DTU ProjectLab - User contributions [en-gb]

Stakeholder Analysis

2014-12-01T22:50:23Z

Nemo:

'''Summary:'''
A stakeholder can shortly be defined as one that can affect or be affected by the actual project, program or portfolio. A stakeholder can therefore be an employee or a customer - but also a union or a local society.

Management of a project, program or portfolio happens to be complex and require an extensive overview of several aspects and constraints. In order to act appropriate and create sustainability, the management often has to consider these aspects and constraints not only from their own point of view, but also from a number of other stakeholders views.

In stakeholder analysis, all stakeholders first have to be identified and relevant information has to be gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can serve as a foundation for planning how to deal with stakeholders. Dealing with stakeholders can contain both communication and other types of engagement.

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Several other versions of this definition can be found in literature alike, but they generally convey the same idea. Stakeholders are e.g. employees, customers, suppliers and communities.

It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also considers all other stakeholders. Figure 1 shows a classic input/output model with suppliers, investors and employees that provides an input so the company can generate an output to the customers. This is a very simple approach where the company are seen as an isolated system that does not interact with its surroundings. Figure 2 shows a stakeholder model, where the company are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Both when managing projects, programs and portfolios, it is relevant for the management to know who their stakeholders are and their characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc. This can be used for optimising communication and engagement, as well as realising common interests that can be developed into an advantage.

The interaction with stakeholders as shown in Figure 1 might in some situations be limited and indirect. But stakeholders that traditionally, for a specific type of project, program or portfolio, are limited or indirect might be relevant to engage further?

=Background=
In 1932 Dodd outlined one of the first arguments within this area, stating that a company should not only focus on shareholders, but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However, Dodd did not use the term ''stakeholder'', since this was not developed within the field at that time. The term ''stakeholder'' arose in the first half of the 1960´s. Among others, Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> determined the existence of three types of stakeholder theory:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation has stakeholders and that they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should consider their stakeholders.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisations will use different approaches.

=Process=
In literature, several descriptions of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

This process will be explained more detailed in the following subsections:

===Identify stakeholders===
The identification of stakeholders could be done by brainstorming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typically also include a handful of more specific stakeholders depending on the situation. The stakeholders can also be identified in a more detailed manner - e.g. by different departments within the company/organisation if they e.g. have different interests.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described in the mapping section further below. A key stakeholder could be defined based on e.g. power and interest.

===Gather information on stakeholders===
When gathering information it is important to act neutral and not confuse it with the analysis itself.

===Identify stakeholders priorities===
Identifying the stakeholders´ priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can e.g. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

===Determine stakeholders strengths and weaknesses===
Determine stakeholders´ strengths and weaknesses - or do a complete SWOT inventory, will often be a beneficial part of the stakeholder analysis. Making a SWOT analysis of the stakeholders consists of determining the following elements:
*'''Strength:''' What are the stakeholders´ specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threats:''' Which challenges and difficulties can be seen from the stakeholders perspective? Will this develop into a threat for the project/programme/portfolio?

===Identify stakeholder support===
It is always important to know your friends. That is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. Nevertheless, it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio, where the support-opposing ratio will change. E.g. if you are a citizen living next to the construction site of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

===Predict stakeholder behaviour===
Analysing the stakeholders´ support and role in different phases and situations will enable one to predict the stakeholders´ behaviour. However, in order to predict their behaviour other factors might have to be taken into consideration - e.g. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

===Prepare stakeholder management strategy===
Preparation of stakeholder management strategy deals with question about how to engage the stakeholders in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions, but also determine in which phase of the project/programme/portfolio the actions should be applied.

As a tool for combining all the above mentioned elements in the analysis, a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - e.g. internal, authorities or end users
*Relation
*Role
*Priorities
*SWOT
*Engagement plan

The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis, because it creates an insight into the different essential parameters and enables one to compare them. This creates a tool that can be used to determine the level of support, predict behaviours and shape an engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder has in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or less interested in the project. The stakeholders interest in the project/programme/portfolio can both be social, economical or environmental interests etc. The interest is typically measured on a low-high scale, but can also be measured on other scales that depends on the type of interest rather than the amount, e.g. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitudes towards the project/programme/portfolio.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. However, support should be seen as taking action - e.g. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in the analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication, because the stakeholder´s limited interest means that he does not care too much about the project/program/portfolio, and if an issue should occur his power is limited - also implying a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more due to the fact that they represent a limited risk since they have low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested, but the impact might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders, since the power can be seen as the magnitude of the impact, and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan, but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders associated with potential great danger - that are dangerous risks in the project/program/portfolio. But it is important to underline that the stakeholders carrying the greatest risks also are carrying the greatest opportunities. The high dynamism can generate a powerful impact but this can be positive as well as negative impact.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation, while a shareholder approach focuses on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several elements in the execution process can benefit from the stakeholder analysis, since initiatives can be shaped more appropriate.

Stakeholders that are engaged appropriately will help the company/organisation to obtain a better reputation among the stakeholders, which typically will have a boomerang effect and be able to create value on the companies/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholders can directly be seen as increasing focus on corporate social responsibility. Taking your surroundings into consideration, and of course engaging them in a social responsible manner, is very much in line with the philosophy behind CSR.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters, but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier, their will typically be both supporters and opponents. It might turn out that one have to handle unpopular communication with opponents.

=Conclusion=
Stakeholder analysis is a strong and relevant tool for both projects, programmes and portfolios. It creates valuable insight in internal organisation as well as all surrounding companies/organisations that affects or might be affected by the project, program or portfolio. This insight can be used for optimising communication and engagement. As well as ensuring a healthy long-term strategy.

But the analysis might be heavy work and may not necessarily give 100 per cent clear answers. To which level of detail a stakeholder analysis should be conducted therefore always has to be considered. However, identifying and to some degree analysing them should never be neglected.

=References=
{{Reflist}}
<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-12-01T22:47:44Z

Nemo: /* Conclusion */

'''Summary:'''
A stakeholder can shortly be defined as one that can affect or be affected by the actual project, program or portfolio. A stakeholder can therefore be an employee or a customer - but also the union or a local society.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. In order to act appropriate and create sustainability, the management often has to consider these aspects and constraints not only from their own point of view, but also from a number of other stakeholders views.

In stakeholder analysis, all stakeholders first have to be identified and relevant information has to be gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can serve as a foundation for planning how to deal with stakeholders. Dealing with stakeholders can contain both communication and other types of engagement.

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Several other versions of this definition can be found in literature alike, but they generally convey the same idea. Stakeholders are e.g. employees, customers, suppliers and communities.

It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also considers all other stakeholders. Figure 1 shows a classic input/output model with suppliers, investors and employees that provides an input so the company can generate an output to the customers. This is a very simple approach where the company are seen as an isolated system that does not interact with its surroundings. Figure 2 shows a stakeholder model, where the company are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Both when managing projects, programs and portfolios, it is relevant for the management to know who their stakeholders are and their characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc. This can be used for optimising communication and engagement, as well as realising common interests that can be developed into an advantage.

The interaction with stakeholders as shown in Figure 1 might in some situations be limited and indirect. But stakeholders that traditionally, for a specific type of project, program or portfolio, are limited or indirect might be relevant to engage further?

=Background=
In 1932 Dodd outlined one of the first arguments within this area, stating that a company should not only focus on shareholders, but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However, Dodd did not use the term ''stakeholder'', since this was not developed within the field at that time. The term ''stakeholder'' arose in the first half of the 1960´s. Among others, Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> determined the existence of three types of stakeholder theory:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation has stakeholders and that they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should consider their stakeholders.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisations will use different approaches.

=Process=
In literature, several descriptions of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

This process will be explained more detailed in the following subsections:

===Identify stakeholders===
The identification of stakeholders could be done by brainstorming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typically also include a handful of more specific stakeholders depending on the situation. The stakeholders can also be identified in a more detailed manner - e.g. by different departments within the company/organisation if they e.g. have different interests.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described in the mapping section further below. A key stakeholder could be defined based on e.g. power and interest.

===Gather information on stakeholders===
When gathering information it is important to act neutral and not confuse it with the analysis itself.

===Identify stakeholders priorities===
Identifying the stakeholders´ priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can e.g. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

===Determine stakeholders strengths and weaknesses===
Determine stakeholders´ strengths and weaknesses - or do a complete SWOT inventory, will often be a beneficial part of the stakeholder analysis. Making a SWOT analysis of the stakeholders consists of determining the following elements:
*'''Strength:''' What are the stakeholders´ specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threats:''' Which challenges and difficulties can be seen from the stakeholders perspective? Will this develop into a threat for the project/programme/portfolio?

===Identify stakeholder support===
It is always important to know your friends. That is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. Nevertheless, it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio, where the support-opposing ratio will change. E.g. if you are a citizen living next to the construction site of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

===Predict stakeholder behaviour===
Analysing the stakeholders´ support and role in different phases and situations will enable one to predict the stakeholders´ behaviour. However, in order to predict their behaviour other factors might have to be taken into consideration - e.g. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

===Prepare stakeholder management strategy===
Preparation of stakeholder management strategy deals with question about how to engage the stakeholders in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions, but also determine in which phase of the project/programme/portfolio the actions should be applied.

As a tool for combining all the above mentioned elements in the analysis, a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - e.g. internal, authorities or end users
*Relation
*Role
*Priorities
*SWOT
*Engagement plan

The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis, because it creates an insight into the different essential parameters and enables one to compare them. This creates a tool that can be used to determine the level of support, predict behaviours and shape an engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder has in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or less interested in the project. The stakeholders interest in the project/programme/portfolio can both be social, economical or environmental interests etc. The interest is typically measured on a low-high scale, but can also be measured on other scales that depends on the type of interest rather than the amount, e.g. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitudes towards the project/programme/portfolio.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. However, support should be seen as taking action - e.g. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in the analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication, because the stakeholder´s limited interest means that he does not care too much about the project/program/portfolio, and if an issue should occur his power is limited - also implying a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more due to the fact that they represent a limited risk since they have low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested, but the impact might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders, since the power can be seen as the magnitude of the impact, and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan, but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders associated with potential great danger - that are dangerous risks in the project/program/portfolio. But it is important to underline that the stakeholders carrying the greatest risks also are carrying the greatest opportunities. The high dynamism can generate a powerful impact but this can be positive as well as negative impact.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation, while a shareholder approach focuses on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several elements in the execution process can benefit from the stakeholder analysis, since initiatives can be shaped more appropriate.

Stakeholders that are engaged appropriately will help the company/organisation to obtain a better reputation among the stakeholders, which typically will have a boomerang effect and be able to create value on the companies/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholders can directly be seen as increasing focus on corporate social responsibility. Taking your surroundings into consideration, and of course engaging them in a social responsible manner, is very much in line with the philosophy behind CSR.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters, but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier, their will typically be both supporters and opponents. It might turn out that one have to handle unpopular communication with opponents.

=Conclusion=
Stakeholder analysis is a strong and relevant tool for both projects, programmes and portfolios. It creates valuable insight in internal organisation as well as all surrounding companies/organisations that affects or might be affected by the project, program or portfolio. This insight can be used for optimising communication and engagement. As well as ensuring a healthy long-term strategy.

But the analysis might be heavy work and may not necessarily give 100 per cent clear answers. To which level of detail a stakeholder analysis should be conducted therefore always has to be considered. However, identifying and to some degree analysing them should never be neglected.

=References=
{{Reflist}}
<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-12-01T22:43:23Z

Nemo: /* Challenges and uncertainty */

'''Summary:'''
A stakeholder can shortly be defined as one that can affect or be affected by the actual project, program or portfolio. A stakeholder can therefore be an employee or a customer - but also the union or a local society.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. In order to act appropriate and create sustainability, the management often has to consider these aspects and constraints not only from their own point of view, but also from a number of other stakeholders views.

In stakeholder analysis, all stakeholders first have to be identified and relevant information has to be gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can serve as a foundation for planning how to deal with stakeholders. Dealing with stakeholders can contain both communication and other types of engagement.

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Several other versions of this definition can be found in literature alike, but they generally convey the same idea. Stakeholders are e.g. employees, customers, suppliers and communities.

It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also considers all other stakeholders. Figure 1 shows a classic input/output model with suppliers, investors and employees that provides an input so the company can generate an output to the customers. This is a very simple approach where the company are seen as an isolated system that does not interact with its surroundings. Figure 2 shows a stakeholder model, where the company are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Both when managing projects, programs and portfolios, it is relevant for the management to know who their stakeholders are and their characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc. This can be used for optimising communication and engagement, as well as realising common interests that can be developed into an advantage.

The interaction with stakeholders as shown in Figure 1 might in some situations be limited and indirect. But stakeholders that traditionally, for a specific type of project, program or portfolio, are limited or indirect might be relevant to engage further?

=Background=
In 1932 Dodd outlined one of the first arguments within this area, stating that a company should not only focus on shareholders, but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However, Dodd did not use the term ''stakeholder'', since this was not developed within the field at that time. The term ''stakeholder'' arose in the first half of the 1960´s. Among others, Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> determined the existence of three types of stakeholder theory:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation has stakeholders and that they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should consider their stakeholders.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisations will use different approaches.

=Process=
In literature, several descriptions of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

This process will be explained more detailed in the following subsections:

===Identify stakeholders===
The identification of stakeholders could be done by brainstorming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typically also include a handful of more specific stakeholders depending on the situation. The stakeholders can also be identified in a more detailed manner - e.g. by different departments within the company/organisation if they e.g. have different interests.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described in the mapping section further below. A key stakeholder could be defined based on e.g. power and interest.

===Gather information on stakeholders===
When gathering information it is important to act neutral and not confuse it with the analysis itself.

===Identify stakeholders priorities===
Identifying the stakeholders´ priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can e.g. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

===Determine stakeholders strengths and weaknesses===
Determine stakeholders´ strengths and weaknesses - or do a complete SWOT inventory, will often be a beneficial part of the stakeholder analysis. Making a SWOT analysis of the stakeholders consists of determining the following elements:
*'''Strength:''' What are the stakeholders´ specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threats:''' Which challenges and difficulties can be seen from the stakeholders perspective? Will this develop into a threat for the project/programme/portfolio?

===Identify stakeholder support===
It is always important to know your friends. That is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. Nevertheless, it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio, where the support-opposing ratio will change. E.g. if you are a citizen living next to the construction site of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

===Predict stakeholder behaviour===
Analysing the stakeholders´ support and role in different phases and situations will enable one to predict the stakeholders´ behaviour. However, in order to predict their behaviour other factors might have to be taken into consideration - e.g. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

===Prepare stakeholder management strategy===
Preparation of stakeholder management strategy deals with question about how to engage the stakeholders in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions, but also determine in which phase of the project/programme/portfolio the actions should be applied.

As a tool for combining all the above mentioned elements in the analysis, a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - e.g. internal, authorities or end users
*Relation
*Role
*Priorities
*SWOT
*Engagement plan

The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis, because it creates an insight into the different essential parameters and enables one to compare them. This creates a tool that can be used to determine the level of support, predict behaviours and shape an engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder has in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or less interested in the project. The stakeholders interest in the project/programme/portfolio can both be social, economical or environmental interests etc. The interest is typically measured on a low-high scale, but can also be measured on other scales that depends on the type of interest rather than the amount, e.g. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitudes towards the project/programme/portfolio.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. However, support should be seen as taking action - e.g. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in the analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication, because the stakeholder´s limited interest means that he does not care too much about the project/program/portfolio, and if an issue should occur his power is limited - also implying a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more due to the fact that they represent a limited risk since they have low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested, but the impact might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders, since the power can be seen as the magnitude of the impact, and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan, but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders associated with potential great danger - that are dangerous risks in the project/program/portfolio. But it is important to underline that the stakeholders carrying the greatest risks also are carrying the greatest opportunities. The high dynamism can generate a powerful impact but this can be positive as well as negative impact.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation, while a shareholder approach focuses on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several elements in the execution process can benefit from the stakeholder analysis, since initiatives can be shaped more appropriate.

Stakeholders that are engaged appropriately will help the company/organisation to obtain a better reputation among the stakeholders, which typically will have a boomerang effect and be able to create value on the companies/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholders can directly be seen as increasing focus on corporate social responsibility. Taking your surroundings into consideration, and of course engaging them in a social responsible manner, is very much in line with the philosophy behind CSR.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters, but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier, their will typically be both supporters and opponents. It might turn out that one have to handle unpopular communication with opponents.

