Knowledge 1 | Stakeholders Flashcards
How to manage Stakeholders
Different types of Stakeholders
Internal & External
Internal Stakeholders
Owners, Managers, Employees, Shareholders
External Stakeholders
Customers/Clients, Partner organisations, Suppliers, Investors, Shareholders, The community
How to identify Stakeholders
Research (primary, secondary)
Interview (formal, informal)
Communicate effectively with Stakeholders by…
Active Listening, Communication Methods, Questioning, and Agreeing with stakeholders how and when communications take place
Communication Methods
Formal, Informal, Verbal/Face-to-Face, Non-verbal, Written
What is Questioning used for?
Used to open conversations, Obtain information, Check understanding, Clarify expectations
Types of Questions
Open & Closed
Owners require…
Increased business/profits, improved reputation
Managers/Employees require…
Job stability, Opportunities for promotion, Pay rises, Bonuses
Shareholders require…
Increase in profits, Regular dividends, Opportunity to increase share-holding
Clients/Customers require…
Customer satisfaction, Excellent service, Quality goods, Value for money
Suppliers require…
Continuing/profitable relationship, Increased orders, Prompt/full payment
Investors require…
Good return on their investment
Interest received on their investment
Power/Influence: Owners
High financial investment, Higher status, Expectation of more Influence
Power/Influence: Managers/Employees
Specific expertise, Expectation of having a right to influence decisions
Power/Influence: Shareholders
Different levels of financial investment, Status associated with being a shareholder, Power/Influence associated with Right to Vote
Power/Influence: Clients/Customers
Influence of Good/Poor Feedback on Organisational Reputation
Power/Influence: Suppliers
Power/Ability to raise/lower prices of raw materials/goods
Influence on Organisations’ Profit margins
Power/Influence: Investors
Status linked to level of Financial investment, Investment through providing/lending expert advisors/employees, Expectation of more power/influence
Importance of dealing with issues promptly
Build/strengthens relationships/trust,
Prevents loss of time/resources,
Builds/strengthens reputation
Importance of involving stakeholders in Decision making
Stakeholders feel valued
Will have Higher levels of commitment, loyalty
More willing to agree/’buy in’ to solution Invest resources/finances
Principles of Stakeholder Management
Principle 1: acknowledge/actively monitor concerns
Principle 2: listen to/openly communicate about concerns /contributions
Principle 3: adopt sensitive processes/behaviour to address stakeholder concerns
Principle 4: recognise the interdependence of efforts/rewards among stakeholders
Principle 5: work co-operatively with other individuals/groups to ensure that risks and harms arising from activities are minimised and, where they cannot be avoided, are appropriately compensated
Principle 6: avoid activities that might put human rights at risk
Principle 7: acknowledge potential conflicts between stakeholders
Benefits of Principle 1: acknowledge/actively monitor concerns of all stakeholders
Potential concerns/problems are identified, Stakeholders feel listened to, Valued
Benefits of Principle 2: listen to/openly communicate with stakeholders about concerns /contributions
Better informed decision making, Transparency of communications/decisions made
Benefits of Principle 3: adopt sensitive processes/behaviour to address stakeholder concerns
Encourages cooperation/ negotiation/ resolution.
Benefits of Principle 4: recognise the interdependence of efforts/rewards among stakeholders
Increased stakeholder loyalty, Increased motivation /Involvement of stakeholders
Benefits of Principle 5: work co-operatively with other individuals/groups to ensure that risks and harms arising from activities are minimised and, where they cannot be avoided, are appropriately compensated
Improves efficiency, builds/strengthens reputation
Benefits of Principle 6: avoid activities that might put human rights at risk
Builds trust with stakeholders
Benefits of Principle 7: acknowledge potential conflicts between stakeholders
Conflicts are identified and addressed, Supports/encourages issue resolution
