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S.Rengasamy
S.Rengasamy –Stakeholder Analysis
Contents
Introduction ..........................................................................................................3
Why do Stakeholder Analysis? .............................................................................3
Box: Project Stakeholders ..........................................................................................4
Definition of Project Stakeholders: ......................................................................4
Project Stakeholders .................................................................................................4
Box: Purpose of stakeholder‟s analysis .......................................................................5
Types of stakeholders: ..............................................................................................5
Primary stakeholders. ................................................................................................5
Secondary stakeholders. ............................................................................................5
Key stakeholders: .....................................................................................................5
Box: Stakeholder Mapping- Power / Dynamism Matrix .................................................6
Methods of Stakeholder Mapping ...............................................................................6
Box: Power / Interest Matrix –Power Legitimacy & Urgency Matrix ...............................7
Stakeholder Matrix - Importance & Influence ..............................................................8
Diagram: Who is a StakeholderBox: Models of Stakeholder Matrix ...............................9
Box: Models of Stakeholder Matrix ........................................................................... 10
Box: Stakeholder Management ................................................................................ 11
What is Stakeholder Analysis? .................................................................................. 11
What are the benefits of Stakeholder Analysis? ......................................................... 12
On Beneficiaries & Stakeholders ............................................................................... 12
Spectrum of Stakeholder Engagement & Good Stakeholder Engagement .................... 13
Table: Identification of Stakeholder Groups, Interest, Importance and Influence ........ 14
Diagram: Stakeholder Relationship & Stakeholder Interaction .................................... 15
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S.Rengasamy –Stakeholder Analysis
Introduction
Who are the people who will benefit from any given development activity? And whose interests
might be harmed by it?
Identifying the stakeholders,
large and small, individual &
organizational, for any given
activity is essential if all the
people who could have a
bearing on its success or
failure are to have their
voices heard. All
stakeholders need to have
their opinions taken into
account, even if some are to
be set aside at a later date.
Stakeholder Analysis should be an integral part of programme design, and appraisal. It is also a
useful technique to use during reviews, missions and evaluations.
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S.Rengasamy –Stakeholder Analysis
Project Stakeholders
“Government of India came up with a Sethu Samudram Canal project last year. Currently, ships have
to travel around an island to reach other side. By executing this project, ship travel becomes cheaper
as it takes shorter route than earlier.
But environmentalists are concerned that this project will endanger the fragile marine ecology of the
area through constant dredging to maintain a canal depth of about 10 m. The increase in shipping
traffic will inevitably result in an increase in oil spills and marine pollution. So they protested for the
execution of the project without proper clearance from national environment group before starting the
project.” One can quote several examples like this. E.g.Projects related to Special Economic Zones
What do we understand from this story?
Environmental groups are negative stakeholders in the Sethu Samudram Canal project as they stops
the project execution. Stakeholders may have a positive or negative influence on a project.
Positive stakeholders are those who would normally benefit from a successful outcome from the
project, while negative stakeholders are those who see negative outcomes from the project‟s success
Both positive as well as negative stakeholders may exert influence over the project‟s objectives and
outcomes. The project management team must identify the stakeholders, determine their
requirements and expectations, and to the extent possible, manage their influence in relation to the
requirements to ensure a successful project.
It is Project manager‟s duty to identify all stakeholders, gather their requirements, manage their
expectations and appropriately communicating them in timely manner depending on their
responsibility & authority levels. Examples of key stakeholders:
• Project manager-The person responsible for managing the project.
• Customer/user-The person or organization that will use the project‟s product.
• Performing organization–The enterprise whose employees are most directly involved in doing
the work of the project.
• Project team members-The group that is performing the work of the project.
• Project management team -The members of the project team who are directly involved in
project management activities.
• Sponsor -The person or group that provides the financial resources, in cash or in kind, for the
project.
• Influencers -People or groups that are not directly related to the acquisition or use of the project‟s
product, but due to an individual‟s position in the customer organization or performing organization,
can influence, positively or negatively, the course of the project.
The list is just a gist of key stakeholders. But the list differs from project to project.
Ways to improve the programme and reduce, or hopefully remove, negative impacts on
vulnerable and disadvantaged groups.
