What is Stakeholder Analysis? – Part 1

After review of definition of stakeholders and roles & responsibilities of few stakeholders like Project manager & Sponsor, it is good to deal in detail on Stakeholder Management & Analysis.

Just a recap of definition of project stakeholder:

Project stakeholders are individuals and organizations that are actively involved in the project, or whose interests may be affected as a result of project execution or project completion.

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.

As all we know, 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)

Stakeholder Management processes for a project involves (but not limited to)

1) Identifying all stakeholders

2) Documenting stakeholders needs

3) Assessing & analyzing stakeholders interest/influence

4) Managing stakeholders expectations

5) Taking actions

6) Reviewing status & repeat

Stakeholder Management Processes

What is Stakeholder Analysis?

Stakeholder Analysis is an important technique for stakeholder identification & analyzing their needs. It is used to identify all key (primary and secondary) stakeholders who have a vested interest in the issues with which the project is concerned.

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.

What are the benefits of Stakeholder Analysis?

A stakeholder analysis can help a project to identify:

• The interests of all stakeholders, who may affect or be affected by the project

• Potential issues that could disrupt the project

• Key people for information distribution during executing phase

• Groups that should be encouraged to participate in different stages of the project

• Communication planning & stakeholder management strategy during project planning phase

• Ways to reduce potential negative impacts & manage negative stakeholders

Engaging stakeholders throughout the project life cycle is a key to (but not a guarantee of) project’s success.

Managing stakeholders expectations & ensuring their active involvement is very much important to project as:

• It is indispensable for continuation of the project & its successful completion

• It gives opportunity to individuals or groups to express their ideas/issues/concerns over the project

• It gives a sense of accountability and enhances responsibility

• It enables effective risk identification & response planning

• It opens up excellent learning opportunity for both the project team and stakeholders

Let us review – what are the essential steps for stakeholder analysis, stakeholder assessment models, when to use stakeholder analysis in the Part 2 of this topic.

And What is Stakeholder Analysis – Part 3 discusses about the three essential steps in stakeholder analysis in detail.

12 thoughts on “What is Stakeholder Analysis? – Part 1

  1. Hi love your article
    Can you help me I wanna kno what are the the sakeholder benefit for opening new college
    Cannt wait till you reply

  2. Pingback: Why projects fail? | mariuszturek

  3. then, of what use is this analysis to the project manager??
    and which skills does a project manager needs to deal effectively with negative stakeholders??

    • Hi Nouf,

      I hope I addressed as much information as possible in Part 2 & 3 which is useful for every project manager what they can utilize from Stakeholder analysis output. Project manager need to tackle & minimize negative impact of stakeholders through stakeholder communication process and/or risk management process.

  4. Hi Babu,

    This is an excellent project management article. I am very interested in re-publishing your project management material on PM Hut. In case you’re OK with it, then please email me or use the “Contact” form on PM Hut and we’ll take it from there!

    Thanks a lot for your time!

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