Stakeholder Management

Take your stakeholders with you

Managing stakeholders well in difficult times is crucial to executing a winning strategy. In today’s often complicated business environment, the only way to manage these diverse relationships effectively is through good communication.

Shareholders and lenders need to be kept informed and engaged in a positive dialogue about how the situation is being handled and the opportunities it presents for the business. Information about what is being done to address any underlying weaknesses in the business structure and the strengths that set the business apart from its competitors should also be shared.

Rewarding customer loyalty is particularly important at this time. Key account management programmes can be an effective way of identifying the ‘best’ customers – and the worst. Focusing the business on what really matters – and who really matters – is fundamental to success.

Assets should be safeguarded by maintaining an open dialogue between employer and employees. When money is tight, it can be difficult to reward good performance, but there will still be advantages for employees, which the business can focus on. Businesses that are honest with their employees will engender greater trust across the organisation.

Businesses may also be tempted to cut back the marketing spend, but previous downturns has shown that the brands that increased their marketing budget were the highest performers, while those that cut theirs spend, lost market share.

Knowledgeable and experienced advisers can be a great resource for businesses to draw on.

What questions should I ask myself?

• What is being done to ensure that the agendas of different stakeholders are understood and are being actively considered?
• How has management communicated its strategy to its stakeholders? How recently has this been done?
• Which, if any, stakeholders are showing an unusual degree of interest in the company and its strategy? Why do I think could be?
• Have I developed a well articulated communication plan both internally and externally to make sure that there is a consistent action around the actions being undertaken?
• Are our people engaged in the overall strategy of the business and are they aware of the mitigating actions we are seeking to undertake?
• How am I motivating and rewarding my workforce to maintain productivity? What did I last communicate with employees?