What is Stakeholder Analysis?
Stakeholder Analysis and Mapping is done to map the interest of your stakeholders. It is a process of systematically analyzing and gathering qualitative information to determine whose interest should be taken into account.
Stakeholder Analysis and Mapping is important because it helps project leaders and managers to access a stakeholder's interest, positions, alliances and knowledge related to the project.
When Stakeholder Analysis need to be done?
Stakeholder analysis should always be done at the beginning of a project. Such analysis is helpful in the drafting of a log frame. Log frame is nothing but a general approach to project planning, monitoring, and evaluation in the form of a 'logframe matrix'. Whenever log frames are reconsidered during the life cycle of a project, a stakeholder analysis will be useful. Which means whenever mid-term reviews or annual monitoring is handled, stakeholder analysis should be the part of it.
Stakeholders Categorization
Stakeholders are categorized into two categories
| Internal stakeholders | External stakeholders |
|---|
| Within the organization: Employees and Management | Outside the organization: Government & Trade Association |
Process for Stakeholder Analysis
Following are the primary aspect needs to be considered for stakeholder analysis
Step 1) Identify your stakeholders: Your boss, your team, senior executives, prospective customers, your family, etc.
Step 2) Assess how those stakeholders could be impacted or have an effect on the organization
Step 3) Prioritize your Stakeholders-
| StakeHolder Type | Action |
|---|
- High power, interested people
| - Manage closely |
- High power, less interested people
| - Keep satisfied |
- Low power, interested people
| - Keep informed |
- Low power, less interested people
| - Monitor with minimum effort |
Step 4) Identify areas of conflicts (organization vs. stakeholder, stakeholder vs. stakeholder)
Step 5) Prioritize, reconcile and balance stakeholders
Step 6) Align significant stakeholder needs with organizations strategies and actions
Things to take care while dealing with stakeholders
- Could you eliminate processes, which do not add stakeholder value?
- How would you communicate with stakeholders?
- Do your communications encourage stakeholder exchange?
- Do you communicate the stakeholder the value of the deal?
Important questions to ask during Stakeholder Analysis Mapping
| Different attribute check for stakeholder | Question to ask your stakeholders |
|---|
- Identification of stakeholder
| - Who is paying for the project?
- Who will receive the deliverables or profits from the project?
- Both from your organization and client organization who will work with you to implement the project?
- Identify the expert for the project domain in the organization.
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| - What direct benefit do stakeholders expect to get from the project?
- What outcomes do stakeholders expect as a result of the project?
- What changes do stakeholders need to make as a result of the project?
- Are there any conflicts of interest amongst the stakeholders?
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| - What legitimate authority do stakeholders have in the organization?
- Who controls the project assets and resources?
- What degree of influence or negotiation power do your identified stakeholders carry in the organization?
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| - How much impact stakeholder could have on the project and does this going to affect the success of the project
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Also, you need to figure out when stakeholders will become involved in the following-
- Project Vision
- Project Scope Definition
- Business Process Analysis
- Needs Elicitation
- Requirement Validation
- Design reviews
- User Acceptance Testing
You can create a "Participation Matrix Table" for the stakeholders as given below
| Participation Type | Inform | Consult | Partner | Control |
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| Needs Assessment |
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| Planning |
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| Implement |
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| Monitoring & Evaluation |
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Tips to manage your Stakeholders
- Do not complain. Accept stakeholders as they are
- For guaranteed success, get the key leadership involved.
- Make sure, you involve your stakeholders early in the business analysis process
- In case of a sensitive issue, ensure full confidentiality to all stakeholders to win their trust.
- To avoid conflicts, help all stakeholders in realizing their personal gains from the project.
- Stakeholders mapping and analysis always helps.
Download Stakeholder Analysis Template
