Introduction
In today’s fast-paced business environment, stakeholder management has become an integral part of project management. It involves identifying and prioritizing stakeholders and their needs to ensure successful project outcomes. However, not all stakeholders are equal, and some are more important than others. This is where the stakeholder salience model comes in handy. The model helps project managers identify and prioritize stakeholders by analyzing their power, legitimacy, and urgency. In this article, we will explore the stakeholder salience model and how it can be used to effectively manage stakeholders.
Understanding the Stakeholder Salience Model
The stakeholder salience model was first introduced by R. Edward Freeman in 1984. It is based on the premise that stakeholders can be classified based on their power, legitimacy, and urgency. According to Freeman, stakeholders with high levels of power, legitimacy, and urgency are the most salient and require the most attention.
Power refers to the ability of a stakeholder to influence the project outcomes. Legitimacy refers to the degree to which a stakeholder’s claim to a project is valid. Urgency refers to the degree of time sensitivity in addressing a stakeholder’s needs.
The stakeholder salience model is a useful tool for project managers because it helps them to prioritize stakeholders and allocate resources accordingly. By focusing on the most salient stakeholders, project managers can ensure that they meet the needs of the most important stakeholders first, thus increasing the chances of project success.
Applying the Stakeholder Salience Model
The stakeholder salience model can be applied to a wide range of projects and industries. Let’s explore some examples of how the model has been applied in various contexts.
- Healthcare: In a study by Wosahlo (2014), the stakeholder salience model was used to analyze the implementation of palliative rehabilitation in five UK hospices. The study found that the most salient stakeholders were patients and their families, followed by healthcare professionals, regulators, and the hospices themselves. By prioritizing the needs of these stakeholders, the hospices were able to successfully implement palliative rehabilitation programs.
- Agriculture: Ortega et al. (2019) used the stakeholder salience model to study agri-food cooperatives in Spain. The study found that the most salient stakeholders were members of the cooperatives, followed by customers, suppliers, and the government. By prioritizing the needs of these stakeholders, the cooperatives were able to improve their performance and achieve better financial results.
- Tourism: In a study by Sheehan and Ritchie (2005), the stakeholder salience model was used to explore the identity and salience of destination stakeholders. The study found that the most salient stakeholders were residents, followed by tourists, business owners, and local government officials. By prioritizing the needs of these stakeholders, destination managers were able to develop more effective tourism strategies that benefited all stakeholders.
- Smoking: Key et al. (2013) used the stakeholder salience model to study smoking as a social problem. The study found that smokers were the most salient stakeholders, followed by non-smokers, the government, and tobacco companies. By prioritizing the needs of these stakeholders, policymakers were able to develop more effective anti-smoking campaigns that targeted the most salient stakeholders.
Benefits of the Stakeholder Salience Model
The stakeholder salience model offers several benefits for effective stakeholder management. These benefits include:
- Prioritizing stakeholders: The model helps project managers to identify the most salient stakeholders and allocate resources accordingly.
- Managing stakeholder conflicts: By understanding the needs of stakeholders, project managers can manage conflicts and ensure that all stakeholders are satisfied with the resolution.
Another benefit of the Stakeholder Salience Model is that it helps organizations prioritize their resources and allocate them efficiently. By identifying and prioritizing stakeholders, organizations can focus their resources on the most important stakeholders, ensuring that they are satisfied and that their concerns are addressed. This can lead to better relationships with stakeholders, increased stakeholder support, and ultimately, increased organizational performance.
The model can also be used to identify stakeholders that may have been overlooked or marginalized in the past. By examining the salience of different stakeholders, organizations can identify those that may be underrepresented or underappreciated, and take steps to address their concerns. This can lead to a more inclusive and diverse stakeholder group, which can improve decision-making and lead to better outcomes.
Finally, the Stakeholder Salience Model can be used as a framework for stakeholder engagement and communication. By understanding the salience of different stakeholders, organizations can tailor their communication and engagement strategies to meet the needs and expectations of each stakeholder group. This can help organizations build stronger relationships with stakeholders, increase stakeholder buy-in, and ultimately, improve organizational performance.
Overall, the Stakeholder Salience Model is a powerful tool for organizations looking to manage their stakeholder relationships effectively. By helping organizations identify and prioritize stakeholders, allocate resources efficiently, and build strong relationships with stakeholders, the model can lead to improved organizational performance and long-term success.
Conclusion
In conclusion, the Stakeholder Salience Model is an important framework for understanding the relationships between organizations and their stakeholders. The model recognizes that stakeholders are not all the same, and that different stakeholders have different levels of salience depending on their power, legitimacy, and urgency. By understanding the salience of different stakeholders, organizations can identify and prioritize their stakeholders, allocate resources efficiently, and build strong relationships with stakeholders.
The Stakeholder Salience Model has many benefits, including improved stakeholder management, better decision-making, and increased organizational performance. However, the model is not without its limitations, and organizations should be aware of these limitations when using the model. For example, the model may oversimplify the complexity of stakeholder relationships, and it may not account for the dynamic nature of stakeholder relationships over time.
Despite these limitations, the Stakeholder Salience Model remains a valuable framework for organizations looking to manage their stakeholder relationships effectively. By using the model as a guide, organizations can build stronger relationships with their stakeholders, increase stakeholder buy-in, and ultimately, improve organizational performance and long-term success.
References
Aaltonen, K. (2011). Project stakeholder analysis as an environmental interpretation process. International Journal of Project Management, 29(2), 165–183. https://doi.org/10.1016/j.ijproman.2010.02.001
Key, S., Scripa, R. N., & Juneau, R. (2013). How Smokers Became Outlaws: An Application Of The Stakeholder Salience Model To A Social Problem. Journal of Business & Economics Research. https://doi.org/10.19030/jber.v11i12.8265
Ortega, C. D., Hernández-Ortiz, M. J., Martí, E. G., & Martos, M. P. (2019). The Stakeholder Salience Model Revisited: Evidence from Agri-Food Cooperatives in Spain. Sustainability, 11(3), 574. https://doi.org/10.3390/su11030574
Sheehan, L., & Ritchie, J. R. B. (2005). Destination Stakeholders Exploring Identity and Salience. Annals of Tourism Research, 32(3), 711–734. https://doi.org/10.1016/j.annals.2004.10.013
Wasieleski, D. M., & Weber, J. (2017). Stakeholder Management. Emerald Group Publishing.
Wosahlo, P. (2014). An analysis of the implementation of palliative rehabilitation in five UK hospices using the Stakeholder Salience Model. Progress in Palliative Care, 22(6), 342–346. https://doi.org/10.1179/1743291x14y.0000000103