High performance stakeholder management: what is needed?

What is it about?

Stakeholder management is often primarily seen asmaintaining external relations. However, it also has specific consequences for the internal processes of an organization and the behavior of its people. The authors argue that an organization that is meeting the standards of the high-performance organization (HPO) is able to effectively maintain valuable relationships with its stakeholders. The authors discuss in this paper how high-performance stakeholder management can be achieved and applied to stakeholder relationships. Based on a discussion of the stakeholder management and the HPO framework concepts the authors show that good stakeholder management requires strong communication and dialogue within an organization, which in turn requires a strong internal organization, which the HPO framework can offer. This paper is written from the assumption that the two theories reinforce each other in their aims and methodologies. This argument is based on a case study. The authors illustrate the argument with the application of both concepts at a case company. The case study makes clear that an organization that develops stakeholder management will be wise to examine its own internal quality and strength, using the HPO framework. If the organization views the information that comes from stakeholder management as very valuable, then internal organizational consequences must follow.

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Why is it important?

The concepts of stakeholder management and HPO Framework have not been connected before, neither in a theoretical nor a practical way. This offers the opportunity for theorists to further deepen the connection between the two, and practitioners to benefit from strengthening their stakeholder management.