Transcript Stakeholder Involvement

Stakeholder Involvement
By
Suhel Khan
Stakeholders
• Stakeholders can be defined as “those groups
or individuals who have a stake in, or
expectation of, the organisation’s performance
and include employees, managers,
shareholders, suppliers, customers and the
community at large” (Johnson and Scholes,
1993).
Stakeholder Analysis
• This is a tool that can be useful in understanding
how expectations of groups and individuals
influence the purposes of an organisation. In
other words, a stakeholder analysis is a technique
that one can use to identify and assess the
importance of key people, groups of people, or
institutions that may significantly influence the
success of a business activity. In graphical terms
stakeholder analysis can be illustrated with the
use of the following Power/Interest (Stake)
matrix:
Low Stake
Low
Power
MONITOR
EFFORT
MINIMAL
KEEP SATISFIED
High
Power
High Stake
KEEP INFORMED
MANAGE CLOSELY
Mapping Stakeholders
Stakeholder Power / Potential
High Influence / Power
Low Influence / Power
Low Stake/ Importance
High Stake / Importance
Keep Satisfied – Useful for decision and
Manage Closely – Most critical stakeholder
opinion formulation. For example
group: collaborate with closely.
regulatory bodies need to be kept satisfied
Monitor (minimal effort) – Least priority
stakeholder group: monitor or ignore.
Keep Informed – Important stakeholder
group, in need of empowerment: involve,
build capacity and secure interests.
• The above matrix clearly classifies stakeholders in relation
to the power they hold and the extent to which they are
likely to show interest in the organisation’s strategies. The
matrix also establishes the type of relationship which the
organisation will need to establish with each stakeholder
group. The above analysis can help to identify which group
of stakeholders are likely to be the key blockers and
facilitators of change are in relation to new business
strategy formulation. This is important as managers need to
identify conflicting expectations of stakeholder groups and
need to construct strategies to suit their business goals and
objectives and at the same time manage stakeholder
expectations to ensure acceptance of the strategies which
are formulated