It’s easy to focus on the immediate stakeholders of your business, such as your customers and employees, and ensure that their needs are being met. However, there are some stakeholders that tend to be neglected because they don’t appear to be as important or don’t bring attention to themselves. This is a common mistake made by many business owners, but it can come around to bite them in the future. If those relationships deteriorate, it becomes essential to rebuild them and repair the damage that might have been done. But just like any other relationship, it is often more costly in time and resources than just taking the time to maintain those associations in the first place.
I had the challenge of mending broken stakeholder relationships over ten years ago when the Small Business Development Center (SBDC) was under Northern Marianas College. The college was undergoing budget constraints and evaluating which programs should be cut, and the SBDC was on the chopping block. This was because the former director had treated it as an autonomous organization, neglecting the link it had with the college, and therefore the relationship with college personnel deteriorated. At the same time the Center was being pushed away from the college, it was also being pulled by another agency to move the Center under the Commonwealth Development Authority, and in all likelihood, the move was going to happen.
With the position vacant, I was asked to apply for the director’s position in order to help unite the college community with the Center. I was the faculty senate president at the time and worked closely with upper management. When I was hired, my first task was to align the SBDC with the college and demonstrate the vital link it had with the mission and goals of the institution. This was accomplished by creating a strategic plan and creating programs that would immediately benefit the community and reinforce the value we provided to local businesses.
Ironically, the Center had helped numerous business owners develop mission statements and business plans, yet it did not have a plan or a statement of its mission. I worked with the other consultants to create a comprehensive plan that would tie our efforts with the college and community. My purpose was to have a written document outlining how we intended to accomplish certain actions that would create a stronger role with our stakeholder relationships. After several weeks, the plan was finished, presented to the Board of Regents, and given their endorsement.
The next step was to implement the plan. All the consultants worked to develop a six-week program called Business Plan for Success, with the goal to break the planning process into six weekly steps. Each session was taught by the consultants using computers so participants could immediately start working on their business plan. The outcome would be a workable business plan that could serve as the map for growth and success, or to attract capital. We also looked at other programs already scheduled and determined how we could make them more effective.
The end result is that we saved the Center and it remained under the college where it would continue to serve the needs of hundreds of entrepreneurs and established businesses. We were able to strengthen the ties with the college, provide beneficial programs for the community, and continue to work with lending sources and other partners to benefit entrepreneurs. This continued for many years until ongoing budget constraints over the years eventually made the Department of Commerce a more logical home for the Center.
One stakeholder that is often ignored is the government. They definitely have a stake in the success of your business through the collection of taxes and fees. They can either be an advocate or adversary for your business depending on the relationship you’ve developed with local politicians. There are numerous instances when the owner of an organization supported the losing candidate and the consequences were dire.
All healthy relationships rely on open communication, trust, and a willingness to work together to find solutions to a disagreement. Make a list of all your stakeholders and develop a plan to maintain strong ties or reconnect with your key stakeholders.
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