Every venture has its stakeholders. They are the people who are directly affected by the work. This includes clients, customers, a group with certain interests in the scheme and/ are otherwise its outcome, including CEOs, HODs and head of departments.
Thus, to get the task on an early start, the manager must do the following:
- Identify all of different example of stakeholders
- Document the needs of every stakeholder
- Access and analyse the interests as well as influence of each stakeholder
- Manage stakeholder expectations
- Take actions
- Review status and repeat
How to Do a Stakeholder Analysis: Example
Stakeholder analysis is a critical tool for identifying and analysing the needs of interested parties as they relate to a specific endeavour. Handling stakeholders is not a simple task, given as they consist of different groups with varied interests, objectives and agendas. The stakeholder analysis model proffers ways to go about this would be to identify and rank their influence accordingly, and keep from being pulled in several directions.
Benefits of Stakeholder Analysis
- Identify the most influential of all stakeholders
When you figure out who holds the most influence over your job, and pitching in with them saves you a lot of troubles and helps you to focus more energy on the objective.
- Identify issues that may disrupt the smooth flow of your activities
To get the best out of your endeavours, you must understand and try to anticipate stakeholder reactions regarding your undertakings, identify potential areas of conflict as well as figure out ways to handle them.
- Identify ways to communicate with different stakeholders
Continuous communication with stakeholders, including one-on-one meeting makes for a situation where everyone fully understands what your assignment is about and therefore can provide the needed support.
- Identify and mitigate the effect of potential negative stakeholders
Analyse each stakeholder and how they view your undertakings. Understand why they suddenly begin to lose confidence in your enterprise. Addressing the underlying factor is the best way to end the resistance and gain their support.
How to Do a Stakeholder Impact Analysis
- Identify your stakeholders
To do a proper stakeholder identification and analysis, consider everyone who is affected by your venture – those who have interests as well as power over it. Examples include the CEO of your company, the government, prospective customers, senior executives, co-workers, key advisors, the community, etc.
- Prioritize your stakeholders
Among your stakeholders, there are those with enough power and interest to either terminate of advance your work. You can further draw out a stakeholder analysis grid/ stakeholder analysis table, and do a classification of their influence over your work.
You may use the power/interest grid for stakeholder prioritization to do this:
- High power, highly interested people (Manage closely)
Stakeholders in this category are critical to the success of your venture. To get the best out of your endeavour, it is recommended that you engage and keep them satisfied at all times.
- High power, less interested people (Keep informed)
Keep these people satisfied with just the right amount of information to keep them on the loop, but not so much as to bore them.
- Low power, high interest people (keep informed)
People in this category are more often helpful with the nitty-gritties of the job, it will pay to keep them informed and ensure there aren’t any underlying issues requiring clarification.
- Low power, less interested people (Monitor)
For those stakeholders in this category, it is the best point of call to monitor them and not necessarily bore them with too much information.
- Understand your key stakeholders
This involves working out who your key stakeholders are, as well as find out the best ways to engage and communicate with them.
To further understand your stakeholders, you may ask yourself the following question:
- What interests do they have with your work? Is it positive or negative?
- What are their motivations?
- What information do they require, and what method of communication will be best suiting for them?
- How do they feel about your work?
- For those who are not supportive, what will sway their opinions?
- Given that you may not be able to win them over, what are the best ways to manage them?
- Are their opinions likely to influence others? Who?
You can use colour codes to simplify the process further. For example: you may decide to pick green for stakeholders who support you, red for critics, and orange for those who have taken a neutral stance.
Stakeholder Analysis Tools
A more seamless way of going about this would be to make use of Sinnaps online project management platform. We realize how this process is and we are here to help you through every step of the way.
To make it even easier to complete your analysis, we have already-prepared, and easy stakeholder analysis steps to help you complete your stakeholder needs analysis.