Stakeholders

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Content Why should communicators segment and know their stakeholders?

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Communicating effectively is the only way for building a strong stakeholder relationship

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Know your stakeholders

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Why should communicators know and segment their stakeholders?

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An organizational communicator is the one who is able of motivate and break down the boundaries

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Why should communicators segment and know their Stakeholders?

But, why is it so important to know and segment the stakeholders? Many organizations create programs and groups, which gather information and develop strategies that most of the times, are not implemented by the

Isabel López*

lack of internal support and external support. What “The term stakeholder, was used for the first time in 1984 by RE Freeman in his book Strategic Management: A Stakeholder Approach, by referring

those groups should do, it's to create a disciplined process for identifying stakeholders inside and outside the organization.

to those who can affect or are affected by the activities of a company” (Expoknews, 2010). A dictionary definition concerning to this term is: "A person, group or organization that has interest or concern in an organization" (BusinessDictionary, 2015). The official translation of ISO 26000 is: “Individuo o grupo que tiene interés en cualquier decisión o actividad de la organización” (Guioteca, 2014). Image

taken

from:

http://intraemprendiendo.com/wp-

content/uploads/2015/03/personasoprocesos.gif

In the past, stakeholders were involved in a very superficial way, through meetings, newsletters, among others. Now, the importance that they have within the organization is recognized, so these are already taken into account in decision-making and the development of new projects. Image

taken

http://ec.europa.eu/enterprise/policies/sustainable-

from:

The supply management programs are responsible

business/media/photos/corporate-social-responsibility_multi-

for identifying key stakeholders for the organization.

stakeholder-forum.jpg

Communicators must segment the stakeholders 3


appropriately according to the needs of the project

These programs should consider that internal

that will be performed, wondering: Who their

customers and external customers are fundamental

stakeholders are? What they care about? The

for the development of any project. Communicators

relation with the strategy that the communicators

should encourage stakeholders to participate in

want to launch, among many more.

these programs through stakeholder engagement, which is to win the support of them, because their support is crucial to make the project a success. The stakeholders get involved in the projects differently, when these are already identified, communicators have to prioritize them according to the degree of influence that they have on the program outcomes and their attitudes toward the program, whether negative or positive. Also, it is important to identify which stakeholders are useful for the project, so, what communicators have to do, it's try to build the support of the stakeholders.

Image

taken

from:

https://administracionestrategicaunivia.files.wordp ress.com/2014/02/shutterstock_132892523.jpg Many of these programs or groups have certain weaknesses, because they believe that they already know customer needs, not knowing that those needs are changing daily. Each stakeholder is different, each one knows something and each one has different perspectives, so, for that reason it is

Image

taken

from:

http://battleofconcepts.com.br/blog/wp-

content/uploads/2013/07/2-blog.png

very necessary to segment and know them, inasmuch as each one of them knows their own

But, How to build their support?

needs and their own interests, and also not all the

• Stakeholders should be aware of the existence of

perspectives or knowledge would apply for a single

the program and its purpose, they must be involved

project. 4


in the whole process, and they must know the

Image

taken

from:

http://www.noticias-de-

seguros.com/http://www.noticias-de-seguros.com/wp-

benefits that this program has.

content/uploads/2015/03/confianza.jpg

• Stakeholders must be understood, they have to be

We must also know each one of the stakeholder that

aware of why they want or why they are interested

are involved in the project, and the best way to

in the project.

make this happen is talking directly with them, so

• Stakeholders must feel involved, they have to be

you will know firsthand what are their interests,

sure that their opinions are valued; also they must

what are they expecting with the project, why are

understand the importance of the project that is

they interested on that, among many other things.

being performed.

Whoever who manages the project, must be able to communicate to the stakeholders what's happening

• They must receive the necessary attention according to how they were prioritized at the

with the project, so, like that, stakeholders will feel that they really are being part of the project.

beginning, because some of them need more "If an organization is part of the group of the

engagement than others.

stakeholders, what should be done is to find a leader • If they participate in any survey or any activity in which

they

must

provide

their

opinions,

communicators have to make them know that what they say it's very important and it's a fundamental

who represents that company, someone with which the project leader can communicate and stay abreast of what is being performed"

(Sharma,

2008).

part of the project. • Communicators must communicate through different channels what's what they want to achieve with the project, this will create more confidence and knowledge in the stakeholders. (Sharma, 2008).