=Conclusion=
Stakeholder analysis is a strong a relevant tool for both projects, programmes and portfolios. It creates valuable insight in internal organisation as well as all surrounding companies/organisations that affects or might be affected by the project, program or portfolio. This insight can be used for optimising communication and engagement. As well as ensuring a healthy long-term strategy.

But the analysis might be heavy work and may not necessarily give 100 per cent clear answers. To which level of detail a stakeholder analysis should be conducted should therefore always be considered. However, identifying and to some degree analyse them should never be neglected.

=References=
{{Reflist}}
<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-12-01T22:42:42Z

Nemo: /* Benefits */

'''Summary:'''
A stakeholder can shortly be defined as one that can affect or be affected by the actual project, program or portfolio. A stakeholder can therefore be an employee or a customer - but also the union or a local society.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. In order to act appropriate and create sustainability, the management often has to consider these aspects and constraints not only from their own point of view, but also from a number of other stakeholders views.

In stakeholder analysis, all stakeholders first have to be identified and relevant information has to be gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can serve as a foundation for planning how to deal with stakeholders. Dealing with stakeholders can contain both communication and other types of engagement.

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Several other versions of this definition can be found in literature alike, but they generally convey the same idea. Stakeholders are e.g. employees, customers, suppliers and communities.

It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also considers all other stakeholders. Figure 1 shows a classic input/output model with suppliers, investors and employees that provides an input so the company can generate an output to the customers. This is a very simple approach where the company are seen as an isolated system that does not interact with its surroundings. Figure 2 shows a stakeholder model, where the company are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Both when managing projects, programs and portfolios, it is relevant for the management to know who their stakeholders are and their characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc. This can be used for optimising communication and engagement, as well as realising common interests that can be developed into an advantage.

The interaction with stakeholders as shown in Figure 1 might in some situations be limited and indirect. But stakeholders that traditionally, for a specific type of project, program or portfolio, are limited or indirect might be relevant to engage further?

=Background=
In 1932 Dodd outlined one of the first arguments within this area, stating that a company should not only focus on shareholders, but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However, Dodd did not use the term ''stakeholder'', since this was not developed within the field at that time. The term ''stakeholder'' arose in the first half of the 1960´s. Among others, Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> determined the existence of three types of stakeholder theory:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation has stakeholders and that they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should consider their stakeholders.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisations will use different approaches.

=Process=
In literature, several descriptions of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

This process will be explained more detailed in the following subsections:

===Identify stakeholders===
The identification of stakeholders could be done by brainstorming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typically also include a handful of more specific stakeholders depending on the situation. The stakeholders can also be identified in a more detailed manner - e.g. by different departments within the company/organisation if they e.g. have different interests.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described in the mapping section further below. A key stakeholder could be defined based on e.g. power and interest.

===Gather information on stakeholders===
When gathering information it is important to act neutral and not confuse it with the analysis itself.

===Identify stakeholders priorities===
Identifying the stakeholders´ priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can e.g. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

===Determine stakeholders strengths and weaknesses===
Determine stakeholders´ strengths and weaknesses - or do a complete SWOT inventory, will often be a beneficial part of the stakeholder analysis. Making a SWOT analysis of the stakeholders consists of determining the following elements:
*'''Strength:''' What are the stakeholders´ specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threats:''' Which challenges and difficulties can be seen from the stakeholders perspective? Will this develop into a threat for the project/programme/portfolio?

===Identify stakeholder support===
It is always important to know your friends. That is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. Nevertheless, it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio, where the support-opposing ratio will change. E.g. if you are a citizen living next to the construction site of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

===Predict stakeholder behaviour===
Analysing the stakeholders´ support and role in different phases and situations will enable one to predict the stakeholders´ behaviour. However, in order to predict their behaviour other factors might have to be taken into consideration - e.g. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

===Prepare stakeholder management strategy===
Preparation of stakeholder management strategy deals with question about how to engage the stakeholders in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions, but also determine in which phase of the project/programme/portfolio the actions should be applied.

As a tool for combining all the above mentioned elements in the analysis, a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - e.g. internal, authorities or end users
*Relation
*Role
*Priorities
*SWOT
*Engagement plan

The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis, because it creates an insight into the different essential parameters and enables one to compare them. This creates a tool that can be used to determine the level of support, predict behaviours and shape an engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder has in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or less interested in the project. The stakeholders interest in the project/programme/portfolio can both be social, economical or environmental interests etc. The interest is typically measured on a low-high scale, but can also be measured on other scales that depends on the type of interest rather than the amount, e.g. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitudes towards the project/programme/portfolio.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. However, support should be seen as taking action - e.g. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in the analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication, because the stakeholder´s limited interest means that he does not care too much about the project/program/portfolio, and if an issue should occur his power is limited - also implying a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more due to the fact that they represent a limited risk since they have low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested, but the impact might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders, since the power can be seen as the magnitude of the impact, and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan, but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders associated with potential great danger - that are dangerous risks in the project/program/portfolio. But it is important to underline that the stakeholders carrying the greatest risks also are carrying the greatest opportunities. The high dynamism can generate a powerful impact but this can be positive as well as negative impact.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation, while a shareholder approach focuses on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several elements in the execution process can benefit from the stakeholder analysis, since initiatives can be shaped more appropriate.

Stakeholders that are engaged appropriately will help the company/organisation to obtain a better reputation among the stakeholders, which typically will have a boomerang effect and be able to create value on the companies/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholders can directly be seen as increasing focus on corporate social responsibility. Taking your surroundings into consideration, and of course engaging them in a social responsible manner, is very much in line with the philosophy behind CSR.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. It might turn out that one have to handle unpopular communication with opponents.

=Conclusion=
Stakeholder analysis is a strong a relevant tool for both projects, programmes and portfolios. It creates valuable insight in internal organisation as well as all surrounding companies/organisations that affects or might be affected by the project, program or portfolio. This insight can be used for optimising communication and engagement. As well as ensuring a healthy long-term strategy.

But the analysis might be heavy work and may not necessarily give 100 per cent clear answers. To which level of detail a stakeholder analysis should be conducted should therefore always be considered. However, identifying and to some degree analyse them should never be neglected.

=References=
{{Reflist}}
<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-12-01T22:39:49Z

Nemo: /* Power/Dynamism diagram */

'''Summary:'''
A stakeholder can shortly be defined as one that can affect or be affected by the actual project, program or portfolio. A stakeholder can therefore be an employee or a customer - but also the union or a local society.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. In order to act appropriate and create sustainability, the management often has to consider these aspects and constraints not only from their own point of view, but also from a number of other stakeholders views.

In stakeholder analysis, all stakeholders first have to be identified and relevant information has to be gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can serve as a foundation for planning how to deal with stakeholders. Dealing with stakeholders can contain both communication and other types of engagement.

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Several other versions of this definition can be found in literature alike, but they generally convey the same idea. Stakeholders are e.g. employees, customers, suppliers and communities.

It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also considers all other stakeholders. Figure 1 shows a classic input/output model with suppliers, investors and employees that provides an input so the company can generate an output to the customers. This is a very simple approach where the company are seen as an isolated system that does not interact with its surroundings. Figure 2 shows a stakeholder model, where the company are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Both when managing projects, programs and portfolios, it is relevant for the management to know who their stakeholders are and their characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc. This can be used for optimising communication and engagement, as well as realising common interests that can be developed into an advantage.

The interaction with stakeholders as shown in Figure 1 might in some situations be limited and indirect. But stakeholders that traditionally, for a specific type of project, program or portfolio, are limited or indirect might be relevant to engage further?

=Background=
In 1932 Dodd outlined one of the first arguments within this area, stating that a company should not only focus on shareholders, but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However, Dodd did not use the term ''stakeholder'', since this was not developed within the field at that time. The term ''stakeholder'' arose in the first half of the 1960´s. Among others, Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> determined the existence of three types of stakeholder theory:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation has stakeholders and that they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should consider their stakeholders.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisations will use different approaches.

=Process=
In literature, several descriptions of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

This process will be explained more detailed in the following subsections:

===Identify stakeholders===
The identification of stakeholders could be done by brainstorming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typically also include a handful of more specific stakeholders depending on the situation. The stakeholders can also be identified in a more detailed manner - e.g. by different departments within the company/organisation if they e.g. have different interests.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described in the mapping section further below. A key stakeholder could be defined based on e.g. power and interest.

===Gather information on stakeholders===
When gathering information it is important to act neutral and not confuse it with the analysis itself.

===Identify stakeholders priorities===
Identifying the stakeholders´ priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can e.g. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

===Determine stakeholders strengths and weaknesses===
Determine stakeholders´ strengths and weaknesses - or do a complete SWOT inventory, will often be a beneficial part of the stakeholder analysis. Making a SWOT analysis of the stakeholders consists of determining the following elements:
*'''Strength:''' What are the stakeholders´ specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threats:''' Which challenges and difficulties can be seen from the stakeholders perspective? Will this develop into a threat for the project/programme/portfolio?

===Identify stakeholder support===
It is always important to know your friends. That is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. Nevertheless, it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio, where the support-opposing ratio will change. E.g. if you are a citizen living next to the construction site of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

===Predict stakeholder behaviour===
Analysing the stakeholders´ support and role in different phases and situations will enable one to predict the stakeholders´ behaviour. However, in order to predict their behaviour other factors might have to be taken into consideration - e.g. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

===Prepare stakeholder management strategy===
Preparation of stakeholder management strategy deals with question about how to engage the stakeholders in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions, but also determine in which phase of the project/programme/portfolio the actions should be applied.

As a tool for combining all the above mentioned elements in the analysis, a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - e.g. internal, authorities or end users
*Relation
*Role
*Priorities
*SWOT
*Engagement plan

The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis, because it creates an insight into the different essential parameters and enables one to compare them. This creates a tool that can be used to determine the level of support, predict behaviours and shape an engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder has in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or less interested in the project. The stakeholders interest in the project/programme/portfolio can both be social, economical or environmental interests etc. The interest is typically measured on a low-high scale, but can also be measured on other scales that depends on the type of interest rather than the amount, e.g. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitudes towards the project/programme/portfolio.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. However, support should be seen as taking action - e.g. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in the analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication, because the stakeholder´s limited interest means that he does not care too much about the project/program/portfolio, and if an issue should occur his power is limited - also implying a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more due to the fact that they represent a limited risk since they have low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested, but the impact might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders, since the power can be seen as the magnitude of the impact, and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan, but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders associated with potential great danger - that are dangerous risks in the project/program/portfolio. But it is important to underline that the stakeholders carrying the greatest risks also are carrying the greatest opportunities. The high dynamism can generate a powerful impact but this can be positive as well as negative impact.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility. Taking your surroundings into consideration, and of course engaging them in a social responsible manner, is very much in line with the philosophy behind CSR.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. It might turn out that one have to handle unpopular communication with opponents.

=Conclusion=
Stakeholder analysis is a strong a relevant tool for both projects, programmes and portfolios. It creates valuable insight in internal organisation as well as all surrounding companies/organisations that affects or might be affected by the project, program or portfolio. This insight can be used for optimising communication and engagement. As well as ensuring a healthy long-term strategy.

But the analysis might be heavy work and may not necessarily give 100 per cent clear answers. To which level of detail a stakeholder analysis should be conducted should therefore always be considered. However, identifying and to some degree analyse them should never be neglected.

=References=
{{Reflist}}
<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-12-01T22:27:06Z

Nemo: /* Power/Interest diagram */

'''Summary:'''
A stakeholder can shortly be defined as one that can affect or be affected by the actual project, program or portfolio. A stakeholder can therefore be an employee or a customer - but also the union or a local society.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. In order to act appropriate and create sustainability, the management often has to consider these aspects and constraints not only from their own point of view, but also from a number of other stakeholders views.

In stakeholder analysis, all stakeholders first have to be identified and relevant information has to be gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can serve as a foundation for planning how to deal with stakeholders. Dealing with stakeholders can contain both communication and other types of engagement.

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Several other versions of this definition can be found in literature alike, but they generally convey the same idea. Stakeholders are e.g. employees, customers, suppliers and communities.

It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also considers all other stakeholders. Figure 1 shows a classic input/output model with suppliers, investors and employees that provides an input so the company can generate an output to the customers. This is a very simple approach where the company are seen as an isolated system that does not interact with its surroundings. Figure 2 shows a stakeholder model, where the company are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Both when managing projects, programs and portfolios, it is relevant for the management to know who their stakeholders are and their characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc. This can be used for optimising communication and engagement, as well as realising common interests that can be developed into an advantage.

The interaction with stakeholders as shown in Figure 1 might in some situations be limited and indirect. But stakeholders that traditionally, for a specific type of project, program or portfolio, are limited or indirect might be relevant to engage further?

=Background=
In 1932 Dodd outlined one of the first arguments within this area, stating that a company should not only focus on shareholders, but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However, Dodd did not use the term ''stakeholder'', since this was not developed within the field at that time. The term ''stakeholder'' arose in the first half of the 1960´s. Among others, Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> determined the existence of three types of stakeholder theory:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation has stakeholders and that they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should consider their stakeholders.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisations will use different approaches.

=Process=
In literature, several descriptions of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

This process will be explained more detailed in the following subsections:

===Identify stakeholders===
The identification of stakeholders could be done by brainstorming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typically also include a handful of more specific stakeholders depending on the situation. The stakeholders can also be identified in a more detailed manner - e.g. by different departments within the company/organisation if they e.g. have different interests.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described in the mapping section further below. A key stakeholder could be defined based on e.g. power and interest.

===Gather information on stakeholders===
When gathering information it is important to act neutral and not confuse it with the analysis itself.

===Identify stakeholders priorities===
Identifying the stakeholders´ priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can e.g. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

===Determine stakeholders strengths and weaknesses===
Determine stakeholders´ strengths and weaknesses - or do a complete SWOT inventory, will often be a beneficial part of the stakeholder analysis. Making a SWOT analysis of the stakeholders consists of determining the following elements:
*'''Strength:''' What are the stakeholders´ specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threats:''' Which challenges and difficulties can be seen from the stakeholders perspective? Will this develop into a threat for the project/programme/portfolio?

===Identify stakeholder support===
It is always important to know your friends. That is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. Nevertheless, it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio, where the support-opposing ratio will change. E.g. if you are a citizen living next to the construction site of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

===Predict stakeholder behaviour===
Analysing the stakeholders´ support and role in different phases and situations will enable one to predict the stakeholders´ behaviour. However, in order to predict their behaviour other factors might have to be taken into consideration - e.g. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

===Prepare stakeholder management strategy===
Preparation of stakeholder management strategy deals with question about how to engage the stakeholders in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions, but also determine in which phase of the project/programme/portfolio the actions should be applied.

As a tool for combining all the above mentioned elements in the analysis, a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - e.g. internal, authorities or end users
*Relation
*Role
*Priorities
*SWOT
*Engagement plan

The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis, because it creates an insight into the different essential parameters and enables one to compare them. This creates a tool that can be used to determine the level of support, predict behaviours and shape an engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder has in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or less interested in the project. The stakeholders interest in the project/programme/portfolio can both be social, economical or environmental interests etc. The interest is typically measured on a low-high scale, but can also be measured on other scales that depends on the type of interest rather than the amount, e.g. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitudes towards the project/programme/portfolio.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. However, support should be seen as taking action - e.g. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in the analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication, because the stakeholder´s limited interest means that he does not care too much about the project/program/portfolio, and if an issue should occur his power is limited - also implying a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more due to the fact that they represent a limited risk since they have low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested, but the impact might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and. Risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders with great danger they are associated with the greatest risks in the project/program/portfolio - but also the greatest opportunities.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility. Taking your surroundings into consideration, and of course engaging them in a social responsible manner, is very much in line with the philosophy behind CSR.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. It might turn out that one have to handle unpopular communication with opponents.

=Conclusion=
Stakeholder analysis is a strong a relevant tool for both projects, programmes and portfolios. It creates valuable insight in internal organisation as well as all surrounding companies/organisations that affects or might be affected by the project, program or portfolio. This insight can be used for optimising communication and engagement. As well as ensuring a healthy long-term strategy.

