Step one: a defined problem is a half-solved problem

Usually, there are a large number of objective and subjective circumstances that affect the attitude of people to any issue. The positions they hold are a reflection of their interests. Within the framework of the organization, the same principles apply: those who have an interest and influence on the organization are called stakeholders, and the search for a common language is called work with stakeholders.According to the CIPS methodology, stakeholders are divided into two groups: the first is internal stakeholders (employees, management, owners). They operate within the organization. The second group – external stakeholders (suppliers, government, creditors, society, shareholders, buyers). They affect the organization from the outside. As shown in the figure below:

Typical situation with internal stakeholders:

the purchasing function found low competition in a certain segment of goods. The analysis showed that the root cause is high requirements to the material. The standard way to solve the problem: purchase manager address to the production function to change the technical requirements. Most often, they will receive a formal refusal with reference to a specific document. Given the understanding of the needs of stakeholders, the action plan can be as follows: buyers ask the sales department what additional value the high technical requirements for the material bring to the consumer. If the final product is positioned, for example, as the best product for a small price, or if the answer is not obvious, then a change in the technical requirements for the material will not lead to a dramatic change in the quality of the final product. In such a situation, you can enlist the support of the financial function to save on changes in technical requirements for the material and the sales function, as lowering the cost will reduce the final price of the product. In such a situation, the production function will need to find clear arguments why such quality is in the business interests of the company.

Typical situation with external stakeholders:

one of your suppliers is accused of using slave labor or causing additional damage to the environment. Consumers are massively refusing from your company’s products. Losses from unearned profits far outweigh the savings from such a supplier.

Step two: categorize and rule

Stakeholders have varying degrees of influence and interest. To understand how to interact with them correctly, conditionally categorize them into 4 segments, according to the Mendelow matrix:

The first category is stakeholders who have a relatively low level of interest and a relatively high degree of impact.

An example is the CEO. Such stakeholders need to feel satisfaction. It is important to understand what they want from us, for example, what kind of report, and provide it at the right time. They don’t need their interest to grow as the project progresses, they need to know that all is well.

The second segment is key players who have a high degree of interest and a high degree of influence.

This can be your head or purchasing director. Here the strategy must be different. We need them to “fall in love” with our project and feel that it is an important part of this project. A good strategy would be to involve such players early at all stages of project decision-making.

Третій сегмент – стейкхолдери із високим ступенем зацікавленості та відносно низьким ступенем впливу.

Це можуть бути внутрішні замовники, які не впливають на базові процеси. Тут діє така стратегія: варто інформувати їх про будь-які зміни, які відбуваються, але особливо не витрачати час на створення інформації для них. Спеціальні звіти робити не потрібно.

Четверта категорія – це гравці з мінімальними зусиллями та відносно низькими ступенями впливу і зацікавленості.

Працюємо за принципом докладання мінімальних зусиль. Якщо маємо час, то інформуємо, якщо ні, рухаємось далі. Характерним прикладом може бути юридична функція.

Step three: to find an answer to why

In negotiations, each party always has a position that is open and common, and an interest that is usually hidden. The following questions will help to identify interests:

Step four: negotiations

Negotiations are the final and most important stage. To do this, you need to follow seven principles of effective interaction with stakeholders: