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Stakeholders: Take advantage of your full team to generate partnership success

Interdependence of stakeholders
Interdependence of stakeholdersBruce W. Burtch Incorporated

Part 17 from the Win-Win for the Greater Good series

Stakeholder Engagement

Wikipedia defines a stakeholder as: “Any person, group, organization, or system who affects or can be affected by an organization's actions.” Look around at all the people who are involved in your organization, both internally and externally: your employees, your customers, your shareholders, your vendors, your community, your business partners, government regulators, the media - these are your stakeholders and these are the people who really matter. These are the people you must protect, serve and value the most. When you focus your efforts on bringing value to all your stakeholders, you create the greatest beneficial impact for your organization. The converse is also true – if your stakeholders are not engaged, not valued, they have the potential to have a negative, and sometimes significant, impact on your organization.

The stakeholders for a nonprofit organization are very similar. Your shareholders are your donors, your customers are the people you serve, your business partners are your volunteers, etc.

As you see, there is an interrelationship, indeed interdependency, where all stakeholders are involved in a give-and-take relationship with the organization of which they are stakeholders. At first glance, it would seem that the relationships are primarily between the organization and the outer circle of their stakeholders. However, as this diagram reflects, the stakeholders themselves can have separate relationships between themselves, and thus impact and influence the entire organizational ecosystem.

When an employee believes that their organization has a particularly strong commitment to being a good citizen in their community, they will loudly and confidently communicate this belief. Consequently, the stakeholder and communication/effect cycle is potentially more interrelated. The ramifications can be significant, as any positive or negative influence a stakeholder has on other stakeholders can have a corresponding positive or negative influence on the organization itself.

The very good news is that when an organization is focused on the success of all stakeholders, all stakeholders are focused on the success of the organization. And when an organization is focused on not only benefiting all stakeholders, but additionally in serving the greater good through a well-designed and well-executed cross-sector partnership, your organization will begin to glow.

Your stakeholders will provide an honest critique because they have a vested interest in the success of your organization. They will provide creative input, business contacts, perhaps funding, and a myriad of other assets that will serve your cross-sector partnership endeavors and your organization well.

Please visit www.bruceburtch.com for more information about cross-sector partnerships and Win-Win for the Greater Good.