1. Build Stakeholder Management Capabilities
Create increased Human Resource value with business-focused stakeholder relationships.
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2. Table of Contents 1. Title 2. Introduction 3. Project Rationale
4. Execute the Project/DIY Guide
4.1. Make the case for stakeholder management
4.2. Perform a stakeholder analysis
4.3. Prepare to share the HR Business Vision Survey results
4.4. Build relationships with effective communication
4.5. Develop an action plan and stakeholder management strategy
5. Workshop Deck
6. Appendices

3. Stakeholder management is the first and most crucial step in developing an HR strategy that impacts business outcomes
The Head of HR (CHRO).
HR strategic business partners.
Build strong relationships with executive stakeholders in order to gain their support, trust, and buy-in to the role of HR.
Develop a perception of HR as being a true strategic business partner and able to deliver products and services that impact business imperatives and improve the bottom line.
Respond to the feedback received from executive stakeholders and from the completion of the HR Business Vision Survey.
In the role of a strategic HR business partner I can help develop policies, move decisions forward, and be a part of the decision-making process. I now have the ability to help the business be successful and can help mitigate any issues they may have. HR needs to walk the fine line between being employee friendly and business friendly, but if you’re not making sure that the business is supported and doing well, you won’t have employees.
– Linda Haft, HR Manager, Magnolia River

4. Executive Summary  ? Situation ! Complication Resolution
McLean & Company Insight
HR must achieve buy-in from the C-Suite for the HR role to gain access to adequate resources and inclusion in strategic decisions.
However, HR often has to contend with the viewpoint that it serves an administrative function only.
According to McLean & Company’s HR Trends report, “Proving the value of HR” is the strongest emerging HR Strategy trend and ranked 5th out of all 39 emerging trends.
Stakeholder management comes down to foresight and patience. One needs the foresight to anticipate the relationships they will need in the organization and the patience to build those relationships over a period of time.
Taking the time to build relationships and develop trust and understanding with key stakeholders first, allows you to walk in the door with credibility when you later have a project or initiative that requires the input and support of those individuals.
Complication ?
Stakeholders hold varying perceptions and expectations of HR.
It can be challenging to understand the needs of all stakeholders and communicate with them in a way that both meets their needs and demonstrates the true strategic value of HR.
Resolution 
Identify, analyze, and prioritize your stakeholders to understand the method and level of effort required in communicating to each of them.
Use McLean & Company’s HR Business Vision Survey, the Stakeholder Analysis Tool, and additional sources of data, including engagement surveys and previous interactions, to gain a clear understanding of who your stakeholders are and what is important to them.
Take a targeted approach to communicating with your different stakeholders based on their individual interests and communication preferences. Hold ongoing group and one-on-one meetings with stakeholders to build credibility for HR.
Demonstrate HR’s value to the business by aligning HR strategy to business needs and garnering executive input on HR’s strategic priorities.

5. McLean & Company is ready to assist
McLean & Company is ready to assist. Book a free guided implementation today!
Book a Guided Implementation Today: McLean & Company is just a phone call away and can assist you with your project. Our expert Analysts can guide you to successful project completion. For most members, this service is available at no additional cost.*
Here are the suggested Guided Implementation points in the Stakeholder Management project:
Review your Stakeholder Analysis and HR Business Vision survey results with a McLean & Company Analyst
Discuss your Stakeholder Analysis and HR Business Vision Survey results with an analyst to gain insight into interpreting the data and using it to inform your following communications with stakeholders. Gain a better understanding of the HRBV data and its implications and identified strengths and weaknesses and an understanding of HR’s degree of alignment with business needs.
Gain advice for communicating with stakeholders to build effective relationships
Validate your communication approach and review communication tactics for successfully managing relationships with different types of stakeholders. Gain advice and best practices for communicating effectively with business stakeholders.
Develop a stakeholder action plan and prepare for ongoing stakeholder management
Gain advice for prioritizing HR initiatives and communicating the rationale behind your action plan items. Put steps in place to ensure stakeholder management is an ongoing effort. Validate your action plan and top priorities for HR with a McLean & Company Analyst.
*Guided Implementations are included in most advisory membership seats.

6. Make the case for stakeholder management
Perform a stakeholder analysis
Prepare to share the HR Business Vision Survey results
Build relationships with effective communication
Develop an action plan and stakeholder management strategy
Understand what stakeholder management entails.
Recognize the various levels of internal stakeholders.
Manage executive stakeholder relationships to demonstrate HR’s value and strategic worth.
Improve your stakeholder management by following McLean & Company’s methodology and thought model.