But the analysis might be heavy work and may not necessarily give 100 per cent clear answers. To which level of detail a stakeholder analysis should be conducted should therefore always be considered. However, identifying and to some degree analyse them should never be neglected.

=References=
{{Reflist}}
<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-12-01T22:22:57Z

Nemo: /* Benefits */

'''Summary:'''
A stakeholder can shortly be defined as one that can affect or be affected by the actual project, program or portfolio. A stakeholder can therefore be an employee or a customer - but also the union or a local society.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. In order to act appropriate and create sustainability, the management often has to consider these aspects and constraints not only from their own point of view, but also from a number of other stakeholders views.

In stakeholder analysis, all stakeholders first have to be identified and relevant information has to be gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can serve as a foundation for planning how to deal with stakeholders. Dealing with stakeholders can contain both communication and other types of engagement.

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Several other versions of this definition can be found in literature alike, but they generally convey the same idea. Stakeholders are e.g. employees, customers, suppliers and communities.

It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also considers all other stakeholders. Figure 1 shows a classic input/output model with suppliers, investors and employees that provides an input so the company can generate an output to the customers. This is a very simple approach where the company are seen as an isolated system that does not interact with its surroundings. Figure 2 shows a stakeholder model, where the company are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Both when managing projects, programs and portfolios, it is relevant for the management to know who their stakeholders are and their characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc. This can be used for optimising communication and engagement, as well as realising common interests that can be developed into an advantage.

The interaction with stakeholders as shown in Figure 1 might in some situations be limited and indirect. But stakeholders that traditionally, for a specific type of project, program or portfolio, are limited or indirect might be relevant to engage further?

=Background=
In 1932 Dodd outlined one of the first arguments within this area, stating that a company should not only focus on shareholders, but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However, Dodd did not use the term ''stakeholder'', since this was not developed within the field at that time. The term ''stakeholder'' arose in the first half of the 1960´s. Among others, Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> determined the existence of three types of stakeholder theory:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation has stakeholders and that they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should consider their stakeholders.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisations will use different approaches.

=Process=
In literature, several descriptions of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

This process will be explained more detailed in the following subsections:

===Identify stakeholders===
The identification of stakeholders could be done by brainstorming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typically also include a handful of more specific stakeholders depending on the situation. The stakeholders can also be identified in a more detailed manner - e.g. by different departments within the company/organisation if they e.g. have different interests.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described in the mapping section further below. A key stakeholder could be defined based on e.g. power and interest.

===Gather information on stakeholders===
When gathering information it is important to act neutral and not confuse it with the analysis itself.

===Identify stakeholders priorities===
Identifying the stakeholders´ priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can e.g. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

===Determine stakeholders strengths and weaknesses===
Determine stakeholders´ strengths and weaknesses - or do a complete SWOT inventory, will often be a beneficial part of the stakeholder analysis. Making a SWOT analysis of the stakeholders consists of determining the following elements:
*'''Strength:''' What are the stakeholders´ specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threats:''' Which challenges and difficulties can be seen from the stakeholders perspective? Will this develop into a threat for the project/programme/portfolio?

===Identify stakeholder support===
It is always important to know your friends. That is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. Nevertheless, it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio, where the support-opposing ratio will change. E.g. if you are a citizen living next to the construction site of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

===Predict stakeholder behaviour===
Analysing the stakeholders´ support and role in different phases and situations will enable one to predict the stakeholders´ behaviour. However, in order to predict their behaviour other factors might have to be taken into consideration - e.g. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

===Prepare stakeholder management strategy===
Preparation of stakeholder management strategy deals with question about how to engage the stakeholders in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions, but also determine in which phase of the project/programme/portfolio the actions should be applied.

As a tool for combining all the above mentioned elements in the analysis, a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - e.g. internal, authorities or end users
*Relation
*Role
*Priorities
*SWOT
*Engagement plan

The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis, because it creates an insight into the different essential parameters and enables one to compare them. This creates a tool that can be used to determine the level of support, predict behaviours and shape an engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder has in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or less interested in the project. The stakeholders interest in the project/programme/portfolio can both be social, economical or environmental interests etc. The interest is typically measured on a low-high scale, but can also be measured on other scales that depends on the type of interest rather than the amount, e.g. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitudes towards the project/programme/portfolio.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. However, support should be seen as taking action - e.g. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because they represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and. Risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders with great danger they are associated with the greatest risks in the project/program/portfolio - but also the greatest opportunities.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility. Taking your surroundings into consideration, and of course engaging them in a social responsible manner, is very much in line with the philosophy behind CSR.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. It might turn out that one have to handle unpopular communication with opponents.

=Conclusion=
Stakeholder analysis is a strong a relevant tool for both projects, programmes and portfolios. It creates valuable insight in internal organisation as well as all surrounding companies/organisations that affects or might be affected by the project, program or portfolio. This insight can be used for optimising communication and engagement. As well as ensuring a healthy long-term strategy.

But the analysis might be heavy work and may not necessarily give 100 per cent clear answers. To which level of detail a stakeholder analysis should be conducted should therefore always be considered. However, identifying and to some degree analyse them should never be neglected.

=References=
{{Reflist}}
<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-12-01T22:15:54Z

Nemo: /* Types of maps */

'''Summary:'''
A stakeholder can shortly be defined as one that can affect or be affected by the actual project, program or portfolio. A stakeholder can therefore be an employee or a customer - but also the union or a local society.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. In order to act appropriate and create sustainability, the management often has to consider these aspects and constraints not only from their own point of view, but also from a number of other stakeholders views.

In stakeholder analysis, all stakeholders first have to be identified and relevant information has to be gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can serve as a foundation for planning how to deal with stakeholders. Dealing with stakeholders can contain both communication and other types of engagement.

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Several other versions of this definition can be found in literature alike, but they generally convey the same idea. Stakeholders are e.g. employees, customers, suppliers and communities.

It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also considers all other stakeholders. Figure 1 shows a classic input/output model with suppliers, investors and employees that provides an input so the company can generate an output to the customers. This is a very simple approach where the company are seen as an isolated system that does not interact with its surroundings. Figure 2 shows a stakeholder model, where the company are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Both when managing projects, programs and portfolios, it is relevant for the management to know who their stakeholders are and their characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc. This can be used for optimising communication and engagement, as well as realising common interests that can be developed into an advantage.

The interaction with stakeholders as shown in Figure 1 might in some situations be limited and indirect. But stakeholders that traditionally, for a specific type of project, program or portfolio, are limited or indirect might be relevant to engage further?

=Background=
In 1932 Dodd outlined one of the first arguments within this area, stating that a company should not only focus on shareholders, but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However, Dodd did not use the term ''stakeholder'', since this was not developed within the field at that time. The term ''stakeholder'' arose in the first half of the 1960´s. Among others, Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> determined the existence of three types of stakeholder theory:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation has stakeholders and that they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should consider their stakeholders.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisations will use different approaches.

=Process=
In literature, several descriptions of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

This process will be explained more detailed in the following subsections:

===Identify stakeholders===
The identification of stakeholders could be done by brainstorming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typically also include a handful of more specific stakeholders depending on the situation. The stakeholders can also be identified in a more detailed manner - e.g. by different departments within the company/organisation if they e.g. have different interests.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described in the mapping section further below. A key stakeholder could be defined based on e.g. power and interest.

===Gather information on stakeholders===
When gathering information it is important to act neutral and not confuse it with the analysis itself.

===Identify stakeholders priorities===
Identifying the stakeholders´ priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can e.g. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

===Determine stakeholders strengths and weaknesses===
Determine stakeholders´ strengths and weaknesses - or do a complete SWOT inventory, will often be a beneficial part of the stakeholder analysis. Making a SWOT analysis of the stakeholders consists of determining the following elements:
*'''Strength:''' What are the stakeholders´ specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threats:''' Which challenges and difficulties can be seen from the stakeholders perspective? Will this develop into a threat for the project/programme/portfolio?

===Identify stakeholder support===
It is always important to know your friends. That is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. Nevertheless, it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio, where the support-opposing ratio will change. E.g. if you are a citizen living next to the construction site of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

===Predict stakeholder behaviour===
Analysing the stakeholders´ support and role in different phases and situations will enable one to predict the stakeholders´ behaviour. However, in order to predict their behaviour other factors might have to be taken into consideration - e.g. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

===Prepare stakeholder management strategy===
Preparation of stakeholder management strategy deals with question about how to engage the stakeholders in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions, but also determine in which phase of the project/programme/portfolio the actions should be applied.

As a tool for combining all the above mentioned elements in the analysis, a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - e.g. internal, authorities or end users
*Relation
*Role
*Priorities
*SWOT
*Engagement plan

The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis, because it creates an insight into the different essential parameters and enables one to compare them. This creates a tool that can be used to determine the level of support, predict behaviours and shape an engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder has in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or less interested in the project. The stakeholders interest in the project/programme/portfolio can both be social, economical or environmental interests etc. The interest is typically measured on a low-high scale, but can also be measured on other scales that depends on the type of interest rather than the amount, e.g. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitudes towards the project/programme/portfolio.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. However, support should be seen as taking action - e.g. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because they represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and. Risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders with great danger they are associated with the greatest risks in the project/program/portfolio - but also the greatest opportunities.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. It might turn out that one have to handle unpopular communication with opponents.

=Conclusion=
Stakeholder analysis is a strong a relevant tool for both projects, programmes and portfolios. It creates valuable insight in internal organisation as well as all surrounding companies/organisations that affects or might be affected by the project, program or portfolio. This insight can be used for optimising communication and engagement. As well as ensuring a healthy long-term strategy.

But the analysis might be heavy work and may not necessarily give 100 per cent clear answers. To which level of detail a stakeholder analysis should be conducted should therefore always be considered. However, identifying and to some degree analyse them should never be neglected.

=References=
{{Reflist}}
<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-12-01T22:12:25Z

Nemo: /* Identify stakeholders */

'''Summary:'''
A stakeholder can shortly be defined as one that can affect or be affected by the actual project, program or portfolio. A stakeholder can therefore be an employee or a customer - but also the union or a local society.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. In order to act appropriate and create sustainability, the management often has to consider these aspects and constraints not only from their own point of view, but also from a number of other stakeholders views.

In stakeholder analysis, all stakeholders first have to be identified and relevant information has to be gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can serve as a foundation for planning how to deal with stakeholders. Dealing with stakeholders can contain both communication and other types of engagement.

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Several other versions of this definition can be found in literature alike, but they generally convey the same idea. Stakeholders are e.g. employees, customers, suppliers and communities.

It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also considers all other stakeholders. Figure 1 shows a classic input/output model with suppliers, investors and employees that provides an input so the company can generate an output to the customers. This is a very simple approach where the company are seen as an isolated system that does not interact with its surroundings. Figure 2 shows a stakeholder model, where the company are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Both when managing projects, programs and portfolios, it is relevant for the management to know who their stakeholders are and their characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc. This can be used for optimising communication and engagement, as well as realising common interests that can be developed into an advantage.

The interaction with stakeholders as shown in Figure 1 might in some situations be limited and indirect. But stakeholders that traditionally, for a specific type of project, program or portfolio, are limited or indirect might be relevant to engage further?

=Background=
In 1932 Dodd outlined one of the first arguments within this area, stating that a company should not only focus on shareholders, but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However, Dodd did not use the term ''stakeholder'', since this was not developed within the field at that time. The term ''stakeholder'' arose in the first half of the 1960´s. Among others, Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> determined the existence of three types of stakeholder theory:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation has stakeholders and that they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should consider their stakeholders.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisations will use different approaches.

=Process=
In literature, several descriptions of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

This process will be explained more detailed in the following subsections:

===Identify stakeholders===
The identification of stakeholders could be done by brainstorming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typically also include a handful of more specific stakeholders depending on the situation. The stakeholders can also be identified in a more detailed manner - e.g. by different departments within the company/organisation if they e.g. have different interests.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described in the mapping section further below. A key stakeholder could be defined based on e.g. power and interest.

===Gather information on stakeholders===
When gathering information it is important to act neutral and not confuse it with the analysis itself.

===Identify stakeholders priorities===
Identifying the stakeholders´ priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can e.g. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

===Determine stakeholders strengths and weaknesses===
Determine stakeholders´ strengths and weaknesses - or do a complete SWOT inventory, will often be a beneficial part of the stakeholder analysis. Making a SWOT analysis of the stakeholders consists of determining the following elements:
*'''Strength:''' What are the stakeholders´ specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threats:''' Which challenges and difficulties can be seen from the stakeholders perspective? Will this develop into a threat for the project/programme/portfolio?

===Identify stakeholder support===
It is always important to know your friends. That is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. Nevertheless, it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio, where the support-opposing ratio will change. E.g. if you are a citizen living next to the construction site of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

===Predict stakeholder behaviour===
Analysing the stakeholders´ support and role in different phases and situations will enable one to predict the stakeholders´ behaviour. However, in order to predict their behaviour other factors might have to be taken into consideration - e.g. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

===Prepare stakeholder management strategy===
Preparation of stakeholder management strategy deals with question about how to engage the stakeholders in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions, but also determine in which phase of the project/programme/portfolio the actions should be applied.

As a tool for combining all the above mentioned elements in the analysis, a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - e.g. internal, authorities or end users
*Relation
*Role
*Priorities
*SWOT
*Engagement plan

The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis, because it creates an insight into the different essential parameters and enables one to compare them. This creates a tool that can be used to determine the level of support, predict behaviours and shape an engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or less interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. However, support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because they represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and. Risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders with great danger they are associated with the greatest risks in the project/program/portfolio - but also the greatest opportunities.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. It might turn out that one have to handle unpopular communication with opponents.

=Conclusion=
Stakeholder analysis is a strong a relevant tool for both projects, programmes and portfolios. It creates valuable insight in internal organisation as well as all surrounding companies/organisations that affects or might be affected by the project, program or portfolio. This insight can be used for optimising communication and engagement. As well as ensuring a healthy long-term strategy.

But the analysis might be heavy work and may not necessarily give 100 per cent clear answers. To which level of detail a stakeholder analysis should be conducted should therefore always be considered. However, identifying and to some degree analyse them should never be neglected.

=References=
{{Reflist}}
<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-12-01T22:07:41Z

Nemo:

'''Summary:'''
A stakeholder can shortly be defined as one that can affect or be affected by the actual project, program or portfolio. A stakeholder can therefore be an employee or a customer - but also the union or a local society.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. In order to act appropriate and create sustainability, the management often has to consider these aspects and constraints not only from their own point of view, but also from a number of other stakeholders views.

In stakeholder analysis, all stakeholders first have to be identified and relevant information has to be gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can serve as a foundation for planning how to deal with stakeholders. Dealing with stakeholders can contain both communication and other types of engagement.

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Several other versions of this definition can be found in literature alike, but they generally convey the same idea. Stakeholders are e.g. employees, customers, suppliers and communities.

It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also considers all other stakeholders. Figure 1 shows a classic input/output model with suppliers, investors and employees that provides an input so the company can generate an output to the customers. This is a very simple approach where the company are seen as an isolated system that does not interact with its surroundings. Figure 2 shows a stakeholder model, where the company are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Both when managing projects, programs and portfolios, it is relevant for the management to know who their stakeholders are and their characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc. This can be used for optimising communication and engagement, as well as realising common interests that can be developed into an advantage.

The interaction with stakeholders as shown in Figure 1 might in some situations be limited and indirect. But stakeholders that traditionally, for a specific type of project, program or portfolio, are limited or indirect might be relevant to engage further?

=Background=
In 1932 Dodd outlined one of the first arguments within this area, stating that a company should not only focus on shareholders, but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However, Dodd did not use the term ''stakeholder'', since this was not developed within the field at that time. The term ''stakeholder'' arose in the first half of the 1960´s. Among others, Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> determined the existence of three types of stakeholder theory:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation has stakeholders and that they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should consider their stakeholders.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisations will use different approaches.

=Process=
In literature, several descriptions of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

This process will be explained more detailed in the following subsections:

===Identify stakeholders===
The identification of stakeholders could be done by brainstorming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typically also include a handful of more specific stakeholders depending on the situation. The stakeholders can also be identified in a more detailed manner - e.g. by different departments within the company/organisation if they e.g. have different interests.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described in the mapping section further below.

