Organisational decision Making
Stakeholder Analysis
Stakeholder Analysis
&
&
Culture
Culture
Stakeholder Analysis
Stakeholders - who are they?
Stakeholders - who are they?
A stakeholder is anyone who has an
A stakeholder is anyone who has an
expectation regarding the behaviour or
expectation regarding the behaviour or
performance of an organisation.
performance of an organisation.
Stakeholder Analysis
Strategic management is effective only
Strategic management is effective only
when resources match stakholders needs
when resources match stakholders needs
and expectations and change to fit into a
and expectations and change to fit into a
tubulent environment.
tubulent environment.
Stakeholder Analysis
Who are typical stakeholders?
Who are typical stakeholders?
Financial stakeholders e.g. shareholders;
Financial stakeholders e.g. shareholders;
investors; bankers; creditors etc..
investors; bankers; creditors etc..
Employees
Employees
Customers/Distributors
Customers/Distributors
Suppliers
Suppliers
Local/national political representatives
Local/national political representatives
Stakeholder Analysis
Stakeholders & their expectations
Stakeholders & their expectations
Expectations
Expectations
Primary
Primary
Secondary
Secondary
Owners
Owners
Profit
Profit
Added shareholder value
Added shareholder value
Employees
Employees
Pay
Pay
Working conditions
Working conditions
Customers
Customers
Quality
Quality
Price
Price
Creditors
Creditors
Creditworthiness
Creditworthiness
Payment on time
Payment on time
Suppliers
Suppliers
Payment
Payment
Long-term relationship
Long-term relationship
Community
Community
Safety & security
Safety & security
Contribution to comm.
Contribution to comm.
Government
Government
Compliance
Compliance
Improved competitiveness
Improved competitiveness
Stakeholder Analysis
Stakeholder analysis represents the political
Stakeholder analysis represents the political
context within which organisations
context within which organisations
function.
function.
For any given strategic objective to be
For any given strategic objective to be
achieved the expectations of the
achieved the expectations of the
stakeholders must be met - especially those
stakeholders must be met - especially those
stakeholders with substantial power and
stakeholders with substantial power and
interest in the organisation.
interest in the organisation.
Stakeholder Analysis
A word on culture:
A word on culture:
The culture that exists in an organisation -
The culture that exists in an organisation -
sometimes referred to as -
sometimes referred to as -
“the way we do
“the way we do
things around here”
things around here”
- is in some way a
- is in some way a
reflection of the historical relationship that
reflection of the historical relationship that
has been established between the various
has been established between the various
stakeholders.
stakeholders.
Stakeholder Analysis
The Power/Interest Matrix
The Power/Interest Matrix
This assesses the cultural fit: whether the
This assesses the cultural fit: whether the
political/cultural situation is likely to
political/cultural situation is likely to
undermine the adoption of a particular
undermine the adoption of a particular
strategy
strategy
Stakeholder Analysis
LEVEL OF INTEREST
LEVEL OF INTEREST
LOW HIGH
POWER
LOW
HIGH
Minimal
Effort
Keep
Informed
Keep
Satisfied
Key
Players
Stakeholder Analysis
Sources of Power: within organisations
Sources of Power: within organisations
Hierarchy: formal power
Hierarchy: formal power
Influence: informal power
Influence: informal power
Control of strategic resources
Control of strategic resources
Possession of knowledge
Possession of knowledge
Control of the environment
Control of the environment
Involvement in strategic implementation.
Involvement in strategic implementation.