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STAKEHOLDER ENGAGEMENT
• By Chandan Shirbhayye
14 Years Experienced Supply Chain Professional
Linked In Profile - http://in.linkedin.com/in/chandanshirbhayye
Twitter - Chandan Shirbhayye @CShirbhayye
Skype - chandan.shirbhayye
PRESENTATION FLOW
 ACTIVITY
 DEFINATION
 IDENTIFICATION & CLASSIFICATION
 MANAGEMENT & ENGAGEMENT
 MAPPING
 PROCESS & REVIEW
DEFINITION
WHAT IS STAKEHOLDER????
WHO IS STAKEHOLDER?????
STAKE – A share or interest in a business,
situation, or system / an important part or
share in a business, plan, etc. that is
important to you and that you want to be
successful (Ref - Oxford Advanced Learner's
Dictionary)
HOLDER - a device or implement for
holding something / a person that holds
something (Ref – Google Search)
STAKEHOLDER –
A person with an interest or concern in
something, especially a business / a person
such as an employee, customer, or citizen
who is involved with
an organization, society, etc. and therefore
has responsibilities towards it and
an interest in its success (Ref – Google
Search / Cambridge English Dictionary)
SUPPLY CHAIN STAKEHOLDERS
 USER (Indentor & Consumer)
 QUALITY FUNCTION
 FINANCE
 SAFETY
 REGULATORY/LEGAL
 ADMINISTRATION & HR
 SUPPLIERS (Primary & their
Suppliers)
 COMMUNITY/SOCIETY
 GOVERNMENT
 CUSTOMER
MANAGEMENT & ENGAGEMENT
What is Stakeholder Management, Engagement & Communication
STAKEHOLDER MANAGEMENT –
The process of forming, monitoring and maintaining constructive relationships with
investors by influencing their expectations of gain resulting from their investment
appropriately (Ref – BusinessDictionary.com)
STAKEHOLDER ENGAGEMENT –
The process by which an organisation involves people who may be affected by the
decisions it makes or can influence the implementation of its decisions (Ref –
Wikipedia)
Communication & Engagement - What is the difference???????
 Communication  Exchange Information / Influence
 Engagement - Involve / Establish Relationship
True stakeholder engagement means developing meaningful relationships which serve
to ensure that you understand and consistently deliver upon their needs and
expectations.
This may seem like an obvious concern, but many managers and business owners fail to
develop the type of relationships required and as such can, on occasion, even be
IDENTIFICATION OF STAKEHOLDERS
 HOW TO IDENTIFY STAKEHOLDER FOR A PROJECT
 who is affected positively or negatively by the
project;
 who gains and who loses from it;
 who wants it to succeed and who wants it to fail;
 who has the power to make the project succeed or
fail;
 who makes the money decisions;
 who are the positive and negative opinion leaders;
 who exercises influence over other stakeholders;
 who could solve particular problems;
 who controls or provides or procures resources or
facilities;
 who has the special skills needed by the project?
 WHY IDENTIFY AND ANALYZE STAKEHOLDERS AND THEIR
INTERESTS
 It puts more ideas on the table
 Expected Challenges/Roadblocks can be
identified Early by the perspective of Effected
Stakeholders
 It generates Transparency & gains buy-in and
support for the effort from all stakeholders
 It strengthens your position if there’s opposition
 It increases the credibility of you towards your
commitment for other circumstances
 It increases the chances for the success of your
effort
Please Identify Stakeholders for your
respective Functions
CLASSIFICATION OF STAKEHOLDERS
 BASIS ASSOCIATION
 INTERNAL
 EXTERNAL
 BASIS BENEFIT
 PRIMARY STAKEHOLDERS - are
those who stand to gain
something – services, skills,
money, goods, social connection,
etc. – as a direct result of the
effort
 SECONDARY STAKEHOLDERS -
include individuals that live with,
are close to, or care for the
Primary Stakeholders, and those
that offer services directly to them
MAPPING OF STAKEHOLDERS
Ref – Community Tool Box - http://ctb.ku.edu/en/table-of-contents/participation/encouraging-involvement/identify-stakeholders
 QUADRANT -2 - Defenders have a vested interest and
can voice their support in the community, but have
little actual power to influence the effort in any way.
You can keep them informed. Can Lobby and create
Hurdles and better to keep them on Board
 QUADRANT -3 - Apathetics have little interest and little
power, and may not even know the effort exists.
