Using stakeholder management, a business can understand:
The most important stakeholders
How the stakeholders connect
What the various stakeholders contribute to the business
What influence do stakeholders have on the business?
Ways the business can act to benefit the stakeholders
How it’s used
To begin stakeholder management the business’ stakeholders must be identified. The different stakeholders are grouped based on how they relate to the business e.g. staff. Stakeholders carry different levels of importance so it is important to understand how they will each influence the decisions of the business. Consider:
The power of the parties to influence decisions of the business
The actions of stakeholders within the business
If stakeholders score high on the above characteristics, they can be considered to have a high level of influence therefore their interests and concerns should always be considered by the business. You should also look at the relative position of stakeholders amongst other stakeholders:
The current relationship of the stakeholder with the business
The relationship of the stakeholder with other stakeholders
The position of the stakeholder in the market that the business operates in
The power of the stakeholders
The core interests of the stakeholders
The interest of each stakeholder or interested group should be considered, as well as the concerns of the direction that the business wants to go in. From there, you can decide which stakeholders will support the business and those that won’t. The supporters are known as movers and they will actively engage with the business. Those who are against the decisions are called blockers, and those who are not as supportive but are not against the business, are called floaters. For those with doubts, the business can explain how they will work to serve their doubts. With regards to the blockers, the business should inform them of how their plans aim to counter the threats perceived by the blockers.