Image taken from: http://www.elfinancierocr.com/gerencia/exitoconstruir-positivo-actos-logros_ELFIMA20140528_0011_1.jpg

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With this, I realized of the importance of segmenting and knowing each one of the stakeholders, because

References: BusinessDictionary. (07 de April de 2015). BusinessDictionary Obtenido

de

BusinessDictionary:

to carry out programs or projects as the mentioned

http://www.businessdictionary.com/definition/stakeholder.html

in the reading, I see that not only it is necessary to

Expoknews. (01 de Enero de 2010). Expoknews. Obtenido de

take into account all the stakeholders, but it is

Expoknews:

http://www.expoknews.com/la-importancia-de-la-

gestion-de-stakeholders/

necessary to know who are interested in our project,

Guioteca. (23 de January de 2014). Guioteca. Obtenido de Guioteca:

who may block it or who can help positively on it.

http://www.guioteca.com/rse/que-son-los-stakeholders-y-por-que-

Also, when the stakeholders are segmented, we can

son-importantes/ Sharma, R. (October de 2008). Supply Cahin, Management Review.

know what they are looking for, how they can

The 6 principles of stakeholder engagement. Washington DC: Reed

contribute to the project, and with them, we can

Elsevie, Inc.

find more ways to make our project succeed.

Natalia Isabel Rodr铆guez L贸pez Organizational Communication I Modern Languages student, 4th semester EAN University

Image

taken

from:

http://www.managementjournal.net/media/k2/items/cache/e70803 9e01de95e712f809849cd2cc0b_XL.jpg

Likewise, I see that not only is necessary to have a record or a database of what are the key stakeholders, but also we must know each one of them, because if we want our project to succeed, we must engage the stakeholders and communicate them everything that we are doing for the triumphant construction of this.

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negatively by the outcome and impact of an action, project or program. (Bourne, 2009)

Communicating effectively is the only way for building a strong stakeholder relationship

You have to know and classify their needs, expectations, thoughts and behaviors. These aspects must be considered as a necessary part of any organizational project or program. When you are going to implement an organizational change, you have to take into account audiences and their perception. They must be related with the development of strategies, you cannot forget them.

Angie Vanessa Palacios*

Because in their hands is your success or failure. Who is related to this mission?

Taken from: http://cdn.projectsmart.co.uk/img/boston-consultingmatrix-for-stakeholder-

If you want to have a successful achievement of each activity you will inexorably require other organizations, groups or individuals to contribute to

Image taken from: https://simakproject.files.wordpress.

realization of the agreed outcomes. Each initiative you are trying to launch must be related to engaging stakeholders. You have to take into account stakeholders, they may be impacted positively or 7


Communicators are the ones who will create the

research.

bond with stakeholders. They will build loyalty to stakeholders. They must know each stakeholder in order to segment them. It is important to take into account the specific characteristics that they have. Why do stakeholders matter to the work that communicators deliver? One of the functions of communicators is to reduce any risks that could create news crisis. For this reason, it is important for communicators to identify and classify stakeholders; understanding their expectations; monitoring

managing the

those

effectiveness

expectations; of

stakeholder

engagement activities and making a continuous

Taken from: http://sustainet.com/wp-content/uploads/stakeholdermanagement-umbrella-600p.png

review of the stakeholder community.

They must take into account that each segment is They are also focused in maintaining the relation between the organization and its stakeholders, it has to be the best. For this reason, they will be in charge of managing relationships with stakeholders using directed communication through different channels. All the messages used in the stakeholder communication process, must be

different. In this way they will communicate the information in an effective way. Also, they have to stablish the segment that will receive the message, in order to use the best channel for disseminating it. Messages have to be structured according to segmentation.

structured

according to the stakeholder segmentation and The key for building a strong stakeholder relationship is‌. communicating effectively with all stakeholders. For this goal, they have to “identify the many disparate stakeholders involved and to understand the unique needs and interest of eachâ€?. (Boundless, 2014)

