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Stakeholder relations management is a key skill

01 Jun, 2020 Reputation, trust, stakeholder relations

Effective management of relationships with stakeholders is crucial to resolving issues facing organizations. By using their influence, stakeholders hold the key to the environment in which your organization operates and its subsequent financial and operating performance. Thus the effective management of stakeholder relations should be an essential focus of PR and organizational activity.


A stakeholder is any person, group or organization who can place a claim on an organization’s attention, resources or output, or is affected by that output. They have a stake in the organization, something at risk, and therefore something to gain or lose as a result of corporate activity.

The aim of stakeholder relations management is to influence stakeholder attitudes, decisions, and actions for mutual benefit. Stakeholders need to gain from the relationship or they may not be sufficiently motivated to cooperate.

The first main steps in stakeholder relations management are to identify and prioritize stakeholders. You then use stakeholder planning to build the support that helps you succeed.

The benefits of using a stakeholder-based approach are:

  • You can use the viewpoints of the main stakeholders to help shape your projects at an early stage. This makes it more likely they will support you, and their input can also improve the quality of your project.
  • Gaining support from powerful stakeholders for your work can help convince senior management to allocate more resources to you. This makes it more likely your projects will be successful.
  • By communicating with stakeholders early and often, you can ensure they know what you are doing and fully understand the benefits of your project. This means they can support you actively when necessary.
  • You can anticipate what stakeholders’ reaction to your project is likely to be, and then you can build into your plan the actions that will win their support.

First steps

Identify your stakeholders

List the people, groups or organizations who are affected by your project, who have influence or power over it, or have an interest in its successful or unsuccessful conclusion. Stakeholders can be assessed systematically according to criteria such as influence, impact and alignment. For example, these questions can help assess their relevance:

  • To what extent will your strategy affect each group, positively or negatively?
  • How far does the strategy align with their existing beliefs about your organization’s values and purpose?
  • How far do they share your organization’s values and purpose in this area?
  • How robust is the existing relationship with them?
  • What information do they need from you?
  • How do they want to receive it?
  • Who influences their opinions about this issue, and who influences their opinions of you? Are some of these secondary sources therefore potential stakeholders as well?
  • What is their potential to influence the business directly or indirectly (via other stakeholders), positively or negatively?
  • If they are not likely to be positive, what will get their support?
  • If you can’t get their support, how will you manage their opposition?
  • How likely will actions towards one stakeholder group influence the attitudes of other stakeholder groups?
  • What are the consequences of this?

A very good way of finding the answers to these questions is to talk to your stakeholders directly – tactfully of course! You can help their thoughts by asking them questions through a process of facilitation. People are often quite open about their views, and so asking them is often the first step in building a successful relationship. Seeking their advice is another good way to strengthen your relationship and add value from their input.

Prioritize your stakeholders

You may now have a long list of people and organizations that are affected by your work. Some of these may have the power either to block or advance your activities. Some may be interested in what you are doing, others may not care. Having identified your main stakeholders, you need to decide which of them are the most important. With limited resources, you should only deal actively with the most important ones.

Stakeholders can be prioritized numerically in a matrix showing a weighting of their importance, for instance out of a score of 10, against each of the most important factors relevant to a particular issue, also weighted out of 10, or a set of factors most important to the organization overall. These are discussed in my article, “How to calculate the value of stakeholders.”

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About the author Kim Harrison

Kim Harrison loves sharing actionable ideas and information about professional communication and business management. He has wide experience as a corporate affairs manager, consultant, author, lecturer, and CEO of a non-profit organization. Kim is a Fellow and former national board member of the Public Relations Institute of Australia, and he ran his State’s professional development program for 7 years, helping many practitioners to strengthen their communication skills. People from 115 countries benefit from the practical knowledge shared in his monthly newsletter and in the eBooks available from

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