Generic Stakeholder Management Strategies

A continuous planning process for stakeholder management is described. To get started, and even for organizations already engaged with stakeholders, a set of questions is provided concerning internal and external stakeholders. A SWOT analysis might help, looking at the strengths, weaknesses, opportunities and threats attached to each stakeholder or type of stakeholder. A third planning technique is stakeholder mapping, described for both internal and external use. A number of generic approaches to formulating strategy are reviewed, and they each take a somewhat different approach to classifying stakeholders and identifying appropriate strategies for managing relationships. From these we have provided a blended strategy matrix, but users will have to settle on their own approach appropriate to their circumstances.

Introduction to Stakeholder Theory

Of the many management-oriented theories, concepts and models available, stakeholder theory (ST) is one of the few that has found a firm place in event management and event tourism, both in the research literature and in practice. Why? Because of the vital importance of knowing and managing stakeholders in all contexts, whether it is a single event, a city or destination, or a business dealing with events. The influence of stakeholders cannot be ignored, as they are an inherent part of planning, marketing and management. Once you understand the basics as described in this book you should be able to identify and classify your organization or event’s stakeholders and develop appropriate management tools reflecting your needs. Although the origins of the theory concern a company’s external relationships, it is especially important for events and destinations to consider both internal and external stakeholders. The chapter starts with basic definitions, then goes on to fully explore stakeholder theory.

Perspectives on Stakeholder Theory

This chapter provides elaboration of stakeholder theory, commencing with four general perspectives on stakeholder theory as identified by Donaldson and Preston (1995). This is followed by a discussion of how CSR or corporate social responsibility has influenced thinking about stakeholders and forms an integral part of the normative perspective. Carroll’s (1993) popular CSR model has been adapted and modified for this book, providing a more integrated and relevant approach. Defining and classifying stakeholders is the third major topic covered, drawing first on generic stakeholder theory and commencing with a discussion of primary and secondary, active and passive stakeholders. Particularly attention is given to the framework provided by Mitchell, Agle and Wood (1997) that defines ‘stockholder salience’ as a combination of ‘legitimacy, power and urgency’. These terms are explored in detail. The chapter concludes with an examination of event and tourism stakeholders, including a diagram and research notes from the events and tourism literature.

Applying Stakeholder Theory to the Management Functions

Figure 4.1 illustrates the major management functions to which stakeholder theory and management strategies can be applied. In fact, stakeholders can influence, and be influenced by, ALL aspects of planned events, so this is merely a starting point. Subsequent sub-sections with diagrams look more closely at each of these functional areas and how they influence planned events. From the theoretical discussions presented so far in this book it should be clear that stakeholders are to be considered an integral part of event management and event tourism, not an isolated issue to be considered once in a while. This suggests that external stakeholder relations be a management function on its own, or tied to a position called something like ‘External Relations’. For internal stakeholders a different approach might be required, as each manager within the organization is going to have specific stakeholder issues to deal with on a continuous basis. Bringing these issues into one integrated approach will be the responsibility of the executive. This chapter also brings other theoretical perspectives to bear on stakeholder management. For example, starting with organizing and planning, we identify five themes for special consideration, each being informed by other theories. Strategies and projects links with institutional theory (e.g., how to become a permanent institution) and project networks including the political market square. Accordingly, these discussions provide a launching point integrating many theoretical perspectives on management.

Stakeholder Considerations for Different Types of Event

Every event manager will face some different stakeholder issues and come up with a wide variety of individualistic strategies, but there are going to be commonalities among the major types of event, and these are considered in this chapter. Planned events are most frequently classified by reference to their form, since it is usually obvious that sport events are visibly different from festivals, and meetings are quite different in structure and program from exhibitions. But an additional consideration, already noted in this book, is the function of events. This chapter therefore includes a discussion of mega events (the largest), hallmark events (permanent institutions, co-branded with cities and destinations) and iconic events (holding symbolic importance to special-interest groups).

Stakeholder Considerations for Residents, Communities and Cities

Events, and therefore event tourism, tend to be attached to their host communities, even embedded within close and strong stakeholder networks. It is true there are many footloose events, won through bidding, or otherwise moving around the world, but a degree of dependence on place and social networks is the norm. This raises two concepts of importance: place identity and place attachment. This chapter will focus on the aspects that are important for the residents during stakeholder engagement. It will also look at the needs of the community and apply the stakeholder theory to the city and destination.