Stakeholder analysis is a process of systematically gathering and analyzing quantitative and qualitative information to determine whose interests should be taken into account throughout the project. It identifies the interests, expectations, and influence of the stakeholders and relates them to the purpose of the project. It also helps identify stakeholder relationships that can be leveraged to build coalitions and potential partnerships to enhance the project's chance of success.
Stakeholder analysis generally follows the steps described below:
• Step 1. Identify all potential project stakeholders and relevant information, such as their roles, departments, interests, knowledge levels, expectations, and influence levels. Key stakeholders are usually easy to identify. They include anyone in a decision-making or management role who is impacted by the project outcome, such as the sponsor, the project manager, and the primary customer.
o Identifying other stakeholders is usually done by interviewing identified stakeholders and expanding the list until all potential stakeholders are included.
• Step 2: Identify the potential impact or support each stakeholder could generate, and classify them so as to define an approach strategy. There are multiple classification models available; some of them include:
o Power/Interest grid, o Will-Skill model, o Power/Influence grid o Influence/Impact grid, and o Salience model.
Figure 10-2 presents an example of a power/interest grid with A-H representing the placement of generic stakeholders.
• Step 3: Assess how key stakeholders are likely to react or respond in various situations, in order to plan how to win or enhance their support and mitigate potential negative impacts.
Monitor (Minimum Effort)
Low Interest High
Figure 10-2. Example Power/Interest Grid with Stakeholders .2 Expert Judgment
To ensure comprehensive identification and listing of stakeholders, judgment and expertise should be sought from groups or individuals with specialized training or knowledge on the subject area such as:
• Senior management;
• Other units within the organization;
• Identified key stakeholders;
• Project managers who have worked on projects in the same area (directly or through lessons learned);
• Subject Matter Experts (SMEs) in business or projcct area;
• Industry groups and consultants; and
• Professional and technical associations.
Expert judgment can be obtained through individual consultations (one-on-one meetings, interviews, etc.) or through a panel format (focus groups, surveys etc).
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What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.