Stakeholders are people or groups that can effect or be effected by the outcomes of a project. Employees, directors, goverment, investors, communities are the examples of stakeholders. They may have positive or negative impacts on a project’s goals and objective. Stakeholders requirements and expectations can be different based their level of interests on the project. Therefore stakeholder analysis and management is vital for all the projects success.
Below steps are recommended for a successfull stakeholder management process.
– Stakeholder Analysis and Classification
– Establishing Stakeholder Management Strategy
Stakeholder Analysis and Classification
Stakeholder analysis and classification process comes after completing the stakeholder identification process. Stakeholder classification aims to group stakeholders according to their power, level of effect and influence on the project.
The PMBOK Guide, recommends below four models for classifying stakeholders
1. Power/interest grid
2. Power/influence grid
3. Influence/impact grid
4. Salience model
Basically stakeholders can be classified into four groups below;
– Power and Interest
Stakeholders are classified according to their power and level of interest on the project’s outcome.Power/interest grid can be used for classification.
– Power and Influence
Stakeholders are classified according to their power and level of influence on the project’s outcome. Power/influence grid can be used for classification.
– Influence and Impact
Stakeholders are classified according to their influence and impact on the project’s outcome. Influence/impact grid can be used for classification.
– Power, Urgency, and Legitimacy
Stakeholders are classified according to their power, urgency, and legitimacy. Salience model can be used for classification.
Stakeholder Management Strategy
Power and Interest model is the most common model used for stakeholder classification. In this model there is a chart with x and y axis, where the x axis represents the degree of interest and the y axis represents the degree of power.
In this model, stakeholders can be grouped in four classes.
– Stakeholders with high power and high interest should be managed closely.
– Stakeholders with high power and low interest should be kept satisfied.
– Stakeholders with low power and high interest should be kept informed.
– Stakeholders with low power and low interest should be monitored.
Power and Interest model is helpful for managing stakeholders and their requirements. Establishing and efficient stakeholder management strategy is important for saving time while managing stakeholders. Because a project manager can not make the same effort while managing stakeholders with different priorities. Inherently, managing stakeholders with high power and interest is more time consuming than managing stakeholders with low power and interest.
Stakeholder analysis, classification and management are the important processes which helps to enhance a project and receive support from the stakeholders. Establishing good communication channels with the stakeholders brings a project to a successfull conclusion.