Strategic Management of Stakeholders: Theory and Practice
Fran Ackermann and Colin Eden explain a method composed of three techniques which elaborates how stakeholder management concepts can be applied in practice.
The importance of Top Management Teams (TMTs)
If the company wants to ensure a robustness strategie it is necessary that the TMTs craft it, always thinking in how eradicate negative responses. They have substantial knowledge about stakeholders that surfaced and used in an organised way can serve to develop successful strategy for their management.
The Problematic issues
Key themes than linked represent the problematic for the strategic management of stakeholders
Identifying who the stakeholders really are in the specific situation
Paying attention to managing a specific set of stakeholders will have a powerful effect on achieving strategic goals and long-term viability.
Identify from the extensive stakeholders list which one must be addressed to give priority to their claims.
Exploring the impact of stakeholder dynamics
Developing stakeholder Dynamics ( Power and interest)
Relationships between stakeholders. Acknowledging the multiple and interdependent responses and counter responses
Managers has the need to understand the bases of stakeholder power and interest detailed.
Understand that managing stakeholders is a dynamic issue , and it is necessary to prioritise between them
Determine HOW and WHEN it is appropriate to intervine, to alter or develop the basis of an individual stakeholder's significance
The power interest-grid
Is the basis for TMTs to proactively manage their stakeholders
In two dimensions :
Naming groups and Recognizing power (organization, individuals)
Managers position each stakeholder against one dimension at a time
Considering their relative power of stakeholders
Made an scale of four categories of stakeholders (interest/power)
Management could encourage coalitions to increase power and convert them to players
Significant Stakeholders who deserve sustained management attention
Can be seen as potential rather than actual stakeholders
Can influence future overall context
Focus strategic conversation
Emphasis on disaggregation
Identifying in detail stakeholders that could be more easily and directly managed
Disaggregation and uniqueness
TMTs managing stakeholders strategically reveals more stakeholders (interest and impact)
Making the technique more meaningful and useful “to whom pay attention”
course of action to manage key stakeholders
Differentiating “the good and the bad guys”
Which of the stakeholders will inclined to support or to sabotage the organization’s strategy
It is helpful to encourage TMTs to redefine the grid, to depict the exent and nature
Impact in practice
TMTs can try to determine if any action are available that might help build their power base.
The importance of acknowledge and manage potential conflict
The Stakeholder Influece-network
Capture insights power and interest (Grid)
Understand how: One stakeholder’s actions can generate a dynamic of responses across a range of other stakeholdershort body of text
Understand how interactions (behaviors, attitudes and beliefs) constitute a framework susceptible to be analyzed
Pay attention to the unique pattern of a focal organization’s specific network can indicate where support is needed to create and sustain winning stakeholder coalitions
Seeking to extract insights and knowledge about network relationships
Formal and informal relationships that are the bases of the social networks
Reporting line relationships
Reflect more social links
(are not immediately apparent)
Both relations linked
Strong and enduring
Capturing dialogue to describe relationships
Additional contextual data (SAFE)
Analysis of the enhanced network(gather considerable amounts of information)
Taking stakeholder disposition
Opportunities to change disposition (centrality)are objects for strategic actions designed to increase the influence
The stakeholder Management web
Reviewing the research data to became increasingly aware of the significance of the range of comments to create a technique that would provide more analytical help in determining stakeholder management strategies
Understanding what a stakeholder wants (Their interest base)
How stakeholders are likely towards achieving their power base
Define a wider set of ideas for posible management actions
Representation of overall system of interactions and suggested manage stakeholders strategy (STAKEHOLDERS INFLUENCE NETWORK)
To change stakeholders options and actions influence by the network
“Secondary ramifications” the one who may influence by the focal stakeholder, that can use their power to support or to sanction the focal organizations strategy (networks).
(Considering the bases of power) TMTs examined the bases of interest by considering how a particular stakeholder might interpret or asses a specific strategy.
A cluster of stakeholders who share aspirations has greater potential to be built up into a coalition, especially if encouraged by the focal organization.
Paula Manuela Niño Higuera 2019 Organizational communication EAN UNIVERSITY
6 KEY CONCEPTUAL CONTRIBUTIONS
Working at an appropriately disaggregated level of stakeholder identification helps determine who the organization’s stakeholders are, making TMT efforts to manage them more realistic.
The challenge of managing stakeholder demands becomes clearer when their interest in organizational strategies in separated from their power to influence the outcome of these strategies. This separation creates three important categories that can help TMTs make sense of a large number of stakeholders those with interest but little power (‘subjects’, those with power but little interest (‘context setters’), and those key stakeholders who have both (‘players’)
The Network of formal, and particularly of informal, relationship between stakeholders reveals significant aspects of their power. Some stakeholders act as a nexus of such relationships, and are typically more powerful than managers initially anticipate
Formal relationships are usually well understood, whereas informal relationships can be subtle and pervasive, and may often be the more significant.
A stakeholder influence network will be very specific to the focal organization, and can involve sensitive content which must remain confidential to managers
The discussions involved in preparing the stakeholder management web surface a deeper appreciation of the manifest forms of power and bases of interest, which is essential for successful stakeholder mangement.
Managers need to create techniques that allow them to establish segmentations of their interest groups in order to create more robust and robust strategies to meet organizational objectives in order to better understand the market and how to manage relationships in it.