The Case For Effective
Stakeholder Engagement
Managing Expectations
Let’s face it. Bad things happen to good companies. Of course, good things happen too. The outcome, bad or good, is often dependent on how the news fits with the expectations of those who have an interest in the company. And the expectations can be quite different. For example. Investors may interpret a layoff as a move to improve competitiveness while the same announcement may prompt questions about the future of the company on the part of employees and the community.
What's Changed
If business doesn’t “get it” it is most often because corporate executives don’t understand that they are operating in a very connected world and their decisions are under more scrutiny than ever before.
What’s changed is that it is no longer possible to operate under the radar of public approval. Highly publicized corporate misbehavior has brought about concern that companies are not committed to their values which, in turn, brings up questions about trust, accountability and transparency.
Doing The “Right Thing”
Companies who do not engage employees, investors, customers and their community will encounter frustrating delays in accomplishing their business goals, diminishing their competitiveness.
If asked, most company executives would say they always try to do the “right thing” when it comes to corporate behavior. Understanding and acceptance of the “right thing” on the part of all stakeholders makes the difference. The basis of the conversation is open and transparent discussion about who you are, what you do and how you do it.
Relationships Of Trust
If business success can be defined as meeting the expectations of employees, customers, investors and community/society then it is clear that relationships built on trust will be the engine that will drive performance. A business goal is likely to be accomplished quickly and cost-effectively when relationships of trust are in place that encourage dialogue. The net result is a consensus building process that aligns expectations between the company and its stakeholders.
A Difficult Environment
The importance of this principle becomes clearer when the difficult environment in which most businesses operate is considered.
- Layoffs occur
- An accident happens
- A permit is needed
- A consolidation is required
- It is more cost-effective to use an out-of-state supplier
- Proposed legislation will add to your cost of doing business
- Employees are reluctant to volunteer
- There is widespread concern about the future of your business
- There is little appreciation for your support of community nonprofits
At times, these scenarios and others like them, converge, which brings up two critical questions:
- What strategies and processes does your company have in place to manage through conflict in a timely and cost effective manner?
- How well are they performing?
About CFPA Strategies
Focus of the Center
The Center For Public Affairs Strategies mentors business in meeting their citizenship obligations through effective stakeholder engagement practices. A primary competency is to guide business in building relationships of trust that provide competitive advantage.
Business Model
The Center works primarily with expert partners in meeting the public affairs needs of their clients.
Mentoring Process
While every client situation is different, this flexible, eight-step mentoring process is generally used:
1. Definition of problem areas to be addressed
- Past performance issues
- Current performance issues
2. Identify business goal(s) to be supported
3. Define current perception of the company by stakeholder group
- Opinion survey may be required
- Identify perception issues
- Alignment/misalignment of expectations
4. Audit of current public affairs practices
- Competencies in place
- Gaps in competencies
5. Consensus on direction and ideas for improvement
6. Agreement on a strategy to manage improvement
7. Oversight of strategy implementation
8. Measure results
