Stakeholder engagement

2. What is stakeholder management?
 Stakeholder management is the process of maintaining good relationships
with the people who have most impact on your work.
 Stakeholder management is the process by which you organise, monitor and
improve your relationships with your stakeholders.
 It involves systematically identifying stakeholder; analysing their needs and
expectations; and planning and implementing various tasks to engage with
them.
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3. What is stakeholder management?
 A good stakeholder management process will be the means through which
you are able to coordinate your interactions and asses the status and quality
of your relationship with various stakeholders.
 Most definitions of stakeholder management tend to focus around the idea
that you can “manage your stakeholders (in order to get them to do what you
want)”.
 The emphasis is placed on creating a stakeholder management plan that
maps the level of interest and influence of stakeholders and list various levels
of engagement for the different groups.
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4.  Managing with stakeholders from the start…enables a proactive
cultivation of relationships that can serve as “capital” during
challenging times.
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5. Why stakeholder management?
 It offers those who will affect or be affected by the outcomes a chance
to voice their opinions
 It ensures that an organisation has greater clarity and a shared vision
amongst its key influencers
 It enables an organisation to identify who their key stakeholders are
and understand the relationship they have with the organisation
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6. Why stakeholder management? Cont’d
 It brings people together to pool knowledge, experience, and expertise
to co-create solutions
 It helps build collaborative partnerships and new relationships that
generate value
 It can identify strategies to gain competitive advantage
 It helps to reduce the level of risk within an organisation and improves
governance
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7. Principles of Stakeholder Management
Acknowledge
 The managers are supposed to acknowledge and carefully monitor the
concerns of all the legitimate stakeholders; they must consider their
interests seriously in decision-making and actions.
Listen
 The managers must listen and openly corresponds to all the
apprehensions with the stakeholders and should communicate about
the risk which they assume will happen because of their participation
with the corporation.
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8. Principles of Stakeholder Management
ACCEPT
 The managers should accept the interconnection of hard work and
rewards that are being put in amongst the stakeholders. The project
managers are supposed to treat the stakeholders fairly.
COLLABORATE
 The managers should collaborate with the public and private entities in
order to insure the risk that can arise from corporate activities so that
can be easily reduced and where they cannot be overcome,
and accurately compensate it.
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10. Principles of Stakeholder Management
ADOPT
 The managers should adopt such practices and modes of behavior that
are relevant to the concerns and competencies of each stakeholder’s
electorate.
AVOID
 Managers should avoid any activities that might endanger undeniable
human rights (the right to vote) which may arise some risks if not
clearly understood, would be deliberately unacceptable to respective
stakeholders. The managers should clearly make outlines to avoid any
risk or hurdles.
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11. Principles of Stakeholder Management
NOTE POTENTIAL CONFLICTS
 Managers should take notice of the potential conflicts that may possibly
occur amongst the staff members for the following reasons a) their role
as corporate stakeholders b) Their legal and moral responsibilities for
the concerns of all stakeholders through addressing such conflicts with
open communication, third party review, accurate reporting etc.
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12. 12
What Strategies or Actions
Should Management Take?
 Do we deal directly or indirectly with stakeholders?
 Do we take the offense or the defense in dealing with
stakeholders?
 Do we accommodate, negotiate, manipulate or resist
stakeholder overtures?
 Do we employ a combination of the above strategies
or pursue a singular course of action?

