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Traditionally, companies have managed their constituencies with specific processes: marketing to customers, procuring from vendors, developing HR policies for employees, and so on. The problem is, such processes focus on repeatability and compliance, so they can lead to stagnation. Inviting your constituencies to collectively help you solve problems and exploit opportunities--"co-creation"--is a better approach. It allows you to continually tap the skills and insights of huge numbers of stakeholders and develop new ways to produce value for all. The idea is to provide stakeholders with platforms (physical and digital forums) on which they can interact, get them to start exploring new experiences and connections, and let the system grow organically. A co-creation initiative by a unit of Becton, Dickinson and Company demonstrates how this works. A global leader in syringes, BD set out to deepen its ties with hospital customers and help them reduce the incidence of infections from unsafe injection and syringe disposal practices. The effort began with a cross-functional internal team, brought in the hospital procurement and supply managers BD had relationships with, and then reached out to hospitals' infection-prevention and occupational health leaders. Eventually product designers, nurses, sustainability staffers, and even hospital CFOs were using the platform, contributing data that generated new best practices and reduced infections.

Unlabelled: These days more companies are inviting customers to help them design products. Now a few are taking things further and including their other stakeholders--employees, suppliers, distributors, and even regulators--in "co-creation" efforts, too. By focusing on improving the experiences of everyone involved, such firms are achieving breakthrough insights, lower costs, new revenues, and new business models. Consider how this worked at France's La Poste, which wanted to expand package delivery and banking services in light of a decline in its mail business. La Poste had three obstacles: unmotivated union tellers, customers disgruntled by long waits, and frustrated local managers, who felt caught in between. The company set some high-level goals and invited all three groups to decide how to reach them together. To get tellers' buy-in, La Poste gave them a say in their schedules. In workshops, the groups figured out when each office should be open and how its space should be configured., The Results: a 50% decrease in waiting time, a jump in satisfaction for customers, soaring job satisfaction among tellers, and significant growth in package delivery and banking, despite the recession.