Do you know your stakeholders? Tool to undertake a Stakeholder analysis

Stakeholder management is critical to the success of every project in every organization I have ever worked with. By engaging the right people in the right way in your project, you can make a big difference to its success… and to your career. – Rachel Thompson, Mind Tools.

Stakeholder Management is an important discipline that successful people use to win support from others. It helps them ensure that their projects succeed where others fail. Stakeholder Analysis is the technique used to identify the key people who have to be won over. You then use Stakeholder Planning to build the support that helps you succeed.

The benefits of using a stakeholder-based approach are that:

  • You can use the opinions of the most powerful stakeholders to shape your projects at an early stage. Not only does this make it more likely that they will support you, their input can also improve the quality of your project
  • Gaining support from powerful stakeholders can help you to win more resources – this makes it more likely that your projects will be successful
  • By communicating with stakeholders early and frequently, you can ensure that they fully understand what you are doing and understand the benefits of your project – this means they can support you actively when necessary
  • You can anticipate what people’s reaction to your project may be, and build into your plan the actions that will win people’s support.

In this video explains the importance of stakeholder engagement and communication in change management processes.

[su_youtube url=”https://www.youtube.com/watch?v=JxkvGzRmdSs” height=”320″]

How to Use the Tool

The first step in Stakeholder Analysis is to identify who your stakeholders are. The next step is to work out their power, influence and interest, so you know who you should focus on. The final step is to develop a good understanding of the most important stakeholders so that you know how they are likely to respond, and so that you can work out how to win their support – you can record this analysis on a stakeholder map.

The steps of Stakeholder Analysis are explained below:

Step 1 – Identify Your Stakeholders

The first step in your Stakeholder Analysis is to  brainstorm  who your stakeholders are. As part of this, think of all the people who are affected by your work, who have influence or power over it, or have an interest in its successful or unsuccessful conclusion.

The table below shows some of the people who might be stakeholders in your job or in your projects:

Your boss Shareholders Government
Senior executives Alliance partners Trades associations
Your coworkers Suppliers The press
Your team Lenders Interest groups
Customers Analysts The public
Prospective customers Future recruits The community

Remember that although stakeholders may be both organizations and people, ultimately you must communicate with people. Make sure that you identify the correct individual stakeholders within a stakeholder organization.

Step 2 – Prioritize Your Stakeholders

You may now have a long list of people and organizations that are affected by your work. Some of these may have the power either to block or advance. Some may be interested in what you are doing, others may not care.

Map out your stakeholders and classify them by their Power over your work and by their Interest in your work.

Power/Interest Grid for Stakeholder Prioritization

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For example, your boss is likely to have high power and influence over your projects and high interest. Your family may have high interest, but are unlikely to have power over it.

Someone’s position on the grid shows you the actions you have to take with them:

  • High power, interested people: these are the people you must fully engage and make the greatest efforts to satisfy.
  • High power, less interested people: put enough work in with these people to keep them satisfied, but not so much that they become bored with your message.
  • Low power, interested people: keep these people adequately informed, and talk to them to ensure that no major issues are arising. These people can often be very helpful with the detail of your project.
  • Low power, less interested people: again, monitor these people, but do not bore them with excessive communication.

Step 3 – Understand Your Key Stakeholders

You now need to know more about your key stakeholders. You need to know how they are likely to feel about and react to your project. You also need to know how best to engage them in your project and how best to communicate with them.

Key questions that can help you understand your stakeholders are:

  • What financial or emotional interest do they have in the outcome of your work? Is it positive or negative?
  • What motivates them most of all?
  • What information do they want from you?
  • How do they want to receive information from you? What is the best way of communicating your message to them?
  • What is their current opinion of your work? Is it based on good information?
  • Who influences their opinions generally, and who influences their opinion of you? Do some of these influencers therefore become important stakeholders in their own right?
  • If they are not likely to be positive, what will win them around to support your project?
  • If you don’t think you will be able to win them around, how will you manage their opposition?
  • Who else might be influenced by their opinions? Do these people become stakeholders in their own right?

A very good way of answering these questions is to talk to your stakeholders directly – people are often quite open about their views, and asking people’s opinions is often the first step in building a successful relationship with them.

You can summarize the understanding you have gained on the stakeholder map, so that you can easily see which stakeholders are expected to be blockers or critics, and which stakeholders are likely to be advocates and supporters or your project. A good way of doing this is by color coding: showing advocates and supporters in green, blockers and critics in red, and others who are neutral in orange.

stakeholder-analysis-template

 Step 4- Stakeholders communication Plan

I will be writing more about how to put together and implement a stakeholder communication plan but I propose you start with  this Stakeholder Communication Plan template.

If you want to know more about stakeholder analysis in the framework of Change Management you can read:

Change Management Guidebook – NextGen Michigan