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Everyone is a different world, with different tastes, thoughts, ideals and perspectives. In such a way that they cannot be mixed, it is necessary to classify and treat them according to their needs, giving the right

Which are the benefits of identifying stakeholders?

place to each segment. Each stakeholder has specific characteristics, each one is good for something and has to develop a specific function. For this reason, we have to classify them, in that way they are going to work articulately and we are not affecting them in a negative way. Segmenting

and

knowing

stakeholders

are

important issues for communicators, because the perfect engagement of stakeholders is important for the right development of programs. It would also help to have the best results. Image

When an emergency, news or situation takes place,

taken

from:

http://www.protimplant.com.br/sinal%20positivo.png

communicators will choose who the affected people are and how they are going to give the right solution. For this reason it is important to segment stakeholders, establishing who they are, how they impact on the company, what they do, where we may need them and how we can have a good relation. In this way we are going to save time and

Firstly, you will reduce negative impacts on the company’s reputation. Because you are going to know which are the segments related to the organization. And who are the people affected by different decisions. You will have strategic allies for each situation.

the solution will be the best. Secondly, you will be more close to success. What is the meaning of success? Success is related to how well the organization manages its activities. How well the company knows and meets expectations of its stakeholders (the public, government, shareholders, customers, employees, 9


lobby groups or voters). According to these ideas, a company is successful if it segments and knows its stakeholders. Thirdly, each program that you implement will be effective, because it will be supported by your key stakeholders. Everybody will be concerned about it. Fourthly, you will engage stakeholders and achieve their support. In that way you will know the type of stakeholder, the relationship to the program and

Taken

their potential influence on program outcomes. You

http://www.gailterrygrimes.com/images/who_are_your_stakeholde

will be able to know who you will give more

from:

rs_large.jpg

relevance, according to the direct or indirect

References

relation that they have.

Boundless. “Relationship Building with Various Stakeholders.” Boundless Marketing. Boundless, 03 Jul. 2014. Retrieved 07 Apr. 2015 from https://www.boundless.com/marketing/textbooks/bou ndless-marketing-textbook/an-overview-of-marketing1/introduction-to-marketing-18/relationship-building-withvarious-stakeholders-111-3496/

Fifthly, positive impacts will appear. Such as a perfect

synchronization

and

cohesion

with

stakeholders, also company’s objectives will be entirely achieve. In

conclusion,

segmenting

and

knowing

stakeholders will generate many benefits for

Bourne, Lynda. Stakeholder Relationship Management: A Maturity Model for Organizational Implementation. Farnham, Surrey, GBR: Ashgate Publishing Ltd, 2009. ProQuest ebrary. Web. 7 April 2015. Sharma (2008) The 6 principles of Stakeholder Engagement. In: Supply Chain Management Review.

organization. It is a vital part of each strategy. It would create a good relation among people and also with the organization. There will be a good

*Angie Vanessa Palacios Gutiérrez

comprehension between them.

Organizational Communication I

Additionally, it

Modern Languages Student, 4th semester

will help communicators to

disseminate the information. To ensure that

Ean University

stakeholders are aware of the program existence and basic purposes. Communicators are in charge of awareness communications.

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customers and establish within one or more stakeholders. To reach this point, communicators

Know your stakeholders

must first take several steps which shall give the importance to each group of stakeholders and learn how to make a profit of control on each.

*AndrĂŠs Vivas

First, a company must know which stakeholders In a market that increases and changes every day, a world in which different companies compete for the control of stakeholders to position itself as a strong business group or just to establish a brand, a company must know the stakeholders. Various parameters must be set to continue in a process of growth or advancement, to involve the partners or stakeholders who are those who really give their identity and purpose to a company.

account and in which area has better reception and strength. After identifying their own stakeholders, prioritize them and fix attention to several groups including if any company is losing the advantage. It always better to a focus on a group of stakeholder. After

having

identified

and

prioritized

the

stakeholders, there is a step to understand the stakeholders is taken is not always a difficult task taking into the account their needs and the way it will impact within the company.

