Stakeholder analysis

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Stakeholder analysis in conflict resolution, business administration, environmental health sciences decision making, [1] industrial ecology, public administration, and project management is the process of assessing a system and potential changes to it as they relate to relevant and interested parties known as stakeholders. This information is used to assess how the interests of those stakeholders should be addressed in a project plan, policy, program, or other action. [2] Stakeholder analysis is a key part of stakeholder management. A stakeholder analysis of an issue consists of weighing and balancing all of the competing demands on a firm by each of those who have a claim on it, in order to arrive at the firm's obligation in a particular case. A stakeholder analysis does not preclude the interests of the stakeholders overriding the interests of the other stakeholders affected, but it ensures that all affected will be considered. [3]

Contents

Stakeholder analysis is frequently used during the preparation phase of a project to assess the attitudes of the stakeholders regarding the potential changes. Stakeholder analysis can be done once or on a regular basis to track changes in stakeholder attitudes over time.[ citation needed ]

Stakeholder types

Types of stakeholders include: [4]

Other types of stakeholders:

Stakeholder mapping

A Power-Interest matrix showing strategies to use based on the quadrant the stakeholders are categorised in. Stakeholders matrix.svg
A Power-Interest matrix showing strategies to use based on the quadrant the stakeholders are categorised in.

The following list identifies some of the best known and most commonly used methods for stakeholder mapping:

Mapping techniques include the following analysis techniques being used by aid agencies, governments, or consultant groups:

[12] The 3i framework provides a structured approach to stakeholder mapping by identifying key actors based on their interests, influence, and potential impact on decision-making processes. This method has been effectively used to prioritize stakeholders in complex environmental and governance contexts.


Stakeholder mapping procedure

The list of potential stakeholders for any project often exceeds both the time available for analysis and the capability to sensibly map and display the results. [13] The challenge is to focus on the right stakeholders who are currently important and to create a visual representation of this critical sub-set of the total community - the key stakeholders. [13]

  1. Develop a categorised list of the members of the stakeholder community.
  2. Stakeholders can be prioritized in some order.
  3. The highest priority stakeholders are then translated into a visual representation (often a table or a graph). [8] [14]

The power-interest matrix

The most common presentation style uses a two-dimensional matrix. Power and influence are commonly seen with a third dimension shown by the colour or size of the symbol representing the individual stakeholders, often the attitude.

Some of the commonly used dimensions include: [4] [15] [16] [10] [11] [14]

The salience model

The salience model [7] uses three dimensions: legitimacy (A), power (B), and urgency (C). It is represented in a Venn diagram with eight regions, each associated with a specific stakeholder type.

The Covalence model has eight regions each associated with a stakeholder type Venn diagram ABC RGB.png
The Covalence model has eight regions each associated with a stakeholder type

Stakeholder types as described by the salience model:

  1. Discretionary stakeholders: These stakeholders have little urgency or power and are unlikely to exert much pressure. They have legitimate claims. (yellow region)
  2. Dormant stakeholders: These stakeholders have much power but no legitimacy or urgency and therefore are not likely to become heavily involved. (blue region)
  3. Demanding stakeholders: These stakeholders have little power or legitimacy but can make much "noise" because they want things to be addressed immediately. (red region)
  4. Dominant stakeholders: These stakeholders have both formal power and legitimacy, but little urgency. They tend to have certain expectations that must be met. (green region)
  5. Dangerous stakeholders: These stakeholders have power and urgency but are not really pertinent to the project. (purple region)
  6. Dependent stakeholders: These stakeholders have urgent and legitimate stakes in the project but little power. These stakeholders may lean on another stakeholder group to have their voices heard. (orange region)
  7. Definitive stakeholders: These stakeholders have power, legitimacy and urgency and therefore have the highest salience. (white region at the intersection of all other regions)
  8. Non-stakeholders: These stakeholders have no power, legitimacy or urgency. (outside the regions defined by the circles A, B, and C)

Benefits

Stakeholder analysis helps with the identification of: [14] [17] [18]

