Scenario A You have been asked to lead a stakeholder group that has been formed to review the services and support given to customers. It is a challenging remit as there is a likelihood that services will need to be cut or changed.

Jamez

28 Mar 2025 • 3 min read

The Types And Value Of Stakeholder Relationships

Understanding the role and value of different types of stakeholders is essential if the stakeholder relationship is to be managed effectively. The word ‘stakeholder’ can infer a host of people connected to another in a business setting covering internal, external and connected relationships. There are many challenges that occur in managing the stakeholder relationship and sensitivity and understanding is required to address issues in a proactive and professional manner.

TASK 1

You are required to write a report entitled ‘The complexities of stakeholder relationships’. The report must include:

i. An analysis of THREE (3) types of stakeholder relationships which occur within organisations (AC1.1)

ii. An examination of the benefits and challenges for organisations engaging with each of the stakeholder groups identified above. (AC1.2)

Guidance for completion of Task 1

The report should include subheadings. You may choose to include tables and diagrams (as appropriate) to support your discussion.
Your discussion should be underpinned with relevant theoretical principles.
You are encouraged to consider the use of well-chosen examples from an organisation you know well or have researched.
For learners not currently in employment, there is the opportunity to base the response to the task on organisations which work extensively with stakeholders (ie charitable organisations, public sector bodies such as an NHS provider or educational provider).
For learners in work, there is the opportunity to consider the stakeholder relationships which occur in the delivery of a project or in the management of a department, in addition to the role of stakeholders within the organisation.

Scenario A

You have been asked to lead a stakeholder group that has been formed to review the services and support given to customers. It is a challenging remit as there is a likelihood that services will need to be cut or changed.

The group comprises of internal and external stakeholders. This includes two team leaders who are based off-site, a finance officer, an equalities officer, a representative from the senior management team and three customers. There is also representation from a national consumer group who attend to represent customer interests.

The review of services and support given to customers must be completed within a six month period. Qualitative and quantitative research will need to be undertaken to inform decision-making. Given the range of internal and external stakeholders, individual roles and responsibilities will need to be determined, governance of the group established and aims and objectives set.

Frameworks For Stakeholder Management

The success of stakeholder relationships is optimised by effective planning. This begins with a contractual framework for stakeholder engagement which clarifies the roles and responsibilities of different stakeholder groups to achieve aims and objectives within set parameters.

TASK 2

Basing your response on Scenario A, your own experience of managing stakeholder groups or the management of stakeholder groups in an organisation you know well or have researched:

Write a report entitled ‘Preparation for stakeholder engagement and management’. To complete the report you are required to:

Using examples examine TWO (2) contractual frameworks used for stakeholder engagement and management (AC2.1)
Specify the process you would use to plan stakeholder engagement (AC2.2)

Guidance for completion of Task 2

The report should include subheadings. You may choose to include tables and diagrams (as appropriate)
You are encouraged to consider the use of well-chosen examples from an organisation you know well or have researched.

Managing Stakeholder Relationships And Measuring Their Impact On Organisational Performance

Managing stakeholder relationships requires planning and insight. The approach needs to be tailored to meet the needs of the stakeholder groups. A manager must understand their role in facilitating and leading stakeholder relationships, the use of collaborative working techniques to enable delivery through others and methods for measuring the impact of stakeholder engagement on organisational performance.

TASK 3

Basing your response on Scenario A, your own experience of managing stakeholder groups or on an organisation you know well or have researched:

Write an account which uses examples to propose how stakeholder relationships should be managed.

The account must:

Analyse the role of the manager in managing stakeholder relationships (AC3.1)
Evaluate the use of collaborative working techniques which can be used to manage stakeholder relationships (AC3.2)
Examine methods for measuring the impact of stakeholder engagement on organisational performance (AC4.1)

Scenario B

You have been managing the stakeholder group for two months and there has been a commitment to a date by all members to fully engage in the process to review customer services.

Research commissioned to determine how and where changes to customer services could be made has been completed. To the surprise of the stakeholder group this has included some unexpected results which have caused conflict between group members and in turn with representatives of the organisation.

The customers who are representative of the organisation’s customer base are at loggerheads over the recommendations.

The last stakeholder meeting became very difficult to manage and needed to be drawn to a close due to the level and nature of conflict between members. This included:

Claims the changes would contravene regulatory and legal frameworks (ie Equality Act 2010)
Conflicting interests between stakeholders in relation to balancing the profitability and sustainability of services with increasing customer demands
The perceived lack of empathy shown by internal stakeholders to external stakeholders and inflexibility to make concessions.

TASK 4

Write an account which discusses methods for managing conflict in stakeholder engagement (AC3.3).

Referencing: Use the space below to list any external sources directly used in your assessment:

Bibliography: Use the space below to list any external sources used in your research and wider reading but not directly used in your assessment.