1. Lesson 5: Stakeholders in policy making and Administrative governance: Their role and influence

2. What and who are Stakeholders? 123A stakeholder is a person who has something to gain or lose through the outcomes of a planning process or project. In many circles these are called interest groups and they can have a powerful bearing on the outcomes of political processes. The term refers to persons, groups or organizations that must somehow be taken into account by leaders, managers and frontline staff. Any group or individual who can affect or [be] affected by the achievement of an organization's objectives. 3. What are they? When we think of stakeholders, it is possible to list many examples, but the ones that usually come to mind are shareholders, management, employees, trade unions, customers, suppliers, and communities. However, larger and more complex organizations can have many more stakeholders than these. Compare, for example, the different complexities of a small organization, such as a corner shop or street trader, with a large international organization such as a major 4. Importance of Stakeholders1.Stakeholders are the recipient of policy. 2.The improvement in the lives of Stakeholders determine success or failure of public policy. 5. Importance of StakeholdersS2S1 S7 PUBLIC POLICYS3S6 S4S5 6. Importance of Stakeholders (In the Philippine Context)s1 Policy makers especially those who are elected must listen to and please the stakeholders or elsePolicys2s3Rejection of policy= No voteRejection of Policy= No voteRejection of Policy= No Vote 7. Importance of Stakeholders (In the Philippine Context) In the Philippines, Stakeholders are the ticket of policy makers to stay in office.Hence, policy makers in Congress and the Executive formulate policies that appeal to certain stakeholders. For example: Cynthia Villars campaign focuses on livelihood projects to solve unemployment. 8. Importance of Stakeholders (In the Philippine Context) PNOYs Tuwid na Daan targets the call of the people for a cleaner government. Jason Gonzales Pedestrianization ordinance targets the enhancement of the lives of the people in the downtown area. 9. The Influence of Stakeholders Stakeholders can utilize many ways to influence policy. In business, they can choose to boycott establishments that will not heed their requests or suggestions. In public policy they can: a) b) c) d) e)Lobby Call for conferences Support or advocate for non-support of a policy Support or advocate for the non-support of policy makers Rally 10. The relationship between stakeholders and policy makers In order for business to prosper there must be a reciprocal relationship between the stakeholders and the business. Example: Wal-Mart, the biggest retailer in the US, constantly engages in stakeholder consultation and surveys before they decide to take in and launch new products in their shelves 11. The relationship between stakeholders and policy makers In the context of public policy there is an ideal two-way relationship between the policy makers and the people (stakeholders). Stakeholders should contribute to inputs in policy formulation and should be given ample time, efficient and effective ways to evaluate the policy. But that does not happen all the time. 12. The relationship between stakeholders and policy makers IDEAL 13. The relationship between stakeholders and policy makers REAL 14. Categorizing Stakeholders Stakeholders, were introduced firstly in the business and management field, hence their classification is business oriented in nature. Thomas R. Dye (Public Policy) states that the general classification should be target and nontarget groups. Target groups is that part of the population for whom a program or policy is intended. Such as policies to solve homelessness target the homeless. Non-target groups are those who receive impact of policy not directly intended at them. For example, providing the homeless with cheap but quality homes requires using 15. Categorizing Stakeholders In this light, a Stakeholder Analysis is called for. Campbell (2008) cites the the Mendelow framework is often used to attempt to understand the influence that each stakeholder has over an organization's objectives and/or strategy. The idea is to establish which stakeholders have the most influence by estimating each stakeholders individual power over and interest in the organization's affairs. The stakeholders with the highest combination of power and interest are likely to be those with the most actual influence over objectives. Power is the stakeholders ability to influence objectives (how much they can), while interest is the stakeholders willingness (how much they care). Influence = Power x Interest 16. The Pros and Cons of the Framework The framework is the most basic way of analyzing stakeholders but it is in no way the most accurate. It is hard to find ways of effectively measuring each stakeholders power and interest. The map generated by the analysis of power and interest (on which stakeholders are plotted accordingly) is not static; changing events can mean that stakeholders can move around the map with consequent changes to the list of the influential stakeholders in an organization. Before using the framework a Problem tree can help identify the 17. An example of A problem tree ExploitationProstitutionCrimePovert yIlliteracyUnemploymentLack of opportunities 18. The Mendelow Framework: A brief look LOW LOWMinimal effort Keep satisfiedHIGHHIGHKeep informed Key players 19. Stakeholder essentials Identify Analyze Engage Manage 20. Need to know. Who they are What they think What influence they have How to engage them How to inform How to stay in touch If things change 21. Stakeholder management We manage stakeholders by: identifying conflicts/potential conflicts, gaps, contradictions or incompatibilities between stakeholder requirements, so that a reconciliation strategy can be planned. ensuring ongoing communication, two-way information access, monitor changes in engagement, attitude and/or influence 22. Engagement 23. References: What to Do when Stakeholders Matter: Stakeholder Identification and Analysis Techniques by John M. Bryson Hubert H. Humphrey Institute of Public Affairs 245 Humphrey Center University of Minnesota Brinkerhoff, D. and B. Crosby, Managing Policy Reform: Concepts and Tools for Decision-makers in Developing and Transitioning Countries, Kumarian Press, CT, 2002 Freeman, R. E. (1984) StrateaicM anaaementA: StakeholdeAr pproach, Boston, MA: Pinnan. Dye, Thomas R. Public Policy 24. Thank you !