===Gather information on stakeholders===
When gathering information it is important to act neutral and not confuse it with the analysis itself.

===Identify stakeholders priorities===
Identifying the stakeholders´ priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can e.g. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

===Determine stakeholders strengths and weaknesses===
Determine stakeholders´ strengths and weaknesses - or do a complete SWOT inventory, will often be a beneficial part of the stakeholder analysis. Making a SWOT analysis of the stakeholders consists of determining the following elements:
*'''Strength:''' What are the stakeholders´ specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threats:''' Which challenges and difficulties can be seen from the stakeholders perspective? Will this develop into a threat for the project/programme/portfolio?

===Identify stakeholder support===
It is always important to know your friends. That is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. Nevertheless, it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio, where the support-opposing ratio will change. E.g. if you are a citizen living next to the construction site of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

===Predict stakeholder behaviour===
Analysing the stakeholders´ support and role in different phases and situations will enable one to predict the stakeholders´ behaviour. However, in order to predict their behaviour other factors might have to be taken into consideration - e.g. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

===Prepare stakeholder management strategy===
Preparation of stakeholder management strategy deals with question about how to engage the stakeholders in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions, but also determine in which phase of the project/programme/portfolio the actions should be applied.

As a tool for combining all the above mentioned elements in the analysis, a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - e.g. internal, authorities or end users
*Relation
*Role
*Priorities
*SWOT
*Engagement plan

The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis, because it creates an insight into the different essential parameters and enables one to compare them. This creates a tool that can be used to determine the level of support, predict behaviours and shape an engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or less interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. However, support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because they represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and. Risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders with great danger they are associated with the greatest risks in the project/program/portfolio - but also the greatest opportunities.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. It might turn out that one have to handle unpopular communication with opponents.

=Conclusion=
Stakeholder analysis is a strong a relevant tool for both projects, programmes and portfolios. It creates valuable insight in internal organisation as well as all surrounding companies/organisations that affects or might be affected by the project, program or portfolio. This insight can be used for optimising communication and engagement. As well as ensuring a healthy long-term strategy.

But the analysis might be heavy work and may not necessarily give 100 per cent clear answers. To which level of detail a stakeholder analysis should be conducted should therefore always be considered. However, identifying and to some degree analyse them should never be neglected.

=References=
{{Reflist}}
<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-12-01T21:59:29Z

Nemo: /* Identify stakeholders */

'''Summary:'''
A stakeholder can shortly be defined as one that can affect or be affected by the actual project, program or portfolio. A stakeholder can therefore be an employee or a customer - but also the union or a local society.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. In order to act appropriate and create sustainability, the management often has to consider these aspects and constraints not only from their own point of view, but also from a number of other stakeholders views.

In stakeholder analysis, all stakeholders first have to be identified and relevant information has to be gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can serve as a foundation for planning how to deal with stakeholders. Dealing with stakeholders can contain both communication and other types of engagement.

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Several other versions of this definition can be found in literature alike, but they generally convey the same idea. Stakeholders are e.g. employees, customers, suppliers and communities.

It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also considers all other stakeholders. Figure 1 shows a classic input/output model with suppliers, investors and employees that provides an input so the company can generate an output to the customers. This is a very simple approach where the company are seen as an isolated system that does not interact with its surroundings. Figure 2 shows a stakeholder model, where the company are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Both when managing projects, programs and portfolios, it is relevant for the management to know who their stakeholders are and their characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc. This can be used for optimising communication and engagement, as well as realising common interests that can be developed into an advantage.

The interaction with stakeholders as shown in Figure 1 might in some situations be limited and indirect. But stakeholders that traditionally, for a specific type of project, program or portfolio, are limited or indirect might be relevant to engage further?

=Background=
In 1932 Dodd outlined one of the first arguments within this area, stating that a company should not only focus on shareholders, but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However, Dodd did not use the term ''stakeholder'', since this was not developed within the field at that time. The term ''stakeholder'' arose in the first half of the 1960´s. Among others, Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> determined the existence of three types of stakeholder theory:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation has stakeholders and that they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should consider their stakeholders.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisations will use different approaches.

=Process=
In literature, several descriptions of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

This process will be explained more detailed in the following subsections:

===Identify stakeholders===
The identification of stakeholders could be done by brainstorming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typically also include a handful of more specific stakeholders depending on the situation. The stakeholders can also be identified in a more detailed manner - e.g. by different departments within the company/organisation if they e.g. have different interests.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described in the mapping section further below.

===Gather information on stakeholders===
When gathering information it is important to act neutral and not confuse it with the analysis itself.

===Identify stakeholders priorities===
Identifying the stakeholders´ priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can e.g. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

===Determine stakeholders strengths and weaknesses===
Determine stakeholders´ strengths and weaknesses - or do a complete SWOT inventory, will often be a beneficial part of the stakeholder analysis. Making a SWOT analysis of the stakeholders consists of determining the following elements:
*'''Strength:''' What are the stakeholders´ specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threats:''' Which challenges and difficulties can be seen from the stakeholders perspective? Will this develop into a threat for the project/programme/portfolio?

===Identify stakeholder support===
It is always important to know your friends. That is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. Nevertheless, it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio, where the support-opposing ratio will change. E.g. if you are a citizen living next to the construction site of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

===Predict stakeholder behaviour===
Analysing the stakeholders´ support and role in different phases and situations also leads to predicting the stakeholders´ behaviour. However, for doing this prediction other factor might also have to be considered - e.g. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

===Prepare stakeholder management strategy===
Preparation of stakeholder management strategy is about how to engage the stakeholders in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis, a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - e.g. internal, authorities or end users
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or less interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. However, support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because they represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and. Risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders with great danger they are associated with the greatest risks in the project/program/portfolio - but also the greatest opportunities.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. It might turn out that one have to handle unpopular communication with opponents.

=Conclusion=
Stakeholder analysis is a strong a relevant tool for both projects, programmes and portfolios. It creates valuable insight in internal organisation as well as all surrounding companies/organisations that affects or might be affected by the project, program or portfolio. This insight can be used for optimising communication and engagement. As well as ensuring a healthy long-term strategy.

But the analysis might be heavy work and may not necessarily give 100 per cent clear answers. To which level of detail a stakeholder analysis should be conducted should therefore always be considered. However, identifying and to some degree analyse them should never be neglected.

=References=
{{Reflist}}
<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Talk:Stakeholder Analysis

2014-12-01T21:56:45Z

Nemo:

==Murcs==
==General==

* I can see that you are well on your way and that the content is interesting, but that there is still some work to do.
* ''Nemo respons: Thanks. I agree that the article was not fully completed. I have especially improved the section regarding mapping and worked on the general flow in the article.''

'''Formal:'''

* I can see that you have been using the referencing correctly, but you are still missing some references to other peoples wiki articles for example SWOT
* ''Nemo respons: I have now added link to SWOT and Stakeholder Mapping. I also add some categories and key words for making the article more visible and better integrated in the Wiki structure.''
* There are some spelling mistakes and some grammar mistakes, maybe by adding your text to word you can find some of them
* ''Nemo respons: I have done some reading focus on spelling and grammar in the article, and also used some spelling check on the computer<nowiki>;-)</nowiki>''
* I think the structure looks pretty good but maybe you should have the introduction above the content list and background inbetween introduction and process and move the benefits down?
* ''Nemo respons: Background is already in between introduction and process. I have moved the Benefits down. I don´t think I´m able to move around with the content list, since it auto-generated.''
* You have only used around 1500 words so you still have plenty to finish your article
* ''Nemo respons: I wrote some more about mapping, which was not completed, and also add some to the introduction.''

'''Content:'''

* You can maybe make clear what shareholder, key stakeholder or CSR is either by referencing to it somewhere else or maybe writing about it.
* ''Nemo respons: I have elaborated a bit on that in the text now.''
* I think that you have made some good visualizations that are coherent in color and are well described, do you maybe have a suggestion on a way of vizualizing a 2D mapping? Or a reference?
* ''Nemo respons: I have extended the section regarding mapping and also described 2D mapping further.''
* I like that yo have used some examples like the metro station, maybe you have some more
* ''Nemo respons: More minor examples has been included.''
* Should possibly specify if stakeholder analysis can be used for project, program and portfolio.
* ''Nemo respons: Stakeholder analysis can be used for both projects, programs and portfolios. I have add that in the introduction.''
* You could possibly add some more headlines under the process, for example by using the 7 steps and then describing them, since you already describe the first step in very clear detail.
* ''Nemo respons: Ok - implemented.''

* I think you are on your way to creating an informative wiki article, if there is time and you would like then I can maybe have a look at it again when you are done. I will come back and check the discussion to see what you think, hope some of the feedback was useful.
* ''Nemo respons: Thanks for the response - it has resulted in a handful of improvements <nowiki>;-)</nowiki>''

== fra johnjohn ==

=== General comments ===

Content:
* Interesting content, as a practitioner it is interesting to get an overview of the concept.
* ''Nemo respons: Thanks.''
* The relation to project management could be underlined. Maybe discuss its relevance relative to project, program and portfolio management?
- References seem substantiated by relevant literature? I does not seem like copy paste
* ''Nemo respons: I have improved the introduction regarding this.''

Formal:

* Spelling is overall ok
* ''Nemo respons: Thanks. I have however tried to improve a bit.''
* References are ok and relevant, and the formatting of them complies with the wiki standards.
* ''Nemo respons: Thanks.''
* I like the precise language and short sentences, but language could be more engaging.
* ''Nemo respons: I have tried to improve the language and flow in the article in general.''
* Figures are ok and especially in the Mapping section should the support the explanation of the methods.
* ''Nemo respons: Thanks. I have added and improved the mapping section in general.''

=== Comments for content in each section ===

Content:
* I like that you try to keep it short and precise, but I do miss that the parts are writing in a more fluent language. I could also miss the red thread in the article, and what it actually aims for. I summary in the beginning stating aim and type of article could help this..
* ''Nemo respons: I have improved the flow in the article in general and implemented a better introduction. I have also included a summary. I was bit confused on whether it should be a summary or an abstract since I have heard different from fellow student depending on which teacher they spoke with. But I ended up with a summary <nowiki>;-)</nowiki>''

Introduction:
* You say that it is important to distinguish stakeholder and shareholder. Make you could explain the difference?
* ''Nemo respons: I see this distinction as a very essential point of my argument, so I am very glad that you pointet out that this was not clear enough. I have improved my argumentation regarding this.''
* Nice with the stakeholder definition from the standard. Maybe you could give examples of a stakeholder, and link it to your figure? Maybe simply say, that a stakeholder can be ”customer”, ”employee”. I know you do this under the process section, so maybe you can just refer to that section.
* ''Nemo respons: This should be more clear in the improved introduction.''

Benefits:
* Who is Zhang? And why are his opinion especially important?
* ''Nemo respons: I don´t see it as essential for this type of article''
* What you state here is why you should make a stakeholder analysis
* ''Nemo respons: I agree. But I still think it make sense to title this section "Benefits".''
* I think it is a good idea to give a teaser to why a stakeholder analysis are relevant to you. I however find it a bit distracting from the flow in the article that it is in the begining.. maybe you could sum it up later in the article..
* ''Nemo respons: Ok, I moved it to later in the article <nowiki>;-)</nowiki>''
* Maybe the headline should be ”Why do a stakeholder analysis?”
* ''Nemo respons: I think both headlines cover the content. But I think "Benefits" fits better to the language in the article.''

Background
* I am wondering who Dodd is, and why he is important?
* ''Nemo respons: I don´t see it as essential for this type of article''
* Maybe you could mention the theorists background, that you refer to?
* ''Nemo respons: I don´t see it as essential for this type of article''
* I really like the coca-cola reference.
* ''Nemo respons: Thanks.''
* This section is a bit abrupt and short, I miss the language her to be more fluent.. even though I like that you keep it shout and keep to the facts.
* ''Nemo respons: I have improved language and flow in general.''

Process
* I like the point wise go-through and the process
* ''Nemo respons: Thanks.''
* The concept of ”key stakeholder” could be elaborated on.
* ''Nemo respons: Yes, implemented <nowiki>;-)</nowiki>''
* Maybe the SWOT-analysis should have its own sub-headline? Just a suggestion for intriguing the reader
* ''Nemo respons: I do not want to give too much attention to the SWOT, since I am afraid the readers will mainly focus on what they are familiar with already, and I do not see the SWOT as crucial.''

Mapping stakeholders:
* I like the why section
* ''Nemo respons: Thanks.''
* You give a good overview of power/interest diagram
* ''Nemo respons: Thanks''
* The other topics of the mapping diagrams seems interesting and relevant. Will you compare them and make recommendations on when to use what diagram?
* ''Nemo respons: Yes, I have extended and improved the mapping section in general.''

Challenges and uncertainty
* I like the points you state in this section, they are highly relevant.
* ''Nemo respons: Thanks.''
* Maybe you could also conclude consideration on how to scope your stakeholder analysis. How to frame it? Maybe demarcation of what stakeholders to include? And non the less you to exclude/leave out?
* ''Nemo respons: A conclusion is added.''

== reviewed by $Young-Money$ ==

* I like the way that you are straight forward with your points thus using your 3500 words efficiently
* ''Nemo respons: Thanks. I have extended the introduction and mapping section and improved the general flow in the article.''
* Good English formulation, but i suggest you write "in literature" and NOT "in the literature"
* ''Nemo respons: Thanks - I have changed to "in literature" now <nowiki>;-)</nowiki>''
* Like how you started by defining what a stakeholder is and differentiating its meaning from shareholder, so you have the reader clear on what it is that you exactly mean.
* ''Nemo respons: Thanks. I have added some more to this part of the article since I think it is crucial element of understanding the stakeholder analsis.''
* There is a good flow in the article, but i suggest that you move the benefit aspect to the bottom for discussion. you could maybe add a table showing an overview over the advantages and disadvantages. This could be used to emphasize that even though there are disadvantages, the advantages outweigh them.
* ''Nemo respons: xxx''
* The typical type of stakeholder list is too long, see if it is possible to break it into half i.e. writing them besides each other to use less space
* ''Nemo respons: Implemented <nowiki>;-)</nowiki>''
* Remember to include an Abstract.
* ''Nemo respons: I was bit confused on whether it should be a summary or an abstract since I have heard different from fellow student depending on which teacher they spoke with. But I ended up with a summary <nowiki>;-)</nowiki> ''

All in all, i think you have written a really good article that is straight forward and specific, good English, and interesting to read since there is a flow in your structure thus making it pleasant to read. None the less consider moving the benefit aspect to the bottom for discussion and remember an abstract.

Good job :)
* ''Nemo respons: Thanks <nowiki>;-)</nowiki>''

Stakeholder Analysis

2014-12-01T21:54:18Z

Nemo:

'''Summary:'''
A stakeholder can shortly be defined as one that can affect or be affected by the actual project, program or portfolio. A stakeholder can therefore be an employee or a customer - but also the union or a local society.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. In order to act appropriate and create sustainability, the management often has to consider these aspects and constraints not only from their own point of view, but also from a number of other stakeholders views.

In stakeholder analysis, all stakeholders first have to be identified and relevant information has to be gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can serve as a foundation for planning how to deal with stakeholders. Dealing with stakeholders can contain both communication and other types of engagement.

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Several other versions of this definition can be found in literature alike, but they generally convey the same idea. Stakeholders are e.g. employees, customers, suppliers and communities.

It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also considers all other stakeholders. Figure 1 shows a classic input/output model with suppliers, investors and employees that provides an input so the company can generate an output to the customers. This is a very simple approach where the company are seen as an isolated system that does not interact with its surroundings. Figure 2 shows a stakeholder model, where the company are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Both when managing projects, programs and portfolios, it is relevant for the management to know who their stakeholders are and their characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc. This can be used for optimising communication and engagement, as well as realising common interests that can be developed into an advantage.

The interaction with stakeholders as shown in Figure 1 might in some situations be limited and indirect. But stakeholders that traditionally, for a specific type of project, program or portfolio, are limited or indirect might be relevant to engage further?

=Background=
In 1932 Dodd outlined one of the first arguments within this area, stating that a company should not only focus on shareholders, but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However, Dodd did not use the term ''stakeholder'', since this was not developed within the field at that time. The term ''stakeholder'' arose in the first half of the 1960´s. Among others, Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> determined the existence of three types of stakeholder theory:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation has stakeholders and that they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should consider their stakeholders.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisations will use different approaches.

