Six Types of Stakeholders Leaders Need to Influence

Jackie had just accepted a promotion and was working to develop a grasp of whom she needed to influence in her organization. She knew that influencing stakeholders, both internal and external, is critical to any leader’s success, and that building strong working relationships strengthens influence. Her mentor helped her to map out the key people she needed to influence at this stage in her career, and this is what they came up with.

1. Executives

   Influencing executives helps a leader to build broad support for her projects and ideas and to gain financial backing when necessary. When a leader sells her ideas to executives, they in turn influence shareholders and directors, as they typically have closer contact with them. Therefore, by influencing an executive, a leader influences others who are high on the organizational hierarchy. Plus, these executives often have direct influence over promotions, so gaining influence with them is critical to career advancement. Learning to think like executives, understand their vision, and articulate ideas with confidence are key aspects of gaining influence with them.

2. Clients

   When a leader has influence with clients, they trust her ideas and advice. They’re more likely to support taking calculated risks and trying new ideas that the leader supports. Reliability is a key factor in gaining influence with clients. Building a strong rapport with them is another. Strong relationships allow a client to understand how a leader thinks and what she cares about, building a bond of trust. These relationships also allow leaders to gain input from customers that lets them better serve their needs.

3. Sales departments

   It’s important for leaders to influence their sales departments so these departments truly have confidence in their company’s products or services. When the sales department believes in what the company is doing, it will convey that enthusiasm to customers or clients. Leaders need to make sure sales departments are thoroughly educated about products and services as well as their value. This knowledge will help them convey a sense of confidence to customers and clients.

4. Finance departments

   Finance departments are another group of stakeholders that leaders must influence in order to gain their trust as well. This trust allows them to work as partners to allocate financial support to projects. Leaders must show the finance department that their projects are good investments for the company. Additionally, they should thoroughly educate them in the rationale for pursuing particular projects, so finance personnel can articulate it to others in the company, further building buy-in.

5. Other colleagues

   All colleagues in the workplace are stakeholders that a leader needs to influence. Building strong relationships throughout the workplace will help a leader gain buy-in for projects and ideas. Further, it will prime him to move into a more advanced leadership position, because the people he’ll be supervising already have a high level of respect for him.

6. Suppliers and contractors

   Leaders must build strong relationships with suppliers and contractors as well. They’ll gain more leverage with these parties as they convince them that the company’s endeavors will prove lucrative far into the future. These parties want to build relationships with companies that will continue reaching higher levels of success, meaning they can grow together. When leaders convinces suppliers and contractors that the company’s growth will continue, they’ll have more room to negotiate with them as well as a stable base of support.

As Jackie worked on influencing these key stakeholders, she found herself becoming more respected as a leader in her company. At first, she had to make a conscious effort to think about how to approach these stakeholders on a daily basis, but after a while, it began coming naturally. Often a colleague would reach out to her to discuss a company project or new idea, so she was no longer doing all the legwork in building these relationships. As her influence grew, people began coming to her more often, and she did her part to maintain strong ongoing relationships with them all.

Joel’s leadership coaching will help you reach the key stakeholders in your organization. He’s an expert on how company’s leaders can use their influence with key stakeholders.