When companies pivot, they often focus on markets and strategy—but forget to assess whether their investors will come along. If you’re leading a major shift, don’t treat shareholder alignment as an afterthought. Make it part of your strategic planning from the start. Here’s how.
Create investor scorecards. Start by analyzing what your investors actually back, not what they say they prefer. Examine the companies in their portfolios and assess patterns across five dimensions: risk tolerance, diversification, competitive aggressiveness, prosocial activity, and political engagement. Weight those preferences by ownership stake. This gives you a clearer picture of which investors favor bold moves, steady returns, social initiatives, or disciplined competition—and where friction may arise.
Diagnose your investor fit risk. Compare your proposed strategy against your investors’ demonstrated preferences. Is your pivot incremental or radical? Does it depart from your historical model? Aggregate investor profiles to gauge overall alignment. If major shareholders have a history of opposing similar shifts elsewhere, expect resistance—and plan accordingly.
Develop an engagement strategy informed by investor risk. If alignment is high, reinforce support through proactive communication. If it’s low, take a three-part approach: engage likely supporters, address the concerns of misaligned investors, and proactively attract new investors whose preferences match your future direction. |
