Topic 2

• STAKEHOLDERS

  • A person/group interested in a company, can affect/be affected by the business

  • Integral in the development & success of an org

  • Any individual/group of individs who believe & have an interest in an org’s ability to deliver intended results & affect/are affected by its outcomes
• Primary Stakeholders in a Typical Corporation:

  • Customers

  • Investors

  • Suppliers

  • Employees
• Primary Stakeholders in a Typical Corporation:

  Here is where customers, investors, suppliers, and employees belong
• Modern Theory of Stakeholders:

  • Customers

  • Investors

  • Suppliers

  • Employees

  • Community

  • Government/Trade Association
• Modern Theory of Stakeholders:

  Includes customers, investors, suppliers, employees, community, and government or trade association.
• TWO TYPES OF STAKEHOLDERS:

  • Primary/Internal Stakeholders

  • External Stakeholders
• Two Types of Stakeholders: PRIMARY OR INTERNAL STAKEHOLDERS

  • Groups/individuals who are DIRECTLY engaged in economic transactions within the business such as

  • Employees
  • Investors
  • Suppliers
  • Creditors
• STAKEHOLDERS

  • A stakeholder is anybody who can affect or is affected by an organization, strategy or project.

  • Can be internal/external & can be at senior/junior levels
• Two Types of Stakeholders: SECONDARY OR EXTERNAL STAKEHOLDERS

  • Groups/individuals who need not necessarily be engaged in transaction with the business

  • Different stakeholders have different interests in the organization & the mgmt has to consider all their interests & create a synergy among them to achieve its objectives.
• Two Types of Stakeholders: SECONDARY OR EXTERNAL STAKEHOLDERS

  • Affected in some way from the decisions of the business such as:

  • Customers
  • Community
  • Trade Unions
  • Government
• EFFECTIVE TECHNIQUES TO IDENTIFY KEY STAKEHOLDERS

  • Brainstorming
  • Determining Power and Influence Over Decision
  • Determining Influences on Mission, Vision, & Strategy Formulation
  • Checklist
  • Involve the Already Identified Stakeholders
• EFFECTIVE TECHNIQUES TO IDENTIFY KEY STAKEHOLDERS: Brainstorming

  • Done by including all the people already involved & aware of the company & its objectives, & encouraging them to come out with their IDEAS

  • Stakeholders can be brainstormed based on categories such as internal or external.
• EFFECTIVE TECHNIQUES TO IDENTIFY KEY STAKEHOLDERS: Determining Power & Influence Over Decisions

  • Identify the individuals or groups that exercise power and influence over the decisions the firm makes.

  • This can be a basis on which to allocate prominence (importance) in the strategy-formulation & strategy-implementation processes.
• EFFECTIVE TECHNIQUES TO IDENTIFY KEY STAKEHOLDERS: Determining Influences on Mission, Vision, & Strategy Formulation

  • Analyze the importance and roles of the individuals or groups who should be consulted as strategy is developed or who will play some part in its eventual implementation.
• EFFECTIVE TECHNIQUES TO IDENTIFY KEY STAKEHOLDERS: Checklist

  • Make a checklist to help identify the more influential/ important stakeholders:

  • Who influences the opinions about the company?

  • Who has been involved in similar projects in the past?

  • Which group will benefit from the successful execution of the strategy which may be adversely affected?
• EFFECTIVE TECHNIQUES TO IDENTIFY KEY STAKEHOLDERS: Involve the Already Identified Stakeholders

  • After identifying stakeholders, it is important to manage their interests and keep them involved and supportive.

  • A daunting task for managers, performed tactfully so that the org’s highers objs aren’t subordinated by individ interests.
• IDENTIFYING STAKEHOLDERS

  • It is important to have the optimum number of stakeholders, neither too many nor too few.
• POSITIVE STAKEHOLDER RELATIONSHIPS

  • A well-developed stakeholder communications plan is essential for building positive stakeholder relationships. However, this leads to the question, what is an effective engagement strategy?
• Tactics to Maintain Positive Stakeholder Relationships

  • Group Your Stakeholders
  • Clearly, Communicate your Project Scope
  • Gain your Stakeholders Trust Right from the Start
  • Stay Consistent with Your Messaging
  • Meet up with Stakeholders who are Resistant to Change
  • Use Data Mgmt. Systems to Summarize Key Information
  • Keep Surprises to a Minimum
• Tactics to Maintain Positive Stakeholder Relationships: Clearly, Communicate your Project Scope

  • Tell your stakeholders the process you will use to communicate information to them from the start.

  • Clearly explain how you will engage with them in decisions.
• Tactics to Maintain Positive Stakeholder Relationships: Gain your Stakeholders Trust Right from the Start

  • Stakeholder relationship mgmt includes communicating with people early and often so they fully understand the benefits of your project.

  • Having an understanding of a situation means people are more likely to support you when necessary.

  • It also means even if SH don’t agree with the final decision, they have the benefit of understanding the process, history & the trade-offs made, therefore, they will be less likely to aggressively object at the final stage.
• Tactics to Maintain Positive Stakeholder Relationships: Stay Consistent with Your Messaging

  • Confusing your stakeholders is dangerous.

  • Inconsistent messaging can lead to public outrage, loss in trust, and a negative reputation.

  • Your SH value consistent messaging & want to know they can rely on you for the most current information.

  • If there is a hurdle, your SH will be more willing to help overcome the problem rather than blame the issue for coming up.
• Tactics to Maintain Positive Stakeholder Relationships: Keep Surprises to a Minimum

  • Placing your stakeholders off-guard can result in a huge mistake and can cost you from building positive stakeholder relationships.

  • Most stakeholders like to be given an early view of risks and issues.

  • Go into meetings solutions-based rather than problem focused

  • Create various options to resolve the issue and then ask stakeholders to add their input to create an informed decision about the next step.
• Tactics to Maintain Positive Stakeholder Relationships: Use Data Mgmt. Systems to Summarize Key Information

  • The power of reflection.

  • Use your data management system to its full potential.

  • If you have a meeting with a stakeholder then write a summary of the event:

  • What was the meeting about?

  • What were the key findings?

  • Are there any actions?

  • When is the next meeting?
• Tactics to Maintain Positive Stakeholder Relationships: Meet up with Stakeholders who are Resistant to Change

  • SH resistant to change -> discuss project scope

  • Involving stakeholders in decisions and listening to concerns re-emphasizes the benefits of the potential change

  • All projects will include people who love, hate/ want to shape/mold the project idea & it’s our job to find a way to balance these differing views.

  • It’s important to regularly meet with key stakeholders who are resistant to change, meeting can be through:

  • E-mail

  • Phone Call
• Tactics to Maintain Positive Stakeholder Relationships: Group Your Stakeholders

  • Grouping your stakeholders according to their level of decision-making will make it easier to develop a tailored approach to engaging each group.
• Tactics to Maintain Positive Stakeholder Relationships: Group Your Stakeholders

  • Two Stakeholder Groups:
  • Have a vested interest in the project
  • Are affected by the project
• Tactics to Maintain Positive Stakeholder Relationships: Group Your Stakeholders

  • The Two Stakeholder Groups can be further split into these:
  • Directly involved in the project
  • Who have influence over decisions
  • Who need to stay informed about the process & decisions