Stakeholder analysis is the process of identifying the individuals or groups that are likely to affect or be affected by the project outcome and sorting stakeholders according to their impact on the project and the impact the project will have on them. It is not only a critical process in the initiation phase of the project (best practice is to revisit it at least after each project phase if possible) but also sometime becomes factor for success of the project especially for the large enterprise wide programs. The output information helps in effectively managing the stakeholders by meeting their expectations and gaining their confidence.
Stakeholder analysis can entail below activities;
- Capture and document the characteristics of key stakeholders.
- Capture the interests of stakeholders in relation to the problems that the project is seeking to address
- Capture conflicts of interests between stakeholders helping to manage such relationships later in the project
- Capture relations between stakeholders that may enable “coalitions” of project sponsorship, ownership and cooperation
- Identify the capacity of different stakeholders and stakeholder groups to participate
- Capture and document appropriate level of participation by stakeholders e.g. inform, consult, partnership or all of these
So chances are more people your project impacts by its outcome and activities, it’s obvious that more people will also have some degree of influence over the projects direction in a positive or negative way. Some of these “impacted “will likely benefit directly or indirectly and will become supporters in your endeavors. Similarly people who are likely to impacted negatively by the project will block the project activities or act in a manner to delay. Hence it is important to ensure to cultivate more supporters and engage affected for managing their expectations to an extent possible without digressing on the project’s deliverables or products. Therefore it is essential to analyze these stakeholders from the perspective of your project. For simplicity, project stakeholders can be classified in following types.
Classification of Stakeholders
- Primary stakeholders: are those ultimately affected, either positively or negatively by an organization’s actions.
- Secondary stakeholders: are the ‘intermediaries’, that is, persons or organizations who are indirectly affected by an organization’s actions.
- Key stakeholders: have significant influence upon or importance within an organization (they can be part of either two groups above)
Managing Stakeholder expectations
Essentially you will need to develop a strong working relationship with key stakeholders. Primary or Key stakeholders are required to be engaged proactively time to time for consultation, key decisions, support and selling the benefits of project outcome to ensure the strategic objectives of the project or program are achieved. This also draws on the robust communication management to keep these stakeholders engaged and abreast of current challenges, issues and any significant success through regular communication and in person interactions to meet their information needs. The communication plan may document who receives communications, when, how and to what level of detail. Protocols may be established including security and need to know parameters.
Key Benefits of Stakeholder analysis / Managing Expectations;
- Influential stakeholders can be identified early and their input can then be used to shape the scope and deliverables
- Cultivating support from the powerful stakeholders will help the engagement win more resource, thus making the project or program more likely to succeed.
- The project and program management team identify conflicting or competing objectives among stakeholders early and draft plan to resolve the potential issues
- By engaging and interacting with stakeholders early and frequently, the team can ensure that they fully understand and are convinced of the benefits of project goals