STAKEHOLDER ANALYSIS AND MANAGEMENT A CRITICAL SUCCESS FACTOR

To handle Project stakeholders effectively Stakeholders should be assessed and analyzed carefully. This is done by Stake holder Analysis.

Stakeholder Analysis helps in

1)      Identifying Stakeholders

2)      Assessing their Interest

3)      Assessing their Importance

4)      Assessing their Influence

5)      Identifying the Strengths and Weaknesses of  Project

Stakeholder analysis is an extremely beneficial tool for planning projects. The benefit of Stakeholder Analysis are

1)      Identifying Project Supporters

2)      Maximizing their Support, Knowledge and experience in the Project.

3)      Identifying Project  Opponents (Non Supporters)

4)      Gauging Potential risks  from Opponents

5)      Planning for Risk Response  and adopting appropriate Risk Response strategies to overcome the risks

6)      Manage Conflicting Interests of Stakeholders – Understanding the Conflict of Interests between Stake holder groups  will help in managing stakeholder relation ships there by ensuring smooth progress of the project

7)      Maximize Collective Interests of Stakeholders – Identifying Stakeholder with Similar Interests provides an opportunity to maximize collective interests.

Following series of steps needs to be performed in Stakeholder Analysis.

1.       Identify all Stakeholders – Complete and Exhaustive List of Stakeholders should be arrived at. Listing Stakeholders should consider  Who affect the Project ? or Who are affected  by the Project ? . This would help in avoiding exclusion of Potential Stakeholders.

Malicious Intentions  - Not highlighting issues at early stage and bringing them at laters stage . Attempting to hide interests at early stage  due to motivations by malicious intentions to harm the project.  Fear on Job Security is also another reason.

Fear of Undesirable consequences – Some Stakeholders   maynt be forthcoming with their opinion as they feel giving their view point would result in undesirable consequences. These stakeholders are very common and they need to be handled frequently in the project.

Realize Interest at Later Stage  - Some Stakeholder realize that they are affected by the project at a later stage in the project cycle. Typically this group is most difficult to be identified.

Lack of Information or Misunderstanding. –  Hidden agendas may also result due to lack of  information regarding objectives,  benefits or deliverables of the project.

4.       Assess Influence – Based on the Influence the stakeholders have in project, Prioritization should be done in the order of Influence. Influence refers to Power and Authority in decision making. After prioritization , Stakeholders Who are Integral to Project decisions could be shortlisted.

5.       Assess Importance – Based on the Importance the stakeholders have in project, Prioritization should be done in the order of Importance. Influence refers to Significance of Expectations and concerns  of Stakeholders  

Having performed Stakeholder Analysis it is important to adopt strategies to manage Stakeholders.

These strategies could be used formally or Informally  for better Stake holder Management

 Strategies are

Involve Influential Stakeholders   - Ensure the Influential Stakeholder (having authority and powers in decision making) is actively involved throughout the project life cycle.

Inform Important Stakeholders  - Ensure the Important Stakeholders  are well Informed on the project progress and product details on a regular basis

Revisit Stakeholder Identification Process -  Stakeholder Analysis will not always help to identify all stakeholders. Hence the process of identification needs to be revisited and repeated. Repeating Stakeholder analysis process  helps in assessing the degree of probable impact that a stakeholder can have on the project and appropriate plans need to be made to manage the impact.

Use Guided/SpecificQuestions, Frequent Interactions and Presentations – Specific questions are to be asked for determining stakeholders interests.  Frequent Interactions helps in identifying change in stakeholders Interest. This strategy should be adopted regularly in a project cycle as stakeholders and interests might change.

Document Discussions – Documenting discussions ensures coverage of all points, serves as a record .

Create a favorable and Collaborative Work Environment – This will eliminate stakeholders having fear on adverse professional consequences. This will induce confidence in them hence they will be willing to express their views and interests

Plan Public Relation activities – Activities of this nature plays an important role in drawing out their interests  of stakeholders or change their opinion about project. Stakeholders who oppose project due to lack of information or misunderstanding will also reconsider their opinions in favor of the project when they are well informed through Public relation activities.