The Importance of Stakeholder Management

First of all, let’s consider the importance! In the modern world, with many organisations’ having a number of stakeholder groups, the relationship with these groups, and often powerful investors becomes increasingly important!
It creates bigger buy in and involvement. The key is developing those relationships and in mutually beneficial ways.

The groups can be as diverse as investors, customers, suppliers…not forgetting the employees themselves!
The first part of any process is understanding the key needs of each group, and how best to nurture and develop. With the modern media world, and customer retention, mistakes can be costly…For those of us that can remember, Gerald Ratner comes to mind!

All of the groups are interlinked, and a first step is identifying how they map together and the impact on the business. One important point is avoiding the term “manage” …It needs to be “engage”!
Having a business that connects with the modern world is key as we increasingly develop green policies, home working and giving employees a greater say in the running of the business.
Follow these steps to ensure that you have a successful Stakeholder Management policy…

  1. Ensure that you manage risk effectively…Choose wisely as stakeholders impact your business in many ways
  2. Work out the overall influence of the various groups and how you might need to manage differently
  3. Communication is vital…Why things are bring done, the rationale and possible outcomes.
  4. Successful relationships take time. Trust will grow and uncertainty reduce.
  5. Consult with your stakeholders…They may have new ideas or at worst feelings of unease

Ignore your stakeholders at your peril…Develop the bonds and watch the business grow.

“Leaders must earn the trust of their teams, their organizations, and their stakeholders before attempting to engage their support”
Warren G. Bennis.