=Process=
In literature, several descriptions of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

This process will be explained more detailed in the following subsections:

===Identify stakeholders===
The identification of stakeholders could be done by brainstorming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typically also include a handful of more specific stakeholders depending on the situation. The stakeholders can also be identified in a more detailed manner - e.g. by different departments within the company/organisation if they e.g. have different interests.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

===Gather information on stakeholders===
When gathering information it is important to act neutral and not confuse it with the analysis itself.

===Identify stakeholders priorities===
Identifying the stakeholders´ priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can e.g. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

===Determine stakeholders strengths and weaknesses===
Determine stakeholders´ strengths and weaknesses - or do a complete SWOT inventory, will often be a beneficial part of the stakeholder analysis. Making a SWOT analysis of the stakeholders consists of determining the following elements:
*'''Strength:''' What are the stakeholders´ specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threats:''' Which challenges and difficulties can be seen from the stakeholders perspective? Will this develop into a threat for the project/programme/portfolio?

===Identify stakeholder support===
It is always important to know your friends. That is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. Nevertheless, it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio, where the support-opposing ratio will change. E.g. if you are a citizen living next to the construction site of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

===Predict stakeholder behaviour===
Analysing the stakeholders´ support and role in different phases and situations also leads to predicting the stakeholders´ behaviour. However, for doing this prediction other factor might also have to be considered - e.g. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

===Prepare stakeholder management strategy===
Preparation of stakeholder management strategy is about how to engage the stakeholders in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis, a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - e.g. internal, authorities or end users
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or less interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. However, support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because they represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and. Risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders with great danger they are associated with the greatest risks in the project/program/portfolio - but also the greatest opportunities.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. It might turn out that one have to handle unpopular communication with opponents.

=Conclusion=
Stakeholder analysis is a strong a relevant tool for both projects, programmes and portfolios. It creates valuable insight in internal organisation as well as all surrounding companies/organisations that affects or might be affected by the project, program or portfolio. This insight can be used for optimising communication and engagement. As well as ensuring a healthy long-term strategy.

But the analysis might be heavy work and may not necessarily give 100 per cent clear answers. To which level of detail a stakeholder analysis should be conducted should therefore always be considered. However, identifying and to some degree analyse them should never be neglected.

=References=
{{Reflist}}
<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-12-01T21:50:08Z

Nemo: /* Conclusion */

'''Summary:'''
A stakeholder can shortly be defined as one that can affect or be affected by the actual project, program or portfolio. A stakeholder can therefore be an employee or a customer - but also the union or a local society.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. In order to act appropriate and create sustainability, the management often has to consider these aspects and constraints not only from their own point of view, but also from a number of other stakeholders views.

In stakeholder analysis, all stakeholders first have to be identified and relevant information has to be gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can serve as a foundation for planning how to deal with stakeholders. Dealing with stakeholders can contain both communication and other types of engagement.

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Several other versions of this definition can be found in literature alike, but they generally convey the same idea. Stakeholders are e.g. employees, customers, suppliers and communities.

It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also considers all other stakeholders. Figure 1 shows a classic input/output model with suppliers, investors and employees that provides an input so the company can generate an output to the customers. This is a very simple approach where the company are seen as an isolated system that does not interact with its surroundings. Figure 2 shows a stakeholder model, where the company are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Both when managing projects, programs and portfolios, it is relevant for the management to know who their stakeholders are and their characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc. This can be used for optimising communication and engagement, as well as realising common interests that can be developed into an advantage.

The interaction with stakeholders as shown in Figure 1 might in some situations be limited and indirect. But stakeholders that traditionally, for a specific type of project, program or portfolio, are limited or indirect might be relevant to engage further?

=Background=
In 1932 Dodd outlined one of the first arguments within this area, stating that a company should not only focus on shareholders, but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However, Dodd did not use the term ''stakeholder'', since this was not developed within the field at that time. The term ''stakeholder'' arose in the first half of the 1960´s. Among others, Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> determined the existence of three types of stakeholder theory:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation has stakeholders and that they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should consider their stakeholders.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisations will use different approaches.

=Process=
In literature, several descriptions of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

This process will be explained more detailed in the following subsections:

===Identify stakeholders===
The identification of stakeholders could be done by brainstorming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typically also include a handful of more specific stakeholders depending on the situation. The stakeholders can also be identified in a more detailed manner - e.g. by different departments within the company/organisation if they e.g. have different interests.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

===Gather information on stakeholders===
When gathering information it is important to act neutral and not confuse it with the analysis itself.

===Identify stakeholders priorities===
Identifying the stakeholders´ priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can e.g. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

===Determine stakeholders strengths and weaknesses===
Determine stakeholders´ strengths and weaknesses - or do a complete SWOT inventory, will often be a beneficial part of the stakeholder analysis. Making a SWOT analysis of the stakeholders consists of determining the following elements:
*'''Strength:''' What are the stakeholders´ specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threats:''' Which challenges and difficulties can be seen from the stakeholders perspective? Will this develop into a threat for the project/programme/portfolio?

===Identify stakeholder support===
It is always important to know your friends. That is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. Nevertheless, it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio, where the support-opposing ratio will change. E.g. if you are a citizen living next to the construction site of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

===Predict stakeholder behaviour===
Analysing the stakeholders´ support and role in different phases and situations also leads to predicting the stakeholders´ behaviour. However, for doing this prediction other factor might also have to be considered - e.g. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

===Prepare stakeholder management strategy===
Preparation of stakeholder management strategy is about how to engage the stakeholders in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis, a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - e.g. internal, authorities or end users
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or less interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. However, support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because they represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and. Risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders with great danger they are associated with the greatest risks in the project/program/portfolio - but also the greatest opportunities.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. It might turn out that one have to handle unpopular communication with opponents.

=Conclusion=
Stakeholder analysis is a strong a relevant tool for both projects, programmes and portfolios. It creates valuable insight in internal organisation as well as all surrounding companies/organisations that affects or might be affected by the project, program or portfolio. This insight can be used for optimising communication and engagement. As well as ensuring a healthy long-term strategy.

But the analysis might be heavy work and may not necessarily give 100 per cent clear answers. To which degree a stakeholder analysis should be conducted should therefore always be considered.

=References=
{{Reflist}}
<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-12-01T21:45:59Z

Nemo:

'''Summary:'''
A stakeholder can shortly be defined as one that can affect or be affected by the actual project, program or portfolio. A stakeholder can therefore be an employee or a customer - but also the union or a local society.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. In order to act appropriate and create sustainability, the management often has to consider these aspects and constraints not only from their own point of view, but also from a number of other stakeholders views.

In stakeholder analysis, all stakeholders first have to be identified and relevant information has to be gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can serve as a foundation for planning how to deal with stakeholders. Dealing with stakeholders can contain both communication and other types of engagement.

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Several other versions of this definition can be found in literature alike, but they generally convey the same idea. Stakeholders are e.g. employees, customers, suppliers and communities.

It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also considers all other stakeholders. Figure 1 shows a classic input/output model with suppliers, investors and employees that provides an input so the company can generate an output to the customers. This is a very simple approach where the company are seen as an isolated system that does not interact with its surroundings. Figure 2 shows a stakeholder model, where the company are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Both when managing projects, programs and portfolios, it is relevant for the management to know who their stakeholders are and their characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc. This can be used for optimising communication and engagement, as well as realising common interests that can be developed into an advantage.

The interaction with stakeholders as shown in Figure 1 might in some situations be limited and indirect. But stakeholders that traditionally, for a specific type of project, program or portfolio, are limited or indirect might be relevant to engage further?

=Background=
In 1932 Dodd outlined one of the first arguments within this area, stating that a company should not only focus on shareholders, but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However, Dodd did not use the term ''stakeholder'', since this was not developed within the field at that time. The term ''stakeholder'' arose in the first half of the 1960´s. Among others, Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> determined the existence of three types of stakeholder theory:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation has stakeholders and that they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should consider their stakeholders.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisations will use different approaches.

=Process=
In literature, several descriptions of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

This process will be explained more detailed in the following subsections:

===Identify stakeholders===
The identification of stakeholders could be done by brainstorming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typically also include a handful of more specific stakeholders depending on the situation. The stakeholders can also be identified in a more detailed manner - e.g. by different departments within the company/organisation if they e.g. have different interests.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

===Gather information on stakeholders===
When gathering information it is important to act neutral and not confuse it with the analysis itself.

===Identify stakeholders priorities===
Identifying the stakeholders´ priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can e.g. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

===Determine stakeholders strengths and weaknesses===
Determine stakeholders´ strengths and weaknesses - or do a complete SWOT inventory, will often be a beneficial part of the stakeholder analysis. Making a SWOT analysis of the stakeholders consists of determining the following elements:
*'''Strength:''' What are the stakeholders´ specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threats:''' Which challenges and difficulties can be seen from the stakeholders perspective? Will this develop into a threat for the project/programme/portfolio?

===Identify stakeholder support===
It is always important to know your friends. That is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. Nevertheless, it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio, where the support-opposing ratio will change. E.g. if you are a citizen living next to the construction site of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

===Predict stakeholder behaviour===
Analysing the stakeholders´ support and role in different phases and situations also leads to predicting the stakeholders´ behaviour. However, for doing this prediction other factor might also have to be considered - e.g. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

===Prepare stakeholder management strategy===
Preparation of stakeholder management strategy is about how to engage the stakeholders in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis, a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - e.g. internal, authorities or end users
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or less interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. However, support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because they represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and. Risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders with great danger they are associated with the greatest risks in the project/program/portfolio - but also the greatest opportunities.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. It might turn out that one have to handle unpopular communication with opponents.

=Conclusion=
Stakeholder analysis is a strong a relevant tool for both projects, programmes and portfolios. It creates valuable insight in internal organisation as well as all surrounding companies/organisations that affects or might be affected by the project, program or portfolio. This insight can be used for optimising communication and engagement. As well as ensuring a healthy long-term strategy.

But the analysis might be heavy work and may not necessarily give 100 per cent clear answers. To which degree a stakeholder analysis should be conducted should therefore always be considered.

=References=
{{Reflist}}
<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-12-01T21:31:08Z

Nemo: /* Prepare stakeholder management strategy */

'''Summary:'''
A stakeholder can shortly be defined as one that can affect or be affected by the actual project, program or portfolio. A stakeholder can therefore be an employee or a customer - but also the union or a local society.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. In order to act appropriate and create sustainability, the management often has to consider these aspects and constraints not only from their own point of view, but also from a number of other stakeholders views.

In stakeholder analysis, all stakeholders first have to be identified and relevant information has to be gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can serve as a foundation for planning how to deal with stakeholders. Dealing with stakeholders can contain both communication and other types of engagement.

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Several other versions of this definition can be found in literature alike, but they generally convey the same idea. Stakeholders are e.g. employees, customers, suppliers and communities.

It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also considers all other stakeholders. Figure 1 shows a classic input/output model with suppliers, investors and employees that provides an input so the company can generate an output to the customers. This is a very simple approach where the company are seen as an isolated system that does not interact with its surroundings. Figure 2 shows a stakeholder model, where the company are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Both when managing projects, programs and portfolios, it is relevant for the management to know who their stakeholders are and their characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc. This can be used for optimising communication and engagement, as well as realising common interests that can be developed into an advantage.

The interaction with stakeholders as shown in Figure 1 might in some situations be limited and indirect. But stakeholders that traditionally, for a specific type of project, program or portfolio, are limited or indirect might be relevant to engage further?

=Background=
In 1932 Dodd outlined one of the first arguments within this area, stating that a company should not only focus on shareholders, but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However, Dodd did not use the term ''stakeholder'', since this was not developed within the field at that time. The term ''stakeholder'' arose in the first half of the 1960´s. Among others, Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> determined the existence of three types of stakeholder theory:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation has stakeholders and that they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should consider their stakeholders.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisations will use different approaches.

=Process=
In literature, several descriptions of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

This process will be explained more detailed in the following subsections:

===Identify stakeholders===
The identification of stakeholders could be done by brainstorming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typically also include a handful of more specific stakeholders depending on the situation. The stakeholders can also be identified in a more detailed manner - e.g. by different departments within the company/organisation if they e.g. have different interests.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

===Gather information on stakeholders===
When gathering information it is important to act neutral and not confuse it with the analysis itself.

===Identify stakeholders priorities===
Identifying the stakeholders´ priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can e.g. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

===Determine stakeholders strengths and weaknesses===
Determine stakeholders´ strengths and weaknesses - or do a complete SWOT inventory, will often be a beneficial part of the stakeholder analysis. Making a SWOT analysis of the stakeholders consists of determining the following elements:
*'''Strength:''' What are the stakeholders´ specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threats:''' Which challenges and difficulties can be seen from the stakeholders perspective? Will this develop into a threat for the project/programme/portfolio?

===Identify stakeholder support===
It is always important to know your friends. That is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. Nevertheless, it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio, where the support-opposing ratio will change. E.g. if you are a citizen living next to the construction site of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

===Predict stakeholder behaviour===
Analysing the stakeholders´ support and role in different phases and situations also leads to predicting the stakeholders´ behaviour. However, for doing this prediction other factor might also have to be considered - e.g. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

===Prepare stakeholder management strategy===
Preparation of stakeholder management strategy is about how to engage the stakeholders in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis, a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - e.g. internal, authorities or end users
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or less interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. However, support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because they represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and. Risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders with great danger they are associated with the greatest risks in the project/program/portfolio - but also the greatest opportunities.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. It might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}
<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-12-01T21:29:05Z

Nemo:

'''Summary:'''
A stakeholder can shortly be defined as one that can affect or be affected by the actual project, program or portfolio. A stakeholder can therefore be an employee or a customer - but also the union or a local society.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. In order to act appropriate and create sustainability, the management often has to consider these aspects and constraints not only from their own point of view, but also from a number of other stakeholders views.

In stakeholder analysis, all stakeholders first have to be identified and relevant information has to be gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can serve as a foundation for planning how to deal with stakeholders. Dealing with stakeholders can contain both communication and other types of engagement.

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Several other versions of this definition can be found in literature alike, but they generally convey the same idea. Stakeholders are e.g. employees, customers, suppliers and communities.

It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also considers all other stakeholders. Figure 1 shows a classic input/output model with suppliers, investors and employees that provides an input so the company can generate an output to the customers. This is a very simple approach where the company are seen as an isolated system that does not interact with its surroundings. Figure 2 shows a stakeholder model, where the company are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Both when managing projects, programs and portfolios, it is relevant for the management to know who their stakeholders are and their characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc. This can be used for optimising communication and engagement, as well as realising common interests that can be developed into an advantage.

The interaction with stakeholders as shown in Figure 1 might in some situations be limited and indirect. But stakeholders that traditionally, for a specific type of project, program or portfolio, are limited or indirect might be relevant to engage further?

=Background=
In 1932 Dodd outlined one of the first arguments within this area, stating that a company should not only focus on shareholders, but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However, Dodd did not use the term ''stakeholder'', since this was not developed within the field at that time. The term ''stakeholder'' arose in the first half of the 1960´s. Among others, Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> determined the existence of three types of stakeholder theory:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation has stakeholders and that they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should consider their stakeholders.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisations will use different approaches.

=Process=
In literature, several descriptions of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

This process will be explained more detailed in the following subsections:

===Identify stakeholders===
The identification of stakeholders could be done by brainstorming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typically also include a handful of more specific stakeholders depending on the situation. The stakeholders can also be identified in a more detailed manner - e.g. by different departments within the company/organisation if they e.g. have different interests.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

===Gather information on stakeholders===
When gathering information it is important to act neutral and not confuse it with the analysis itself.

===Identify stakeholders priorities===
Identifying the stakeholders´ priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can e.g. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

===Determine stakeholders strengths and weaknesses===
Determine stakeholders´ strengths and weaknesses - or do a complete SWOT inventory, will often be a beneficial part of the stakeholder analysis. Making a SWOT analysis of the stakeholders consists of determining the following elements:
*'''Strength:''' What are the stakeholders´ specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threats:''' Which challenges and difficulties can be seen from the stakeholders perspective? Will this develop into a threat for the project/programme/portfolio?