Image taken fromhttp://expertbusinessanalyst.com/stakeholderanalysis-and-management

Stakeholders largely are those who share the future of the company, either for purpose of improvement

IMAGE TAKEN FROM WWW.TUATUPR.COM

and growth or to decline as usually happens. To

Within each of the parameters to achieve well to

excel with a company and avoid problems that

understand the stakeholders must take into account

generate the loss of an enterprise, communicators

what their primary concern, what are their needs,

must always be aware of how to get to new 11


could we meet these needs, as we want to take

lead throughout the sector to which a company

place, that within these measures we have control

wants to focus his leadership.

on how this one impact the company and what is the way we will communicate effectively with them. *Andrés Vivas

Finally in the process, the company must organize a plan that allows to the stakeholders establish an effective communication. This can be achieved

Organizational Communication I Modern Languages Student, 4th semester Ean University

smoothly between each group of stakeholders and a company. Likewise to involve stakeholders in the company’s project, in an organized manner to have a sustainable support. All of these allows to take advantage in a group of interest and achieve correct positioning of the company way.

IMAGE TAKEN FROM HTTP://WWW.CHILICO.NL/INDEX_FILES/STAKEHOLDERS.JPG

To conclude, an enterprise must know that the stakeholders are part of company’s daily life and constitute the majority of its development, introducing and providing each company a plan to 12


Why should communicators know and segment their stakeholders? *Jenniffer Astrid MartĂ­nez

Image taken from: https://goo.gl/cfHk1V

As we know, an enterprise goes well when all the components work symmetrically. For example, in the communication field the role leaders have to think about the message structuring and the receptors cautiously to communicate what they want. If everybody receives the message as the communicator wanted the work was perfectly done. But to achieve it, he has to follow an arduous and careful process. Image taken from: https://goo.gl/AqrQkY

To develop this topic properly, first we are going to define what a stakeholder is. A stakeholder is a person or group of persons having a stake or share in something, predominantly, in the past, a financial stake or share. Image taken from: https://goo.gl/HnsLD9

As a first step, communicators have to know their In the field of project management a stakeholder is an individual and/or organisation having an interest in the success of a project. So that is why in the business world this concept is taking great strength and is a very important factor in the company

stakeholders. The key idea here is to develop a comprehensive

understanding

of

who

your

stakeholders are, what they care about, and how the relate to the initiative you're trying to launch. To identify the different stakeholder we have different

performance and production. 13


tools and techniques.

For example, use past

to analyze the message cause/effect and if the

stakeholder information consisting in referring to

receptors will receive the right idea. If we cannot use

previous similar projects can save time and flag up

one message different for each stakeholder the best

stakeholders risks, liabilities, or unresolved issues

solution is to write a general message and spread it

that can then be included in the analysis. Also to

by conventional channels.

identify those groups or organizations that are not directly impacted by the project but whose interests determine them as stakeholders.

Image taken from: https://goo.gl/A5d0jE

This chart shows a hypothetic stakeholder analysis. As we look all the stakeholders have different likes so that is why the identification and the satisfaction Image taken from: https://goo.gl/oUMgTm

of

stakeholder’s

communicative

needs

are

significant. It is essential for communicators to know Having conducted a stakeholder analysis exercise,

their stakeholders. What information do they want

we will have most of the information we need to

from us? What motivates those most of all? Equally

plan how to include our stakeholders. The next

the most important, know their behavior and

stage is to plan these communications so that we

structure the message depending on different

can win them around to support the project.

cultural, social, economic and political factors. To

Stakeholder communications planning is the

use the proper channel based on the stakeholders

process by which we do this.

preferences and to use of the different media.

As a second step we can take the message structuring. The message has to be structured depending on the stakeholder that is targeted. The words, the channels by which the message will be disseminated, and the tools are essential. We have 14


Image taken from: https://goo.gl/EdMwO1

As a communicator we should not, we must know, segment

and

identify

the

stakeholders

to

communicate the message in an appropriate and successful way.

References 

Sharma (2008) The 6 principles of Stakeholder Engagement. In: Supply Chain Management Review.

Ritchie,

M

(2008).

Project

Stakeholder

Engagement.

