Stakeholder Analysis
A stakeholder is any person or organization who can be positively or negatively impacted by, or
cause an impact on the actions of a company.
Stakeholder analysis is a form of analysis that aims to identify the stakeholders that are likely to
be affected by the activities and outcomes of a project, and to assess how those stakeholders are
likely to be impacted by the project. 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.
Types of Stakeholders
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Primary stakeholders: are those ultimately affected, either positively or negatively by
corporation's actions.
Secondary stakeholders: are the ‘intermediaries’, that is, persons or organizations who are
indirectly affected by corporation's actions.
Key stakeholders: (who can also belong to the first two groups) have significant influence or
importance in corporation.
Methods of Stakeholder Mapping
The following list identifies some of the best known and most commonly used methods for
stakeholder mapping.
- (Mitchell, Agle et al. 1997) proposed a classification of stakeholders based on power to
influence, the legitimacy of each stakeholder’s relationship with the organization, and the
urgency of the stakeholder’s claim on the organization. The results of this classification may
assess the fundamental question of “which groups are stakeholders deserving or requiring
manager’s attention, and which are not?” This is salient - “the degree to which managers give
priority to competing stakeholder claims” (Mitchell, Agle et al., 2007:854)
- (Fletcher, Guthrie et al. 2003) defined a process for mapping stakeholder expectations based on
value hierarchies and Key Performance Areas (KPA),
- (Savage, Nix et al. 1991) offer a way to classify stakeholders according to potential for threat
and potential for cooperation.
- (Turner, Kristoffer and Thurloway, 2002) have developed a process of identification,
assessment of awareness, support, influence leading to strategies for communication and
assessing stakeholder satisfaction, and who is aware or ignorant and whether their attitude is
supportive or opposing.
Mapping techniques include the following sub-set of results from a Web search of analysis
techniques being used by aid agencies, governments or consultant groups:
- Influence-interest grid (Imperial College London)
- Power-impact grid (Office of Government Commerce UK 2003)
- Power-interest grid (Moorhouse Consulting 2007. Also Mendelow)
A=High Power & Low
Interest
B=High Power & High
Interest
C=Low Power & Low
Interest
D=Low Power & High
Interest
- Three-dimensional grouping of power, interest and attitude (Murray-Webster and Simon 2005)
- The Stakeholder Circle (Bourne 2007)
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 tool
to visualize this critical sub-set of the total community.
Stakeholder Analysis for Participation
Stakeholder Analysis is a vital tool for identifying those people, groups and organizations who
have significant and legitimate interests in specific issues. Clear understanding of the potential
roles and contributions of the many different stakeholders is a fundamental prerequisite for a
successful participatory process, and stakeholder analysis is a basic tool for achieving this
understanding. To ensure a balanced representation, the analysis should examine and identify
stakeholders across a number of different dimensions. For example, the analysis should
separately identify relevant groups and interests within the public sector, within the private
sector, and within social and community sectors. In addition, the analysis can seek out potential
stakeholders to ensure proper representation in relation to gender, ethnicity, poverty, or other
locally relevant criterion. Cutting across these categories, the analysis can also look at
stakeholders in terms of their information, expertise and resources applicable to the issue.
However, stakeholder analysis by itself only identifies potentially relevant stakeholders - it does
not ensure that they will become active and meaningful participants; other measures to generate
interest and sustain commitment will be necessary as well.
Purpose
1. Ensure inclusion of all relevant stakeholders
Experience has shown that inclusion of the full range of stakeholders is not only an essential precondition for successful participatory decision-making but also vital for promoting equity and
social justice in all development projects. For example, when decisions are made, priorities set,
and actions taken without involving those relevant stakeholders, the result is usually misguided
strategies and inappropriate action plans which are badly (if at all) implemented and which have
negative effects on the beneficiaries and on the community at large. These approaches, which fail
to properly involve stakeholders, have been widely proven to be unsustainable.
This Stakeholder Analysis Tool therefore encourages a far-reaching review of all potential
stakeholder groups, including special attention to marginalized and excluded social groups such
as the poor, women, elderly, youth, disabled, or others. This allows identification of
representatives of these groups, so that they may be included in the decision making framework.
2. Maximize the role and contribution of each stakeholder
"Stakeholder Analysis ensures the inclusion of all stakeholders and maximization of their roles
and contributions"
It is well recognized that broad-based stakeholders involvement and commitment is crucial to
successful strategy and action plan implementation and therefore to sustainable water resource
projects. With a multi-stakeholder approach to implementation, a wider variety of
implementation instruments can be utilized. The stakeholder analysis facilitates mapping of
potential stakeholder roles and inputs and access to implementation instruments. This will
indicate how best to maximize the constructive potential of each stakeholder while also revealing
bottlenecks or obstacles that could obstruct realization of their potential /contributions. For
