Quote

"The nation behaves well if it treats the natural resources as assets which it must turn over to the next generation increased, and not impaired in value." Theodore Roosevelt

Sunday, October 28, 2012

Measuring your Stakeholder Satisfaction Index

Today's topic would be: How to Measuring your Stakeholder Satisfaction Index

Before we talked about how to measure the stakeholder satisfaction to our CSR Program, I would like to raise an issue that sometime most company forgot about. A corporate who implemented CSR programs sometime forgot that they actually need someone to manage two role and function of that CSR. One is the program executor, or most common called by Community Development Officer and the other one is the program controller, this is the one that sometime been forgot by most company. The role of the CSR program controller is can be as limited as just to control the program implementation, ensuring that the program is match to their target performance, budget and schedule. But can also as wide as from strategic planning, budgeting to monitoring and evaluation of the CSR program.

That way, your CSR would have a balance function, a role who is executing the program and a role of strategically control the program. This way, it is easier for the corporate to measure their own CSR performance, to analyze their works, their CSR programs and their branding position in public view or in their stakeholder perspective.

Ending up with no one evaluate the performance, this would led to uncertainty that we achieved our objective or not, we just implemented but no one seems to evaluate the impact or the perspective of our stakeholder regarding our works.

So, question is how to measure your stakeholder satisfaction?
First of course, you need to understand who are listed in your stakeholder list. What is the main group of your key stakeholder..is it the customer? the employee? the vendor? the principal? the share holder? the owner? or the government? (please refer to stakeholder mapping)

If you have identified your stakeholder then you can set a regular period of time to do a performance survey against all your CSR program and your brand image to those targeted stakeholder group.

It can be a simple survey of series of questions to explore your stakeholder opinion regarding the brand, the programs on various of element such as Satisfaction rate, Importance rate, Beneficial rate, Sustainability, etc..

To score can be limited as 1 to 4 or 1 to 5, the important is to analyze with the tools match to your company need. If you need to identify the satisfaction rate only of each your program implementation, the common one is to use Importance Performance Analysis (IPA) where the result can be shows in a cartesius diagram such as below





From the IPA you can identified which program is already in good work or match the satisfaction of your stakeholder, which one require an improvement because its overkill (high performance but low importance) or "concentrate here" quadrant (highly importance but least performance).

Various people has also tried to propose a tool to measure the total performance based on stakeholder perspective, such as an analysis of Business Process performance against four group of stakeholder; Customer, Employee, Owner and Supplier as below

as it is written in http://www.bptrends.com/publicationfiles/04-06-WP-StakeholderAnalysis-Curtice.pdf

Some even create their own performance analysis, so how about yours?

How do you measure the performance of your stakeholder perspective against your company performance?