Stakeholder analysis is the first step in managing stakeholders, which successful people use to support each other. Stakeholder management helps them ensure that their projects are successful where others may fail.
Have you ever found yourself working on a project, only to hit the buffers simply because a powerful manager or influencer says No? It could be extremely frustrating, especially when you are sure that your work would have presented real results if you had permission to continue.
As you develop and become more successful in analysis, your actions begin to affect more people. The more people you act, the more likely your actions affect people who have power and influence over your work. These people can be strong advocates of your projects – or they can block them, so you need to identify who those people are and win them over.
In this article, let’s look at the crucial first step – Stakeholder Analysis – in more detail.
How to Gather Information for Stakeholder Analysis
There are several systems and tools used for gathering information for stakeholders.
It is worth mentioning some more commonly used tools:
- Distribution of printed documents: Manual archiving systems; Press releases; Scan and share via electronic databases.
- Conference and communication tools: Email, fax, voicemail, telephone, video conferencing, Internet meeting, websites, and web publishing.
- Information distribution systems: Tool for GP to collect, store and distribute information about project cost, time and performance; GP software consolidates reports from various system distribution of words; Common townhomes: tables, analysis of spreadsheets and presentations; Graphical capabilities to create visual representations of project performance information.
Steps To Conduct Stakeholder Analysis
There are three steps to follow in the Stakeholder Review:
- Identify who your stakeholders are;
- Work your power, influence, and interest, so you know whom you should focus on;
- Develop a good understanding of the most important stakeholders, so you know how they can respond and how you can gain your support;
After you complete your analysis, you can use stakeholder planning to determine how you’ll communicate with each interested party.
Let’s discuss the steps of stakeholder analysis in detail:
Step 1: Identify Your Stakeholders
Start by discussing what your stakeholders are. As part of this, think of all those affected by your work, who have influence or power over it.
Stakeholders can be organizations and people, but in the end, you should communicate with people. Therefore, be sure to identify the right individual stakeholders in a stakeholder organization.
Depending on the stakeholders, there are different approaches:
- Primary stakeholders directly affected: target audiences or beneficiaries
- Secondary stakeholders indirectly affected
- Key stakeholders, the key to the process of change
Step 2: Prioritize Your Stakeholders
You can now have a list of people and organizations affected by your work. Some of them may have the power to block this job or move it up. Some may be interested in what you’re doing, while others may not care, so you need to figure out whom you need to prioritize.
You can map your stakeholders and classify them according to your power over your work and interest in a Power/Interest Network. The following are the positions that integrate this network:
- For example, your boss probably has high power and influence over your projects and an increased interest in them. His family, however, may have a great interest in them but will have no control over them.
Step 3: Understand your key stakeholders.
Now you need to find out how your main stakeholders feel about your project. You also need to figure out how best to involve them and how to communicate with them.
- Who are the stakeholders?
- What is their profile?
- What are the interests at stake?
- What are the relationships between each stakeholder?
- Who is ready/opposed to change?
You can ask the questions mentioned above directly to your stakeholders. They are usually pretty open about their opinions, and asking for their views is often the first step in formulating a successful relationship.
An easy way to review the level of assistance from stakeholders is to code them in color. For example, show green defenders and supporters, blockers, and critics in red and neutral in orange.
The ideal information management system can be from a simple and inexpensive solution like a file server with spreadsheets, documents, and schedules, to a robust and complex solution.
Benefits of Stakeholder Analysis
A stakeholder-based approach offers the following main benefits:
One of the benefits of stakeholder analysis is a reflection on the environment in which the company operates. Thus, the review of these relationships with the various stakeholders allows it to diagnose the situation. Does it have few or many customers, what are the payment terms demanded by suppliers does it have trained staff who may want to evolve? It also allows the company to anticipate its evolution. Better understand the strengths and weaknesses of its business to put in place an appropriate strategy.
Another advantage is that it is a way to promote the sustainability of the company. Indeed, stakeholders are inherent in all companies and ensure their development. The company must seek to satisfy stakeholders to ensure overall efficiency. A company having good relations with its stakeholders becomes more efficient and sustains its business model.
Download Free Stakeholder Analysis Template
Stakeholder analysis involves a series of steps conducting, which can be time-consuming. To save your time and energy, we offer a free stakeholders analysis template that will significantly increase your productivity.
Stakeholder Analysis Template for Word
Stakeholder Analysis Template for Project
Stakeholder Analysis Matrix Example
Stakeholder Mapping and Analysis (PPT)
Stakeholder Map Template for PowerPoint
Stakeholder Analysis Template for PowerPoint
Stakeholder Analysis Template for Excel
Stakeholder Analysis Log Template for Excel
Frequently Asked Questions
You can build a strong relationship with internal stakeholders through proper planning, faith, open discussions, regular meetings, and joint conflict resolution.
You can communicate effectively with stakeholders by scheduling regular meetings, putting forward a newsletter, and producing project reports. It will also help you build strong relationships with stakeholders.
Consultation with stakeholders is of immense importance as it helps you build a strong relationship with mutual benefits. Moreover, talk during a crisis can build trust, which is vital for a long-run relationship.
Stakeholder analysis is the process by which you identify your key stakeholders and gain their support. Stakeholder analysis is the first stage of this, where you place and begin to understand your most important stakeholders.
The first step is to identify the stakeholders. The next step is to prioritize them, and the final stage is to understand what motivates your stakeholders and how you need to win them over. To achieve the objectives set, it is essential to identify the stakeholders of a project, then analyze their expectations and needs and finally trigger, if necessary, the appropriate communication actions.