Manage your stakeholders

The downturn presents challenges, not only to companies, but to their stakeholders as well.

Good stakeholder management during difficult times is crucial to businesses 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 don’t like information to be kept from them or nasty surprises.

Stakeholders need to be engaged in a positive dialogue about how the situation is being handled, the opportunities it presents for the business, what is being done to address any underlying weaknesses in the business structure and the strengths that set the business apart from its competitors.

Staying on their customers’ agenda and rewarding loyalty is also essential for businesses. 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.

What questions should I ask myself?

• Do I know who my key stakeholders are?
• Am I aware of recent changes in my stakeholder base?
• Am I aware of their agenda? How am I meeting their expectations?
• When did I last have a detailed update with them?
• Have I seen attitudes change recently?
• Am I keeping up - to-date with developments concerning my key stakeholders which may impact my business?
• 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?
• Have I considered the possible differing agendas and considered what the more likely areas of conflict could be?
• Are our people engaged in the overall strategy of the business and are they aware of the mitigating actions we are seeking to undertake?