chapter  Two
24 Pages


From stakeholder maps to financial and operational performance
ByWitold J. Henisz

This chapter outlines how to integrate stakeholder engagement into quantitative business planning to move from the realm of cases and stories, where the financial benefits are clear and almost immediate, to quantitative analysis over a wide range of projects. In times of stress, operations as well as unanticipated material costs quickly mount, sapping operational performance and net profits. The most difficult to measure, but arguably the most important, benefits and costs stem from new business development. Ideally, a project leader person would be an accountant or finance professional with a reputation for fairness and an ability to dig up data that may not be easy to extract. The data gathered should be used in the discounted cash flow analysis of current and potential corporate diplomacy initiatives. Showing colleagues that corporate diplomacy can create financial value can turn these skeptics into evangelists, who return to their departments and lobby on behalf of stakeholder engagement.