In: Accounting
Question A non-governmental organization intends to carry out a programme which will involve distribution of clean water, soap, sanitizers, face mask and food to across all informal settlements in Nairobi County during this coronavirus pandemic period. In view of this, conduct and a comprehensive stakeholder analysis (identifying only FIVE key stakeholders) the NGO will need to engage before commencing the programme.
The NGO will need to engage the following five key stakeholders before commencing the programme:-
Suppose you’re meeting with a group of managers and staff members to determine who your key stakeholders are. (It’s an important task, because with limited resources, your organization or unit can’t do everything for everyone.) People will submit their ideas, and in no time at all you’ll have a large list — and potentially a nightmare. If you don’t focus on the relationships that matter most, management and staff will be running in all directions, not meeting anyone’s needs very well.
So how do you produce a shorter, more coherent list? Answer the following questions about each contender you’ve identified in your brainstorming session. They’ll help you direct your organization’s energy and resources to the right relationships and activities. The questions and examples are drawn from my years of experience working with a large variety of organizations and management teams.
1. Does the stakeholder have a fundamental impact on your organization’s performance? (Required response: yes.)
Example: A manufacturer of trusses and frames for houses decided, on reflection, that a local council wasn’t a key stakeholder. Though the council set regulations that the company had to follow, those rules didn’t have much of an effect on sales or profits the way, for instance, customers did.
2. Can you clearly identify what you want from the stakeholder? (Required response: yes.)
Example: Members of a law firm’s strategic-planning team knew they wanted revenue from clients, productivity and innovation from employees, and continued funding from partners — yet they couldn’t specify what they wanted from the community, so that relationship wasn’t deemed key.
3. Is the relationship dynamic — that is, do you want it to grow? (Required response: yes.)
Example: A company that ran 17 retirement villages had a dynamic, strategic relationship with current and potential residents. It wanted increased occupancy and more fees for services used. The company’s relationship with a university, by contrast, was static and operationally focused. It involved a fixed amount of research funding and co-branding each year. That’s all that was needed. Though the co-branding generated broader awareness and may have indirectly yielded more residents and revenue, the university itself didn’t achieve key stakeholder status.
4. Can you exist without or easily replace the stakeholder? (Required response: no.)
Example: A professional services firm in HR that had taken out a loan initially listed the bank as a stakeholder. But ultimately, that relationship didn’t qualify as key, because the loan could be easily refinanced with another source.
5. Has the stakeholder already been identified through another relationship? (Required response: no.)
Example: A government department involved in planning and infrastructure listed both employees and unions as key stakeholders. But this amounted to double counting: The unions represented employees’ interests, and the organization’s primary relationship was with its employees.
After you’ve applied the above criteria, your list will certainly be shorter, but it may still feel a bit unwieldy. If that’s the case, see if you can combine categories.