Tag Archives: The Influence Agenda

What is Stakeholder Engagement?

When I first learned about project management formally, my colleagues impressed upon me the need to ‘manage your stakeholders’. That is, to manage their perceptions, to manage their opinions, and to manage their impact on your project. Stakeholders, I was told, are the key to project success… or failure.

If, by the way, you are not familiar with the term ‘stakeholder’, don’t worry – it just means anyone who has any interest in your project at all. I looked at the origin of this word in my previous posting.

Manage stakeholders badly and, no matter how well you manage other aspects of your project; it will fail. Because it is your stakeholders who get to judge.

Stakeholder Management

So stakeholder management has becoming a more and more important component of project management and project management training for many years. For the last fifteen years, it has been one of the parts of my project and change management training programmes and seminars that has resonated most strongly with participants and audiences.

But there is a change in the air. Increasingly, people are referring not to ‘stakeholder management’, but to ‘Stakeholder Engagement’.

Stakeholder Engagement

This is a change that I welcome and I will capitalize the term too, for reasons I will come back to in a moment. For me, engagement is simply a lot more respectful than the idea of trying to manage your stakeholders. So when I started work on my latest book, ‘The Influence Agenda’ which is about a systematic approach to engaging with stakeholders, I took the decision to use the term Stakeholder Engagement exclusively.  And from this month – in which the book is published in the UK and the US, I am changing all of my training and seminar materials accordingly.

I do, by the way, use the term ‘stakeholder engagement management’. By this, I mean management of the process of engaging with stakeholders… respectfully and positively.

So, why the capitals?

I have capitalized Stakeholder Engagement because I think it is time to recognize this as a formal discipline in its own right. Project Management (and its cousins Programme Management, Change Management, and Portfolio Management) is well established – indeed project and programme management together have their own professional bodies in many countries. Risk Management is not only a distinct area f professional skill, it is a distinct specialty of project management. Now I would like to see Stakeholder Engagement acquire the same status.


The Influence Agenda: A Systematic Approach to Aligning Stakeholders in Times of Change is published by Palgrave Macmillan next week, on 22 April 2014. It is available from all good booksellers, including Amazon UK and Amazon.com.

You can learn more about the book and its contents, read extracts, scan the full contents list, and download resources at: theinfluenceagenda.co.uk.

The Influence Agenda by Mike Clayton

The Origin of Stakeholders

A stakeholder is anyone who has any interest in what you are doing, with the word ‘anyone’ inviting us to draw our net as widely as possible.  And any interest means that they can be interested in what you are doing, how you are doing it, or in its outcome.

Some of you will prefer an alternative definition, which is equally wide, and equally true, a stakeholder is:

‘anyone who can ruin your day’

This word stakeholder has, in the author’s professional life, moved from being a jargon-word that has been little understood outside narrow areas of business to becoming a commonplace. So where does it come from?

The Influence Agenda

Preparing for my new book*, I researched this extensively, resulting in a thousand word essay at the start of the book.  I summarized my research with a simple diagram. Sadly, I couldn’t put a colour version in the book, so happily, I can share it with you here.

The Evolution of Stakeholder Engagement

From Left to Right

  1. Early 18th Century
    Stakeholding exclusively part of gambling culture
  2. Late 19th  Century
    Primacy of the shareholder
  3. 1940s
    Managers as trustees, balancing multiple communities
  4. Early 1960s
    ‘Stakeholder’ identified as a concept
  5. Late 1960s
    Ansoff incorporates stakeholding into corporate strategy
  6. Early 1980s
    Freeman writes ‘Strategic Management: A Stakeholder Approach
  7. Mid 1990s
    Tony Blair describes a Stakeholder Economy
  8. 2010s
    Stakeholder Engagement starts to emerge as a managerial and professional discipline

Orgin of Stakeholders PosterDownload The Origin of Stakeholders poster.

 

The drawing starts with the first appearance of the word, recorded by The Oxford English Dictionary as being in 1708, and meaning the holder of a wager.  A stake is ‘that which is placed at hazard’ although OED is uncertain where that usage of stake comes from.

The OED, incorrectly, I now believe, credits the first use of stakeholder in the business sense that interests us, to Igor Ansoff in 1965.  I attribute it, two years earlier, to the Stanford Research Institute, as a play on the words shareholder and stockholder. The word gained most of its power in the mid 1990’s when British Prime Minister Tony Blair described the UK as a ‘Stakeholder Economy.’

I have written before (in The Origins of Project Management) about the wonderful tool that is the Google Ngram Viewer.  Here are some annotated print-outs that did not find a home in the book, but which make interesting references and helped to inform my essay.

For those not familiar with Ngrams, they plot the frequency of your chosen word from a vast selection of published books that Google has scanned and rendered into searchable text. You can have hours of fun choosing words, sources and time windows, to research the rise and fall in popularity of your favourite words or ideas.

Ngrams - Stkeholder Mgt & EngtNgram - Stakeholder economy Ngrams - Stakeholder* The Influence Agenda: A Systematic Approach to Aligning Stakeholders in Times of Change is published by Palgrave Macmillan next week, on 22 April 2014. It is available from all good booksellers, including Amazon UK and Amazon.com.

You can learn more about the book and its contents, read extracts, scan the full contents list, and download resources at: theinfluenceagenda.co.uk.

The Influence Agenda by Mike Clayton