Engaging in a #stakeholder mapping exercise is crucial for identifying opportunities. Start by pinpointing broad stakeholder groups, then drill down to specific stakeholders within those groups, assessing their influence, effects, and material needs that drive value creation. Boards should follow a simple flow:
𝟏. 𝐃𝐢𝐬𝐜𝐨𝐯𝐞𝐫 𝐬𝐭𝐚𝐤𝐞𝐡𝐨𝐥𝐝𝐞𝐫𝐬: 𝐒𝐭𝐚𝐫𝐭 𝐰𝐢𝐭𝐡 𝐛𝐫𝐨𝐚𝐝 𝐠𝐫𝐨𝐮𝐩𝐬, 𝐭𝐡𝐞𝐧 𝐢𝐝𝐞𝐧𝐭𝐢𝐟𝐲 𝐠𝐫𝐚𝐧𝐮𝐥𝐚𝐫 𝐬𝐭𝐚𝐤𝐞𝐡𝐨𝐥𝐝𝐞𝐫𝐬.
𝟐. 𝐃𝐞𝐯𝐞𝐥𝐨𝐩 𝐚 𝐬𝐭𝐚𝐤𝐞𝐡𝐨𝐥𝐝𝐞𝐫 𝐭𝐡𝐞𝐬𝐢𝐬 𝐛𝐲 𝐚𝐝𝐝𝐢𝐧𝐠 𝐬𝐞𝐯𝐞𝐫𝐚𝐥 𝐝𝐚𝐭𝐚 𝐩𝐨𝐢𝐧𝐭𝐬:
- 𝑬𝒇𝒇𝒆𝒄𝒕: Assess the material effects of the stakeholder.
- 𝑰𝒏𝒇𝒍𝒖𝒆𝒏𝒄𝒆: Evaluate the stakeholder's influence over the company or other stakeholders.
- 𝑽𝒂𝒍𝒖𝒆 𝑪𝒓𝒆𝒂𝒕𝒊𝒐𝒏: Identify the value the stakeholder brings to the company.
- 𝑶𝒖𝒕𝒄𝒐𝒎𝒆: Measure the outcomes of value creation with tangible metrics.
This approach ensures a comprehensive understanding of your stakeholders, leading to strategic #valuecreation and measurable success.
Stakeholder Engagement and Materiality Analysis Framework
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Another great visualization from Enel’s 2023 Sustainability Report, showing their process to develop the materiality analysis.
It starts with stakeholder engagement as the foundation. The process begins by mapping both internal and external stakeholders, ensuring that a wide range of perspectives are considered.
Stakeholder participation is essential as the basis for any materiality analysis. It ensures that the company captures diverse expectations, concerns, and insights that reflect real-world impacts and risks.
Enel uses multiple engagement methods, from surveys and focus groups to direct consultations, led by different corporate functions with varying levels of responsibility. This allows for a continuous and active dialogue.
Once stakeholder input is collected, ESG topics and megatrends are identified and assessed. This step is critical to align the analysis with evolving environmental, social, and governance priorities.
The next phase evaluates the relevance of these topics to stakeholders, as well as their priority, satisfaction, and impact levels. This helps distinguish between emerging issues and long-standing priorities.
A core element is the identification of potentially material impacts, risks, and opportunities (IROs). These are assessed through the lens of both impact materiality and financial materiality.
Impact materiality considers how the company’s activities affect the economy, the environment, and people, including human rights. It focuses on the outward consequences of operations.
Financial materiality looks at how ESG factors can influence the company’s financial position, performance, cash flows, and access to capital over the short, medium, and long term.
Both dimensions are essential to comply with evolving regulations such as CSRD and ESRS, which require a double materiality perspective in sustainability reporting.
The outcome is a set of material topics that inform sustainability objectives, guide decision-making, and strengthen stakeholder relationships.
This structured approach ensures that sustainability planning is grounded in real-world priorities, balancing stakeholder expectations with the company’s strategic goals.
Source: Enel
#sustainability#business#sustainable#esg
🧭 Stakeholder Management Matrix — The Skill Procurement Professionals Don’t Talk About Enough
Everyone teaches negotiation.
Everyone talks about cost savings.
But very few talk about people.
And the truth is: A project doesn’t succeed because you made the lowest purchase order. It succeeds because the right people were aligned, informed, and on your side.
Here’s a simple way to stop firefighting and start getting real cooperation:
✅ Step 1 — Map your stakeholders.
Draw a small 2x2 grid.
On one axis: How much power or influence they hold.
On the other: How interested they are in the work you’re doing.
You’ll end up with four types of stakeholders:
1️⃣ High Power + High Interest
Keep them close. Update them proactively. Ask for their input before decisions.
If they trust you, your work becomes 10x smoother.
2️⃣ High Power + Low Interest
They can block or approve work quickly.
Give short, crisp updates. Don’t overload them.
3️⃣ Low Power + High Interest
These are your biggest supporters.
They help you chase documents, move tasks, and gather information.
4️⃣ Low Power + Low Interest
No need for long meetings.
Just keep them informed at a high level.
✅ Step 2 — Change your communication style for each group.
One email template will NOT work for everyone.
Some want numbers.
Some want timing.
Some want reassurance.
Some want proof.
When you communicate the way they prefer.....resistance drops.
✅ Step 3 — Track them People change roles.
Priorities shift.
A friendly stakeholder today can become a bottleneck tomorrow.
Revisit the matrix every month.
Procurement isn’t just about buying wisely.
It’s about managing people smartly.
#procurement#supplychain#stakeholdermanagement#projectmanagement#vendorrelations#leadership#negotiation#businesscommunication#professionaldevelopment#procurementtraining