Managing stakeholder relationships - the importance of cognitive behaviour
Jinfo Blog

By Emma Kinani

Abstract

Successfully managing stakeholder relationships is vital to any organisation which not only wants to grow but also retain its customers. Defining stakeholder groups and their characteristics is the start of the process but going back to the basics of human cognitive behaviour is at the heart of it. In her article, Emma Kinani looks at to how to build up communications with stakeholder groups and the impact of social media tools.

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Psychologically we are never far away from what we truly believe. Our interpretations of life and the environment influence our thoughts and feelings to such an extent that everyone is looking for answers and ways to feel better about themselves and people’s perception of what they or their businesses represent. Having lived in different cultures from Uganda, Kenya, South Africa, and now England, it is interesting to see how different cultures process information and relay messages from it. H M Tomlinson said, “We see things not as they are, but as we are”. The ethos that defines the various cultures tends to echo how information is used for building and managing relationships. On the one hand, cosmopolitan communities may find it more of a challenge to define rules that underpin an information management structure to which all stakeholders can adhere. However, due to the advancement in technology and social network tools, it has become easier, if not fashionable, even in the business world to manage relationships through an interface. Less developed countries are catching on, but still have a long way to go due to the poor spread of internet or telecommunication facilities. The fundamental principles of communication and developing relationships remain absolute irrespective of the medium.

Management needs to be prioritised and tailored to suit each group. Organisations should have a yardstick to measure these relationships; using both qualitative and quantitative measurements. While at Uganda Telecom Ltd, the largest telecommunications company in Uganda, it was mandatory to have data on our various audiences, and the method of reporting had a synergistic style that had the level of detail that could measure how effective our services and dealings with various stakeholders were in keeping them loyal to the company. It is interesting that, in the grand scheme of things, managing relationships goes back to the basics of human cognitive behaviour.

Words and silence can send out all sorts of messages. The method of understanding and processing information determines the outcome – the purpose of the information, decoding the message, and dissemination. Similarly, organisations can use information to steer their business one way or the other to develop a form of relationship that will ultimately lead to business growth. No matter the nature of business, it is imperative to go back to basics and formulate a model that seeks to address the underlying motive. It is easy to overlook things like the intangible; perceptions, feelings and urges, to mention but a few. The vivacity of human and social interaction presents the opportunity to integrate more consciously the application of information and communication at a level that analyses behavioural patterns and responses, thus cementing some form of clarity in disseminating information.

As a communications specialist and fine artist, it has taken me ten years to find the defining point that bridges any business with its kaleidoscopic stakeholders. It is about engaging and listening. Some might say that, if that is the crux of the matter, then that is the easy part; but in reality, it tends to be part of one of the most difficult areas in businesses of any form. Organisations are built by people who have vision; they have goals, dreams and personal hopes to see their business grow and flourish. Philanthropic or otherwise, the result is the same for all – to make it work! Defining who your stakeholders are, and how to manage both internal and external communications to engage both groups, is therefore vital.

The world is advancing so fast that it is becoming increasingly difficult for organisations to manage their stakeholders without social media tools. Those that frown upon this advancement will lag behind. It is, to a large extent, unfortunate that a lot of social engagement is impersonal, with heavy reliance on interfaces and electronic media devices that are effectively “placebos”.

Is there a flip side to social media? It is often argued that tweets, pings, texts or Facebook messaging give the impression that someone is listening and engaging with the author. But in reality, many are just smokescreen situations for any true emotional indulgence and the underlying intentions. How personal can organisations get through emotionally inept devices? The heavy reliance on this method of engagement has falsified many aspects of cognitive behaviour, which is vital in understanding one’s stakeholders. The very principles that define a culture are the same ones that can break relationships. The UK holds a diverse culture – what form of communication would be universally acceptable for them? Is there any such thing as a universally acceptable mode of communication that can cater for all audiences and stem relationships? I would say no because different societies have different definitions of engagement. For example, in African culture, elders are spoken to and treated with utmost respect. In the western world, everyone is treated with the same measure of respect. In order to cultivate a relational structure, it goes back to basics: how does one’s culture or society respond to various forms of engagement? Their interpretation or perspective of a situation is the determinant factor as to whether they will respond positively to your organisation’s vision.

Knowledge is a variant that strengthens the process of building and maintaining relationships. The old adages that “forewarned is forearmed” and “information is power”, cannot exist in isolation. It is in the use of this knowledge and information that strengthens or weakens the bond. Organisations that engage in research tend to be more successful than those that rely on suppositions. Knowledge can be acquired in many ways; organisations with strong budgets might train their staff or outsource to a marketing company to do audience and user research. Others take time to read and equip themselves with useful information that can foster relationships. Internal and external stakeholders are impressed when they know that the person aiming to create a relationship with them has knowledge and knows how to apply it in a way that creates some sort of partnership. The business of organisations wanting to take a superior stand over their customers does not cut it anymore. It is now all about partnerships and giving a sense of ownership that makes the end stakeholder want to engage rather than disengage.

What to do with information, and understanding how to process or manage it, is another factor that can make or break stakeholder relationships. We have seen how relationships with football celebrities, film and pop stars, as well as political personalities can easily crumble from misuse of information. The question will always remain: how far to go with information and if the dissemination to a wider audience is more beneficial than detrimental. These are questions we ask ourselves within organisations daily; the layman too goes through day-to-day activities of processing data and information that could potentially foster, make or damage a relationship. It’s about using information, not just by design, but purposefully and sensitively. Stakeholders are all around us, we cannot run from them; instead how might we manage and engage with them more holistically to create lasting relationships?

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