DRAFT Stakeholder Analysis Options Governance Innovation for Security and Development The Governance Innovation for Security and Development (GISD) project requires a stakeholder analysis of the likely impact of emerging US Government policies, doctrine and education for future military support to governance. The purpose of this analysis is to assess the awareness, support, influence and the various issues leading to strategies for communication and assessing stakeholder satisfaction with proposed changes to the military’s role in supporting effective governance in failed or failing states. This document defines what is stakeholder analysis and highlights typical components of stakeholder analysis, and related mapping tools. Stakeholder analysis is the process of identifying the individuals or groups that are likely to affect or be affected by a proposed action, and sorting those stakeholders according to their impact on the action and their needs. Stakeholder analysis is a term that refers to the action of analyzing the attitudes of stakeholders towards something (most frequently a project). This analysis is used during the preparation phase of a project to assess the attitudes of the stakeholders regarding the potential changes.1 The goal of stakeholder analysis is to develop cooperation between the stakeholders and the project team, ultimately, assuring successful outcomes for the project. Stakeholder analysis is performed when there is a need to clarify the consequences of envisaged changes at the start of new projects and in connection with organizational changes generally. It is important to identify all stakeholders (Primary, Secondary and Key) in order to assess their success criteria and turning these into quality goals.2 Primary. Those stakeholders who will be ultimately affected, either positively or negatively, by an organizations action. Secondary. The ‘intermediaries’, that is, persons or organizations who are indirectly affected by an organization's actions. Key. Those stakeholders (who can also belong to the first two groups) who have significant influence upon the project or importance within an organization. The first step in building any stakeholder map is to develop a categorized list of the members of the stakeholder community. Once the list is reasonably complete it is then possible to assign priorities in some way, and then to translate the ‘highest priority’ stakeholders into a table or a picture. The potential list of stakeholders for any project will always exceed both the time available for analysis and the capability of the mapping tool to sensibly display the results, the challenge is to focus on the ‘right stakeholders’ who are currently important and to use the mapping tool to visualize this critical group. 1 2 Wikipedia, Stakeholder Analysis, Nov 2013 Stakeholder Analysis, Rodi, 2012 1 DRAFT Stakeholder Analysis Options Governance Innovation for Security and Development Stakeholder mapping categorizes likely stakeholder expectations and relative power to determine political priorities. The stakeholder mapping process involves making decisions on the following two issues. First how interested the stakeholder is to impress their expectations on the organization’s choice of strategies, (i.e. how likely is the stakeholder to exercise power). Second, to what extent the stakeholder has power to impose. Three common stakeholder mapping tools are the (1) Influence-Interest Grid, (2) Power-Interest Grid and (3) Power-Interest-Attitude Grid.3 Influence-Interest Grid (Imperial College London). The purpose of influence-interest analysis is to inform the Project Board and Project Manager regarding who should contribute to the project, where barriers might be and the actions that need to be taken before detailed project planning. The identification of stakeholders will also assist in determining who would form part of the Advisory Board and Business Community in the Project Organization. From your list of stakeholders you may determine more easily how they fit into your Project Organization and which stakeholders should be placed higher within the stakeholder hierarchy. 4 3 4 “Mendelow’s Matrix”, Kaplan Financial Knowledge Bank, www.kfknowledgebank.kapaln.co.uk “Project Stakeholder Analysis V2.0”, Imperial College of London, www.workspace.imperial.ac.uk 2 DRAFT Stakeholder Analysis Options Governance Innovation for Security and Development The Influence-Interest map is best suited to a hierarchical framework for project management (e.g. the Quadrennial Defense Review). It works best in highly structured organizations with clear lines of authority. In contrast, this form of mapping is less suited for projects that cross multiple organizations or stakeholders that do not share a common accountable body (think “interagency”). Mendelow's Power-Interest Grid (Aubrey L. Mendelow, Kent State University, Ohio 1991). The Power-Interest mapping tool can help deal with a stakeholders' conflicting demands. It identifies stakeholder expectations and power and thus helps in establishing political priorities. The process involves making decisions on the following two issues. First how interested the stakeholder is to impress their expectations on the organization’s choice of strategies, (i.e. how likely is the stakeholder to exercise power). Second, to what extent the stakeholder has power to impose. The following graphic illustrates these issues.5 Mendelow’s mapping tool acknowledges that not all stakeholders are equal; some have more relative power than others. It accounts for levels of interest, regardless of relative power; not all stakeholders will care about a project initially. Generally, the closer you are to implementing change the higher the level of interest of all stakeholders. This tool is helpful in mapping power and interest and communications strategies and priorities for political engagement. Particular attention must be paid to key stakeholders (i.e. high interest/high power entities). 