like some middle market
clients, a discouragement policy is defined.
• Employees feel uncomfortable applying the
policy, because they feel forced to break
contact with clients they have been serving
and have known for many years.
• Employees also complain about the almost
impossible load of new national and
international banking regulations and the
impact of these regulations on their daily
job.
11
June 2014Stakeholder centricity: the heart of your business

12. PwC
Stakeholder Centricity: Putting it into practice
Discussion in subgroups
We have 6 subgroups representing the
different stakeholder groups of BRAIN
bank:
1. Clients: specifically entrepreneurs
with medium sized companies
2. Employees
3. Management
4. Shareholders
5. Regulators
6. Society
Round 1: What are your 3 key needs?
• Brainstorm all possible needs of your
stakeholder group (5 min).
• Discuss output within subgroup (5 min)
• Please write the 3 key needs on post-it
notes and share them plenary.
Stakeholder centricity: the heart of your business
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June 2014

13. PwC
Stakeholder Centricity: Putting it into practice
Discussion in subgroups
We have 6 subgroups representing the
different stakeholder groups of BRAIN
bank:
1. Clients: specifically entrepreneurs
with medium sized companies
2. Employees
3. Management
4. Shareholders
5. Regulators
6. Society
Round 2: Prioritize the long list of key
needs according to the purpose and
values
• Vote on the items of the long list by
dividing 2 green stickers and 3 red stickers.
Stakeholder centricity: the heart of your business
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June 2014

14. PwC
Stakeholder Centricity: Putting it into practice
Discussion in subgroups
We have 6 subgroups representing the
different stakeholder groups of BRAIN
bank:
1. Clients: specifically entrepreneurs
with medium sized companies
2. Employees
3. Management
4. Shareholders
5. Regulators
6. Society
Round 3: Define the MtM in responding
to the needs
• Brainstorm on the MtM’s for the needs
prioritized in round 2
• Pick one MtM and define what behaviour is
needed
Stakeholder centricity: the heart of your business
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June 2014

15. PwC
PwC’s Sustainable Business Modeling to
scientifically underpin stakeholder centricity
Eg. Effect of intervention on sick leave by increasing fruit
consumption
Reachable population
92% of Dutch population doesn‘t consume sufficient fruit
Maximum effect
2.4% of sick leave is caused by insufficient fruit consumption
Chance to succeed
Intervention will reach 80% of population which doesn‘t consume
sufficient fruit
Impact
An investment in fruit reduces sick leave by 0.1%
Towards stakeholder centricity in the Financial sector
20
May 2014

16. Contact
Wendy van Tol
Partner – Change & Leadership
wendy.van.tol@nl.pwc.com
Olivier Sueur
Director – Risk & Compliance
olivier.sueur@nl.pwc.com
See also www.pwc.nl/goodmarketconduct