Strategic Stakeholder Management in Business Organizations

COLOGNE BUSINESS SCHOOLStakeholder ManagementBACHELOR OF ARTS (BA)Digital Media ManagementMd. Wasiur Rahman1183200009Riccardo WagnerCologne, May 2019INTRODUCTIONA stakeholder is a group of people or an individual who influence the actions of an organization. Some of the examples are customers, suppliers, owners, etc. It is a way in which it shows that people support each other and also try and grabbing opportunities where others are not able to succeed. Stakeholder management gets very crucial when any given projects is a success in a given organization which includes giving the right people the right responsibilities in a given project.

Communication is a major factor when it comes to Stakeholder Management.1.Communicationis the means by which information or instructions are exchanged. Successful communication occurs when the information that is being sent out is the same as the transmitted meaning. Poor communication can lead to misunderstood requirements, unclear goals, alienation of stakeholders, ineffective plans and many other factors that will cause a project portfolio to fail.

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1.1Stakeholders and their relationships to the project manager.Top management: Includes the president of the company, vice-presidents, directors, the corporate operating committee, and others. These people direct the strategy and development of the organization.The project team: is made up of those people dedicated to the project or borrowed on a part-time basis. As project manager, you need to provide leadership, directionYour Manager: the boss decides what the assignment is and who can work with the project manager on projects.Resource Manager project managers are in the position of borrowing resources, other managers control their resources.

So, their relationships with people are especially important. If their relationship is good, they may be able to consistently acquire the best staff and the best equipment for their projects.1.2Stakeholder management creates positive relationships with the stakeholders through the appropriate management of their expectations and agreed objectives. Stakeholders management is a process and control that must be planned and guided by underlying principles.2Success of a stakeholderThe success or failure of a project is mostly determined by the way the management in the company pursues and what outcome it expects from their stakeholders. Gathering research way in advance before determining which stake holder should carry out the project is always an importance to the company which would then result the best possible outcomes from that specific project.2.1Before making any decisionsBefore finalizing stake holders for the given project, we should first finalize and allocate enough time on stakeholder management to help come up with critical decisions depending on how touch the project goals are. Having relevant people who are completely dedicated to the project are very important and must always be involved because they are the ones who make major strategic decisions which will affect the success of the project. Have all the stake holders involved to a certain extent of the success of a given project. The project managers should not over work the stakeholders by giving them newer projects because there would be a high chance that they will interfere with the success of the project. Only a handful of stakeholders should be given specific projects to work on.Our main goal is to have a full understanding of the main stake holders and how they will pursue the project and how they will be affected by the project. More priority should be given to those stakeholders that will be more affected by the project than those stake holders that are least affected by the project. It is always important to know that any project depends on the full involvement of the stakeholders if positive results are to be realized in advance.Stakeholder management within business, organization prepares a strategy using information gathered during the following common processes. With a clear understanding of your fellow stakeholders, communicating can be achieved through a variety of channels based upon who the stakeholder is.Stakeholder prioritization High power, interested people: these are the people you must fully engage and make the greatest efforts to satisfy. High power, less interested people: put enough work in with these people to keep them satisfied, but not so much that they become bored with your message. Low power, interested people: keep these people adequately informed, and talk to them to ensure that no major issues are arising. These people can often be very helpful with the detail of your project. Low power, less interested people: again, monitor these people, but do not bore them with excessive communication.Types of Stakeholders1: CustomersStake: Product/service quality and valueCustomers are actually stakeholders of a business in that they are impacted by the quality of service and its value. For example, passengers traveling on an airplane literally have their lives in the company's hands while flying with the airline.2: EmployeesStake: Employment income and safetyEmployees have a direct stake in the company in that they earn an income to support themselves and their family, as well as other benefits both monetary and non-monetary. Depending on the nature of the business, employees may also have a health and safety interest for example: transportation, mining, oil and gas, construction, etc.3: InvestorsStake: Financial returnsInvestors include both shareholders and debtholders. Shareholders invest capital in the business and expect to earn a certain rate of return on that capital. Investors are commonly concerned with the concept of shareholder value. Bunched up with this group are all other providers of capital, such as lenders and different classes of shareholders.4: Suppliers and vendorsStake: Revenues and safetySuppliers and vendors sell goods and services to the business and rely on it for revenue generation and on-going business. In many industries, the suppliers also have their health and safety on the line, as they may be directly involved in the company's operations.5: CommunitiesStake: Health, safety, economic developmentCommunities are major stakeholders in large businesses. They are impacted by a wide range of things, including job creation, economic development, health, and safety. When a big company enters or exits a small community, they will immediately feel the impact on employment, incomes, and spending in the area. In some industries, there is a potential health impact, as companies may alter the environment.6: GovernmentStake: Taxes and GDPGovernments can also be considered a major stakeholder in a business as they collect taxes from the company which is corporate income and as well as from all the people it employs which is known as payroll taxes and all other spending the company incurs (goods and services taxes). Governments benefit from the overall Gross Domestic Product (GDP) that companies contribute to.