Leaders Engaging Stakeholders

March 7, 2018

A key characteristic of leaders in any capacity is their ability to engage stakeholders. What or who is a stakeholder? It is anyone who has a stake in the future of the organization.

In churches it is the pastor, staff, membership and lay leadership. Specifically, the leadership involves such groups as the Parish Council, the Vestry, the Session, the Deacons or the Elders. They have responsibility for church oversight, particularly in areas of spirituality, service and financial stewardship.

Likewise, in a business stakeholders are comprised of the administration, staff, board and customers; and in a nonprofit organization they are the CEO, staff, board and the people being served. So the question is, why and how do you engage them?

Why Organizations Want to Engage Their Stakeholders

According to a 2012 Gallup study of nearly 50,000 work units and 1.4 million people, employee engagement is directly related to productivity, profitability and other measures of success.

Specifically, those work units in the top quartile in employee engagement outperformed bottom-quartile units by 10% on customer ratings, 22% in profitability, and 21% in productivity. Those work units also saw significantly lower turnover, shrinkage, and absenteeism as well as fewer safety incidents, patient safety incidents, and quality defects.

Of course, these results are similar in the nonprofit sector. In fact, a Cranfield University report on stakeholder engagement said that very thing. “Stakeholder engagement is relevant to any type of organization: business, public or civil society.”

How Organizations Engage Their Stakeholders

Of course, there are lots of routes to engage stakeholders, but it boils down to understanding the needs and wants of stakeholders, building trust by aligning appropriate practices with those needs and wants and giving up some control.

Unfortunately, while all of that sounds good, another Gallup study revealed that 70% percent of American workers are not engaged in their work. Gallup described “engaged” employees as “those who are involved in, enthusiastic about and committed to their work and workplace.”

Not surprisingly, the study showed that people with the most power in the organization (executives, managers, and officers) were also reported as having the highest levels of engagement. Unfortunately, what we have learned from the unengaged in the corporate sector applies in the nonprofit sector as well. The level of Board, volunteer and donor engagement will have a significant effect on fundraising efforts and organizational morale.

Simply stated, organizational leaders can have high levels of engagement or control, but they can’t have both. For example, if you improve your engagement of board members, staff and donors, you are likely to see increases in giving. However, in order to increase engagement, you have to also give up some control.

A Prime Example

One of our clients provides an interesting case study. It just so happened that the technology in a well-used room was nearly 20 years old and considerably outdated. There were several engineers and a high-ranking officer at a world-class technology company who were among the folks who used that room. They offered to update the equipment at their expense, providing much improved technology along with the installation. It was a gift worth $7,000-$8,000.

They coordinated with appropriate staff, and in particular, the technology professional who began to assert his authority. The bureaucratic controls that were initially put on the process and the people were so inflexible that the staff member dampened engagement and nearly killed the deal.

The point is that, engaging people requires that we acknowledge that they have something to offer and then allow them to offer it. While it sounds simple, you’d be surprised how often people and organizations miss that point! Whether it’s in a church, a nonprofit or a company people want to be empowered to contribute and they want their contributions to be recognized.

“I really support The Covenant Group’s strategic planning process because their approach encourages staff-based support with board buy-in, and I felt that was important given what we were trying to achieve. The outcome is an effective plan that builds consensus and provides a clear sense of direction.”
- Jennifer Scott, Director of Development - The Cabbage Patch Settlement House

“The Covenant Group is highly competent, very experienced and knowledgeable. They provided a broad perspective by equipping us with useful data…and best practices in the field. All in all, they are excellent.”
- Dan Jones, CEO - 21st Century Parks

“The campaign has truly been a miracle. People were committed from the beginning, but…even raising $650,000 seemed like a stretch. To nearly double that amount is incredible! When the plan they developed allows you to hit a goal like that, it builds such a sense of community. The momentum built by the campaign is spilling outside the walls of our church and benefiting others in the process.”
-Father John Hollowell - Annunciation of the Blessed Virgin Mary Catholic Church

“For those of us who don’t do this everyday, The Covenant Group instilled confidence in us. They helped us get through the fear and apprehension by providing us with a process, training and motivation. They taught us and helped us plan in a way that was for the better. We have built lasting relationships with donors and we will continue to steward these relationships long into the future.”
- Sue Finke, Director of Institutional Advancement - Covington Catholic High School

“No one anticipated we could raise this amount. Even the Archdiocese is surprised. The funds raised represent about 15 times our annual giving. But it’s not just the financial results. People stand around talking more than they did before the campaign. There is also a renewed and energized spirit among the parishioners. It’s the most exciting thing to happen in our parish in the last 100 years.”
- Gary Libs, Campaign Co-Chair - St. Mary of the Knobs Catholic Church

“The Covenant Group’s process involved a lot of people in our congregation doing small tasks … that built ownership. They took our vision and put it into a concrete plan. They helped us understand the importance of making our vision clear and laid out the steps to make the vision a reality. Their process built consensus and showed people how they could help. Their methods are based on a solid theological foundation that includes key documents, prayer support, and requisite training … all of which were invaluable.”
- Daniel Montgomery, Pastor - Sojourn Community Church

“Everything The Covenant Group did to help us…in the initial stages was helpful…the development of the case statement; our materials; the training of our Board members; strategies; all these steps laid the foundation for eventual success. They brought such a high level of professionalism, a wealth of experience and a strong track record of integrity and success… just being associated with The Covenant Group helped us.”
- Nancy Doctor, Development Director - Wellspring

“The structure The Covenant Group provided was excellent. It allowed our members to use their God-given talents to benefit the church community They helped us develop a plan and identify key leadership candidates to chair the effort, as well as engaging between 80 to 100 people to carry out the work of the campaign. It was truly a whole congregation effort and The Covenant Group helped facilitate that. They helped us reach our full potential as a congregation.”
- Ron Poisel, Pastor - Christ Lutheran Church

Leaders Engaging Stakeholders

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