It is undeniable that stakeholders are one of the most determining factors in project success. They can “make it”—by providing much needed assistance or extending access to networks of support and key persons—or “break it”—by blocking a project deemed unfitting. In this article, we will introduce you to a “stakeholder analysis,” a strategic planning tool that can help understand your partners better, secure their trust, or even turn the tides in your favour.
Why do we need stakeholder analysis?
Each stakeholder is unique—with different needs, priorities, interest, and motivation to consider. By knowing your stakeholders in depth, you have insights into how to win them over for support, and a clearer vision of their relationship dynamics, where they are in your project, and the extent of their involvement. You can also incorporate their opinions into your project strategy, solidifying your work as well as your relationship with your stakeholders at an early stage.
When should we do stakeholder analysis?
Stakeholder analysis is, by essence, a tool that helps you understand your stakeholders on an individual level and develop a bigger picture of relationship dynamics between them, the earlier you do a stakeholder analysis, the better. This includes each time your project enters into a new phase. Information extracted from this method will allow you to make a more informed decision on project planning.
Step 1) Find out who your stakeholders are.
A stakeholder can be a person or a group of people who will have an impact on—or be affected by—your project. That person could be…
- Decision makers (e.g. government officials)
- Influencers, or those who are in the positions to shape opinions of others (e.g. media and those in leadership)
- Those who have their interests affected by your project (e.g. the community)
- Potential contributors to your project, with or without their interests involved in the project (e.g. experts)
When identifying stakeholders, you can use this template for policy landscape analysis from Germany’s Think Tank Lab as a brainstorming springboard:
What is the (aspect of the) problem you want to tackle? | ||
What are potential root cause? | Who is responsible for the problem and what are their interests? | Who is affected by the problem and what are their needs? |
At which stage of the policy cycle is your policy issue at the moment? | What do you know about the policy problem and its context? Top facts, context, existing findings, etc. | Blind spots: What don’t you know? What needs further research? What aspects of the problem might be overlooked so far? |
So what – why bother? |
With these questions in mind, you can 1) turn to your team for answers or 2) observe potential stakeholders who are involved with other people in your area of work (e.g. your colleagues in the same industry, or people who develop projects that are closely aligned with your work).
To better organise your list of stakeholders, you can also create a pre-planning table that contains information about each stakeholder—such as their stances; interests; risks, rights, and responsibilities (the 3 Rs approach); or their affiliations.
Example of a pre-planning table template from “Stakeholder Analysis in Environmental and Conservation Planning.”
Stakeholder | Stakeholder Interest(s) in the Project | Level of Support / Opposition for Project | Notes and Strategies for Obtaining Support of Reducing Obstacles |
A hypothetical pre-planning table of stakeholders.
Stakeholder | Stakeholder Interest(s) in the Project | Level of Support / Opposition for Project | Notes and Strategies for Obtaining Support of Reducing Obstacles |
Downstream Resident | Currently pays flood insurance costs | In favor | No new taxes would be used to subsidize construction |
Upstream Landowner | Loss of land use of wet pasture | Strongly against | Financially compensate loss of use |
City Government | Reduce flood potential, open up recreational use, possible hydropower generation could reduce air pollution and energy costs | In favor | Hydropower use could subsidize construction; needs strong support from other government agencies and offices |
Bird Watching Group | Loss of riparian bird habitat | Strongly against | Mitigate loss by restoring adjacent habitat |
Boating Group | Gain better boating access | Strongly in favor | Include development of boat ramp |
Step 2) Plot stakeholders on a “stakeholder grid.”
A stakeholder grid is a visual representation of how your stakeholders are at play. The grid is composed of two axes: 1) the level of a stakeholder’s influence, or power to shape the trajectory of your project, and 2) the extent of a stakeholder’s interest. Each quadrant represents a suitable alternative to manage your relationships with different stakeholders.
Axe y: Power (High – Low)
Axe x: Interest (Low – High)
Keep Satisfied | Manage Closely |
Monitor (Minimum Effort) | Keep Informed |
In this step, sort your stakeholders according to their degree of influence/interest. When the classification is completed, you will have 4 different types of stakeholders:
- Those with high influence but low interest: the goal is to keep them in loop and satisfied. You will have to regularly inform them of your progress, or seek consultation from them.
- Those with both high influence and interest: this group of stakeholders are within the inner circle of your operation. Their actions—whether in the form of support or opposition—will have a notable impact on the success of your project. You will have to manage them closely, and think about their preferred ways of communication.
- Those with low influence but high interest: they are eager supporters of your work. It is crucial to keep them informed of the development of your progress.
- Those with both low influence and interest: those on the outer periphery of your project do not demand much attention or investment. You can simply monitor them from afar and inform them of your progress when necessary.
Step 3) Understand the motivation and relationship dynamics of your stakeholders.
Now that you know where your stakeholders stand in your project, it is time to probe the reasons behind their motivation to endorse or block your work. You can start by looking at…
- The positive/negative impact your project has on your stakeholders. Or their gain/loss in your project.
- Who influence—or will be influenced by—your stakeholders’ opinions of your project,
With this information, you can figure out the right approach to be in a conversation with different stakeholders, convincing them to see eye to eye when tension is brewing, or stay on board and continue to place their trust in you.
A stakeholder grid can also be used to highlight networks of stakeholders with mutual interests, or how they interact with each other.
Source: MindTools