Stakeholder Power Interest & Circle

Stakeholder Power Interest & Circle

Elements of Stakeholder Power Interest & Circle:

Circle Elements: Inner circle = direct exchange &  Outer circle = indirect influence

Matrix Elements: Action to be taken in relation to Power and Interest


Mapping the stakeholders to determine strategies to use


Social responsibility vs duty of a business man – Business ethics do not exist “per se” as human activity is governed by moral principles etc

Investment in society just as in R&D or marketing

Conflicting interest among stakeholders

Who the key blockers and facilitators of change are likely to be, and therefore, whether strategies need to be pursued to reposition certain stakeholders

which maintenance activities will be needed to discourage stakeholders from repositioning themselves

Hierarchy provides people with formal power

Exercising discretion is a most significant source of power

Influence can be an important source of power and may arise from personal qualities (of leadership) or because a high level of consensus exists within the group or company

Control of strategic resources is a major source of power within companies

specialist knowledge or skills

Control of the environment is another source of power within organisations

The most difficult group to cope with are those in segment D, since they are in a powerful position to block or support new strategies, but their ‘stance’ is difficult to predict

means must be found to ‘test out’ new strategies with these stakeholders before an irrevocable position emerges


To determine who to be responsible to

Power of stakeholders need to be assessed

indicates the type of relationship which the organisation will need to establish with each stakeholder group

This is a useful way of accessing where the ‘political efforts’ should be channelled during the development of new strategies.

Source of Stakeholder Power Interest & Circle:

Mendelow’s Power-interest grid (Aubrey L. Mendelow, Kent State University, Ohio 1991)

(Cited in Scholes,1998)