Stakeholder analysis is a term that refers to the
action of analyzing the attitudes of stakeholders
Definition of Project Stakeholders: towards something (most frequently a project). It is
Project stakeholders are individuals and frequently used during the preparation phase of a
organizations who are actively involved in the project to assess the attitudes of the stakeholders
project, or whose interests may be affected as regarding the incoming changes. Stakeholder
a result of project execution or project analysis can be done one shot or on a regular basis
completion. to track how stakeholders changed their attitudes
over time.
Stakeholders are all those who need to be
considered in achieving project goals and whose participation and support are crucial to its
success. So identification of all stakeholders is an important activity of the project manager to
ensure project success.
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S.Rengasamy –Stakeholder Analysis
Stakeholders can be 1) individuals within the project 2) individuals or departments within the
organization & 3) individuals or groups outside the organization (can be influencers)
The word „stakeholder‟ and the word „participation‟ are jargon words that have different meanings for
different people and thus it can be difficult to understand what people are trying to say when they use
these words. As they are used together to describe a process that is supposed to be transparent and
inclusive this can be quite frustrating.
A stakeholder is only defined in reference to a particular issue e.g. as a resident you may be a
stakeholder in a decision about what kind of flood warning system should be used in your area. You
would not be a stakeholder in a decision about flood warning in an adjoining area although the water
company might be a stakeholder in both decisions.
Stakeholder analysis has the goal of developing cooperation between the stakeholder and the
project team and, ultimately, assuring successful outcomes for the project. A stakeholder analysis
is performed when there is a need to clarify the consequences of envisaged changes or at the start
of new projects and in connection with organizational changes generally. It is important to
identify all stakeholders for the purpose of identifying their success criteria and turning these into
quality goals.
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S.Rengasamy –Stakeholder Analysis
manageable
C D
Powerful Greatest Danger
High
but or
predictable opportunities
Power /Dynamism Matrix classify stakeholders in relation to power that they hold and the
dynamism of their stance. The Power / Dynamism Map can be used to ascertain where political
efforts should be focused during the development of new stages
The stakeholders in group A and B are the easiest to deal with
The stakeholders in group C are important, because they are powerful. However their
dynamism is low, so their stance is predictable and their expectations can often be met in a
relatively easy manner.
Stakeholders in group D should have the most management attention, because they are
powerful and their stance is difficult to predict. They can sometimes be dealt with by testing
out new strategies with them before final decisions are made.
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S.Rengasamy –Stakeholder Analysis
Power
Effort Informed
C D
High Keep Key
Power /Interest Matrix classify stakeholders in relation to thePlayers
Satisfied power that they hold and the
extent to which they are likely to show in the strategies of the organization. Power / Interest
Matrix can be used to indicate what type of relationship the organization should have with each
of the group.
The stakeholders in Group A requires only minimal effort and monitoring
The stakeholders in Group B should be kept informed. They can be important to influence the
more powerful stakeholders.
The stakeholders in Group C are powerful, but their interest is low. They are generally relatively
passive, but may suddenly emerge as a result of certain events, moving to the group D on that
issue. They should be kept satisfied
The stakeholders in Group D are both powerful, and highly interested in the strategies of the
organization. The acceptability of strategies to these key players should be an important
consideration in the evaluation of new strategies
Power, Legitimacy and Urgency Model maps stakeholder behavior into seven types depending on the
combination of three characteristics.
Power of the stakeholder to influence the organization
Legitimacy of the relationship and actions of the stakeholder with the organization in terms of desirability,
properness or appropriateness
Urgency of the requirement being set for the organization by a stakeholder in terms of criticality and time
sensitivity for the stakeholder
The stakeholders who show only one of the 3 characteristics (number 1, 2 and 3 in the picture) are defined as the
Latent Stakeholders. They are sub classified as dormant, discretionary or demanding stakeholders.
The stakeholders who show two out of 3 characteristics (number 4, 5 and 6 in the picture) are defined as
Expectant Stakeholders. They are sub classified as dormant, dangerous or dependent stakeholders.
The stakeholders showing all the 3 characteristics are called as Definitive stakeholders
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S.Rengasamy –Stakeholder Analysis
Stakeholder analysis is an essential part of developing a useful Engagement Plan. A common method of
stakeholder analysis is a Stakeholder Matrix. This is where stakeholders are plotted against two variables.
