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What is The Importance of Stakeholder Management

It is usually believed that its only shareholders who can make or break a project in a business organization. However, this concept is also true for stakeholders. In order to provide you with a better understanding of the importance of stakeholder management, it is necessary to explain something about stakeholders. A stakeholder can be a group or any individual who is affected by or affects a business organization. Stakeholders may include customers, suppliers, employees or even regional communities. Stakeholder management is important to maintain a balance between the values of an organization and the expectations of stakeholders. Most of the time, this balance has to be maintained to ensure efficiency and better functioning of the organization. Stakeholders can determine the ability of a business organization to achieve its goals and objectives.

Stakeholders
Photo: byrchall.wigan.sch.uk

Stakeholder management works in two different ways. To be precise, there are two different models to explain stakeholder management. According to the first model, the duties of the management towards the stakeholder are directly proportional to the impact that a stakeholder can make on an organization’s activities. According to the second model, an organization needs to abide by the moral and ethical code of conduct as it has responsibilities towards stakeholders. In present times, a stakeholder management software is more popular than these two models. Such a software maintains a balance between both these models and benefits both the parties. This management software provides some benefits which have been discussed in this article. All these benefits explain why stakeholder management is important in present times.

 Benefits of Using A Software For Stakeholder Management

 1) Evaluation of Impact – A software can easily determine the impact of stakeholders on a certain project. Some stakeholders may be very important for a certain project while they may not be important for a different project. Therefore, stakeholder management is important for some projects while not so important for others. A software helps in determining the impact that stakeholders might have on a certain project. Once an organization knows about the anticipated impact, it can take necessary measures.

2) Sales – Using a software ensures better functioning and enhanced efficiency of the organization. This will result in higher productivity and an eventual rise in sales. If your stakeholders are satisfied, it would mean proper management of every task in your organization. As a result, cost will be cut down and revenue will increase. It will also mean that your employees and customers stay committed to your organization, thereby attracting even more people to be associated with your organization.

3) Preventing Risks – Business environment is constantly changing and therefore, proper management is necessary. Otherwise, stakeholders may harm your business organization in the long run. A AI Media Comms Stakeholder management software ensures proper communication and a positive image in the public eyes. It makes sure that there are no negative public reactions against your organization. As mentioned earlier, stakeholder management evaluates the impact of stakeholders on a certain project. Therefore, any negative reaction can be identified before it creates any major problems.

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