Example here could include governmental agencies and regulatory bodies, large suppliers, or even senior management from other departments. This group is important because if dissatisfied or gets concerned their interest level may arouse. Here you find stakeholders with high power, basically high ability to influence what the organization is up to, but currently have low interest in the organization. The recommended strategy is to keep these stakeholders informed of plans and outcomes through communication and stakeholders marketing. Some of your workers could be in this category or imagine running a hospital and having volunteer groups, these groups provides services that are “nice to have” but is not necessarily essential so the volunteers have high interest but less power. They are important because if these are not kept on the-know about decisions they may seek additional power and influence the running of the organization. These stakeholders have high level of interest in your organization but lower power. What you want to do here is ensure that you do not waste resources taking these stakeholders goals or potential responses into account. The decisions relating to these stakeholders have a low impact. An example here could be the suppliers with whom the organization only does a small volume of business. The stakeholders in this group are the type that are not interested in the organization and do not have much power either. This is what to expect from each segment: This matrix works in a simple way, you draw a two by two matrix that enables you to classify your stakeholders into relevant quadrants which best describes them by their power and interest level. Interests, looking at it from the mendelow’s matrix, means the likelihood that stakeholders will use that power, basically the strength of their motivation to do so, so based on the strength of their interest in a given issue or decision. Knowing the extent to which your stakeholders can influence your business is one thing, knowing if when and why they are likely to do it is another thing, which means analyzing your stakeholders in a more sophisticated way. Government policies could affect your business etc. In case of your stakeholders this means their ability to influence the organization or, looking at it from a purchasing and supplies point of view, their ability to influence procurement activitiesĬustomers could stop buying your products, suppliers could stop to supplying although the question of the effect would depend on how big the suppliers are.
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.