example, an analysis could identify a particular stakeholder's lack of information and skills for
dialogue and negotiation, factors which undermine the contribution or influence of an otherwise
importantly affected group of stakeholders.
Principles
"Stakeholder Analysis ensures the inclusion of relevant groups while incorporating gender
sensitivity"
Inclusiveness. Ensure inclusion of the full range of different stakeholders, including
marginalized and vulnerable groups.
Relevance. Includes only relevant stakeholders - those who have a significant stake in the
process (i.e., not everyone is included).
Gender Sensitivity. Both women and men should have equal access within the participatory
decision-making process.
How It Works
"A comprehensive long listing of stakeholders is the starting point for stakeholder mapping and
analysis"
Stakeholder Analysis can be seen in terms of five generally sequential stages of activity:
1. Specifying issue(s) to be addressed. Stakeholders are defined and identified in relation to a
specific issue - people and groups only have a concrete "stake" in a specific issue or topic.
Hence, the stakeholder identification process operates in respect to a particular specified issue.
2. Long Listing. With respect to the specified issue, a "long list" of possible stakeholders, as
comprehensive as feasible, should be prepared, guided by the general categories of stakeholder
groups (e.g., public, private, and community/popular, with further sub-categories for each,
gender, etc., also identifying those which:
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
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are affected by, or significantly affect, the issue;
have information, knowledge and expertise about the issue; and
control or influence implementation instruments relevant to the issue.
3. Stakeholder Mapping. The "long list" of stakeholders can then be analyzed by different
criteria or attributes. This will help determine clusters of stakeholders that may exhibit different
levels of interest, capacities, and relevance for the issue. Knowledge of such differences will
allow systematic exploitation of positive attributes. Identify areas where capacity building is
necessary for effective stakeholder participation, and highlight possible "gaps" in the array of
stakeholders. One of the several forms of stakeholder mapping is by degree of stake and degree
of influence, as shown in the matrix below:
Influence-Interest Matrix
Low Influence
High Influence
Low Stake
least Priority Stakeholder Group
useful for decision and
opinion formulation,
brokering
High Stake
important stakeholder group
perhaps in need of empowerment
most critical stakeholder
group
"Stakeholder Analysis ensures that no important stakeholder is left out - optimizing potential
roles and contribution which in turn maximizes efficiency and equity gains"
Stakeholder Analysis ensures that no important stakeholder is missed out. It also provides the
framework for optimizing the roles and contributions of stakeholders. Inclusiveness and the right
mix of roles and instruments are key elements of successful stakeholder participation. Where
participation is generated through careful analysis of the key players, their roles and
contributions, the process becomes more effective and efficiency as well as equity gains will be
maximized.
Exercise
1. Draw up the chart
Prepare a chart on electronic whiteboard, or perhaps butcher paper, with columns on
stakeholders, interest in project, influence on the project, how to engage/interact?, and the need
for capacity building/awareness raising.
2. List stakeholders
Identify and list the stakeholders. These may be individuals, or stakeholder groups, or
some combination. If stakeholders can be treated as a group, use groups. The most
effective way of doing this is to list as many stakeholders as you can on a working sheet
of paper. Then transfer them to the left hand column of the chart. It may help to list
them in rough order of importance. (You may change your mind about their
importance after this analysis.)
3. Identify their Interest and Influence on the
Project/Issue
For columns 2 to 5, work across the page. Record your assessment of the stakeholders’
interest and influence in the columns.
4. Plan strategies
Plan your strategies for approaching and involving each person or group. Your
assessments in columns 2 to 5 help you to do this. Your strategy is written in column 4
(how to engage/interact). It usually takes the form of obtaining more information, or of
involving the stakeholder in the planning for the change.
In general, question marks indicate a need for more information. The more question
marks, and the more influence the person has, the greater the need. On some occasions
you will choose to approach the person concerned. On other occasions you may instead
approach someone else who can be assumed to know about the person's interest or
influence.
(On occasion, you may want to obtain some of this information before completing the
analysis.)
In general, high influence indicates a need to involve the person in some way. (Or, if
you choose not to do this, and they are opposed, you may choose to find some way to
neutralize their influence.) The people or groups who require most attention are those
who are influential and opposed.
For involvement, decide the extent. For example:

involved only as informants

consulted

directly involved in decision-making

involved as co-researchers and co-actors
or some similar categories.
Where the stakeholder is a group rather than an individual, you will probably want to
include in your decision the style of participation appropriate: for example, direct
participation of everyone, or representation.
Stakeholder list: assess interests and influence
Interest in project
Influence on
the project
(positive/negative)
+/#
1
2
3
4
5
6
7
8
9
10
Stakeholders
+/ -
How to
engage/interact?
Need for
capacity
building/
awareness
raising
Stakeholder Map
High
Interest
Low
High
Influence/ Power
1
2
3
4
5
6
7
8
9
10