In Part I of this series, entitled "What is a company?" we made the point that every company or organisation started with an idea; an idea that usually came to one person, who then turned that idea into a viable organisation.

This of course begs the question: "How did that person do that?"

Certainly they would have started by 'selling' the 'idea' to a number of people, such as investors or lenders. Perhaps certain authorities needed to be convinced as well as suppliers, distribution channels, employees, and other affected parties.

The next pressing question then is: "How did they conduct that 'selling' task?"

This type of sales job can only be achieved by communication in some form or another. It might have been of the face-to-face variety, perhaps a written proposal or e-mail, or maybe through agents of some kind.

Which leads us to the question: What was communicated that brought or did not bring about the necessary response? The communication had to convey the message of a tangible benefit for the receiver of the message.

What would bring the necessary positive response to the message? How would the individual successfully sell the 'idea' of their company to potential stakeholders?

To achieve that, the message would have to create a belief, or perception, that the receiver would receive a benefit that would equal, or better, the contribution that he or she would be required to make in exchange for that benefit. In short, the receiver should be convinced that they would in some way 'profit' from the deal.

Such benefits are rarely certain however and without a doubt they are not as certain as death or taxes. Indeed, the newer the organisation or the more novel the concept, the less the certainty and the higher the degree of risk. The only means via which the potential respondent can judge that risk is by reviewing the information available to him or her and making a judgement.

From that information perceptions will be formed in the minds of people. Depending on a host of circumstances, included among which are the personalities of the people involved, positive responses will, or will not, be forthcoming. All based on their individual perceptions of the benefits and risks. Some will respond, others not.

Should the investor invest? Should the lender lend? Should the supplier supply? Should you, or your relative, apply for that job? Each person will decide on the basis of their own perceptions. For what indeed is the truth? What is the reality? All will differ, because for each person the reality that prevails is that which they perceive.

From that point, responses to the 'idea' may be forthcoming in the quantity required to make the venture practical. Provided of course that the communications sent out were convincing enough to spark the responses needed to make the 'idea' take off and become a successful business (or organisation).

All the various people who respond and eventually become part of the organisation are usually referred to as 'stakeholders'. I prefer the term 'key communication groups', or KCGs. For in using such language it reminds us that we need to communicate with them regularly. That we need to measure their perceptions regularly. That we need to work to keep them on our side.

The following table lists a typical set of KCGs and identifies the contributions they make to (and the risks they take for) the organisation and the benefits they need to perceive they will receive in return for the contributions they perceive they are making.

KCG	Gives to the Company	Receives from the company	Risk
1. Shareholders	Capital Security	Dividends	Loss of capital
2. Lenders	Operating capital	Interest	Loss of funds
3. Employees	Skills Productivity	Remuneration Job satisfaction Status	Loss of job
4. Suppliers	Materials Equipment Skills	Revenue	Loss of funds
5. Distribution agents	Skills Resources Sales revenue	Product Revenue	Loss of investment Time
6. Channel customers	Skills Resources Sales revenue	Product Revenue	Loss of investment Time
7. Direct supply customers	Sales revenue	Product	Uncertainty
8. Service agents	Resources Skills	Revenue	Uncertainty Loss of income
9. Debtors	Security	Time Working capital
10. Creditors	Time Working capital	Continuity	Loss of funds
11. Directors	Knowledge Direction	Status Remuneration	Loss of face Legal sanction
12. Trade Unions	Communication channel	Employment for its members Existence	Loss of members
13. Government	Security Infrastructure	Economic development Jobs Tax revenue Resources	Loss of jobs Loss of revenue
14. General public	Market Employees	Consumer satisfaction Job satisfaction Economic development Measure of security	Loss of momentum
15. Consumer organisations	Channel of communication	Product/service	Loss of momentum
16. Educational organisations	Skills	Market for skills training	Loss of momentum
17. Media	Channel of communication	Revenue	Loss of momentum
18. Users/consumers	Continuity	Satisfaction	Loss of satisfaction

You may be able to argue with or add to this list of KCGs, their reciprocal contributions and their risks.

However, in listing the KCGs appropriate to your organisation, one thing is certain, you will be surprised as to how many people benefit from that one idea that someone originally had!

Another amazing thing to ponder is the question of: How does it all continue to happen day-by-day, week-by-week, month-by-month?

It all works on perceptions. The wheel keeps turning because it is powered by the perceptions that each of the KCGs will all receive the benefits they expect, when they expect them.

However, what if one of the KCGs doesn't receive the expected benefits? For example, if wages aren't paid, no interest or dividend is paid, skills are not applied, productivity is inadequate, etc. The reality is that perceptions will change and the organisation will be at risk.

A solution will have to be found to ensure that there is redress, either another KCG will have to increase its contribution, or the organisation will fail and all the KCGs will lose.

Only while the perceptions of all the KCGs remain positive will there be business as usual.

To manage anything you must be able to quantify it. This applies to perceptions as well. To secure your business or organisation, you need to measure the perceptions of your KCGs regularly, so that you can manage them effectively.