7. Understand what stakeholder management entails and why it is essential for HR credibility
McLean & Company’s definition of stakeholder management:
Stakeholder management is the identification and prioritization of individuals interested in or impacted by HR projects, products, and services. It includes building and maintaining relationships to ensure needs are understood, addressed, and supported to arrive at successful outcomes that meet overall organizational objectives.
CEOs expect that senior HR executives will match their HR and people skills with a deeper understanding of real business needs and issues.
Real and effective stakeholder engagement must be more than just a compulsory “check” on the list. It must be valued by all parties involved.
– Sharma, “The 6 principles of stakeholder engagement”
McLean & Company has identified “HR Business Vision Planning” as a key HR competency.
HR must have business acumen; a deep understanding of how the business operates and the ability to speak the language of the business to ensure their messaging resonates with business stakeholders.
This is essential for HR to operate as a strategic business unit and aligns HR strategy with the business strategy and objectives.
If HR wants to be more valuable for the business, they need to map out HR organization strategy to the business strategy – do we have the organization design and people to get there? If not, what’s the plan?
– Anonymous CEO as cited by Balthazard & Robinson
Beyond the ability to speak the business language, HR must be effective in delivering and managing key messages.
The HR function both enables and constrains the business by ensuring that the organization’s operations are aligned with governing laws and regulations.
HR must demonstrate tact and emotional intelligence when delivering news that is contrary to stakeholders’ expectations.

8. Internal stakeholder management occurs on several levels
HR stakeholder management occurs on three levels:
Gaining executive buy-in to HR’s strategic direction.
Gaining buy-in and support from stakeholders related to specific HR projects and initiatives.
Supporting all other employees in the organization.
The necessary first step is achieving the first level.
Doing so will make gaining the project buy-in an easier process, as executive stakeholders will already be on the same page as HR and understand the value and rationale for the initiatives.
HR also has a number of external stakeholders – including customers, future employees, and the public in general. While this blueprint is focused on the top tier of HR’s internal stakeholders, many of the principles and practices outlined can and should be applied across all stakeholder groups.

9. Every HR department has multiple stakeholders; this blueprint is focused on managing executive-level stakeholders
Level 1: Executive Level
Executives are most directly involved with HR and are responsible for the business direction and key decisions. The CHRO must have direct involvement with these individuals to understand their needs and have them recognize HR’s value and become a champion for their function.
HR Department Leaders
While the HR department leaders do fall under the level 2 category, from the perspective of HR stakeholder management these stakeholders necessarily land higher on the stakeholder pyramid. They are directly impacted by HR initiatives.
Level 2: Functional Level
Functional leaders will be impacted by HR’s projects and initiatives, and can be valuable champions for HR. Having their buy-in and involvement with HR can be beneficial.
Level 3: Employee Level
Don’t forget about employees. They may not have formal authority, but they are consumers of HR products and services and could be great advocates and ambassadors for the HR department.

10. Manage executive stakeholder relationships to demonstrate HR’s value and strategic worth
According to McLean & Company’s HR Trends report, “Proving the value of HR” is the strongest emerging HR Strategy trend. It ranks 5th as an emerging trend out of all 39 HR trends and more than a third of respondents have indicated that they are already working on this strategy.
McLean & Company’s HR Business Vision survey and effective stakeholder management can help achieve this strategy.
Stakeholder management helps you understand the concerns and positions of your stakeholders so that you know how to position yourself and your messaging when communicating with them.
By aligning your message with the business strategy and the leaders’ interests and needs you are able to better assert HR’s voice and be heard by the business.
Stakeholder management leads to greater involvement with business decisions and increases in resource allotment. It can translate into success for the HR department and prove HR’s value.
Complete McLean & Company’s HR Business Vision survey (HRBV) to gain a clear understanding of your stakeholders’ needs and expectations.
HR has a powerful seat at the table… on par with any part of the organization. [Leaders know] that their most critical ally in getting things done is their HR partner. …But, it’s up to HR leaders themselves to be more assertive in having their voice heard around that table.
– Balthazard & Robinson

11. By listening to stakeholders, HR will understand what the business is looking for in terms of the HR strategy
HR Function
Importance
Effectiveness
HR Operations & Infrastructure
1st
44%
Total Compensation
7th
39%
Talent Acquisition
5th
Performance Management
4th
36%
Learning & Development
3rd
33%
Employee Engagement
8th
32%
HR Strategy
2nd
27%
Talent Management
6th
25%
HR Strategy is the second least effective HR function, yet it is seen as the second most important in driving HR effectiveness.
Effectiveness by HR respondents: 28%
Effectiveness by business respondents: 20%
HR respondents were 1.4 times more likely than business respondents to rate their HR strategy function as effective.
Improve HR’s perceived effectiveness by including stakeholder input in the development of your HR strategy.
Note: The importance rating is a statistical estimate of the impact of a particular HR function on overall HR effectiveness, relative to the other HR functions. Results are shown as the percentage of respondents who selected 5 or 6 on a 6-point scale.

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