Stakeholder Analysis and Stakeholder Management

What is a Stakeholder?project objectives and outcomes. An ill-informed
Try "define: Stakeholder" in Google and you will besupporter can be just as dangerous as a well-informed
surprised by the huge differences in the way thisobjector!
simple word is defined. It perhaps proves - in a way -Stakeholder Management
just how confused people get about StakeholderThere are many different suugested approaches for
Management and how inconsistent the differentStakeholder Management. In the chapter on
approaches to it can be!(stakeholders) in my (free to access) Intranet Portal
My simple definition is "anyone affected by a decisionGuide, I offer a simple, tried and tested, four-way
and interested in its outcome". This can includeapproach:
individuals or groups, both inside and outside your1) Partner
organisation.Primary stakeholders (with high influence and
Stakeholder Analysisimportance to project success) are likely to provide
The first step in Stakeholder Analysis is to assess thethe project 'coalition of support' in planning and
Influence and Importance (two different things!) of eachimplementation. As such, you should partner them to
individual Stakeholder or Stakeholder group.increase their engagement and commitment (revising
Influence is defined as the extent to which aand tailoring project strategy, objectives and outcomes
stakeholder is able to act on project operations andif necessary to win their support).
therefore affect project outcomes. Influence is a2) Consult
measure of the power of the stakeholder. FactorsSecondary stakeholders with higher influence but
likely to lead to higher influence include the extent oflower importance need to be 'kept on board'. You
control over the project funding and the extent toshould consult with them to actively seek their opinions
which the stakeholder informs decision-making aroundand input for key decisions (and not only those which
investments in technology and business change.may affect them directly). It is unlikely you would alter
Importance is defined as the extent to which ayour strategy as a result of such consultation, but you
stakeholder's problems, needs and interests aremight well alter your tactics (e.g. the who, when or
affected by project operations or desired outcomes. Ifwhere of project plans) to maintain higher levels of
'important' stakeholders are not assisted effectivelycommitment.
then the project cannot be deemed a 'success'.3) Inform
Where Stakeholders are both important and influential,Secondary stakeholders with lower influence but
then they are primary stakeholders and must by fullyhigher importance need to be kept informed of
engaged in the governance and steering of thedecisions taken that may affect them directly. It is
project, if it is to succeed. Where Stakeholders areunlikely that they would play an active role in making
either important or influential, then they are secondarythose decisions. However, were they to highlight a
stakeholders and need to be actively managed duringparticular issue with a decision, it is likely serious
the project.consideration would be given to refining the decision
The second step in Stakeholder Analysis is tomade.
understand the current position of each Stakeholder4) Control
with respect to the project objectives and expectedControl is appropriate where a stakeholder isn't
outcomes. For this purpose, a series of Stakeholderimportant or influential and they need help only to
Interviews and Surveys should be undertaken, torespect any decisions taken. Objections to or issues
understand the degree of engagement and theraised are unlikely to be given serious consideration (as
degree of commitment.they would otherwise divert valuable management
Engagement is a measure of how well theattention and resources).
Stakeholder understands the challenges the projectConclusions
seeks to tackle and the strategy, plans and outcomes.Stakeholders are key to successful Project Delivery in
A low engagement score signals a lack ofthe modern organisation. Both Stakeholder Analysis
understanding.and Stakeholder Management are vital tools and
Commitment is a measure of how supportive theshould be used iteratively throughout a project to keep
stakeholder is. A low score signals hostility, whilst a higheveryone on the same page. Be aware that different
score signals strong support.approaches are appropriate for different Stakeholder
Ideally, of course, any project wants engaged,types. You can't keep all the people happy all the time.
informed stakeholders who actively support theCheck out my guide for more hints, tips and tools.