An Introduction to Stakeholder

Management
Cumbria and Lancashire
Communications Network
meeting

Definition

Freeman, Any group or individual who

can affect or is affected by the
achievement of the organisation's
objectives

Stakeholders: Key issues

Strategic stakeholders: can affect an
organisation and must be managed so
objectives can be achieved
Moral stakeholders: are affected by the
organisation so need to be aligned with the
organisation
Stakeholders can be a member of more than
one group
Each group needs to be communicated with in
different ways so consistent messaging is vital

Stakeholder Management
There are two major elements to Stakeholder
Management: Stakeholder Analysis and Stakeholder
Planning.
1. Stakeholder Analysis is the technique used to identify
the key people who have to be won over.
2. You then use Stakeholder Planning to build the
support that helps you succeed.

Why is stakeholder management so

important?
You can use the opinions of the most powerful stakeholders to
shape your projects at an early stage. Not only does this make it
more likely that they will support you, their input can also improve
the quality of your project.
Gaining support from powerful stakeholders can help you to win
more resources e.g. internal resources this makes it more likely
that your projects will be successful.
By communicating with stakeholders early and often, you can
ensure that they know what you are doing and fully understand the
benefits of your project this means they can support you actively
when necessary.
You can anticipate what people's reaction to your project may be,
and build into your plan the actions that will win people's support.

Stakeholder Power
Examples:
1. Positional e.g. authority
2. Resource e.g. control, obtain and create
thereby influencing
3. System e.g. network power via connections
4. Expert e.g. through expertise and reputation
5. Personal e.g. charisma and personality

Plotting stakeholders can determine their

potential influence
Level of Interest

Low

High

Low

A Minimal effort

B Keep informed

High

C Keep satisfied

D Key players

Power

Mendelow Matrix [1991]

Group Activity

Complete a draft mendelow matrix for a

consultation

Internal stakeholders: discuss

In your internal organisation who are your:

Partners
Allies
Passive supporters
Bedfellows
Fence-sitters (whose allegiance is not clear)
Loose canons
Opponents and adversaries
Voiceless

How do you interact with these stakeholder

groups?

Pressure/Interest/Lobby
Groups

A pressure group is an organised collection of people

who seek to influence political decisions and policy.
There are 3 main types:
Sectional groups:
1. Business Groups e.g. Confederation of British
Industry, FSB
2. Professional Bodies
3. Groups e.g. Greenpeace, Amnesty, NSPCA

PlusFire brigade groups e.g. specific issue

orientated for politics

The Issue Life Cycle

Hainsworth & Meng: 4 stage process
1. Potential issue could arise e.g. what happens if it
snows and we don`t have enough grit for the roads?
2. Emerging issue: public awareness increases via the
media e.g. news stories and people want answers
3. Current and crisis issue: respective positions are
communicated and acknowledged, resolution is sought,
solutions and actions are sought
4. Dormant issue: the issue becomes policy, future impact
is negated/reduced to avoid further costly conflict and
lifecycle is completed
Could you add an additional stage i.e measurement of
impact and prevention of re-occurrence?

Managing Pressure Groups

Options:
Isolate & discredit
Ignore
Cultivate and educate
Engage in dialogue

Who is your reference group?

Industry Body?

Celebrity?
Opinion
leader?
Endorsement?

Word of mouth

The benefits to the firm: the

relationship marketing ladder
PARTNER
ADVOCATE
SUPPORTER
Emphasis on
winning
customers
(Customer
catching)

CLIENT
CUSTOMER
PROSPECT

Emphasis on
developing and
enhancing
relationships
(Customer
keeping)
Think of a current
campaign: which
tools could you use
for each step of the
rung?

Characteristics of relationship
marketing

Long-term orientation or horizon

Commitment and fulfilment of promises
Customer share, not market share
Customer lifetime value
Two-way dialogue
Customisation
Little & Marandi

Relationship Life Cycle Model

Awareness
Knowledge
Consideration

The 4 Dimensions
Bonding
Empathy

Selection trial

Reciprocity

Trust
Satisfaction

Loyalty

Advocacy

Food for thought

1.

2.

Identify 2 internal
stakeholders and 2
external
stakeholders that
were key players
in a recent
product/service
launch
For these 4
stakeholder
groups propose a
suitable marketing
mix

The marketing mix:

Place: consider distribution channels
Product: benefits for stakeholders
Price: preferred pricing strategy?
Promotional mix: with stakeholders
[consider also pull & push]
Physical environment: accessibility,
dcor, livery etc.
People: include ethics and customer
service
Process: include CSR and ease of
dealing with
Packaging: purpose, is it protection,
facilitation, to carry info and/or carry
mkg comms?

Understanding your key stakeholders:

your plan
1.
2.
3.
4.
5.
6.

7.
8.
9.

Key questions that can help you understand your stakeholders

are:
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?
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?
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?