Trends in stakeholder management shruti prashant

Prepared By:

Shruti Prashant [email protected]

Xavier Institute of Management, Bhubaneswar

Executive Summary

Executive Summary

ConclusionIndustry Example

Introduction

1• Stakeholder Management

2• Why Stakeholder Management?

3

• Strategies in Stakeholder Management

1

• Coca Cola case study

2

• e.on Stakeholder Management Model

1

• Issues in Stakeholder Management

Executive Summary Introduction Industry Example Conclusion

Introduction

Stakeholder Management: Managing expectations of people who has interest in the project or will be affected by the deliverables of the project.

Stakeholder Identification

Prioritization of Stakeholders

Understanding Key

Stakeholders

Engaging and Communicatin

g with Stakeholders

Primary Stakeholders: People or group directly affected by the actions

Secondary Stakeholders: People or group indirectly affected Key Stakeholders: People who are important within an organization

and have greater influence

Methods

Brainstorm

Consultation with

organization

Ideas from Stakeholders

Advertise


Stakeholder Management Why Stakeholder Management? Strategies in Stakeholder Management

Introduction



Understanding Key

Stakeholders


g with Stakeholders

Keep Satisfied Manage Closely

Monitor Keep Informed

Latents Promoters

Apathetics Defenders

INTEREST

POWER



Introduction

How do they feel about the project How to engage them in the project How to communicate with them

What information they want from you?

How they want to receive these information?

What is their current opinion about your work?





Understanding Key

Stakeholders


g with Stakeholders

Introduction

Stakeholder Categorization Channel

High Power, High Interest Status Meetings

High Power, Low Interest Board Meeting Updates

Low Power, High Interest In-Person, Email updates

Low Power, Low Interest Email, Status Reports





Understanding Key

Stakeholders


g with Stakeholders

Introduction Stakeholder Management Why Stakeholder Management? Strategies in Stakeholder Management

Free Resources

• Involve stakeholders in project task and delegate

• Utilize their skills and interest into the project

Reduce and Uncover Risk

• Helps in reducing risk which might have gone unnoticed

• Identify new risk that could potentially impact the project

Easier Project Closure

• Easy to hand over deliverables

• Less likely to reject deliverables because of their continuous involvement


Introduction

Savage et al’s diagnostic typology of Organizational Stakeholders (1991)

Stakeholder Type 4: Mixed blessingStrategy: Collaborate

Stakeholder Type 1: SupportiveStrategy: Involve

Stakeholder Type 3: Non SupportiveStrategy: Defend

Stakeholder Type 2: MarginalStrategy: Monitor

LowHigh

Low

High

Stakeholder’s Potential for threat to Organization

Stakeholder’s Potential for Co-operation with the Organization

Involve: Stakeholders participate to meet predetermined objectives. Provide input on action plans

Monitor: Inform stakeholders about what has been decided or implemented

Defend: Monitor their dependencies and potential to threaten

Collaborate: Stakeholders participate in joint analysis, development of action plans. Groups provide input over how available resources can be used



Deny responsibility Doing less than what is required

Admit Responsibility

Partially acknowledge the responsibility issues raised by the firm’s stakeholders

Accept Responsibility Involvement of employees and top management

Anticipate Responsibility Doing more than required. Most involvement of employees and top management

Posture Action for Stakeholder

Reactive

Defensive

Accommodative

Proactive

Introduction



Formulated by Lim, Ahn, Lee (2005)

Industry Example

In 2000, Coca Cola set up a bottling plant in Kerala

The region suffered drought that lasted for 3 years

Media reported that newly setup Coca Cola plant contaminated the soil

Six colleges in United States banned the company products

Awareness about the political and media climate wherever they operate

Identify stakeholders which includes politicians, Government officials, Journalists etc.

Technologies have transformed the way in which people communicate and public has become more knowledgeable about the environmental risk and human rights

Stakeholder management helps in building long term, trusting relationship with people

Stakeholders wants to feel that they are the part of decision making process

Consulting leaders and influencers can help the company in gaining support

Necessary to communicate strategy and structure

Clear reporting structure to promote strategies

Staff with proper skills should be present

Coca – Cola stakeholder

management

Facts

McKinsey 7S Model

Build Relationship

Capital


Issues


Coca Cola Case Study e.on Stakeholder Management Model

Industry Example

Customer

Employees

Suppliers & Business Partners

Communities and Regions

Govt., Society and the Public

NGOs and sustainability

experts

• Stakeholders ability to influence public opinion

• Degree of impact the activities have on the stakeholders

Assessing stakeholder relevance

• Open, reliable and consistent communication

• Interest and rights of stakeholders will be considered in case there is a change in business

Standardized framework for stakeholder management

• Regular customer survey conducted by sales and marketing dept.

• HR’s in frequent contact with students, graduates, job seekers

• Conducts annual stakeholder survey

Stakeholders involvement in Business Operations

• Dialogs helps in understanding stakeholders expectations

• Helps the company in articulating its position on various issues that might come up

• Hence, plan to expand dialogs in future

Future expanding stakeholders dialogs

e.on


Coca Cola Case Study e.on Stakeholder Management Model

Conclusion Issues in stakeholder management

• Understanding stakeholder’s interest

• Nature or Relationship and their interaction with system

Understanding the Relationship

• Effective communication at all levels

• Engaging influential stakeholders in active communication

Communications and Interactions

• Long – term vision required to secure stakeholders commitment

Leadership and Commitment

• Stakeholders should collaborate to influence each other

• Greater the number of ties between stakeholders, greater their ability to collaborate and influence organizational practices

Interests and Influences

• Commitment to share perspectives and beliefs

• Willingness to allow collective values to develop

Aligning values, incentives and motivations


Trends in stakeholder management shruti prashant

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