| Stakeholder analysis aims to identify the stakeholders | | | | analysis is that it provides a systematic approach for |
| that are affected by the results of a performance | | | | assessing the relative importance of particular |
| improvement project. It is the first stage of planning | | | | stakeholders to the survival of an organization. One of |
| any performance project. It is where you identify and | | | | the benefits of using a stakeholder-based approach is |
| start to understand your most important stakeholders. | | | | that you can use the opinions of the most powerful |
| Stakeholder analysis is a technique that can help | | | | stakeholders to shape your projects at an early stage |
| project team members understand the variety of | | | | of the project. |
| stakeholders that have an interest in the project. | | | | Be aware that different approaches are appropriate |
| This type of analysis ensures that all points of view | | | | for different stakeholder types. Sometimes by taking a |
| are represented in a process, and that no particular | | | | broad, business focused approach, it has been possible |
| point of view is allowed to dominate. It is a very | | | | to gain more degrees of freedom for the project. A |
| effective mechanism for bringing other perspectives | | | | proper analysis of the stakeholders will help you to |
| into the performance project design process. | | | | construct a project approach suited to the situation |
| What Is A Stakeholder? | | | | and will allow you to negotiate better with the |
| Stakeholders are defined as "individuals or | | | | stakeholders. |
| organizations that stand to gain or lose from the | | | | Remember, one of the main goals of Stakeholder |
| success or failure of the performance improvement | | | | Analysis is to reveal, and therefore potentially assist in |
| effort. Their interests in such an issue can be | | | | reducing, the power imbalance among weaker groups |
| monetary, professional, personal, cultural, or can arise | | | | which is often revealed during a policy reform process |
| from a host of other motivations. Stakeholders typically | | | | such as a performance improvement initiative. |
| have positive or negative views regarding a given | | | | A clear assessment of each stakeholder's power and |
| project, and often don't agree with one another, | | | | likely impact on the policy making process is conducted |
| making it a challenge to reconcile their varied | | | | through several steps. Detailed information gained |
| viewpoints. | | | | through a formal stakeholder analysis can be used in a |
| It is important to identify all stakeholders for the | | | | variety of ways, from deciding where and when to |
| purpose of identifying their success criteria and turning | | | | schedule a single stakeholder meeting, to designing and |
| these into quality goals. It is critical that you allow | | | | tailoring long-term collaborative and participatory |
| stakeholders to understand each others' positions. | | | | processes in which stakeholders play a key role. |
| Remember that although stakeholders may be both | | | | Because stakeholders and their positions may change |
| organizations and people, ultimately you must | | | | over the course of negotiations and analyses, |
| communicate with people. The final stage is to get an | | | | Stakeholder Analysis should remain an ongoing |
| understanding of what motivates your stakeholders | | | | process allowing for policy design to adjust as more is |
| and what you need to do to win them over. | | | | known about the political reality. Although worthwhile |
| Not all stakeholders need to be involved in all aspects | | | | throughout the project to reassess key issues, |
| of the project. Since a single project may have | | | | particularly when the project is in trouble, stakeholder |
| dozens or even hundreds of stakeholders, some | | | | analysis is best accomplished before a project is |
| stakeholder groups may need to be represented by a | | | | initiated or at some beginning phase. |
| single individual. | | | | Key Concepts |
| Management's Role | | | | The basic premise of stakeholder analysis is one of |
| The role of management is to formulate and | | | | identifying all of the key players in the project and their |
| implement strategies and to make decisions that | | | | relative stakes. A good beginning includes time at the |
| satisfy all or most of the stakeholders, or to ensure at | | | | outset to discuss the project stakeholders' key needs |
| least that no powerful and legitimate stakeholders are | | | | and expectations. A key question that can help you |
| left too unhappy. Keep in mind that it is normally | | | | understand your stakeholders is: |
| impossible for management to satisfy all demands | | | | What financial or emotional interest do they have in the |
| completely. | | | | outcome of your work? |
| Stakeholder Influence | | | | Once the analysis is done, you've probably identified |
| Influence indicates a stakeholder's relative power over | | | | 3-4 key stakeholders that are really important to the |
| and within a project. Influence is defined as the extent | | | | success of your project. |
| to which a stakeholder is able to act on project | | | | Conclusion |
| operations and therefore affect project outcomes. | | | | A stakeholder analysis is performed when there is a |
| The strength and effectiveness of the internal | | | | need to clarify the consequences of envisaged |
| relationships enable the project team to function | | | | changes or at the start of new projects and in |
| effectively and allows the team (or the project) to | | | | connection with organizational changes generally. This |
| interact and influence the stakeholder community. Of | | | | is a tool used to identify and understand those that |
| course, the 'importance' of a stakeholder is directly | | | | have an interest or stake in improving the |
| associated with his/her ability to influence the project | | | | performance of an organization. It is the technique |
| through their network of relationships. The more people | | | | used to identify the key people who have to be won |
| you affect, the more likely it is that your actions will | | | | over. |
| impact people who have power and influence over | | | | The purpose of Stakeholder Analysis is to lay the |
| your projects. The next step is to work out their | | | | foundation for an effective performance improvement |
| power, influence and interest, so you know who you | | | | process, by ensuring that all parties are identified who |
| should focus on. As part of this, think of all the people | | | | may have an interest in the project. The second step |
| who are affected by your work, who have influence | | | | in the analysis is to understand the current position of |
| or power over it, or have an interest in its successful | | | | each Stakeholder with respect to the performance |
| or unsuccessful conclusion. | | | | improvement objectives and expected outcomes. A |
| Conducting a Stakeholder Analysis | | | | benefit is that it also enables the project to identify |
| A Stakeholder Analysis is an approach that is | | | | areas of existing or potential conflict between |
| frequently used to identify and investigate the Force | | | | stakeholder groups regarding resource management |
| Field formed by any group or individual who can affect | | | | issues, and as a result the project team can take |
| or is affected by the achievement of the objectives of | | | | steps to mitigate these tensions. |
| an organization. A key strength of a stakeholder | | | | |