13.  This technique is useful when a Business Analyst wants to understand
the priority and level of attention a particular stakeholder. It helps too
with selecting the proper communication approach for each
stakeholder group. The alternative name for this technique is
the salience model.
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14. Models on engaging with stakeholders
Two models
 Salience model or Power, Legitimacy and Urgency model (Mitchell
et al.,1997)
 Stakeholder typology model
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15. Salience model or
Power, Legitimacy and Urgency model
 The typology of organizational stakeholders in the figure shows two
dimensions: potential for threat and potential for cooperation.
 Note that stakeholders can move among the quadrants, changing
positions as situations and stakes change (Weiss,2014).
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16. 16
Diagnostic Typology of Organizational Stakeholders:
According to the degree of Threat and cooperation
Stakeholder Type 
Mixed Blessing
Strategy:
Collaborate
Stakeholder Type 
Nonsupportive
Strategy:
Defend
Stakeholder Type 
Supportive
Strategy:
Involve
Stakeholder Type 
Marginal
Strategy:
Monitor
High
Low
Stakeholder’s
Potential for
Cooperation with
Organization
High Low
Stakeholder’s Potential for Threat to Organization
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17. Supportive Stakeholder,
 With low potential for threat and high potential for cooperation.
 Here the strategy of the focal company is to involve the supportive
stakeholder.
 Think of both internal and external stakeholders who might be supportive
and who should be involved in the focal organisation’s strategy.
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18. Marginal stakeholder.
 This stakeholder has a low potential for both threat and cooperation.
 Such stakeholders may not be interested in the issues of concern.
 The recommended strategy in this situation is to monitor the stakeholder,
to “wait and see” and minimize expenditure of resources, until the
stakeholder moves to a Mixed Blessing, Supportive, or Non-supportive
position. (Weiss,2014)
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19. 19
Diagnostic Typology of Organizational Stakeholders:
According to the degree of Threat and cooperation
Stakeholder Type 
Mixed Blessing
Strategy:
Collaborate
Stakeholder Type 
Nonsupportive
Strategy:
Defend
Stakeholder Type 
Supportive
Strategy:
Involve
Stakeholder Type 
Marginal
Strategy:
Monitor
High
Low
Stakeholder’s
Potential for
Cooperation with
Organization
High Low
Stakeholder’s Potential for Threat to Organization
?

20. The Non-supportive stakeholder,
 who shows a high potential for threat and a low potential for
cooperation,
 represents an undesirable stance from the perspective of the
influencer.
 The suggested strategy in this situation calls for the focal
organisation to defend its interests and reduce dependence on
that stakeholder.
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21. Mixed Blessing stakeholder,
 With high potential for both threat and cooperation.
 This stakeholder calls for collaborative strategy.
 In this situation, the stakeholder could become a Supportive or Non-supportive type.
 A collaborative strategy aims to move the stakeholder to the focal company’s
interests.
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22. 22
Summary of Four Stakeholder Types
… managers should attempt to satisfy minimally the
needs of marginal stakeholders and to satisfy
maximally the needs of supportive and mixed
blessing stakeholders, enhancing the latter’s
support for the organization.

23. Stakeholder typology model
 This model classifies stakeholders based on their salience in the
organization.
 The salience of a stakeholder is based upon three factors: power,
legitimacy and urgency.
 The idea of this model is to distinguish more salient or prominent
stakeholders, give them priority and actively communicate with them.
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24. Salience model or Power, Legitimacy
and Urgency model
Salience
 degree to which priority given to competing stakeholders,
determined by:
 Power
• ability to get firm to do something that it would not otherwise do
based on force, threat, incentives, etc.
• Thus, the ability or capacity of a stakeholder to produce an
effect
 Legitimacy
• Perception or assumption that actions of firm are desirable,
proper, or appropriate within social norms
 Urgency
• degree to which stakeholder’s claim or relationship calls for
immediate attention 24

25. The model identifies 8 different stakeholder groups:
 dormant,
 latent,
 demanding,
 dominant,
 dangerous,
 dependent,
 definitive and
 non-stakeholders.
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26. Stakeholder Typology

27. Stakeholder Typology
 1. Dormant stakeholders: These stakeholders have power to impose
their will on others but they miss legitimacy and urgency. Therefore
their power remain dormant. Tip: keep these stakeholders informed.
 2. Discretionary (Latent) stakeholders posses legitimate claims, but
have no power to influence the organization nor urgent claims. Tip:
Involve them only when really necessary (e.g. something is going very
wrong).
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28. Stakeholder Typology

29. Stakeholder Typology
 3. Demanding stakeholders: These stakeholders have urgent claims,
but neither power nor legitimacy to enforce them. Tip: Be careful not to
invest too much time in keeping them up to date. There are more
important stakeholders to communicate with.
 4. Dominant stakeholders have both power and legitimate claims in the
organization giving them strong influence in the project. Tip: Keep
them informed.
 5. Dangerous stakeholders have power and urgency, but lack of
legitimacy. They are seen as dangerous as they may resort to coercion
and even violence. Tip: Keep these stakeholders appropriately
engaged or satisfied.
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30. Stakeholder Typology

31. Stakeholder Typology
 6. Dependent stakeholders lack power, but have urgent and
legitimate claims. Tip: However, they need to be managed because
they can quite easily choose to align themselves with other project
stakeholders and hence influence your project.
 7.Definite stakeholders have power, legitimacy and urgency, and
therefore they need to be communicated with.
 8. Nonstakeholders have no power, no legitimacy and no urgency. Tip:
Do not invest time in any communication with them
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