These variables might be plotting the level of „stake‟ in the outcomes of the project against „resources‟ of the
stakeholder. Another is the „importance‟ of the stakeholder against the „influence‟ of the stakeholder. The
concept is the same, though the emphasis is slightly different.
Box A
These are
Importance of Stakeholder stakeholders
appearing to have a
Unknown Little /No Some Significant high degree of
influence on the
Importance Importance Importance project, who are also
of high importance for
its success. This
C A
Significant implies that the
Influence of Stakeholder
Influence implementing
organization will need
to construct good
Somewhat working relationships
with these
Influence stakeholders, to
ensure an effective
coalition of support for
the project. Examples
D B
Little or no might be the senior
Influence officials and
politicians or trade
unions.
Unknown Box B
These are
stakeholders of high
importance to the
success of the project,
Box C Box D but with low influence.
These are stakeholders with high influence, who can The stakeholders in this
This implies that they
therefore affect the project outcomes, but whose interests box, with low influence on, will require special
are not necessarily aligned with the overall goals of the or importance to the project initiatives if their
project. They might be financial administrators, who can objectives, may require
interests are to be
exercise considerable discretion over funding limited monitoring or protected. An example
disbursements. This conclusion implies that these evaluation, but are of low may be traditionally
stakeholders may be a source of significant risk, and they priority.
marginalized groups
will need careful monitoring and management. (e.g. Indigenous
people, youth,
seniors), who might be
beneficiaries of a new
Latent service, but who have
1. Dormant little ‘voice’ in its
development.
2. Discretionary
3. Demanding
Expectant
4. Dominant
5. Dangerous
6. Dependent
7. Definitive
8. Non Stakeholder
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S.Rengasamy –Stakeholder Analysis
Who is a Stakeholder?
In the context of a development project, a stakeholder can be
defined as any group or individual who can affect, or is affected
by, any initiative undertaken by that project.
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S.Rengasamy –Stakeholder Analysis
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S.Rengasamy –Stakeholder Analysis
The aim of stakeholder analysis process is to develop a strategic view of the human and
institutional landscape, and the relationships between the different stakeholders and the issues
they care about most.
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S.Rengasamy –Stakeholder Analysis
Engaging stakeholders throughout the project life cycle is a key to (but not a guarantee of)
project’s success.
Managing stakeholder’s expectations & ensuring their active involvement is very much
important to project as:
It is indispensable for continuation of the project & its successful completion
On Beneficiaries & Stakeholders
On Beneficiaries & Stakeholders
On beneficiaries
The concept of “beneficiaries” reflect the notion that there is a „giver” and a “receiver”, in some kind of a
“giving” transaction. It reduces the relations and roles to the notion that there are “recipients” of
something that the State, or NGO, will “deliver” to them (a toilet, food aid, a well, a training).
Talking of “beneficiaries participation” is often a way to reflect on a consultation process with people
who will “benefit” from something, but does not take away some notion of somewhat “passive
receiving” as opposed to active “take charge” characteristic of true emancipation processes.
On stakeholders
The term comes from the government and private sectors. The „stakeholder” language was meant to
reflect the “inclusivity” of the State apparel and of companies thinking processes and practices.
But in reality, the “people who have a stake” in something, are the ones for whom strategies, products,
programs are decided for, what will be crafted around their “needs” or the demand of the market. They
“have a say” in what is done for them. But they are not necessarily “actors” in the project. They are
“concerned” within an existing reality, project, situation, but are they actors or decision-makers?
Jacques Rancier, a French philosopher, who wrote Ten Theses on Politics, refers to this as the « politics
that makes decision on the people, for the people, instead of the people”
The term “stakeholder” is to the private and government sectors what the term “beneficiaries” is to a
“charity”.
A Street Vendor’s reflection ….
For us, street traders, being a stakeholder is a slavery term. This is because government and big business think for
us, plan for us and all we are left with is to fit in their plan and do as we are told…”
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S.Rengasamy –Stakeholder Analysis
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S.Rengasamy –Stakeholder Analysis
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S.Rengasamy –Stakeholder Analysis
Positive Relationship- the stronger the relationship the thicker the line
Stakeholder Interaction
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