Who is a Stakeholder?
Any individual or organization who are actively involved in the project, who can be positively or negatively impacted by the actions of the company, having needs and expectations, and whose interests may be affected as a result of project’s execution or project’s completion.
They need to be considered in achieving goals of the project, whose support and participation is very much important in project’s success.
Stakeholders can be internal and external and categorized as,
- Individuals inside organization
- Departments or groups inside the organization.
- People or individuals outside organization also called as influencers.
A particular list of stakeholders:
- Stockholders and investors – Directly effected
- Banks and creditors
- Employees – Directly effected
- Government and regulators – Indirectly effected
- Buyers and customers
- Media – Indirectly effected
It is an important technique which aims at developing the strategic view of human as well as institutional outlook, and also aims at improving the relation between different stakeholders and look at their issues.
The Stakeholder Analysis process include:
- Identify all the key stakeholders (Brainstorming)
- Document stakeholder’s needs
- Assessing their interests
- Manage their expectations
- Identify areas of conflict
- Prioritize and align their needs with organizations strategy.
- Review status, take action and repeat
Benefits of Stakeholder Analysis:
- Get to know and understand stakeholders better
- Identify risks and potential issues that can disturb the project
- Reduce negative impacts and manage negative stakeholders
- Communication planning
- Make better strategies and take better decisions
- Identify people during execution phase for information distribution
A common approach that can help identify and prioritize the stakeholders based on the interests, power or influence by grouping them as below,
|Power and Influence||Interest||What to do|
|High||High||Learn how to spot (MANAGE ClOSELY)|
|Low||High||Show Consideration (Keep Informed)|
|High||Low||Meet their needs (Keep Satisfied)|
|Low||Low||Least Important (Monitor)|