Stakeholders
2.3 Organisation LayersOrganisations live and die at the hands of their stakeholders
What are stakeholders?
Definition
An individual or group that affects or is affected by the organisations operations
Purpose
The combined stakeholder context defines the opportunity for an organisation to operate and thrive
The interface between the organisation and the “real world”
The stakeholders of an organisation acts as the interface between the “outside world”. This is symbolised in the CUBE® as the Stakeholders acting as the all-encompassing shell that separates the outside and the inside of the organisation.
The right for an organisation to exist is determined by its stakeholders.
The organisation needs to be attractive enough so that stakeholders are engaged enough to provide funds for the organisation to operate, such as investments by shareholders or the purchase of services and products by customers.
Other stakeholders do not provide funds but determines the frames in which the organisation is able to. Their needs have to be satisfied to avoid limitations or prohibitions of the organisation operation, such as governments setting laws for business operation or banks monitoring financial health when determining their willingness to provide loans.
The success of an organisation is to balance its resources and efforts just right so that the stakeholders providing funds continue to do so and preferably in higher volumes. And at the same time satisfy the stakeholders the frames for the operations to avoid fines or other negative impacts.
The combined stakeholder context provides opportunity
If we combine all stakeholders needs, strategies, operations and plans we get what we casually call the market. Or in other words, the market is the context in which an organisation’s all stakeholders act.
The current market context is what provides (or doesn’t provide) opportunities for an organisation to act to gain an advantage and progress. By systematically identifying, reviewing and monitoring all separate stakeholders interest. The organisation can ensure they are focusing their resources and actions on the right things. It also allows the ability to clearly connect specific efforts to specific stakeholder groups with the intention to fulfil their needs.
Next Step
Next, read more about the Ownership layer…