What is a stakeholder?
Any group or individual who can affect or is affected by the achievement of the Organization’s objectives
Who counts as a Stakeholder?
- A person or entity with something at risk
- It is relational
- A two-way relationship
- The stake is situation-dependent and context-dependent
What are Financial stakes?
Looking for a certain economic outcome
What are legal stakes?
A contract is in place and must comply with X law
What are rights stakes?
Human rights are dependent on this outcome
What are moral stakes?
Personal and deep-seated beliefs are affected by this outcome
What are interest stakes?
Based on personal connection, concern or interest.
What are important attributes for stakeholders?
- Power: What resources do they control?
- Influence: what networks do they have?
- Vulnerability: the degree to which they are affected?
- Position: their sentiment towards the organization
- Affiliation: who are they loyal to?
First step in the Stakeholder Analysis Process
Identify the Stakeholders
Second step in the stakeholder Analysis Process
Determine their stakes: the actual stake must be determined from the point of view of the stakeholder
Third step in the stakeholder analysis process
Determine other relevant attributes ( some attributes may matter more than others)
Last step in the Stakeholder analysis process
Prioritize the stake/stakeholder
What are the 3 essential elements of the Stakeholder relationship?
Trust, communication, and understanding
What is one approach to managing conflicting stakes?
- Legitimacy: A clear entitlement to a desired outcome
- Power
- Urgency
What is another approach to managing conflicting stakes?
- Power/influence
- Positive interest
What is the last approach to managing conflicting stakes?
- Power/influence
- Negative Impact
What is Stakeholder Management?
The systematic identification, analysis, planning and implementation of actions designed to “manage” stakeholders and their interests. It’s a firm-centric process that is vey controlled and strategic.
what is Stakeholder Engagement?
The practice of influencing a variety of outcomes through consultation, communication, negotiation, compromise and relationship building. This process is more collaborative and less controlled.
Evolution of Stakeholder Management (Novo Nordic Example)
1970: Customer-driven
1990: Stakeholder management
2000: Stakeholder engagement
