This document discusses stakeholder management. It defines stakeholders as any party that has an interest in an enterprise or project. It outlines the evolution of stakeholder theory from initially focusing only on stockholders to a modern view that embraces additional stakeholders like the community, government, and trade associations. The document then discusses stakeholder management, identifying stakeholders, prioritizing them based on power and interest, learning more about high priority stakeholders, and engaging with different stakeholders appropriately based on their power and interest. It emphasizes that stakeholder management is important for organizational success and should be viewed as a core business process.

1. Somrita Sen
UH13050
XIMB
Trends in Stakeholder
Management

2. Who is a stakeholder?
 A stakeholder can be defined as a party that has an
interest in an enterprise or project.
 The word ‘stakeholder’ first appeared in the
management literature in an internal memorandum at
the erstwhile Stanford Research Institute in 1963. It
was meant to refer to stockholders as the only group
to whom management need be responsive.
 Initially defined as “those groups without whose
support the organization would cease to exist”
 A corporate stakeholder can affect or be affected by
the actions of a business as a whole- typically the
investors, employees, customers and suppliers.
 Modern theory goes beyond this conventional notion
to embrace additional stakeholders such as the
community, government and trade associations.

3. Some stakeholders
Government Employees
Business
Community
Consumers
Owners

4. Stakeholder Management
 Earlier focus used to be only on the customers.
 But with the passing years, emphasis has been
laid on an inclusive approach to managing the
various groups and individuals, keeping in mind
the overall health of the organization.
 Thus, Stakeholder Management, as a concept,
refers to the necessity for an organization to
manage the relationships with its specific
stakeholder groups in an action oriented way.
 And it is important because it is a critical
component to the successful delivery of any
project, program or activity

5. Steps in stakeholder
management
 Identifying the stakeholders
 Prioritizing the identified stakeholders based on
power and influence
 Knowing more about the afore mentioned
stakeholders
 Engaging and communicating with the
stakeholders

6. Identifying the stakeholders
 Understanding from a rational perspective who
are the stakeholders and what are the perceived
stakes involved.
 The most practiced way is through brainstorming.
It is simple yet effective.
 This is a team task.
 Key questions can be posed to identify the said
stakeholders.
 A useful tool in this regard is coming up with a
stakeholder map for the organization. It is an
invaluable way to identify who the stakeholders
are and what are their interests in the

7. Stakeholder map for an organization

8. Prioritizing the stakeholders
 One way of doing this is by plotting the identified
stakeholders on the power/interest grid.
 This grid is a tool as there are others
 This is necessary in order to find out that who in
the long list of stakeholders have the power to aid
or block the success of the organization, who is
interested and who is not.
 The eventual actions on the stakeholders depend
on this categorization

9. Power/Interest grid
Power
Interest
Latents
Keep
Satisfied
Promoters
Manage
closely
Monitor
Apathetics
Keep
Informed
Defenders

10. Knowing the key stakeholders
 The stakeholders so prioritized are the key
stakeholders
 The next step is to know more about these
people/ groups etc.
 This can be done through asking several
important questions and getting the
corresponding answers.
 This is important as only then appropriate steps
can be taken to engage the stakeholders to the
maximum benefit of the organization.

11. Examples of key questions
 What financial or emotional interest do they have in the outcome of your
work? Is it positive or negative?
 What motivates them most of all?
 What information do they want from you?
 How do they want to receive information from you? What is the best
way of communicating your message to them?
 What is their current opinion of your work? Is it based on good
information?
 Who influences their opinions generally, and who influences their
opinion of you? Do some of these influencers therefore become
important stakeholders in their own right?
 If they are not likely to be positive, what will win them around to support
your project?
 If you don't think you will be able to win them around, how will you
manage their opposition?
 Who else might be influenced by their opinions? Do these people
become stakeholders in their own right?

12. Engaging the stakeholders
 Based on the power/interest grid, the
engagement practices undertaken for the
stakeholders can vary as follows-
 High power, interested people: Manage closely.
Best channels: Issue, Change Logs, Status
Meetings (promoters)
 High power, less interested people: Keep
satisfied. Best channels: Steering Committee,
Board Meeting Updates (latents)
 Low power, interested people: Keep informed.
Best channels: In-Person, Video, Email Updates
(defenders)
 Low power, less interested people: Monitor.
Best channels: Send Email, Status Reports

13. Few possibilities
 Assign owners from the organization to manage each
high value stakeholder based on their level of
potential impact. Who should manage “high impact”
stakeholders? They should likely be assigned to the
ED and Board members. What about “low impact”
stakeholders? They could be great candidates for the
e-newsletter.
 Determine a timeline for regular communications
with the key stakeholders to make sure they are
always up-to-date on what they need to know to
support the organization’s goals. Work to minimize the
time spent focused on those who are not in a strong
position to help achieve the goals.
 Tailor the key messages to align the firm’s interests
with theirs.

14. Some points
 Stakeholder engagement requires a new set of
skills within the organizations so that the
employees can connect effectively with the
external stakeholders
 Moreover, in the present scenario, it has become
essential that companies view the whole process
of stakeholder management as part of the day to
day core business.
 Focus is essential when dealing with a large
number of stakeholders, so that the whole
process is effective.
 In fact stakeholder management, in order to be
fruitful, must be -

15.  issue-based – consultative or co-operative.
 pro-active instead of reactive;
 learning orientated in order to get to tangible
issue-based results;
 measurable in terms of a company's internal
targets; and
 based on a thorough methodology.

16. Some examples
 Currently, there is an increasing tendency for
companies to do what good governments already
do: become better by engaging their
stakeholders. Coca Cola, for example, is trying by
taking a collective action approach to rising water
challenges, Nestlé is wrestling to find solutions for
a more sustainable cocoa value chain and Kraft
Foods supports African Cashew farmers.
Stakeholder engagement can work and create
shared value.

17. References
 http://en.wikipedia.org/wiki/Stakeholder_manage
ment
 http://www.investopedia.com/terms/s/stakeholder.
asp
 https://www.prince2.com/blog/how-identify-
stakeholders
 http://www.theguardian.com/sustainable-
business/stakeholder-engagement-practical-
guide
 www.shrmindia.org
 Strategic Management: A Stakeholder Approach
By R. Edward Freeman

18. THANK YOU