For your business to prosper you need effective engagement with your stakeholders. This includes your customers, employees, suppliers, business owners and the community. But the engagement deficit that many companies experience, compromises not just prosperity, but survival.
Consider one set of stakeholders – your employees. If your company is like most others, your employees aren’t fully engaged. And if they are not engaged they won’t be investing the discretionary energy that distinguishes your company from your competitors. Imagine that they are working at 60% of their capability – this means that you are paying them for five days and getting three days work. And that’s just your employees. There are costs accrued from engagement deficits with other stakeholders.
Establishing engagement skills as a core competency for your organisation will reduce the engagement deficit and lay foundations for greater productivity and prosperity.
Stakeholder engagement pays. Recent research from Wharton Business School reveals how effective stakeholder engagement in the mining industry significantly enhances the profitability of mining projects by reducing lead-time for production. Over time better engagement with internal and external stakeholders will generate efficiencies in your internal processes, your value chain and enhanced communication with customers.
Effective stakeholder engagement requires capacity building in leadership, organisational learning, communication and change (adaptive capacity). Building capacity for stakeholder engagement supports your organisation’s development generally. For example, improving communication and learning processes opens opportunities for innovation. As your staff better understand their engagement roles, opportunities for informal leadership emerge.
Stakeholder engagement enhances reputation. Organisations sometimes take for granted their license to operate. By becoming more relevant and more engaged with local communities, those communities, and your suppliers are more likely to support you in tough times. Enlightened organisations seek to enhance their reputation through enduring engagement rather than shorter-term public relations campaigns. Relevant organisations are more sustainable.
Stakeholder engagement is the leading edge of sustainability. You will want your organisation to prosper. Enlightened organisations also want to contribute to sustaining our communities and the planet. Whether your motives are to contribute, or to discover the competitive advantage that sustainability offers, stakeholder engagement is at the leading edge of sustainability. By engaging, you will find out more about the aspirations of your stakeholders and how you can work with them to create a better world.
Stakeholder engagement services
You already engage with stakeholders in the normal course of business. Systematising your engagement processes will position your company to better understand your stakeholders and learn from them. You can expect multiple benefits, including better project execution, enhanced reputation and greater internal capacity for learning, leadership, communication and change.
The process outline below is designed to test embed enhanced stakeholder engagement processes.
Contact us if you want to improve your stakeholder engagement processes.