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Stakeholder Analysis
Objectives for this session: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
A ‘Stakeholder’ is: Any person or organisation who can be positively or negatively impacted by, or cause an impact on the actions of a company. (Freeman, 1984) The individuals and constituencies that contribute, either voluntarily or involuntarily, to its wealth-creating capacity and activities, and are therefore its potential beneficiaries and / or risk bearers. (Post, Preston & Sachs, 2002)
Stakeholder theory in the context of the organisation: 1: The objective of a business is to make profits for its shareholders. (The Shareholder Value Perspective) 2: Companies are networks of parties working towards a shared goal. Employees, suppliers, shareholders, external interest groups and customers co-operate to create mutually beneficial results. (The Stakeholder Value Perspective) …  or …
Why use Stakeholder Analysis? ,[object Object],[object Object],[object Object],[object Object],[object Object]
Meeting stakeholder needs: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Who are the Stakeholders?
A typical list of Stakeholders would include: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Categorising Stakeholders: ,[object Object],[object Object],[object Object]
Categorising Stakeholders: ,[object Object],[object Object],[object Object],[object Object]
The Stakeholder Analysis process: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Stakeholder Analysis Matrix   Potential Strategies  Assessment of Impact Stakeholder Interests Stakeholder
Advantages of Stakeholder Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Disadvantages of Stakeholder Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object]
Stakeholder Mapping ,[object Object],[object Object],[object Object],[object Object]
The Power / Dynamism Matrix Classifies stakeholders in relation to the power they hold and their aptitude for action (dynamism) Can be used to indicate where political effort should be made before instigating change
 
Power / Dynamism Matrix: Stakeholders in groups A & B : are the easiest to deal with. Stakeholders in group C : are important because thy are powerful. But low dynamism means their reaction is predictable and expectations can be managed. Stakeholders in section D : Need most management attention because they are powerful and reaction is difficult to predict. May need to ‘trial’ new strategies with them.
The Power / Interest Matrix Classifies stakeholders in relation to their power and the extent to which they are likely to show interest in the actions of the organisation. Can be used to indicate the nature of the relationship which should be adopted with each group
 
Power / Interest Matrix: Stakeholders in group A:  Need only minimum effort an monitoring Stakeholders in group B:  Should be kept informed as they may be able to influence more powerful stakeholders Stakeholders in group C:  Are powerful, but level of interest is low. Generally expected to be passive, but may move into group D on an issue of particular interest Stakeholders in group D:  Are both powerful and interested. Their co-operation is of key importance for new strategies
The Power, Legitimacy and Urgency Model Maps stakeholder behaviour according to its balance of three characteristics: Power:  Of the stakeholder to influence the organisation Legitimacy:  of the relationship in terms of desirability or appropriateness Urgency:  The expectations of the stakeholder in terms of criticality and time-sensitivity
Stakeholder behaviour is mapped into 7 types
Power, Legitimacy & Urgency Model Latent Stakeholders  (Groups 1, 2 & 3): Sub-divided into ‘dormant’, ‘discretionary’, or ‘demanding’ stakeholders Expectant Stakeholders  (Groups 4, 5 & 6): Sub-divided into ‘dominant’, ‘dangerous’, or ‘dependent’ stakeholders Definitive Stakeholders  (Group 7): have all three characteristics and should command a high level of management attention Note:  management’s assessment of each stakeholders position is still subjective!
In conclusion: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Stakeholder Analysis

  • 2.
  • 3. A ‘Stakeholder’ is: Any person or organisation who can be positively or negatively impacted by, or cause an impact on the actions of a company. (Freeman, 1984) The individuals and constituencies that contribute, either voluntarily or involuntarily, to its wealth-creating capacity and activities, and are therefore its potential beneficiaries and / or risk bearers. (Post, Preston & Sachs, 2002)
  • 4. Stakeholder theory in the context of the organisation: 1: The objective of a business is to make profits for its shareholders. (The Shareholder Value Perspective) 2: Companies are networks of parties working towards a shared goal. Employees, suppliers, shareholders, external interest groups and customers co-operate to create mutually beneficial results. (The Stakeholder Value Perspective) … or …
  • 5.
  • 6.
  • 7. Who are the Stakeholders?
  • 8.
  • 9.
  • 10.
  • 11.
  • 12. Stakeholder Analysis Matrix Potential Strategies Assessment of Impact Stakeholder Interests Stakeholder
  • 13.
  • 14.
  • 15.
  • 16. The Power / Dynamism Matrix Classifies stakeholders in relation to the power they hold and their aptitude for action (dynamism) Can be used to indicate where political effort should be made before instigating change
  • 17.  
  • 18. Power / Dynamism Matrix: Stakeholders in groups A & B : are the easiest to deal with. Stakeholders in group C : are important because thy are powerful. But low dynamism means their reaction is predictable and expectations can be managed. Stakeholders in section D : Need most management attention because they are powerful and reaction is difficult to predict. May need to ‘trial’ new strategies with them.
  • 19. The Power / Interest Matrix Classifies stakeholders in relation to their power and the extent to which they are likely to show interest in the actions of the organisation. Can be used to indicate the nature of the relationship which should be adopted with each group
  • 20.  
  • 21. Power / Interest Matrix: Stakeholders in group A: Need only minimum effort an monitoring Stakeholders in group B: Should be kept informed as they may be able to influence more powerful stakeholders Stakeholders in group C: Are powerful, but level of interest is low. Generally expected to be passive, but may move into group D on an issue of particular interest Stakeholders in group D: Are both powerful and interested. Their co-operation is of key importance for new strategies
  • 22. The Power, Legitimacy and Urgency Model Maps stakeholder behaviour according to its balance of three characteristics: Power: Of the stakeholder to influence the organisation Legitimacy: of the relationship in terms of desirability or appropriateness Urgency: The expectations of the stakeholder in terms of criticality and time-sensitivity
  • 23. Stakeholder behaviour is mapped into 7 types
  • 24. Power, Legitimacy & Urgency Model Latent Stakeholders (Groups 1, 2 & 3): Sub-divided into ‘dormant’, ‘discretionary’, or ‘demanding’ stakeholders Expectant Stakeholders (Groups 4, 5 & 6): Sub-divided into ‘dominant’, ‘dangerous’, or ‘dependent’ stakeholders Definitive Stakeholders (Group 7): have all three characteristics and should command a high level of management attention Note: management’s assessment of each stakeholders position is still subjective!
  • 25.