See also


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References

  1. ↑ Coble, Yank; Coussens, Christine; Quinn, Kathleen, eds. (2009). "4. Stakeholder Perspectives on Environmental Health Sciences Decision Making". Environmental Health Sciences Decision Making: Risk Management, Evidence, and Ethics – Workshop Summary. Washington, D.C.: The National Academies Press. doi:10.17226/12444. ISBN   978-0-309-12454-6. PMID   21210552.
  2. ↑ Ketema, D.M.; Chisholm, N.; Enright, P. (2017). "Chapter 20: Examining the Characteristics of Stakeholders in Lake Tana Sub-basin Resource Use, Management and Governance". In Stave, K.; Goshu, G.; Aynalem, S. (eds.). Social and Ecological System Dynamics. Springer. p. 318. ISBN   9783319457550.
  3. ↑ DeGeorge, R.T. (2010). Business Ethics. Pearson Education, Inc. p. 192. ISBN   9780205015108.
  4. 1 2 De Mascia, S. (2016). Project Psychology: Using Psychological Models and Techniques to Create a Successful Project. CRC Press. pp. 73–74. ISBN   9781317075011.
  5. ↑ Reed, M.S.; Jensen, E.A.; Noles, S.; Conneely, D.; Kendall, H.; Raley, M.; Tarrant, A.; Oakley, N.; Hinson, C.; Hoare, V.; et al. (2025). "Analyzing who is relevant to engage in environmental decision-making processes by interests, influence, and impact: The 3i framework". Journal of Environmental Management. doi:10.1016/j.jenvman.2024.123437.
  6. ↑ Cameron, B.G.; Seher, T.; Crawley, E.F. (2011). "Goals for space exploration based on stakeholder value network considerations". Acta Astronautica. 68 (11–12): 2088–97. Bibcode:2011AcAau..68.2088C. doi:10.1016/j.actaastro.2010.11.003.
  7. 1 2 Mitchell, R.K.; Agle, B.R.; Wood, D.J. (1997). "Toward a Theory of Stakeholder Identification and Salience: Defining the Principle of Who and What Really Counts". The Academy of Management Review. 22 (4): 853–86. doi:10.2307/259247. JSTOR   259247.
  8. 1 2 Savage, G.T.; Nix, T.W.; Whitehead, C.J.; Blair, J.D. (1991). "Strategies for Assessing and Managing Organizational Stakeholders". The Executive. 5 (2): 61–75. JSTOR   4165008.
  9. ↑ Turner, J.R.; Grude, K.V.; Thurloway, L. (1999). The Project Manager As Change Agent: Leadership, Influence and Negotiation. McGraw-Hill Book Co Ltd. ISBN   9780077077419.
  10. 1 2 "Stakeholder management" (PDF). Imperial College London. 21 June 2017. Retrieved 6 July 2018.
  11. 1 2 "Stakeholder Management Plan" (PDF). Office of Government Commerce. 2006. Archived from the original (PDF) on 20 June 2008. Retrieved 6 July 2018.
  12. ↑ Reed, M.S.; Jensen, E.A.; Noles, S.; Conneely, D.; Kendall, H.; Raley, M.; Tarrant, A.; Oakley, N.; Hinson, C.; Hoare, V.; et al. (2025). "Analyzing who is relevant to engage in environmental decision-making processes by interests, influence, and impact: The 3i framework". Journal of Environmental Management. doi:10.1016/j.jenvman.2024.123437.
  13. 1 2 Eden, C.; Ackermann, F. (2013). Making Strategy: The Journey of Strategic Management. SAGE. p. 123. ISBN   9781446265192.
  14. 1 2 3 Babou, S. (12 March 2008). "What Is Stakeholder Analysis?". The Project Management Hut. PM Hut. Archived from the original on 22 February 2015. Retrieved 6 July 2018.
  15. ↑ Botten, N. (2006). Management Accounting – Business Strategy. CIMA Publishing. pp. 3–4. ISBN   9780750680431. Once the power and expectations (and therefore their likely interest) has been established we can use a power interest matrix to assist the analysis. Mendelow (1991) has proposed such a matrix (Figure 1.4). If the stakeholders are plotted regularly this matrix can be used to determine the potential influence of stakeholder groups.
  16. ↑ Murray-Webster, R.; Simon, P. (2006). "Making Sense of Stakeholder Mapping" (PDF). PM World Today. 8 (11): 1–4.
  17. ↑ Kimmich, C.; Janetschek, H.; Meyer-Ohlendorf, L.; et al. (2012). Methods for Stakeholder Analysis. Europaeischer Hochschulverlag GmbH & Co KG. pp. 3–4. ISBN   9783867417808.
  18. ↑ Dwyer, J.; Hopwood, N. (2013). Management Strategies and Skills. McGraw-Hill Education Australia. p. 360. ISBN   9781743764930.
  19. ↑ Reed, M.S.; Jensen, E.A.; Noles, S.; Conneely, D.; Kendall, H.; Raley, M.; Tarrant, A.; Oakley, N.; Hinson, C.; Hoare, V.; et al. (2025). "Analyzing who is relevant to engage in environmental decision-making processes by interests, influence, and impact: The 3i framework". Journal of Environmental Management. doi:10.1016/j.jenvman.2024.123437.
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