One widely used model for classifying stakeholders isMendelow’s Power-Interest Matrix. This model categorises stakeholders based on their level of power (ability to influence decisions) and their level of interest (degree of concern in the issue). It helps managers decide how to engage with different stakeholders effectively.
High Power / High Interest – Key Players:These stakeholders must be closely managed and fully engaged. For example, the Finance Director or Hospital CEO when approving a high-value purchase. Procurement should provide detailed briefings, involve them in decision-making, and ensure their concerns are addressed.
High Power / Low Interest – Keep Satisfied:These stakeholders can influence outcomes but may not have strong interest in day-to-day procurement. For instance, regulatory bodies or legal advisors. Procurement should provide concise updates and ensure compliance to avoid dissatisfaction.
Low Power / High Interest – Keep Informed:These stakeholders care about the outcome but have limited influence. For example, end-users of medical equipment or nurses in a hospital setting. Procurement should communicate progress, seek feedback, and maintain transparency.
Low Power / Low Interest – Minimal Effort:These stakeholders require only basic information. For example, general staff not directly impacted by a procurement decision. Simple updates or summaries are enough to keep them engaged.
When communicating about ahigh-value purchase, the Procurement Function should tailor its communication strategy according to this classification. Key players (high power, high interest) must be involved early with full transparency, including risk assessments and supplier evaluations. Stakeholders with high interest but low power should be consulted to build trust and buy-in, while those with high power but low interest should receive enough information to stay satisfied. Procurement should also ensure consistent, professional communication that reflects the importance of the purchase and builds confidence in the process.
Conclusion:
Mendelow’s Power-Interest Matrix provides a structured way to classify stakeholders. By adapting communication to each category – managing key players, keeping others satisfied or informed – the Procurement Function ensures effective stakeholder engagement, minimises resistance, and gains approval for high-value purchases.