They need little or no management. Keep them
sporadically informed by newsletter or some similar
device, and don’t offend them
 QUADRANT -1 - Promoters have both great interest in
the effort and the power to help make it successful (or
to derail it).
They need to be treated as potential allies, and their
concerns should be addressed to the extent possible
without compromising the effort.
 QUADRANT -4 -Latents have no particular interest or
involvement in the effort, but have the power to
influence.
If they begin to voice opposition, then your first
attempt might be at conversion or neutralization,
rather than battle. If you can shift them to the
promoter category, you’ve gained valuable allies.
Q-4 – High
Influence/
Low Interest
Q-1 – High
Influence/
High Interest
Q-3 – Low
Influence/
Low Interest
Q-2 – Low
Influence/
High Interest
INFLUENCE / EXPERTISE
INTEREST/WILLINGNESS
Map is not Static, Changing Events/Situations
can mean Stakeholders can move around the
Map with consequent Changes
STAKEHOLDER ENGAGEMENT PROCESS &
TACTICS
MENTOR /
APPROVALS
ENGAGE /
PARTNER
INFORM
INTERACT /
ONBOARD
INFLUENCE / EXPERTISE
INTEREST/WILLINGNESS
KEY GUIDELINES FOR EFFECTIVE ENGAGEMENT
 Treating with respect
 Setting Clear Goals and Objectives
 Share stakeholder Expectations & Agreeing on Deliverables
 Define roles and responsibilities for implementation,
milestones, and a realistic timeline for completion
 Brainstorm & Allow for equal contribution
 Focus the discussion
 Engaging all in decision-making
 Providing whatever information, training, mentoring, and/or
other support so that they stay involved
 Manage cultural dynamics
 Mitigate tension & Compromise
 Document the engagement
Ref – Community Tool Box - http://ctb.ku.edu/en/table-of-contents/participation/encouraging-involvement/identify-stakeholders
KEY SKILLS REQUIRED FOR
STAKEHOLDER ENGAGEMENT
 Communication
 Prioritization
 Negotiation
 Empathy
 Innovativeness
 Proactiveness
STAKEHOLDER ENGAGEMENT PLAN
 Determine engagement objectives
 Identify stakeholders
 Develop plan for engagement
 Implement plan
 Evaluate effectiveness of implementation
 Revise based on stakeholder feedback
STAKEHOLDER ENGAGEMENT CHALLENGES
& REVIEW
REVIEW QUESTIONS
 Did you identify right Stakeholders?
 Did you improve involvement of
apprehensive Stakeholders?
 Were you successful in keeping people
involved?
 Did you take care of Interrelationships of
various Stakeholders
 Did you provide any training or other
support? Was it helpful?
 Did your stakeholder analysis and
management efforts have the desired
effect? Were they helpful?
 Did stakeholder involvement improve the
work, effectiveness of the effort?
 Did you deliver the desired outcome?
 Did you improve Trust and forge long term
relationship with all members?
Ref – Community Tool Box - http://ctb.ku.edu/en/table-of-contents/participation/encouraging-involvement/identify-stakeholders
CHALLENGES
 Time Consuming
 Increased Training &
Resources
 Multi-Tasking
 Using Policy as Stick
 Egoistic Positions
 Over-Competitiveness
 Personal Bias
 Bureaucracy
 Lack of Ownership
 Availability
 Slow Starter
 Increased
Documentation
 Different Understanding
 Not fully Representative
 Improper
Communication
As mentioned Engagement is gradual process and if executed fairly and consistently then
involvement/commitment of various stakeholder gradually improves as mentioned in above graph
of commitment Curve.
Purpose was to emphasise the importance of building strong relationships with the key
stakeholders in our business and Functions & refocus our thinking about how we currently engage
with them so that we maximize the strategic returns generated from our relationships with them.
Undoubtedly, what has been presented here was not entirely new to us, but very often the day to
day pressures of running your operation can cause us to lose focus on important issues such as
COMMITMENT CURVE
THANKING ALL FOR VIEWING
I would like to mention that references have been taken from various online
sites such as Wikipedia, Oxford Business Dictionary, Community Tool box
etc.
I have tried to collate and present basis above references and my
experience of having worked in various functions at various roles with
exposures to stakeholders of different types.
