In protocol management, stakeholders are clustered in echelons based on their strategic importance and closeness to the royal family. At events, each echelon is treated differently. For example, the top echelons are often seated close to the king, while for other echelons only a meet-and-greet with the king is staged. Modern protocol expands on the concept of echelons and in a broader setting, frequently using the term segments for clusters of stakeholders with similar characteristics. In Chapter 4.4 we discussed that many organizations are no longer operating in a value chain environment but rather in a value network environment, or ecosystem. This implies that the number of participants — potential relations— has increased. The challenge for the Manager of the Network is therefore to define a strategy that allows the organization to focus on those relations that matter most and to identify the approach per stakeholder that is expected to deliver the best Return-on-Relationship.

This chapter will first explore the broader set of participants in the value network in the form of a Stakeholder Management Approach. The stakeholders relate to both the internal and external environments of the organization. In the second part of this chapter, one specific group of stakeholders — customers— will be detailed somewhat further in the context of Customer Segmentation.

Stakeholders as relationship echelons

A relationship is, according to The Oxford Dictionary, defined as “the way in which two or more people (or things) are connected.” Similarly, a relation is defined as “the way in which two or more people or groups feel about and behave towards each other.” Thus, a relation can improve or be strengthened. In simple terms relationship management is therefore the orchestration of (mutually) beneficial connections between people. We define relationship management in this book from an organizational perspective as a capability facilitating sustainable networks for the mutual benefit of the organization.