Stakeholder Analysis is a method to identify all parties like persons, departments, or organisations, to take the necessary steps to manage their special interests and expectations so that the project works smoothly. It can be done once or on a regular basis on the requirements of the project management.
Basically Stakeholder analysis is used in Project management like –
• Conflict resolution,
• Project enhancement,
• Business administration etc.
The lack of this stakeholder analysis creates an imbalance in sharing of ideas and influence of particular stakeholder over others, which can create dissolution in Project management. So as early as possible to ensure the lack of stakeholder buy-in can bring project success sooner.
The importance of Stakeholder analysis can be seen in multiple directions, a review and consideration of the impact stakeholders have on our business. It is becoming very important in 21st century as non-shareholder entities including customers, employees, communities and business partners are key to business success.
1. While making marketing strategies, always careful consideration is given to the critical customer stakeholder group. In this to be honest, transparent and direct in communication with customers brings valuable expectation, also conducting market research is an innovative technique to learn about the needs of consumers. Moreover product development according to consumer needs and promotions are largely influencing factor in stakeholder analysis.
2. Motivating employees is the key factor for analysing, which helps us optimise satisfaction and production. Understanding needs and interests of employees help us to set up a working environment with no stress, which results in business growth, is a key point in stakeholder analysis.
3. Corporate citizenship is the balancing of social and community responsibilities with profit of Business turnover. Sometimes philanthropy and charitable giving to non-profits or schools help to impress the community as well as leads to a business who cares about social welfare, plays a role in stakeholder analysis.
4. Sometimes partnership also plays key role in enhancement of supply-chain management in modern business strategies, which benefits all involved like manufacturers, distributors, retailers. Also technology including inventory management software and tracking system, helps in maintaining a perfect Business partnerships.