Drive stakeholder engagement

- For much of the 20th century, it was standard practice for most companies to have limited engagement with customers, suppliers, and employees, local communities, investors, and others. These stakeholders were rarely consulted and often ignored as companies went about managing their business. These days, companies find themselves dealing with a much different business reality. Investor, consumer, and community demands for transparency combined with uncertain markets and a regulatory landscape that is ever-changing all now influence how companies operate and thrive. In today's 24/7, always-on, wired world, the media is everywhere and everyone. Trust is hard-earned, and a company's reputation is in the hands of its stakeholders. What does this mean for your business? Stakeholder engagement is no longer optional. It's essential. Rather than circle the wagons or regress into the proverbial corporate fortress, modern companies are looking for ways to make stakeholder engagement an idea-generating, innovative, collaborative exercise that builds trust in the brand and ensures a company's license to operate. Modern stakeholder engagement is typically focused on the following areas. Risk management, you have an issue you need to address. Corporate social responsibility, you want to build relationships up front before they're most needed and avoid issues from emerging. Uncovering or validating customer needs, discovering what customers really expect, want, or need. Driving innovation by seeking new voices and opportunities, what new ideas can we source from previously ignored or underutilized stakeholders? Regardless of your issue or intent, a company needs to define whether the stakeholder engagement is consultative, the final decision on how to move on lies with the company, or cooperative where the company is prepared to take joint action. An issue can often start with a consultation and then become a cooperative project. What key steps should you take as you begin to engage with stakeholders? Choose carefully. A stakeholder engagement needs to be targeted and well-managed. What specific question, need, or issue do you want to resolve, and what stakeholders are best placed to help? Make sure your company has an internal champion who aligns the feedback and interests of your key stakeholders with internal decision makers. Engage even your most vocal stakeholders, in this case, including critics, to try and find common ground. Ignoring them can have real impact on consumer and media perceptions and ultimately sales, positively or negatively. Focus on developing relationships with these adverse stakeholders as well as those that support your work. It's much better to enter into a dialogue with those opposed to you as early as possible even if you disagree rather than wait until the issue is red hot. And whatever you do, don't try to ignore or undermine their credibility. Engage stakeholders early. Understanding their perspectives and issues up front can help shape a better strategy over time. Social media is an increasingly important way to engage with stakeholders in real time. If you're not on social media, you're not able to tell your side of the story. Be open and authentic in your use of social media. Stakeholders will trust you more and be more forgiving of your mistakes. Ultimately, stakeholder engagement is about embracing opportunities and managing risks. In today's business environment, engaging with stakeholders on their terms conveniently, transparently, authentically, and more frequently is no longer optional. It's expected.