When working on projects and project management, there will be a number of individuals, departments, and teams that, in one way or another, are involved in or affected by the project. These are called stakeholders.
Stakeholders are anyone who is affected by the project or who can influence it. In other words, anyone with an interest in the project.
The end user – that is, the person or people who will use the project’s deliverable – is an example of a stakeholder who is affected by the project and therefore often has a strong interest in it.
Another type of stakeholder is managers from other teams and departments who must provide resources or personnel. They, too, will have an interest in the project, including how it affects their own deliverables.
In short, a stakeholder analysis is about identifying all stakeholders so that you can assess how each one is affected by or can influence the project.
The analysis is used to determine the extent to which each stakeholder should be involved and informed – for example, so you can leverage their support or minimize their resistance to the project.
You should conduct a stakeholder analysis to gain an overview of how external factors might affect your project, and it gives you the opportunity to develop a plan for managing these potential influences. For example, it allows you to address any skepticism before it develops into resistance.
For the same reasons, the project manager also prepares a risk analysis to identify and handle all risks that could potentially influence the project.
As a project manager, you need support from every possible angle. A stakeholder analysis helps you identify who can act as ambassadors for your project and provide support and positive publicity.
Since you will be working with many different personality types and navigating various interests, it is important that you have a clear understanding of each stakeholder to engage in productive dialogue.
In short: You perform a stakeholder analysis to stay ahead and avoid unforeseen resistance that could hinder—or even block—the project’s success. The analysis should also identify where you need to take action to mobilize support for the project.
A stakeholder analysis is an important and frequently used tool in project management. It is used to anticipate how the project’s stakeholders will be affected by the project and, consequently, how their reactions might influence it.
Once the analysis is complete, it is used to plan how to avoid negative influences from stakeholders or how to leverage positive influences.
The stakeholder analysis should provide an overview of all stakeholders with an interest in the project. A well-developed stakeholder analysis will also document how each stakeholder is affected by the project – that is, what benefits each stakeholder will experience and what disadvantages they might face.
Particularly if a stakeholder is likely to experience disadvantages, it is important to determine what concrete actions are necessary to mitigate any potential resistance or to secure the needed support.
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The stakeholder analysis should provide an overview of all stakeholders who have an interest in the project. A well-developed stakeholder analysis will also document how each individual stakeholder is affected by the project. That is, what benefits the stakeholder will experience from the project, and what disadvantages they might face.
Especially if a stakeholder is likely to experience disadvantages, it is important to determine which specific actions are needed to mitigate potential resistance or to gain the necessary support.
Identify all individuals who are affected by the project throughout its lifecycle, as well as those who will be affected when the project is in operation or use.
This process can be carried out through a brainstorming session. It is advisable to involve both the steering committee and the project team to ensure that no stakeholder is overlooked.
To identify stakeholders, consider answering the following questions:
Once you have identified all individuals who have an interest in or can influence your project, you need to categorize and prioritize them. This helps determine who is most likely to affect the project and where you need to focus your stakeholder management efforts.
Stakeholder analysis matrix
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Once you have placed all your stakeholders in the matrix, you have a clear overview of your most important stakeholders and where you need to focus your energy.
You must now create a plan for how to manage each of these stakeholders. This can be done by downloading and completing the template provided below.
In the template, address the following:
Once you have an overview of your stakeholders, it is time to put the gathered knowledge into practice. The stakeholder analysis can provide important input for several of the initial exercises in the planning phase:
Risk analysis can save you from many challenges and sleepless nights. Read how to analyze and manage risks in project management.
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