5 “Mendelow’s Matrix”, Kaplan Financial Knowledge Bank, www.kfknowledgebank.kapaln.co.uk 3 DRAFT Stakeholder Analysis Options Governance Innovation for Security and Development Power- Interest - Attitude Grid. The Power-Interest-Attitude mapping approach makes the case for a third dimension and provides some descriptive labels that can be confirmed during the overall process of stakeholder analysis and subsequent stakeholder management. These three dimensions (power, interest, attitude) are especially important when initially considering stakeholders: Power. Their ability to influence the organization. This may be their potential to influence derived from their positional or resource power in the organization, or may be their actual influence derived from their credibility as a leader or expert. Interest. Their interest in the project or program as measured by the extent to which they will be active or passive. Attitude. Their attitude to the project or program as measured by the extent to which they will “back” (support) or “block” (resist) change. Using all three dimensions allows for more complex groupings of stakeholders, resulting in the following eight categories: 6 Savior – powerful, high interest, positive attitude or alternatively influential, active backer. They need to be paid attention to; you should do whatever necessary to keep them on your side – pay close attention to their needs. Friend – low power, high interest, positive attitude or alternatively insignificant, active, backer. These stakeholders are excellent sounding boards for expressing new ideas within a safe environment. Saboteur – powerful, high interest, negative attitude or alternatively influential, active, blocker. They need to be engaged and closely monitored. Be prepared to answer their questions with well thought out answers. Consider engaging them by with and through other high power stakeholders (e.g. Savior) Irritant – low power, high interest, negative attitude or alternatively insignificant, active, blocker. They need to be engaged early on to identify their “hot button” issues so that they can be assured the plan values their input, regardless of their low power status. Sleeping Giant – powerful, low interest, positive attitude or alternatively influential, passive, backer. They need to be engaged in order to awaken them. 6 “Making Sense of Stakeholder Mapping”, Ruth Murray-Webster and Peter Simon, PM World Today, November 2006, www.pmforum.org 4 DRAFT Stakeholder Analysis Options Governance Innovation for Security and Development Acquaintance – low power, low interest, positive attitude or alternatively insignificant, passive, backer. They need to be kept informed and communicated with on a “transmit only” basis. Time Bomb – powerful, low interest, negative attitude or alternatively influential, passive, blocker. Similar to the Irritant, they need to be understood so they can be managed. Similar to “clearing a route” before movement, check in with them before making big changes (movements). Trip Wire – low power, low interest, negative attitude or alternatively insignificant, passive, blocker. These stakeholder need to be understood so you can “watch your step” and avoid unnecessary interruptions to the project. To reiterate, stakeholder mapping tools are for mapping stakeholders at the beginning of a project and are of limited value if not followed up. The initial positioning can be wrong with consequent risks to the project and to relationships. Given the level of complexity with this project and the strategic importance of accurately assessing and ultimately influencing multiple non-DOD stakeholders, a three dimensional mapping tool is preferred, if time permits. The Mendelow Power-Interest grid could also be used to identify key stakeholders and thus provide a more rapid assessment of stakeholder engagement. The Influence-Interest mapping tool is of limited value for this project because there are too many stakeholders outside of the DOD hierarchy. In summary, stakeholder analysis is the process of identifying the individuals or groups that are likely to be affected by a proposed action, identifying their goals, and sorting those stakeholders according to their impact on the action. It is important to identify all stakeholders (Primary, Secondary and Key) in order to assess their success criteria (what does success look like to them). Mapping tools are useful at the beginning of a project to determine likely attitudes and levels of influence and interest in the project. Mapping tools (especially Power-Interest graphs) are highly effective in developing communications strategies and prioritizing engagement efforts to manage key stakeholders. 5