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ACCA Strategic Professional · Advanced Performance Management · Performance hierarchy

Mendez Telecom classifies its stakeholders using Mendelow's power-interest matrix. The national communications regulator has high power over Mendez's licences but currently shows low interest in its day-to-day operations. How should Mendez primarily manage this stakeholder when setting performance objectives?

The regulator should be kept satisfied. High power and low interest places it in the keep-satisfied quadrant of Mendelow's matrix, so Mendez should set and meet compliance objectives to avoid raising the regulator's interest or provoking intervention, rather than involving it in everyday decisions.

  1. AKeep satisfied, ensuring compliance-related objectives are met so interest does not riseCorrect
  2. BKeep informed through regular detailed reports, since the regulator has little power
  3. CMinimal effort, as the regulator is not interested
  4. DKey player, involving it in all operational decisions

Explanation

High power with low interest places the regulator in the 'keep satisfied' quadrant. Mendez should ensure regulatory compliance objectives are met so the regulator's interest does not increase. 'Keep informed' applies to low power, high interest groups, and treating the regulator as minimal effort ignores its power.

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