*Jennifer A. Martínez Organizational Communication I Modern Languages Student, 5th semester Ean University

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An organizational communicator is the one who is able of motivate

According to the article "Strategies to Motivate Your Staff" published in 2012, it is necessary to create a fluent

organizational

stakeholders

and break down the boundaries

could

environment, make

in

suggestions

which and

participate at important decisions.

Giovanna Forero Orjuela*

The first action that communicators must take at developing strategies for a particular organizational plan is to know its stakeholders according to the relevance of each them within the organization, according to Raj Sharma stakeholders must be prioritize

depending

on

its

influence

and

participation during the program. It is so common to see how many projects fails due to a single stakeholder that could be negatively affected by the whole communication strategy.

Raj Sharma says that it is essential to create a "learning environment�, which means to provide recurrent training while using the best technologies, in order to employees could get familiar with all that goes around the company.

I believe that the most important stakeholders are employees and direct collaborators, because without them it would be impossible to carry out the company's objectives. Then, communicators must find the way of catch up the attention and interests of its entire personal, while avoiding rotation and retaining the best.

For

example,

an

enterprise

who

provides

outsourcing services should offer a different personalized coaching for each of its campaigns. Principally, focusing in the customer expectation and generating more possible alliances at the same time. So now, if your internal stakeholders are not involved, nobody would beat on your project.

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determinate and give them the exclusiveness choosing from a wide variety.

If we make a parallel between the different campaigns of major brands, you could realize that most of them are aimed to a household or to a particular member of the family. Then, it seeks to create the habit of buying not just as the product, but as the entire brand. It is known that mainly of company's objectives are planned outward , so implies that external stakeholders must be carefully identified and segmented as internals stakeholders as well .We are conscious that global market is not homogeneous and communicators are in charge of adapting the message pursuant each audience. “In the past, companies promoted their massively, companies were few and competition was relatively low, but

For example, Nestlé brand has been recognized at nutrition, health

and wellness industry: “A

commercial icon and brand which has impacted on at least seven generations of nationals (…) remembered by entire families, from the largest to the smallest.” (Manuel Andrés, presidente de Nestlé Colombia. Áymer Álvarez, El País)

today’s competition is more acute, so the number of firms grows exponentially and consumers are more demanding.”(Carlos López, 2010).

We can see a variety of choices that Nestlé offers to each public (Housewives, elderly, youth children), and how it uses the accurate communication

It should be noted, that shareholders take an essential role in the organization too, and they represent a big part of incomes; so then, all these earnings would be invested in training, technology, advertising, infrastructure, among others. There are

channels

(TV,

social

networks

,contests,

endorsement ) and campaigns specially designed for each one of them. “Take advantage of its resources to focus to really potential segments for the company.”(Stanton Walker and Etzel)

many Ideas that can be seen as a potential product by investors, but to carry them out it is necessary to 17


communicational model able to grab different niches through segmentation and fidelity in the public as in the personal staff. Then the company will take significant advantage over its competitors due to the ability of handling and motivating its entire environment.

Bibliography: Sharma, R. The Six Principles of Stakeholder Engagement. Supply Chain Management Review (2008) (October

To display a more concrete example, we can draw a parallel

between

different

breakfast

cereals

products offered by NestlĂŠ as which are aimed at children (sugared, colorful and promoting fun

http://www.exeedu.com/publishing.cl/strategy_m anag_bus_rev/2011/Vol2/4-SM06-11-full.pdf http://promocionsalud.ucaldas.edu.co/downloads/ Revista%207_4.pdf

networks) and which are aimed to adults (whole

http://www.elpais.com.co/elpais/economia/noticia s/presidente-nestle-colombia-le-apostamosinnovacion-y-infraestructura

grain, promoting fitness lifestyle).

http://www.soyentrepreneur.com

through TV advertising and games at social

To conclude, I would like to reinforce the fact that each stakeholder becomes part of the organization.

*Giovanna Forero Orjuela

By consequent, communicators must be able to

Organizational Communication I

maintain and disseminate the company’s values while achieve an outstanding performance and recognition outwardly.

Modern Languages Student, 5th semester Ean University

Nowadays, we can see that is not enough to creating a quality product but also it is necessary to create a

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