In business it pays to know each of the various key players or stakeholders. By stakeholders I mean people who can affect or be affected by the business. Going by these definitions then such could be customers, managers, suppliers, distributors, unions, government etc. The point is we need to know more about such persons especially in terms of their power and interest in the organization. Power is the ability to influence or as Johnson and Whittington puts it, the ability of individuals or groups to persuade, induce or coerce others into following certain course of action.
|Published (Last):||14 October 2013|
|PDF File Size:||6.73 Mb|
|ePub File Size:||18.14 Mb|
|Price:||Free* [*Free Regsitration Required]|
The objectives of an organisation will be governed by its key stakeholders. These key stakeholders be determined using stakeholder mapping. Mendelow's matrix is a popular method for performing stakeholder mapping. Stakeholder mapping can help deal with stakeholders' conflicting demands. It identifies stakeholder expectations and power and helps in establishing political priorities. The process involves making decisions on the following two issues.
Their lack of interest and power makes them open to influence. They are more likely than others to accept what they are told and follow instructions. These stakeholders are interested in the strategy but lack the power to do anything.
Management needs to convince opponents to the strategy that the plans are justified; otherwise they will try to gain power by joining with parties in boxes C and D. The key here is to keep these stakeholders satisfied to avoid them gaining interest and moving to box D. This could involve reassuring them of the outcomes of the strategy well in advance.
These stakeholders are the major drivers of change and could stop management plans if not satisfied. Management, therefore, needs to communicate plans to them and then discuss implementation issues. The 'level of interest' can usefully be described as how likely it is that a stakeholder will take some sort of action to exercise his or her power. Not all stakeholders have the time or inclination to follow management's decisions closely.
Again some generalisations are possible about what will lead to interest, e. Resignation, withdrawing labour, cancelling orders, refusing to sell, calling in an overdraft, dismissing directors, legal action, granting contracts, setting remuneration. Mendelows matrix. Your Feedback We value your feedback on the topics or anything else you have found on our site, so we can make it even better. Give Feedback. Related Free Resources Kaplan Blog.
Recent Discussions. There are no items to show in this view.
Success with your startup has a lot to do with your ability to manage relationships with stakeholders. The Mendelow Matrix is an important tool for the aspiring entrepreneur. Stakeholders include anyone who might have an interest in or influence on your business. Stakeholder mapping provides a useful project management tool for understanding these relationships. The aim is to make the best possible use of them to further our business aims. As you enter the world of business the actions you take affect different kinds of people. These people can can influence your business too.
What Is Mendelow’s Matrix And How Is It Useful?
A stakeholder is anyone, as an individual or a collective such as organisation that has an interest or is concerned with the actions of a business to the extent they are affected by or they can influence it. A business is likely to have numerous stakeholders including directors, shareholders, employees, customers, creditors, the government and the community in which it sits. A business will frequently find that different stakeholders have different priorities, this often leads to conflict. For example, an employee would like to be paid more. A business will therefore need to find a way to balance the conflicting priorities of its stakeholders. If a stakeholder has a financial interest this will increase the level of interest, are they an investor who may consider their investment to be at risk or possibly an employee, their employment is their livelihood so would not want to risk that. As an example; employee may be averse to an organisation investing in new technology to increase automation thus placing jobs at risk.