A stakeholder is someone with a vested interest in a project’s outcome, whether that outcome is positive or negative. In business, performing a stakeholder analysis is essential to ensure the right level of engagement, communication, and support throughout a project.
Neglecting this step can lead to misalignment, missed opportunities, and resistance from key players. Imagine realizing halfway through a project that you overlooked a critical stakeholder group, causing setbacks, delays, or even project failure.
I have a solution for you: Don’t skip stakeholder analysis!
Stakeholder analysis isn’t just about identifying people; it’s about managing their needs, expectations, and concerns throughout the project lifecycle. This process, also known as stakeholder management, ensures smoother execution and better change adoption.
Related post: Common Mistakes in Change Management Stakeholder Interviews
Step 1: Identify Your Stakeholders
Begin by brainstorming all individuals and groups impacted by the project. This should be a collaborative effort—don’t do it alone. Involve team members who understand the project and its audience to ensure no key stakeholders are overlooked.
Key Sources for Identifying Stakeholders
To ensure you identify all relevant stakeholders, use a combination of different research methods and tools:
Organizational Charts: Review company hierarchies to identify decision-makers, influencers, and teams affected by the project. This helps understand reporting structures and key individuals within departments.
Process Maps & Workflows: Analyze business processes to determine which departments or individuals will be impacted. Mapping workflows helps identify formal and informal stakeholders involved in key operational steps.
Regulatory & Compliance Reviews: Consider any external agencies, government bodies, or compliance officers whose requirements must be met. Regulatory oversight is crucial in industries such as healthcare, finance, and manufacturing.
Project Documentation & Reports: Use previous projects as references to identify key stakeholders who played a role in similar initiatives. Reviewing past stakeholder involvement can help anticipate challenges and improve engagement strategies.
Surveys & Focus Groups: Gather insights directly from employees, customers, or vendors to uncover hidden stakeholders. These tools help identify concerns and expectations early in the process.
Stakeholder Interviews: Conduct discussions with leadership, project sponsors, and department heads to gain insights into informal power structures within the organization. Some stakeholders may not have formal authority but hold significant influence over their peers.
Supplier & Vendor Contracts: If external partners are involved, review contracts and service agreements to ensure all relevant third-party stakeholders are considered. Vendors may have critical dependencies on project success.
Customer Data & Feedback: Examine user feedback, complaints, and customer interactions to identify potential external stakeholders who will be affected by the change. Engaging with customer advisory boards or user communities can provide valuable perspectives on project impacts.
Industry Networks & External Partnerships: Consider professional associations, business alliances, and external partnerships that might have a stake in the project. These stakeholders could influence broader industry standards or collaborations.
Tip: Both individuals (e.g., VP of Marketing) and groups (e.g., the IT Support Team) can be stakeholders.
Step 2: Prioritize Your Stakeholders
Not all stakeholders require the same level of attention. Use the Stakeholder Analysis Grid (Power/Interest Matrix) to classify them based on:
Influence (Power): Their ability to impact the project’s success.
Interest: How much they care about the project’s outcome.
Understanding Stakeholder Types
1. High Influence & High Interest (Key Players)
Who they are: Senior executives, project sponsors, key decision-makers.
Why they matter: Their approval is critical; they can champion or block initiatives.
Engagement Strategy:
Regular check-ins, involve them in decision-making.
Consider making them project ambassadors to promote alignment.
Manage expectations carefully to maintain trust.
2. Low Influence & High Interest (Supporters)
Who they are: End users, employees, operational teams.
Why they matter: They are directly affected and provide critical feedback.
Engagement Strategy:
Keep them informed about progress and changes.
Involve them in beta testing or pilot phases.
Collect their feedback but don’t let them dictate project strategy.
3. High Influence & Low Interest (Potential Obstacles)
Who they are: Senior leaders not directly involved in the project but have authority over specific areas.
Why they matter: They may not care about the project as a whole but can create obstacles if their concerns aren’t addressed.
Engagement Strategy:
Identify what matters most to them.
Keep them satisfied by providing relevant updates.
Build a relationship to reduce resistance if challenges arise.
4. Low Influence & Low Interest (Minimal Interest Group)
Who they are: Employees or external partners who have minimal involvement.
Why they matter: They might become important later (e.g., via promotion).
Engagement Strategy:
Monitor their role over time.
Provide minimal but transparent communication.
Related post: Stakeholder Analysis vs. Change Impact Assessment
Step 3: Develop a Stakeholder Communication Plan
The stakeholder analysis is now complete, however your work has just begun. The next step is to create the communication plan for the project. This plan lays out all the communication touchpoints for each stakeholder and ensures consistent and strategic engagement throughout the project.
Key Elements of a Stakeholder Communication Plan:
Stakeholder-Specific Messaging: Tailor messages based on each group’s level of influence, interest, and concerns.
Preferred Communication Channels: Use emails, meetings, workshops, or digital dashboards as per stakeholder preference.
Feedback Mechanisms: Create two-way communication channels to address concerns and incorporate feedback into the project.
Tip: The communication plan should evolve as the project progresses, ensuring stakeholders stay informed and engaged.
Sample Communication Plan:
Final Thoughts
A well-executed stakeholder analysis ensures that no key players are overlooked, expectations are managed, and resistance is minimized. By taking a structured approach to identification, prioritization, needs assessment, and communication planning, you can increase project success rates and build stronger relationships with stakeholders. Keep in mind that stakeholder engagement is an ongoing process—adapt and refine your strategies as needed to maintain alignment and momentum throughout the project lifecycle.
