Stakeholders in strategy making

Purpose: Conventional wisdom says stakeholders matter to managers as they develop strategy – but do they? If so, what type of stakeholders matter and what can managers do? Design/methodology/approach: An in-depth exploration of five deep case studies where senior executives embarked upon strategy development. Analysis revealed five significant factors for managing stakeholders effectively. Findings: These findings include: determining the nature of a stakeholder, separating those who care about the strategy and its implementation from those who do not but still could impact it; addressing stakeholders at an appropriate level; considering internal as well as external stakeholders and attending to the stakeholders’ responses to proposed strategies and the consequent dynamics created. Research limitations/implications: (1) The research was conducted with senior managers, and the authors detail the difficulties involved in doing so within the introduction and (2) The research was specific to the healthcare sector, but has relevance to all strategy makers. Practical implications: This paper explores five factors and their implications and suggests techniques to address them that are well established and available to promote the effective strategic management of stakeholders. Originality/value: Empirical research in strategy formation with elites is rare because it is difficult to gain access and trust. Empirical research in stakeholder studies is even rarer. By combining the two elements, the authors gather and interpret a unique dataset.