===Identify stakeholder support===
It is always important to know your friends. That is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. Nevertheless, it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio, where the support-opposing ratio will change. E.g. if you are a citizen living next to the construction site of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

===Predict stakeholder behaviour===
Analysing the stakeholders´ support and role in different phases and situations also leads to predicting the stakeholders´ behaviour. However, for doing this prediction other factor might also have to be considered - e.g. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

===Prepare stakeholder management strategy===
Preparation of stakeholder management strategy is about how to engage the stakeholders in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis, a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - e.g. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or less interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. However, support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because they represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and. Risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders with great danger they are associated with the greatest risks in the project/program/portfolio - but also the greatest opportunities.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. It might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}
<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-12-01T21:12:41Z

Nemo: /* Process */

'''Summary:'''
A stakeholder can shortly be defined as one that can affect or be affected by the actual project, program or portfolio. A stakeholder can therefore be an employee or a customer - but also the union or a local society.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. In order to act appropriate and create sustainability the management often has to consider these aspects and constraints not only from their own point of view but also from a number of other stakeholders views.

In stakeholder analysis, all stakeholders first have to be identified and relevant informatilon gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can be foundation for planning how to deal with stakeholders. Dealing with stakeholders can contain both communication and other types of engagement.

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Many other versions of this definition can be found in the literature but in general containing the same content. Stakeholders are e.g. employees, customers, suppliers and communities.

It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also considers all other stakeholders. Figure 1 shows a classic input/output model with suppliers, investors and employees that provides an input so the company can generate an output to the customers. This is a very simple approach where the company are seen as an isolated system that does not interact with its surroundings. Figure 2 shows a stakeholder model where the company are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Both when managing projects, programs and portfolios it is relevant for the management to know who their stakeholders are and there characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc. This can be used for optimising communication and engagement, as well as realising common interests that can be developed into an advantage.

The interaction with stakeholders as shown in Figure 1 might in some situations be limited and indirect. But stakeholders that traditionally, for a specific type of project, program or portfolio, are limited or indirect might be relevant to engage further?

=Background=
In 1932 Dodd started one of the first arguments that a company should not only focus on shareholders but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However, Dodd did not use the term ''stakeholder'' since this was not developed within this field of study yet. The term ''stakeholder'' arose in the first half of the 1960´s. Among others Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of the literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> described their view on stakeholder theory as the existence of three types:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation have stakeholders and that they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should consider their stakeholders.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisation will use different approaches.

=Process=
In literature, several description of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

This process will be explained more detailed in the following subsections:

===Identify stakeholders===
The identification of stakeholders could be done by brainstorming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typical also include a handful of more specific stakeholders depending on situation. The stakeholders can also be identified in a more detailed manner - e.g. by different departments within the company/organisation if they e.g. have different interest.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

===Gather information on stakeholders===
When gathering information it is important to act neutral and not mix the collecting of information with the analysis itself.

===Identify stakeholders priorities===
Identifying the stakeholders´ priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can e.g. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

===Determine stakeholders strengths and weaknesses===
Determine stakeholders´ strengths and weaknesses - or do a complete SWOT inventory will often be a beneficial part of the stakeholder analysis. The SWOT for the stakeholders will consist of determine the following elements:
*'''Strength:''' What are the stakeholders´ specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threats:''' Which challenges and difficulties can be seen from the stakeholder perspective? Will this develop into a threat for the project/programme/portfolio?

===Identify stakeholder support===
It is always important to know your friends. That is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. Nevertheless, it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio where the support-opposing ratio will change. E.g. if you are a citizen living close construction of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

===Predict stakeholder behaviour===
Analysing the stakeholders´ support and role in different phases and situations also leads to predicting the stakeholders´ behaviour. However, for doing this prediction other factor might also have to be considered - e.g. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

===Prepare stakeholder management strategy===
Preparation of stakeholder management strategy is about how to engage the stakeholders in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis, a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - e.g. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or less interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. However, support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because they represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and. Risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders with great danger they are associated with the greatest risks in the project/program/portfolio - but also the greatest opportunities.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. It might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}
<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Talk:Stakeholder Analysis

2014-12-01T21:08:57Z

Nemo:

==Murcs==
==General==

* I can see that you are well on your way and that the content is interesting, but that there is still some work to do.
* ''Nemo respons: Thanks. I agree that the article was not fully completed. I have especially improved the section regarding mapping and worked on the general flow in the article.''

'''Formal:'''

* I can see that you have been using the referencing correctly, but you are still missing some references to other peoples wiki articles for example SWOT
* ''Nemo respons: I have now added link to SWOT and Stakeholder Mapping. I also add some categories and key words for making the article more visible and better integrated in the Wiki structure.''
* There are some spelling mistakes and some grammar mistakes, maybe by adding your text to word you can find some of them
* ''Nemo respons: I have done some reading focus on spelling and grammar in the article, and also used some spelling check on the computer<nowiki>;-)</nowiki>''
* I think the structure looks pretty good but maybe you should have the introduction above the content list and background inbetween introduction and process and move the benefits down?
* ''Nemo respons: Background is already in between introduction and process. I have moved the Benefits down. I don´t think I´m able to move around with the content list, since it auto-generated.''
* You have only used around 1500 words so you still have plenty to finish your article
* ''Nemo respons: I wrote some more about mapping, which was not completed, and also add some to the introduction.''

'''Content:'''

* You can maybe make clear what shareholder, key stakeholder or CSR is either by referencing to it somewhere else or maybe writing about it.
* ''Nemo respons: I have elaborated a bit on that in the text now.''
* I think that you have made some good visualizations that are coherent in color and are well described, do you maybe have a suggestion on a way of vizualizing a 2D mapping? Or a reference?
* ''Nemo respons: I have extended the section regarding mapping and also described 2D mapping further.''
* I like that yo have used some examples like the metro station, maybe you have some more
* ''Nemo respons: More minor examples has been included.''
* Should possibly specify if stakeholder analysis can be used for project, program and portfolio.
* ''Nemo respons: Stakeholder analysis can be used for both projects, programs and portfolios. I have add that in the introduction.''
* You could possibly add some more headlines under the process, for example by using the 7 steps and then describing them, since you already describe the first step in very clear detail.
* ''Nemo respons: Ok - implemented.''

* I think you are on your way to creating an informative wiki article, if there is time and you would like then I can maybe have a look at it again when you are done. I will come back and check the discussion to see what you think, hope some of the feedback was useful.
* ''Nemo respons: Thanks for the response - it has resulted in a handful of improvements <nowiki>;-)</nowiki>''

== fra johnjohn ==

=== General comments ===

Content:
* Interesting content, as a practitioner it is interesting to get an overview of the concept.
* ''Nemo respons: Thanks.''
* The relation to project management could be underlined. Maybe discuss its relevance relative to project, program and portfolio management?
- References seem substantiated by relevant literature? I does not seem like copy paste
* ''Nemo respons: I have improved the introduction regarding this.''

Formal:

* Spelling is overall ok
* ''Nemo respons: Thanks. I have however tried to improve a bit.''
* References are ok and relevant, and the formatting of them complies with the wiki standards.
* ''Nemo respons: Thanks.''
* I like the precise language and short sentences, but language could be more engaging.
* ''Nemo respons: I have tried to improve the language and flow in the article in general.''
* Figures are ok and especially in the Mapping section should the support the explanation of the methods.
* ''Nemo respons: Thanks. I have added and improved the mapping section in general.''

=== Comments for content in each section ===

Content:
* I like that you try to keep it short and precise, but I do miss that the parts are writing in a more fluent language. I could also miss the red thread in the article, and what it actually aims for. I summary in the beginning stating aim and type of article could help this..
* ''Nemo respons: I have improved the flow in the article in general and implemented a better introduction. I have also included a summary. I was bit confused on whether it should be a summary or an abstract since I have heard different from fellow student depending on which teacher they spoke with. But I ended up with a summary <nowiki>;-)</nowiki>''

Introduction:
* You say that it is important to distinguish stakeholder and shareholder. Make you could explain the difference?
* ''Nemo respons: I see this distinction as a very essential point of my argument, so I am very glad that you pointet out that this was not clear enough. I have improved my argumentation regarding this.''
* Nice with the stakeholder definition from the standard. Maybe you could give examples of a stakeholder, and link it to your figure? Maybe simply say, that a stakeholder can be ”customer”, ”employee”. I know you do this under the process section, so maybe you can just refer to that section.
* ''Nemo respons: This should be more clear in the improved introduction.''

Benefits:
* Who is Zhang? And why are his opinion especially important?
* ''Nemo respons: I don´t see it as essential for this type of article''
* What you state here is why you should make a stakeholder analysis
* ''Nemo respons: I agree. But I still think it make sense to title this section "Benefits".''
* I think it is a good idea to give a teaser to why a stakeholder analysis are relevant to you. I however find it a bit distracting from the flow in the article that it is in the begining.. maybe you could sum it up later in the article..
* ''Nemo respons: Ok, I moved it to later in the article <nowiki>;-)</nowiki>''
* Maybe the headline should be ”Why do a stakeholder analysis?”
* ''Nemo respons: I think both headlines cover the content. But I think "Benefits" fits better to the language in the article.''

Background
* I am wondering who Dodd is, and why he is important?
* ''Nemo respons: I don´t see it as essential for this type of article''
* Maybe you could mention the theorists background, that you refer to?
* ''Nemo respons: I don´t see it as essential for this type of article''
* I really like the coca-cola reference.
* ''Nemo respons: Thanks.''
* This section is a bit abrupt and short, I miss the language her to be more fluent.. even though I like that you keep it shout and keep to the facts.
* ''Nemo respons: I have improved language and flow in general.''

Process
* I like the point wise go-through and the process
* ''Nemo respons: Thanks.''
* The concept of ”key stakeholder” could be elaborated on.
* ''Nemo respons: Yes, implemented <nowiki>;-)</nowiki>''
* Maybe the SWOT-analysis should have its own sub-headline? Just a suggestion for intriguing the reader
* ''Nemo respons: I do not want to give too much attention to the SWOT, since I am afraid the readers will mainly focus on what they are familiar with already, and I do not see the SWOT as crucial.''

Mapping stakeholders:
* I like the why section
* ''Nemo respons: Thanks.''
* You give a good overview of power/interest diagram
* ''Nemo respons: Thanks''
* The other topics of the mapping diagrams seems interesting and relevant. Will you compare them and make recommendations on when to use what diagram?
* ''Nemo respons: Yes, I have extended and improved the mapping section in general.''

Challenges and uncertainty
* I like the points you state in this section, they are highly relevant.
* ''Nemo respons: Thanks.''
* Maybe you could also conclude consideration on how to scope your stakeholder analysis. How to frame it? Maybe demarcation of what stakeholders to include? And non the less you to exclude/leave out?
* ''Nemo respons: xxx''

== reviewed by $Young-Money$ ==

* I like the way that you are straight forward with your points thus using your 3500 words efficiently
* ''Nemo respons: Thanks. I have extended the introduction and mapping section and improved the general flow in the article.''
* Good English formulation, but i suggest you write "in literature" and NOT "in the literature"
* ''Nemo respons: Thanks - I have changed to "in literature" now <nowiki>;-)</nowiki>''
* Like how you started by defining what a stakeholder is and differentiating its meaning from shareholder, so you have the reader clear on what it is that you exactly mean.
* ''Nemo respons: Thanks. I have added some more to this part of the article since I think it is crucial element of understanding the stakeholder analsis.''
* There is a good flow in the article, but i suggest that you move the benefit aspect to the bottom for discussion. you could maybe add a table showing an overview over the advantages and disadvantages. This could be used to emphasize that even though there are disadvantages, the advantages outweigh them.
* ''Nemo respons: xxx''
* The typical type of stakeholder list is too long, see if it is possible to break it into half i.e. writing them besides each other to use less space
* ''Nemo respons: Implemented <nowiki>;-)</nowiki>''
* Remember to include an Abstract.
* ''Nemo respons: I was bit confused on whether it should be a summary or an abstract since I have heard different from fellow student depending on which teacher they spoke with. But I ended up with a summary <nowiki>;-)</nowiki> ''

All in all, i think you have written a really good article that is straight forward and specific, good English, and interesting to read since there is a flow in your structure thus making it pleasant to read. None the less consider moving the benefit aspect to the bottom for discussion and remember an abstract.

Good job :)
* ''Nemo respons: Thanks <nowiki>;-)</nowiki>''

Stakeholder Analysis

2014-12-01T20:52:11Z

Nemo: /* Process */

'''Summary:'''
A stakeholder can shortly be defined as one that can affect or be affected by the actual project, program or portfolio. A stakeholder can therefore be an employee or a customer - but also the union or a local society.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. In order to act appropriate and create sustainability the management often has to consider these aspects and constraints not only from their own point of view but also from a number of other stakeholders views.

In stakeholder analysis, all stakeholders first have to be identified and relevant informatilon gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can be foundation for planning how to deal with stakeholders. Dealing with stakeholders can contain both communication and other types of engagement.

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Many other versions of this definition can be found in the literature but in general containing the same content. Stakeholders are e.g. employees, customers, suppliers and communities.

It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also considers all other stakeholders. Figure 1 shows a classic input/output model with suppliers, investors and employees that provides an input so the company can generate an output to the customers. This is a very simple approach where the company are seen as an isolated system that does not interact with its surroundings. Figure 2 shows a stakeholder model where the company are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Both when managing projects, programs and portfolios it is relevant for the management to know who their stakeholders are and there characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc. This can be used for optimising communication and engagement, as well as realising common interests that can be developed into an advantage.

The interaction with stakeholders as shown in Figure 1 might in some situations be limited and indirect. But stakeholders that traditionally, for a specific type of project, program or portfolio, are limited or indirect might be relevant to engage further?

=Background=
In 1932 Dodd started one of the first arguments that a company should not only focus on shareholders but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However, Dodd did not use the term ''stakeholder'' since this was not developed within this field of study yet. The term ''stakeholder'' arose in the first half of the 1960´s. Among others Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of the literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> described their view on stakeholder theory as the existence of three types:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation have stakeholders and that they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should consider their stakeholders.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisation will use different approaches.

=Process=
In literature, several description of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

This process will be explained more detailed in the following subsections:

===Identify stakeholders===
The identification of stakeholders could be done by brainstorming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typical also include a handful of more specific stakeholders depending on situation. The stakeholders can also be identified in a more detailed manner - fx. by different departments within the company/organisation if they fx. have different interest.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

===Gather information on stakeholders===
When gathering information it is important to act neutral and not mix the collecting of information with the analysis itself.

===Identify stakeholders priorities===
Identifying the stakeholders´ priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can fx. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

===Determine stakeholders strengths and weaknesses===
Determine stakeholders´ strengths and weaknesses - or do a complete SWOT inventory will often be a beneficial part of the stakeholder analysis. The SWOT for the stakeholders will consist of determine the following elements:
*'''Strength:''' What are the stakeholders´ specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threats:''' Which challenges and difficulties can be seen from the stakeholder perspective? Will this develop into a threat for the project/programme/portfolio?

===Identify stakeholder support===
It is always important to know your friends. That is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. Nevertheless, it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio where the support-opposing ratio will change. Fx. if you are a citizen living close construction of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

===Predict stakeholder behaviour===
Analysing the stakeholders´ support and role in different phases and situations also leads to predicting the stakeholders´ behaviour. However, for doing this prediction other factor might also have to be considered - fx. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

===Prepare stakeholder management strategy===
Preparation of stakeholder management strategy is about how to engage the stakeholders in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis, a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - fx. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or less interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. However, support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because they represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and. Risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders with great danger they are associated with the greatest risks in the project/program/portfolio - but also the greatest opportunities.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. It might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}
<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-12-01T20:39:45Z

Nemo: /* Introduction */

'''Summary:'''
A stakeholder can shortly be defined as one that can affect or be affected by the actual project, program or portfolio. A stakeholder can therefore be an employee or a customer - but also the union or a local society.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. In order to act appropriate and create sustainability the management often has to consider these aspects and constraints not only from their own point of view but also from a number of other stakeholders views.

In stakeholder analysis, all stakeholders first have to be identified and relevant informatilon gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can be foundation for planning how to deal with stakeholders. Dealing with stakeholders can contain both communication and other types of engagement.

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Many other versions of this definition can be found in the literature but in general containing the same content. Stakeholders are e.g. employees, customers, suppliers and communities.

