Stakeholder Management Semester 2 By Michelle Ratnasothy What

Stakeholder Management Semester 2 By: Michelle Ratnasothy

What is stakeholder management? “Any group or individual who can affect or is affected by the achievement of the organisation's objectives”

Key concerns… • 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

Elements of stakeholder management There are two major elements to Stakeholder Management: • Stakeholder Analysis is the technique used to identify the key people who have to be “won over” • You then use Stakeholder Planning to build the support that helps you succeed.

Stakeholder Power • Positional e. g. authority • Resource e. g. control, obtain and create thereby influencing • System e. g. network power via connections • Expert e. g. through expertise and reputation • Personal e. g. charisma and personality

Mendelow Matrix Level of Interest Power Low High Low A Minimal effort B Keep informed Hig h C Keep satisfied D Key players

Exercise… • Apply the Matrix for your organization

Pressure Groups • A pressure group is an organized collection of people who seek to influence political decisions and policy. • There are 3 main types: – Business Groups e. g. Confederation of British Industry, FSB – Professional Bodies – Groups e. g. Greenpeace, Amnesty, NSPCA

How to manage Pressure Groups? • 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)

Characteristics of relationship marketing • • • Long-term orientation or horizon Commitment and fulfillment of promises Customer share, not market share Customer lifetime value Two-way dialogue Customization

Relationship Life Cycle Model Awareness Knowledge Consideration Selection – trial Satisfaction Loyalty Advocacy

Q&A