Key Stakeholders' Expectations on Costs and Returns are not Matching

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Key Stakeholders' Expectations on Costs and Returns are not Matching
Nguyen Anh Tuan, Management Consultant, Viet Nam

How can organizations handle the situation where some key stakeholders expect high returns (owners, shareholders, investors, managers) while some other important stakeholders' expectation will increase costs (employees require high salaries, suppliers require high price, government requires high tax)?

Stakeholder Analysis
Gilbert Mlongoti Sinjani, Manager, Zambia
I see this in the eyes of corporate sustainability
Every firm's stakeholder has their view on an organisation. What is in it for me syndrome.
I would suggest the following steps:-
- A thorough stakeholder analysis - that is situation specific - is done in which primary, secondary and tertiary stakeholders are rated (the MAW approach).
- The outcome from this analysis will give you insight into how to handle the various stakeholders in the underlying scenarios.
- Also, consider the firm's corporate governance structure. How solid is it? Invariably this drives the way firms think and operate and how, particularly, the primary stakeholders (shareholders) influence the firm's operations. If this is found wanting, it has to be addressed. It will be in the interest of these stakeholders to reconsider their ways for the sake of their firm.
It is all about, after all, corporate sustainability.

Reconciling Contradicting Stakeholder Expectations
Jaap de Jonge, Editor, Netherlands
Is it possible to create cars that are fast AND safe AND ecomomic? At first glance you would be tempted to think: no. But keep thinking and you'll realize that this is exactly what happened in the last decennia: cars got faster AND cheaper AND they use less petrol.
What does this example mean: well, that it's not easy to be a strategist because you are dealing with complex dillemas and conflicting interests. However very often seemingly contradicting interests can be reconciled after all. For more information see Dialectical Inquiry.

Conflicting Interests Can Be Managed
Alfa Sefland, CEO, Norway
This is a very good question! And it is possible to at least show that you have taken all affected parties into consideration by analyzing your stakeholders.
It will never be possible to make all stakeholders 100% happy in a given project or issue, but at least you will have a clearer picture of where the most advantageous solution could be found. And also, how you can meet the groups that are negatively affected.
And to Jaap: everyone thought fast + safe + economic cars were not possible. Then Tesla came! Now, electric cars are even fun :).

Combining Seemingly Impossible Demands
Jaap de Jonge, Editor, Netherlands
@Alfa Sefland: exactly. The unbelievable conincidence is that a friend of mine owns a Tesla since recently, and last week I was allowed to testdrive it :-).
Indeed: economical + safe + fast + fun + environmental friendly.
It is possible after all. Amazing.


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