It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also considers all other stakeholders. Figure 1 shows a classic input/output model with suppliers, investors and employees that provides an input so the company can generate an output to the customers. This is a very simple approach where the company are seen as an isolated system that does not interact with its surroundings. Figure 2 shows a stakeholder model where the company are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Both when managing projects, programs and portfolios it is relevant for the management to know who their stakeholders are and there characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc. This can be used for optimising communication and engagement, as well as realising common interests that can be developed into an advantage.

The interaction with stakeholders as shown in Figure 1 might in some situations be limited and indirect. But stakeholders that traditionally, for a specific type of project, program or portfolio, are limited or indirect might be relevant to engage further?

=Background=
In 1932 Dodd started one of the first arguments that a company should not only focus on shareholders but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However, Dodd did not use the term ''stakeholder'' since this was not developed within this field of study yet. The term ''stakeholder'' arose in the first half of the 1960´s. Among others Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of the literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> described their view on stakeholder theory as the existence of three types:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation have stakeholders and that they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should consider their stakeholders.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisation will use different approaches.

=Process=
In literature, several description of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

The identification of stakeholders could be done by brainstorming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typical also include a handful of more specific stakeholders depending on situation. The stakeholders can also be identified in a more detailed manner - fx. by different departments within the company/organisation if they fx. have different interest.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

When gathering information it is important to act neutral and not mix the collecting of information with the analysis itself.

Identifying the stakeholders´ priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can fx. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

Determine stakeholders´ strengths and weaknesses - or do a complete SWOT inventory will often be a beneficial part of the stakeholder analysis. The SWOT for the stakeholders will consist of determine the following elements:
*'''Strength:''' What are the stakeholders´ specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threads:''' Which challenges and difficulties can be seen from the stakeholder perspective? Will this develop into a thread for the project/programme/portfolio?

It is always important to know your friends. That is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. Nevertheless, it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio where the support-opposing ratio will change. Fx. if you are a citizen living close construction of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

Analysing the stakeholders´ support and role in different phases and situations also leads to predicting the stakeholders´ behaviour. However, for doing this prediction other factor might also have to be considered - fx. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

Preparation of stakeholder management strategy is about how to engage the stakeholders in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis, a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - fx. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or less interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. However, support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because they represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and. Risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders with great danger they are associated with the greatest risks in the project/program/portfolio - but also the greatest opportunities.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. It might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}
<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-12-01T20:25:54Z

Nemo: /* Introduction */

'''Summary:'''
A stakeholder can shortly be defined as one that can affect or be affected by the actual project, program or portfolio. A stakeholder can therefore be an employee or a customer - but also the union or a local society.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. In order to act appropriate and create sustainability the management often has to consider these aspects and constraints not only from their own point of view but also from a number of other stakeholders views.

In stakeholder analysis, all stakeholders first have to be identified and relevant informatilon gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can be foundation for planning how to deal with stakeholders. Dealing with stakeholders can contain both communication and other types of engagement.

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Many other versions of this definition can be found in the literature but in general containing the same content. Stakeholders are fx. employees, customers, suppliers and communities.

It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also considers all other stakeholders. Figure 1 shows a classic input/output model with suppliers, investors and employees that provides an input so the company can generate an output to the customers. This is a very simple approach where the company are seen as an isolated system that does not interact with its surroundings. Figure 2 shows a stakeholder model where the company are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Both when managing projects, programs and portfolios it is important for the management to know who their stakeholders are and there characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc.

The interaction with stakeholders as shown in Figure 1 might in some situations be limited and indirect. But stakeholders that traditionally, for a specific type of project, program or portfolio, are limited or indirect might be relevant to engage further?

=Background=
In 1932 Dodd started one of the first arguments that a company should not only focus on shareholders but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However, Dodd did not use the term ''stakeholder'' since this was not developed within this field of study yet. The term ''stakeholder'' arose in the first half of the 1960´s. Among others Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of the literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> described their view on stakeholder theory as the existence of three types:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation have stakeholders and that they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should consider their stakeholders.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisation will use different approaches.

=Process=
In literature, several description of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

The identification of stakeholders could be done by brainstorming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typical also include a handful of more specific stakeholders depending on situation. The stakeholders can also be identified in a more detailed manner - fx. by different departments within the company/organisation if they fx. have different interest.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

When gathering information it is important to act neutral and not mix the collecting of information with the analysis itself.

Identifying the stakeholders´ priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can fx. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

Determine stakeholders´ strengths and weaknesses - or do a complete SWOT inventory will often be a beneficial part of the stakeholder analysis. The SWOT for the stakeholders will consist of determine the following elements:
*'''Strength:''' What are the stakeholders´ specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threads:''' Which challenges and difficulties can be seen from the stakeholder perspective? Will this develop into a thread for the project/programme/portfolio?

It is always important to know your friends. That is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. Nevertheless, it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio where the support-opposing ratio will change. Fx. if you are a citizen living close construction of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

Analysing the stakeholders´ support and role in different phases and situations also leads to predicting the stakeholders´ behaviour. However, for doing this prediction other factor might also have to be considered - fx. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

Preparation of stakeholder management strategy is about how to engage the stakeholders in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis, a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - fx. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or less interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. However, support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because they represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and. Risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders with great danger they are associated with the greatest risks in the project/program/portfolio - but also the greatest opportunities.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. It might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}
<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-12-01T20:17:28Z

Nemo:

'''Summary:'''
A stakeholder can shortly be defined as one that can affect or be affected by the actual project, program or portfolio. A stakeholder can therefore be an employee or a customer - but also the union or a local society.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. In order to act appropriate and create sustainability the management often has to consider these aspects and constraints not only from their own point of view but also from a number of other stakeholders views.

In stakeholder analysis, all stakeholders first have to be identified and relevant informatilon gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can be foundation for planning how to deal with stakeholders. Dealing with stakeholders can contain both communication and other types of engagement.

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Many other versions of this definition can be found in the literature but in general containing the same content. Stakeholders are fx. employees, customers, suppliers and communities.

It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also considers all other stakeholders. Figure 1 shows a classic input/output model with suppliers, investors and employees that provides an input so the company can generate an output to the customers. This is a very simple approach where the company are seen as an isolated system that does not interact with its surroundings. Figure 2 shows a stakeholder model where the company are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Both when managing projects, programs and portfolios it is important for the management to know who their stakeholders are and there characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc.

The interaction with stakeholders as shown in Figure 1 might in some situations be limited and indirect. But stakeholders that traditionally for a specific type of project, program or portfolio are limited or indirect might be relevant to engage further?

=Background=
In 1932 Dodd started one of the first arguments that a company should not only focus on shareholders but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However, Dodd did not use the term ''stakeholder'' since this was not developed within this field of study yet. The term ''stakeholder'' arose in the first half of the 1960´s. Among others Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of the literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> described their view on stakeholder theory as the existence of three types:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation have stakeholders and that they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should consider their stakeholders.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisation will use different approaches.

=Process=
In literature, several description of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

The identification of stakeholders could be done by brainstorming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typical also include a handful of more specific stakeholders depending on situation. The stakeholders can also be identified in a more detailed manner - fx. by different departments within the company/organisation if they fx. have different interest.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

When gathering information it is important to act neutral and not mix the collecting of information with the analysis itself.

Identifying the stakeholders´ priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can fx. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

Determine stakeholders´ strengths and weaknesses - or do a complete SWOT inventory will often be a beneficial part of the stakeholder analysis. The SWOT for the stakeholders will consist of determine the following elements:
*'''Strength:''' What are the stakeholders´ specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threads:''' Which challenges and difficulties can be seen from the stakeholder perspective? Will this develop into a thread for the project/programme/portfolio?

It is always important to know your friends. That is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. Nevertheless, it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio where the support-opposing ratio will change. Fx. if you are a citizen living close construction of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

Analysing the stakeholders´ support and role in different phases and situations also leads to predicting the stakeholders´ behaviour. However, for doing this prediction other factor might also have to be considered - fx. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

Preparation of stakeholder management strategy is about how to engage the stakeholders in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis, a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - fx. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or less interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. However, support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because they represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and. Risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders with great danger they are associated with the greatest risks in the project/program/portfolio - but also the greatest opportunities.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. It might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}
<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-12-01T20:08:20Z

Nemo:

'''Summary:'''
Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. In order to act appropriate and create sustainability the management often has to consider these aspects and constraints not only from their own point of view but also from a number of other stakeholders views.

In stakeholder analysis, all stakeholders first have to be identified and relevant information gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The diagram gives an overview of the stakeholders and can be foundation for planning how to deal with stakeholders.

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Many other versions of this definition can be found in the literature but in general containing the same content. Stakeholders are fx. employees, customers, suppliers and communities.

It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also considers all other stakeholders. Figure 1 shows a classic input/output model with suppliers, investors and employees that provides an input so the company can generate an output to the customers. This is a very simple approach where the company are seen as an isolated system that does not interact with its surroundings. Figure 2 shows a stakeholder model where the company are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Both when managing projects, programs and portfolios it is important for the management to know who their stakeholders are and there characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc.

The interaction with stakeholders as shown in Figure 1 might in some situations be limited and indirect. But stakeholders that traditionally for a specific type of project, program or portfolio are limited or indirect might be relevant to engage further?

=Background=
In 1932 Dodd started one of the first arguments that a company should not only focus on shareholders but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However, Dodd did not use the term ''stakeholder'' since this was not developed within this field of study yet. The term ''stakeholder'' arose in the first half of the 1960´s. Among others Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of the literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> described their view on stakeholder theory as the existence of three types:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation have stakeholders and that they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should consider their stakeholders.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisation will use different approaches.

=Process=
In literature, several description of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

The identification of stakeholders could be done by brainstorming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typical also include a handful of more specific stakeholders depending on situation. The stakeholders can also be identified in a more detailed manner - fx. by different departments within the company/organisation if they fx. have different interest.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

When gathering information it is important to act neutral and not mix the collecting of information with the analysis itself.

Identifying the stakeholders´ priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can fx. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

Determine stakeholders´ strengths and weaknesses - or do a complete SWOT inventory will often be a beneficial part of the stakeholder analysis. The SWOT for the stakeholders will consist of determine the following elements:
*'''Strength:''' What are the stakeholders´ specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threads:''' Which challenges and difficulties can be seen from the stakeholder perspective? Will this develop into a thread for the project/programme/portfolio?

It is always important to know your friends. That is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. Nevertheless, it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio where the support-opposing ratio will change. Fx. if you are a citizen living close construction of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

Analysing the stakeholders´ support and role in different phases and situations also leads to predicting the stakeholders´ behaviour. However, for doing this prediction other factor might also have to be considered - fx. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

Preparation of stakeholder management strategy is about how to engage the stakeholders in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis, a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - fx. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or less interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. However, support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because they represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and. Risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders with great danger they are associated with the greatest risks in the project/program/portfolio - but also the greatest opportunities.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. It might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}
<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-12-01T19:43:54Z

Nemo:

'''Summary:'''
Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. In order to act appropriate and create sustainability the management often has to consider these aspects and constraints not only from their own point of view but also from a number of other stakeholders views.

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Many other versions of this definition can be found in the literature but in general containing the same content. Stakeholders are fx. employees, customers, suppliers and communities.

It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also considers all other stakeholders. Figure 1 shows a classic input/output model with suppliers, investors and employees that provide an input so the firm can generate an output to the customers. Figure 2 shows a stakeholder model where the firm are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Both when managing projects, programs and portfolios it is important for the management to know who their stakeholders are and there characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc.

In stakeholder analysis, all stakeholders first have to be identified and relevant information gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can be foundation for planning how to deal with stakeholders.

=Background=
In 1932 Dodd started one of the first arguments that a company should not only focus on shareholders but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However, Dodd did not use the term ''stakeholder'' since this was not developed within this field of study yet. The term ''stakeholder'' arose in the first half of the 1960´s. Among others Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of the literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> described their view on stakeholder theory as the existence of three types:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation have stakeholders and that they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should consider their stakeholders.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisation will use different approaches.

=Process=
In literature, several description of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

The identification of stakeholders could be done by brainstorming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typical also include a handful of more specific stakeholders depending on situation. The stakeholders can also be identified in a more detailed manner - fx. by different departments within the company/organisation if they fx. have different interest.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

When gathering information it is important to act neutral and not mix the collecting of information with the analysis itself.

Identifying the stakeholders´ priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can fx. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

Determine stakeholders´ strengths and weaknesses - or do a complete SWOT inventory will often be a beneficial part of the stakeholder analysis. The SWOT for the stakeholders will consist of determine the following elements:
*'''Strength:''' What are the stakeholders´ specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threads:''' Which challenges and difficulties can be seen from the stakeholder perspective? Will this develop into a thread for the project/programme/portfolio?

It is always important to know your friends. That is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. Nevertheless, it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio where the support-opposing ratio will change. Fx. if you are a citizen living close construction of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

Analysing the stakeholders´ support and role in different phases and situations also leads to predicting the stakeholders´ behaviour. However, for doing this prediction other factor might also have to be considered - fx. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

Preparation of stakeholder management strategy is about how to engage the stakeholders in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis, a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - fx. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or less interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. However, support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because they represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and. Risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders with great danger they are associated with the greatest risks in the project/program/portfolio - but also the greatest opportunities.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. It might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}
<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-12-01T19:16:43Z

Nemo: /* Challenges and uncertainty */

'''Summary:'''

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Many other versions of this definition can be found in the literature but in general containing the same content. It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also considers all other stakeholders.

Figure 1 shows a classic input/output model with suppliers, investors and employees that provide an input so the firm can generate an output to the customers. Figure 2 shows stakeholder model where the firm are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. In order to act appropriate and create sustainability the management often has to consider these aspects and constraints not only from their own point of view but also from a number of other stakeholders views.

It is important for the management to know who their stakeholders are and there characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc.

In stakeholder analysis, all stakeholders first have to be identified and relevant information gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can be foundation for planning how to deal with stakeholders.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Background=
In 1932 Dodd started one of the first arguments that a company should not only focus on shareholders but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However, Dodd did not use the term ''stakeholder'' since this was not developed within this field of study yet. The term ''stakeholder'' arose in the first half of the 1960´s. Among others Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of the literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> described their view on stakeholder theory as the existence of three types:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation have stakeholders and that they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should consider their stakeholders.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisation will use different approaches.

=Process=
In literature, several description of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

The identification of stakeholders could be done by brainstorming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typical also include a handful of more specific stakeholders depending on situation. The stakeholders can also be identified in a more detailed manner - fx. by different departments within the company/organisation if they fx. have different interest.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

When gathering information it is important to act neutral and not mix the collecting of information with the analysis itself.

Identifying the stakeholders´ priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can fx. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

Determine stakeholders´ strengths and weaknesses - or do a complete SWOT inventory will often be a beneficial part of the stakeholder analysis. The SWOT for the stakeholders will consist of determine the following elements:
*'''Strength:''' What are the stakeholders´ specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threads:''' Which challenges and difficulties can be seen from the stakeholder perspective? Will this develop into a thread for the project/programme/portfolio?

It is always important to know your friends. That is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. Nevertheless, it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio where the support-opposing ratio will change. Fx. if you are a citizen living close construction of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

Analysing the stakeholders´ support and role in different phases and situations also leads to predicting the stakeholders´ behaviour. However, for doing this prediction other factor might also have to be considered - fx. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

Preparation of stakeholder management strategy is about how to engage the stakeholders in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis, a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - fx. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or less interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. However, support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because they represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and. Risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders with great danger they are associated with the greatest risks in the project/program/portfolio - but also the greatest opportunities.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. It might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}
<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-12-01T19:16:18Z

Nemo: /* Types of maps */

'''Summary:'''

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Many other versions of this definition can be found in the literature but in general containing the same content. It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also considers all other stakeholders.

Figure 1 shows a classic input/output model with suppliers, investors and employees that provide an input so the firm can generate an output to the customers. Figure 2 shows stakeholder model where the firm are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. In order to act appropriate and create sustainability the management often has to consider these aspects and constraints not only from their own point of view but also from a number of other stakeholders views.

It is important for the management to know who their stakeholders are and there characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc.

