This article explains Stakeholder Management in a practical way. After reading you will understand the basics of this powerful project management tool.
Organizations that intend to implement large-scale changes need to provide all parties concerned with accurate and timely information. When they fail to do so, it is likely that the parties involved will oppose these changes and perhaps even protest against them, which may interfere with the strategic objectives. When this happens, it is time for Stakeholder Management.
What are stakeholders?
Within a company there are always several people involved in projects, change or company activities. For example employees, shareholders, interest groups, government bodies and customers. They are called the stakeholders. All of these stakeholders have their own interests and expectations.
Stakeholder management is about taking all of these interests appropriately into account. Stakeholder Management is especially recommended in case of reorganization, mergers, relocation, expansions and company management.
Basis of support
It is important to steer the expectations and interests of all stakeholders in a project in the right direction. There are two key factors in this: creating a fast and effective basis of support and providing a safe environment in which each individual can perform excellently.
Each stakeholder has their own interests and reasons to either support or reject the project. Their acceptance of this project is of fundamental importance for any change that an organization envisages.
An organization would do well to take into account that the expectations and interests of the different stakeholders do not necessarily agree with each other and could even conflict with one another. Relocation abroad could possibly go down well with the shareholders.
For them it is mainly about new opportunities and higher profit margins. Employees will undoubtedly oppose this because they have no intention of leaving their homes.
Application of Stakeholder Management
In order to be able to apply Stakeholder Management well, it is important to identify the stakeholders first. Then it has to be established who will be impacted by the proposed decision, who has the power to influence and who will take the decisions within the organizations. In regard to the latter, think for instance of the shareholders of a public company.
The ultimate objective is to work j...
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