Regulators and External Bodies – The Rules That Define Reality

Post 4 of 6 in the Series About My Stakeholders:

After discussing your manager, employees, and colleagues, it’s time to move on to especially important external stakeholders – regulators. These are the bodies that dictate the rules and laws within which you manage your organization. Regulators are not a direct part of the organization, but their influence is evident in every decision and process. Of course, not every managerial role has significant regulators as stakeholders; it depends on the field and industry in which you operate.

Why are regulators so important?

When we talk about regulation, we mean government or professional bodies that ensure your activity complies with required regulations and standards. As businesses and managers, we are obligated to follow these rules, and sometimes this can be a significant challenge. Therefore, it’s crucial to build good relationships with regulators to ensure your business operates legally and smartly, and that you maintain good relations with them.

How to manage relationships with regulators?

The right way to deal with regulators is to create an open dialogue and understand their needs. Although we are required to operate within the rules they dictate, through proper collaboration, we can find ways to streamline the process and ensure that regulators are satisfied with how you manage the business.

A Field Example: How I Solved a Complex Regulatory Problem

In the past, I had a project where I was required to meet very strict regulatory conditions. Initially, the relationship with the regulator was tense because it wasn’t clear how to implement their guidelines. After several open meetings and discussions about the needs of both sides, we managed to solve the problem and reach mutual understanding. It was a process that allowed for smooth continuation of work without further delays.

In the next post, we’ll deal with additional stakeholders: suppliers, customers, competitors, unions, and professional bodies that also influence your performance as a manager.​​​​​​​​​​​​​​​​