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How to determine the value of stakeholders
By Kim Harrison,
Consultant, Author and Principal of www.cuttingedgepr.com
In a previous article, “Stakeholder relations management is a key skill,” a matrix was developed to show how you can calculate a numerical value or rating for each stakeholder in order to prioritize multiple stakeholders. The number simply was the aggregate of numbers calculated by the rating of a stakeholder against several criteria or attribute, as in the matrix below.
We can make the prioritizing of stakeholders more sophisticated when we allocate a numerical weighting to the criteria themselves. For instance, if “Access to key decision makers” is considered the most important attribute in stakeholders, that category could be allocated a numerical weighting, say 10.
If “Access to the media” is considered as important, but quite as important, it could be allocated a numerical weighting to reflect that, say 8.
The third attribute, “Access to key information,” might be considered to be the same importance as factor two, and therefore would be given a numerical weighting of 8.
The fourth attribute, “Able to influence other stakeholders,” might be given a weighting of 6, and the fifth attribute a weighting of 5.
Then for each stakeholder, you simply multiply the attribute importance by the stakeholder rating on that attribute to reach a number. For instance, “Access to decision makers” is given 10 for its importance, and the stakeholder in this example is given a rating of 4. Multiplying 10 by 4 gives a total of 40 for that stakeholder on that attribute. A different stakeholder might only have a rating of 2 or 3 on that attribute and therefore the resultant figure would be considerably less than the first stakeholder, ie 20 or 30 points in total.
You can work through all the important attributes and can add up all the totals to reach an aggregate for each stakeholder.
Stakeholders can then simply be prioritized by their scores.
The amount of time you should allocate to stakeholder relations management depends on the importance, size, difficulty and timing of your projects.
When you decide to embark on stakeholder relations management you can draw up an action plan table showing each stakeholder and several factors that can be considered.
For instance, in the table, for each stakeholder you can show outline:
It is important to consider carefully what you can offer them in return, because the stakeholder needs to gain something from the relationship or they may be reluctant to act as you wish them to do.
Then you can initiate a tailored program of communication for every significant stakeholder. The result is likely to be much more efficient and beneficial for your organization and your stakeholders than if you didn’t do it.
About the Author
Kim Harrison is a recognized authority in the public relations field. His website, www.cuttingedgepr.com, provides a wealth of informative articles and resources on public relations techniques and management.
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