Thanking once again
Please feel free to reach me on
Linked In Profile - http://in.linkedin.com/in/chandanshirbhayye
Twitter - Chandan Shirbhayye @CShirbhayye
Skype - chandan.shirbhayye

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Stakeholder Engagement Guide

  • 1. STAKEHOLDER ENGAGEMENT • By Chandan Shirbhayye 14 Years Experienced Supply Chain Professional Linked In Profile - http://in.linkedin.com/in/chandanshirbhayye Twitter - Chandan Shirbhayye @CShirbhayye Skype - chandan.shirbhayye
  • 2. PRESENTATION FLOW  ACTIVITY  DEFINATION  IDENTIFICATION & CLASSIFICATION  MANAGEMENT & ENGAGEMENT  MAPPING  PROCESS & REVIEW
  • 3. DEFINITION WHAT IS STAKEHOLDER???? WHO IS STAKEHOLDER????? STAKE – A share or interest in a business, situation, or system / an important part or share in a business, plan, etc. that is important to you and that you want to be successful (Ref - Oxford Advanced Learner's Dictionary) HOLDER - a device or implement for holding something / a person that holds something (Ref – Google Search) STAKEHOLDER – A person with an interest or concern in something, especially a business / a person such as an employee, customer, or citizen who is involved with an organization, society, etc. and therefore has responsibilities towards it and an interest in its success (Ref – Google Search / Cambridge English Dictionary) SUPPLY CHAIN STAKEHOLDERS  USER (Indentor & Consumer)  QUALITY FUNCTION  FINANCE  SAFETY  REGULATORY/LEGAL  ADMINISTRATION & HR  SUPPLIERS (Primary & their Suppliers)  COMMUNITY/SOCIETY  GOVERNMENT  CUSTOMER
  • 4. MANAGEMENT & ENGAGEMENT What is Stakeholder Management, Engagement & Communication STAKEHOLDER MANAGEMENT – The process of forming, monitoring and maintaining constructive relationships with investors by influencing their expectations of gain resulting from their investment appropriately (Ref – BusinessDictionary.com) STAKEHOLDER ENGAGEMENT – The process by which an organisation involves people who may be affected by the decisions it makes or can influence the implementation of its decisions (Ref – Wikipedia) Communication & Engagement - What is the difference???????  Communication  Exchange Information / Influence  Engagement - Involve / Establish Relationship True stakeholder engagement means developing meaningful relationships which serve to ensure that you understand and consistently deliver upon their needs and expectations. This may seem like an obvious concern, but many managers and business owners fail to develop the type of relationships required and as such can, on occasion, even be
  • 5. IDENTIFICATION OF STAKEHOLDERS  HOW TO IDENTIFY STAKEHOLDER FOR A PROJECT  who is affected positively or negatively by the project;  who gains and who loses from it;  who wants it to succeed and who wants it to fail;  who has the power to make the project succeed or fail;  who makes the money decisions;  who are the positive and negative opinion leaders;  who exercises influence over other stakeholders;  who could solve particular problems;  who controls or provides or procures resources or facilities;  who has the special skills needed by the project?  WHY IDENTIFY AND ANALYZE STAKEHOLDERS AND THEIR INTERESTS  It puts more ideas on the table  Expected Challenges/Roadblocks can be identified Early by the perspective of Effected Stakeholders  It generates Transparency & gains buy-in and support for the effort from all stakeholders  It strengthens your position if there’s opposition  It increases the credibility of you towards your commitment for other circumstances  It increases the chances for the success of your effort Please Identify Stakeholders for your respective Functions CLASSIFICATION OF STAKEHOLDERS  BASIS ASSOCIATION  INTERNAL  EXTERNAL  BASIS BENEFIT  PRIMARY STAKEHOLDERS - are those who stand to gain something – services, skills, money, goods, social connection, etc. – as a direct result of the effort  SECONDARY STAKEHOLDERS - include individuals that live with, are close to, or care for the Primary Stakeholders, and those that offer services directly to them
