Managing Communication Knowladge and Information
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- Date Submitted: 01/26/2015 10:02 AM
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Mendelow's Stakeholder Analysis
A key aspect of formulating corporate strategy is understanding key stakeholders. Objectives of an organisation will be governed by its key stakeholders. These key stakeholders are determined using stakeholder mapping. Mendelow's matrix is a popular method for performing stakeholder mapping.
Stakeholder mapping
Stakeholder mapping can help deal with stakeholders' conflicting demands. It identifies stakeholder expectations and power and helps in establishing political priorities. The process involves making decisions on the following two issues.
* How interested the stakeholder is to impress their expectations on the organisation's choice of strategies, i.e. how likely is the stakeholder to exercise power?
* To what extent the stakeholder has power to impose its wants?
How to determine interest and power
How interested are they?
The 'level of interest' can usefully be described as how likely it is that a stakeholder will take some sort of action to exercise his or her power.
Not all stakeholders have the time or inclination to follow management's decisions closely. Again some generalisations are possible about what will lead to interest, e.g.:
* high personal financial or career investment in what the business does
* absence of alternative (e.g. alternative job, customer, supplier or employer)
* potential to be called to account for failing to monitor (e.g. local councils or government bodies such as regulators)
* high social impact of firm (e.g. well known, visible product association with particular issues).
Power
Resignation, withdrawing labour, cancelling orders, refusing to sell, calling in an overdraft, dismissing directors, legal action, granting contracts, setting remuneration.
Note that legislation tends to move power away from shareholders to other stakeholders.
* Employee protection legislation (dismissal, redundancy, health and safety) moves power to employees and away from...
A key aspect of formulating corporate strategy is understanding key stakeholders. Objectives of an organisation will be governed by its key stakeholders. These key stakeholders are determined using stakeholder mapping. Mendelow's matrix is a popular method for performing stakeholder mapping.
Stakeholder mapping
Stakeholder mapping can help deal with stakeholders' conflicting demands. It identifies stakeholder expectations and power and helps in establishing political priorities. The process involves making decisions on the following two issues.
* How interested the stakeholder is to impress their expectations on the organisation's choice of strategies, i.e. how likely is the stakeholder to exercise power?
* To what extent the stakeholder has power to impose its wants?
How to determine interest and power
How interested are they?
The 'level of interest' can usefully be described as how likely it is that a stakeholder will take some sort of action to exercise his or her power.
Not all stakeholders have the time or inclination to follow management's decisions closely. Again some generalisations are possible about what will lead to interest, e.g.:
* high personal financial or career investment in what the business does
* absence of alternative (e.g. alternative job, customer, supplier or employer)
* potential to be called to account for failing to monitor (e.g. local councils or government bodies such as regulators)
* high social impact of firm (e.g. well known, visible product association with particular issues).
Power
Resignation, withdrawing labour, cancelling orders, refusing to sell, calling in an overdraft, dismissing directors, legal action, granting contracts, setting remuneration.
Note that legislation tends to move power away from shareholders to other stakeholders.
* Employee protection legislation (dismissal, redundancy, health and safety) moves power to employees and away from...