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International Conference on Complex Systems (ICCS2006)

Stakeholder Analysis To Shape the Enterprise

Keith McCaughin
The MITRE Corporation

Joseph DeRosa
MITRE Corporation

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     Last modified: June 16, 2006

An enterprise is complex adaptive social system that should maximize stakeholder, not shareholder, value - value to employees, customers, shareholders and others. We expand upon Russell Ackoff's direction, to distribute value among stakeholders, to propose a schema of rules that guide the interactions among autonomous agents in the transactional environment of an enterprise. We define an enterprise as an organization and its transactional environment adapting to each other. Enterprise behavior can only be understood in the context of this transactional environment where everything depends on everything else and interactions cannot be controlled but can be influenced if they are guided by an understanding of the internal rules of the autonomous agents. The schema has four complementary rules (control, autonomy, return and value) derived from the work of Russell Ackoff and Michael Porter. The basic rules are applied in combination to eight stakeholder types derived from Richard Hopeman and Raymond McLeod (Leaders, Competitors, Customers, Public, Workers, Collaborators, Suppliers and Regulators). An enterprise can use this schema and rules in a process of stakeholder analysis to develop and continually refine strategies to encourage behaviors that benefit the enterprise and discourage behaviors that harm the enterprise. These strategies are implemented in a relationship management program in support of enterprise strategic management to consciously and explicitly shape the environment to reduce risks and increase opportunities for success.

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