Stakeholders Definition of stakeholders Theoretical model: 1

Edward (1984) 2

Outline Principles Degree of influence – prioritization of needs Interest versus power strategies 3

Managing stakeholder expectations Managing stakeholder expectations: when expectations of the stakeholders are actively managed, the project gets a higher likelihood for success. The project manager should continuously negotiate and influence desires of the stakeholders to achieve strict conformity of project goals and expectations and maintain the project management effort. Managing stakeholder perception: it is important to the project success to ensure that the stakeholders are engaged with the project on a scheduled basis and they are aware of current status of the project work. High-level stakeholder perception increases the likelihood that the stakeholders provide the necessary support level and the project can be implemented as expected. Recording stakeholder activity: the project manager is ultimately responsible for recording and logging all the activities stakeholders undertake. Therefore, the project manager should formally track all interactions with stakeholders and between them and then make records of the results the project has achieved, in order to secure stakeholder acceptance and the project communications plan adherence. Solving problems and resolving conflicts: The project manager in cooperation with the conflict manager should address the stakeholders concerns and assess risks and threats to prevent issues and conflicts. The project manager may generate solutions by referring to change requests. 4

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Internal 1) Employees Needs: -Fair salary -Supportive work environment -Provision of career advancement -job security -Recognition Organization can compare the salary of the company with other companies in the same industry. Align salary increase in proportion to employees’ work performance Long-service awards Verbal Praise 6

2) Manager Needs on improving training skills Workload More authority, empowerment, recognition and visibility Provide study leave & study allowances Provide off-job training Flexible work schedule Participative management 7

External: 1) Suppliers Reliable order Timely payments Contracts – exclusive suppliers PayPal 8

2) Customers access to good quality products and services at competitive prices Diversify products/services Improvement of technological More product testing for ensuring safety 9

3) Shareholders Want a higher return of investment Diversify its business into related & non-related one Merge Turn the company into listed company 10

4) Creditors interest on loans and capital repayment Resources allocation Maintain a balance between debt & equity Fast sale of goods 11

5) Society good corporate citizens Environmental protections Recycling of packaging 12

6) Government wants taxes, opportunities for employment in the society and availability of products and services in markets Increase lines of business Expansion of business scales, like width & depth of product lines Maintain a stable number of stock 13

Construct a matrix to identify stakeholder influence and importance One basic tool of stakeholder analysis is the influence/importance matrix. This technique can be used in relation to a particular strategic development (such as the launch or withdrawal of a service). 14

Stakeholders should first be plotted in relation to how they would line up – the level and nature (for or against) of their importance and the extent of their influence. A second map can also be plotted showing how you would need stakeholders to line up if the development were going to have a good chance of success. By comparing the two maps and looking for the mismatches, priorities for managing stakeholders can be established, as well as priorities for maintaining stakeholders in their current positioning. Each quadrant can be analysed in the following way. In a clockwise rotation: 15

Quadrant one: Key stakeholders placed here have high influence and high importance need to be fully engaged on the strategy/project. The style of participation for stakeholders needs to be appropriate for gaining and maintaining their ownership. Quadrant two: Stakeholders placed here can be highly important but having low influence or direct power, however need to be kept informed through appropriate education and communication. Quadrant three: Stakeholders here have low influence and low importance and care should be taken to avoid the dangers of unfavourable lobbying and therefore should be closely monitored and kept on board. Quadrant four: Stakeholders placed here can hold potentially high influence but low importance should be kept satisfied with appropriate approval and perhaps bought in as patrons or supporters. 16

Strategy implementations 17

References Edward Freeman and his book Strategic Management: A Stakeholder Approach (1984) 18