  • 6. MAPPING OF STAKEHOLDERS Ref – Community Tool Box - http://ctb.ku.edu/en/table-of-contents/participation/encouraging-involvement/identify-stakeholders  QUADRANT -2 - Defenders have a vested interest and can voice their support in the community, but have little actual power to influence the effort in any way. You can keep them informed. Can Lobby and create Hurdles and better to keep them on Board  QUADRANT -3 - Apathetics have little interest and little power, and may not even know the effort exists. They need little or no management. Keep them sporadically informed by newsletter or some similar device, and don’t offend them  QUADRANT -1 - Promoters have both great interest in the effort and the power to help make it successful (or to derail it). They need to be treated as potential allies, and their concerns should be addressed to the extent possible without compromising the effort.  QUADRANT -4 -Latents have no particular interest or involvement in the effort, but have the power to influence. If they begin to voice opposition, then your first attempt might be at conversion or neutralization, rather than battle. If you can shift them to the promoter category, you’ve gained valuable allies. Q-4 – High Influence/ Low Interest Q-1 – High Influence/ High Interest Q-3 – Low Influence/ Low Interest Q-2 – Low Influence/ High Interest INFLUENCE / EXPERTISE INTEREST/WILLINGNESS Map is not Static, Changing Events/Situations can mean Stakeholders can move around the Map with consequent Changes
  • 7. STAKEHOLDER ENGAGEMENT PROCESS & TACTICS MENTOR / APPROVALS ENGAGE / PARTNER INFORM INTERACT / ONBOARD INFLUENCE / EXPERTISE INTEREST/WILLINGNESS KEY GUIDELINES FOR EFFECTIVE ENGAGEMENT  Treating with respect  Setting Clear Goals and Objectives  Share stakeholder Expectations & Agreeing on Deliverables  Define roles and responsibilities for implementation, milestones, and a realistic timeline for completion  Brainstorm & Allow for equal contribution  Focus the discussion  Engaging all in decision-making  Providing whatever information, training, mentoring, and/or other support so that they stay involved  Manage cultural dynamics  Mitigate tension & Compromise  Document the engagement Ref – Community Tool Box - http://ctb.ku.edu/en/table-of-contents/participation/encouraging-involvement/identify-stakeholders KEY SKILLS REQUIRED FOR STAKEHOLDER ENGAGEMENT  Communication  Prioritization  Negotiation  Empathy  Innovativeness  Proactiveness STAKEHOLDER ENGAGEMENT PLAN  Determine engagement objectives  Identify stakeholders  Develop plan for engagement  Implement plan  Evaluate effectiveness of implementation  Revise based on stakeholder feedback
  • 8. STAKEHOLDER ENGAGEMENT CHALLENGES & REVIEW REVIEW QUESTIONS  Did you identify right Stakeholders?  Did you improve involvement of apprehensive Stakeholders?  Were you successful in keeping people involved?  Did you take care of Interrelationships of various Stakeholders  Did you provide any training or other support? Was it helpful?  Did your stakeholder analysis and management efforts have the desired effect? Were they helpful?  Did stakeholder involvement improve the work, effectiveness of the effort?  Did you deliver the desired outcome?  Did you improve Trust and forge long term relationship with all members? Ref – Community Tool Box - http://ctb.ku.edu/en/table-of-contents/participation/encouraging-involvement/identify-stakeholders CHALLENGES  Time Consuming  Increased Training & Resources  Multi-Tasking  Using Policy as Stick  Egoistic Positions  Over-Competitiveness  Personal Bias  Bureaucracy  Lack of Ownership  Availability  Slow Starter  Increased Documentation  Different Understanding  Not fully Representative  Improper Communication
  • 9. As mentioned Engagement is gradual process and if executed fairly and consistently then involvement/commitment of various stakeholder gradually improves as mentioned in above graph of commitment Curve. Purpose was to emphasise the importance of building strong relationships with the key stakeholders in our business and Functions & refocus our thinking about how we currently engage with them so that we maximize the strategic returns generated from our relationships with them. Undoubtedly, what has been presented here was not entirely new to us, but very often the day to day pressures of running your operation can cause us to lose focus on important issues such as COMMITMENT CURVE
  • 10. THANKING ALL FOR VIEWING I would like to mention that references have been taken from various online sites such as Wikipedia, Oxford Business Dictionary, Community Tool box etc. I have tried to collate and present basis above references and my experience of having worked in various functions at various roles with exposures to stakeholders of different types. Thanking once again Please feel free to reach me on Linked In Profile - http://in.linkedin.com/in/chandanshirbhayye Twitter - Chandan Shirbhayye @CShirbhayye Skype - chandan.shirbhayye