The 6 principles of Stakeholder Engagement

outside your organization. A mong supply chain professionals in large, complex organizations, there is very little argument about the value of enterprise-wide supply management initiatives. Nor is there much debate about the benefi ts of a cohesive approach to using drivers of value like demand management, requirements development, and purchase volume aggregation. But as anyone who has managed an enterprise-wide program knows, such efforts are fraught with big challenges, not the least of which is how to get real buy-in—and, in some cases, active participation—from key stakeholders. Compared to more local or narrowly defi ned supply management efforts, enterprise-wide initiatives are more likely to impact varying groups of stakeholders with disparate perspectives and a broad range of interests. Neglecting to engage key stakeholders early and often—and with genuine intent to address their unique needs and concerns—is one of the most common points of failure of such initiatives. Too often, research teams spend months gathering data and developing strategies that are never implemented due to insuffi cient internal and external support. But that doesn’t mean that all enterprise-wide supply management programs are destined to fail. Far from it. During Censeo Consulting Group’s work supporting complex strategic sourcing initiatives in the U.S. federal government, where single-category spending often exceeds hundreds of millions of dollars, we’ve seen some remarkable success stories. We have observed that concerted, deliberate stakeholder outreach and management—from the outset—are critical factors that enable programs to gain traction and momentum and realize operational success. This article discusses six principles for effective stakeholder engagement that organizations from any sector—public or private—should bear in mind when planning or managing a The 6 Principles of Stakeholder Engagement OCTOBER 2008 www.scmr.com