12 Feb First Time CEOs – Understanding Stakeholder Management
First-time CEOs have it hard when it comes to stakeholder management.
But it doesn’t have to be.
Your investors want results.
Your employees want clarity.
Your suppliers want trust.
Your customers want reliability.
As a first-time CEO, how do you balance it all while running a company?
Mastering stakeholder management isn’t optional, it’s a leadership necessity. Stakeholder management is more than a duty, it’s the backbone of strategic leadership. First-time CEOs must carefully craft and communicate their company’s narrative.
But how?
↳ Identify key stakeholders: Customers, employees, suppliers, investors—who are the people shaping your company’s future?
↳ Don’t just lead only the organization, lead and engage with people.
↳ Lead your stakeholders with a compelling story.
↳ Balance stakeholder management with your other duties
↳ Listen, adapt, and communicate effectively.
A clear strategy helps you integrate these responsibilities seamlessly.
Here is a real-life example of what a successful CEO did to understand his business:
After taking the helm at Uber, Dara Khosrowshahi went undercover to experience life as a driver. This firsthand experience revealed that drivers and delivery personnel felt undervalued. In response, he initiated cultural changes within the company to better appreciate and celebrate their contributions, aiming to improve relations with this critical stakeholder group.
So, how do you build a powerful stakeholder strategy?:
➜ Understand your business inside and out.
➜ Build trust with key customers, suppliers, regulators, and employees to ensure long-term success.
➜ Create your narrative. People follow stories, not statistics.
➜ Communicate your vision clearly and often.
Bonus: Use the McKinsey EDGE framework:
✔️ Expanded view: Act as the company’s bridge to the external world.
✔️ Distinctive narrative: Be the storyteller-in-chief.
✔️ Growth mindset: Empower ambassadors to communicate your vision.
✔️ Engaged posture: Strengthen stakeholder connections and prepare for crises.
(Emad Ghaly Feb 2025)
If you want to take your CEO job to the next level contact me about executive coaching at www.pm360consulting.ie.
Article “Stakeholder Management for First Time CEOs” written by Emad Ghaly February 2025.