In stakeholder analysis, all stakeholders first have to be identified and relevant information gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can be foundation for planning how to deal with stakeholders.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Background=
In 1932 Dodd started one of the first arguments that a company should not only focus on shareholders but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However, Dodd did not use the term ''stakeholder'' since this was not developed within this field of study yet. The term ''stakeholder'' arose in the first half of the 1960´s. Among others Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of the literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> described their view on stakeholder theory as the existence of three types:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation have stakeholders and that they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should consider their stakeholders.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisation will use different approaches.

=Process=
In literature, several description of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

The identification of stakeholders could be done by brainstorming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typical also include a handful of more specific stakeholders depending on situation. The stakeholders can also be identified in a more detailed manner - fx. by different departments within the company/organisation if they fx. have different interest.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

When gathering information it is important to act neutral and not mix the collecting of information with the analysis itself.

Identifying the stakeholders´ priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can fx. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

Determine stakeholders´ strengths and weaknesses - or do a complete SWOT inventory will often be a beneficial part of the stakeholder analysis. The SWOT for the stakeholders will consist of determine the following elements:
*'''Strength:''' What are the stakeholders´ specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threads:''' Which challenges and difficulties can be seen from the stakeholder perspective? Will this develop into a thread for the project/programme/portfolio?

It is always important to know your friends. That is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. Nevertheless, it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio where the support-opposing ratio will change. Fx. if you are a citizen living close construction of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

Analysing the stakeholders´ support and role in different phases and situations also leads to predicting the stakeholders´ behaviour. However, for doing this prediction other factor might also have to be considered - fx. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

Preparation of stakeholder management strategy is about how to engage the stakeholders in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis, a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - fx. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or less interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. However, support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because they represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and. Risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders with great danger they are associated with the greatest risks in the project/program/portfolio - but also the greatest opportunities.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. And it might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}
<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-12-01T19:11:59Z

Nemo: /* Process */

'''Summary:'''

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Many other versions of this definition can be found in the literature but in general containing the same content. It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also considers all other stakeholders.

Figure 1 shows a classic input/output model with suppliers, investors and employees that provide an input so the firm can generate an output to the customers. Figure 2 shows stakeholder model where the firm are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. In order to act appropriate and create sustainability the management often has to consider these aspects and constraints not only from their own point of view but also from a number of other stakeholders views.

It is important for the management to know who their stakeholders are and there characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc.

In stakeholder analysis, all stakeholders first have to be identified and relevant information gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can be foundation for planning how to deal with stakeholders.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Background=
In 1932 Dodd started one of the first arguments that a company should not only focus on shareholders but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However, Dodd did not use the term ''stakeholder'' since this was not developed within this field of study yet. The term ''stakeholder'' arose in the first half of the 1960´s. Among others Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of the literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> described their view on stakeholder theory as the existence of three types:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation have stakeholders and that they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should consider their stakeholders.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisation will use different approaches.

=Process=
In literature, several description of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

The identification of stakeholders could be done by brainstorming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typical also include a handful of more specific stakeholders depending on situation. The stakeholders can also be identified in a more detailed manner - fx. by different departments within the company/organisation if they fx. have different interest.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

When gathering information it is important to act neutral and not mix the collecting of information with the analysis itself.

Identifying the stakeholders´ priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can fx. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

Determine stakeholders´ strengths and weaknesses - or do a complete SWOT inventory will often be a beneficial part of the stakeholder analysis. The SWOT for the stakeholders will consist of determine the following elements:
*'''Strength:''' What are the stakeholders´ specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threads:''' Which challenges and difficulties can be seen from the stakeholder perspective? Will this develop into a thread for the project/programme/portfolio?

It is always important to know your friends. That is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. Nevertheless, it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio where the support-opposing ratio will change. Fx. if you are a citizen living close construction of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

Analysing the stakeholders´ support and role in different phases and situations also leads to predicting the stakeholders´ behaviour. However, for doing this prediction other factor might also have to be considered - fx. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

Preparation of stakeholder management strategy is about how to engage the stakeholders in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis, a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - fx. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or lees interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. But support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because the represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and. Risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders with great danger they are associated with the greatest risks in the project/program/portfolio - but also the greatest opportunities.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. And it might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}
<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-12-01T19:05:28Z

Nemo: /* Background */

'''Summary:'''

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Many other versions of this definition can be found in the literature but in general containing the same content. It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also considers all other stakeholders.

Figure 1 shows a classic input/output model with suppliers, investors and employees that provide an input so the firm can generate an output to the customers. Figure 2 shows stakeholder model where the firm are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. In order to act appropriate and create sustainability the management often has to consider these aspects and constraints not only from their own point of view but also from a number of other stakeholders views.

It is important for the management to know who their stakeholders are and there characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc.

In stakeholder analysis, all stakeholders first have to be identified and relevant information gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can be foundation for planning how to deal with stakeholders.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Background=
In 1932 Dodd started one of the first arguments that a company should not only focus on shareholders but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However, Dodd did not use the term ''stakeholder'' since this was not developed within this field of study yet. The term ''stakeholder'' arose in the first half of the 1960´s. Among others Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of the literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> described their view on stakeholder theory as the existence of three types:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation have stakeholders and that they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should consider their stakeholders.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisation will use different approaches.

=Process=
In the literature several description of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

The identification of stakeholders could be done by brain storming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typical also include a handful of more specific stakeholders depending on situation. The stakeholders can also be identified in a more detailed manner - fx. by different departments within the company/organisation if they fx. have different interest.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

When gathering information it is important to act neutral and not mix the collecting of information with the analysis it self.

Identifying the stakeholders priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can fx. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

Determine stakeholders strengths and weaknesses - or do a complete SWOT inventory will often be a beneficial part of the stakeholder analysis. The SWOT for the stakeholders will consist of determine the following elements:
*'''Strength:''' What are the stakeholders specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threads:''' Which challenges and difficulties can be seen from the stakeholder perspective? Will this develop into a thread for the project/programme/portfolio?

It is always important to know your friends. And that is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. But it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio where the support-opposing ratio will change. Fx. if you are a citizen living close construction of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

Analysing the stakeholdes support and role in different phases and situations also leads to predicting the stakeholders behaviour. But for doing this prediction other factor might also have to be considered - fx. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

Preparation stakeholder management strategy is about how to engage the stakeholdes in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - fx. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or lees interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. But support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because the represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and. Risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders with great danger they are associated with the greatest risks in the project/program/portfolio - but also the greatest opportunities.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. And it might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}
<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-12-01T19:01:43Z

Nemo: /* Benefits */

'''Summary:'''

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Many other versions of this definition can be found in the literature but in general containing the same content. It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also considers all other stakeholders.

Figure 1 shows a classic input/output model with suppliers, investors and employees that provide an input so the firm can generate an output to the customers. Figure 2 shows stakeholder model where the firm are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. In order to act appropriate and create sustainability the management often has to consider these aspects and constraints not only from their own point of view but also from a number of other stakeholders views.

It is important for the management to know who their stakeholders are and there characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc.

In stakeholder analysis, all stakeholders first have to be identified and relevant information gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can be foundation for planning how to deal with stakeholders.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Background=
In 1932 Dodd started one of the first arguments that a company should not only focus on shareholders but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However Dodd did not use the term ''stakeholder'' since this was not developed within this field of study yet. The term ''stakeholder'' arose in the first half of the 1960´s. Among others Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of the literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> described their view on stakeholder theory as the existence of three types:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation have stakeholders and that there they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should take their stakeholders into consideration.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies so as to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisation will use different approaches.

=Process=
In the literature several description of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

The identification of stakeholders could be done by brain storming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typical also include a handful of more specific stakeholders depending on situation. The stakeholders can also be identified in a more detailed manner - fx. by different departments within the company/organisation if they fx. have different interest.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

When gathering information it is important to act neutral and not mix the collecting of information with the analysis it self.

Identifying the stakeholders priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can fx. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

Determine stakeholders strengths and weaknesses - or do a complete SWOT inventory will often be a beneficial part of the stakeholder analysis. The SWOT for the stakeholders will consist of determine the following elements:
*'''Strength:''' What are the stakeholders specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threads:''' Which challenges and difficulties can be seen from the stakeholder perspective? Will this develop into a thread for the project/programme/portfolio?

It is always important to know your friends. And that is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. But it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio where the support-opposing ratio will change. Fx. if you are a citizen living close construction of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

Analysing the stakeholdes support and role in different phases and situations also leads to predicting the stakeholders behaviour. But for doing this prediction other factor might also have to be considered - fx. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

Preparation stakeholder management strategy is about how to engage the stakeholdes in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - fx. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or lees interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. But support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because the represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and. Risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders with great danger they are associated with the greatest risks in the project/program/portfolio - but also the greatest opportunities.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. And it might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}
<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-12-01T18:58:21Z

Nemo: /* Introduction */

'''Summary:'''

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Many other versions of this definition can be found in the literature but in general containing the same content. It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also considers all other stakeholders.

Figure 1 shows a classic input/output model with suppliers, investors and employees that provide an input so the firm can generate an output to the customers. Figure 2 shows stakeholder model where the firm are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. In order to act appropriate and create sustainability the management often has to consider these aspects and constraints not only from their own point of view but also from a number of other stakeholders views.

It is important for the management to know who their stakeholders are and there characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc.

In stakeholder analysis, all stakeholders first have to be identified and relevant information gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can be foundation for planning how to deal with stakeholders.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can also create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Background=
In 1932 Dodd started one of the first arguments that a company should not only focus on shareholders but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However Dodd did not use the term ''stakeholder'' since this was not developed within this field of study yet. The term ''stakeholder'' arose in the first half of the 1960´s. Among others Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of the literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> described their view on stakeholder theory as the existence of three types:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation have stakeholders and that there they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should take their stakeholders into consideration.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies so as to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisation will use different approaches.

=Process=
In the literature several description of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

The identification of stakeholders could be done by brain storming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typical also include a handful of more specific stakeholders depending on situation. The stakeholders can also be identified in a more detailed manner - fx. by different departments within the company/organisation if they fx. have different interest.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

When gathering information it is important to act neutral and not mix the collecting of information with the analysis it self.

Identifying the stakeholders priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can fx. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

Determine stakeholders strengths and weaknesses - or do a complete SWOT inventory will often be a beneficial part of the stakeholder analysis. The SWOT for the stakeholders will consist of determine the following elements:
*'''Strength:''' What are the stakeholders specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threads:''' Which challenges and difficulties can be seen from the stakeholder perspective? Will this develop into a thread for the project/programme/portfolio?

It is always important to know your friends. And that is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. But it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio where the support-opposing ratio will change. Fx. if you are a citizen living close construction of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

Analysing the stakeholdes support and role in different phases and situations also leads to predicting the stakeholders behaviour. But for doing this prediction other factor might also have to be considered - fx. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

Preparation stakeholder management strategy is about how to engage the stakeholdes in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - fx. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or lees interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. But support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because the represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and. Risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders with great danger they are associated with the greatest risks in the project/program/portfolio - but also the greatest opportunities.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. And it might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}
<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-12-01T18:49:49Z

Nemo: /* References */

'''Summary:'''

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Many other versions of this definition can be found in the literature but in general containing the same content. It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also takes all other stakeholders into consideration.

Figure 1 shows a classic input/output model with suppliers, investors and employees that provide an input so the firm can generate an output to the customers. Figure 2 shows stakeholder model where the firm are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. But in order to act appropriate and create sustainability the management often has to consider these aspects and constraints not only from their own point of view but also from a number of other stakeholders views.

It is important for the management to know who their stakeholders are and there characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc.

In stakeholder analysis all stakeholders first have to be identified and relevant information gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can be foundation for planning how to deal with stakeholders.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can also create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Background=
In 1932 Dodd started one of the first arguments that a company should not only focus on shareholders but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However Dodd did not use the term ''stakeholder'' since this was not developed within this field of study yet. The term ''stakeholder'' arose in the first half of the 1960´s. Among others Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of the literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> described their view on stakeholder theory as the existence of three types:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation have stakeholders and that there they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should take their stakeholders into consideration.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies so as to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisation will use different approaches.

=Process=
In the literature several description of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

The identification of stakeholders could be done by brain storming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typical also include a handful of more specific stakeholders depending on situation. The stakeholders can also be identified in a more detailed manner - fx. by different departments within the company/organisation if they fx. have different interest.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

When gathering information it is important to act neutral and not mix the collecting of information with the analysis it self.

Identifying the stakeholders priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can fx. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

Determine stakeholders strengths and weaknesses - or do a complete SWOT inventory will often be a beneficial part of the stakeholder analysis. The SWOT for the stakeholders will consist of determine the following elements:
*'''Strength:''' What are the stakeholders specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threads:''' Which challenges and difficulties can be seen from the stakeholder perspective? Will this develop into a thread for the project/programme/portfolio?

It is always important to know your friends. And that is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. But it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio where the support-opposing ratio will change. Fx. if you are a citizen living close construction of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

Analysing the stakeholdes support and role in different phases and situations also leads to predicting the stakeholders behaviour. But for doing this prediction other factor might also have to be considered - fx. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

Preparation stakeholder management strategy is about how to engage the stakeholdes in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - fx. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or lees interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. But support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because the represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and. Risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders with great danger they are associated with the greatest risks in the project/program/portfolio - but also the greatest opportunities.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. And it might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}
<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-12-01T18:49:37Z

Nemo: /* References */

'''Summary:'''

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Many other versions of this definition can be found in the literature but in general containing the same content. It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also takes all other stakeholders into consideration.

Figure 1 shows a classic input/output model with suppliers, investors and employees that provide an input so the firm can generate an output to the customers. Figure 2 shows stakeholder model where the firm are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. But in order to act appropriate and create sustainability the management often has to consider these aspects and constraints not only from their own point of view but also from a number of other stakeholders views.

It is important for the management to know who their stakeholders are and there characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc.

In stakeholder analysis all stakeholders first have to be identified and relevant information gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can be foundation for planning how to deal with stakeholders.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can also create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Background=
In 1932 Dodd started one of the first arguments that a company should not only focus on shareholders but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However Dodd did not use the term ''stakeholder'' since this was not developed within this field of study yet. The term ''stakeholder'' arose in the first half of the 1960´s. Among others Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of the literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> described their view on stakeholder theory as the existence of three types:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation have stakeholders and that there they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should take their stakeholders into consideration.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies so as to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisation will use different approaches.

=Process=
In the literature several description of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

The identification of stakeholders could be done by brain storming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typical also include a handful of more specific stakeholders depending on situation. The stakeholders can also be identified in a more detailed manner - fx. by different departments within the company/organisation if they fx. have different interest.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

When gathering information it is important to act neutral and not mix the collecting of information with the analysis it self.

Identifying the stakeholders priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can fx. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

Determine stakeholders strengths and weaknesses - or do a complete SWOT inventory will often be a beneficial part of the stakeholder analysis. The SWOT for the stakeholders will consist of determine the following elements:
*'''Strength:''' What are the stakeholders specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threads:''' Which challenges and difficulties can be seen from the stakeholder perspective? Will this develop into a thread for the project/programme/portfolio?

It is always important to know your friends. And that is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. But it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio where the support-opposing ratio will change. Fx. if you are a citizen living close construction of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

Analysing the stakeholdes support and role in different phases and situations also leads to predicting the stakeholders behaviour. But for doing this prediction other factor might also have to be considered - fx. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

Preparation stakeholder management strategy is about how to engage the stakeholdes in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - fx. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or lees interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. But support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because the represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and. Risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders with great danger they are associated with the greatest risks in the project/program/portfolio - but also the greatest opportunities.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. And it might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-12-01T18:48:41Z

Nemo: /* Types of maps */

'''Summary:'''

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Many other versions of this definition can be found in the literature but in general containing the same content. It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also takes all other stakeholders into consideration.

Figure 1 shows a classic input/output model with suppliers, investors and employees that provide an input so the firm can generate an output to the customers. Figure 2 shows stakeholder model where the firm are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. But in order to act appropriate and create sustainability the management often has to consider these aspects and constraints not only from their own point of view but also from a number of other stakeholders views.

It is important for the management to know who their stakeholders are and there characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc.

In stakeholder analysis all stakeholders first have to be identified and relevant information gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can be foundation for planning how to deal with stakeholders.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can also create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Background=
In 1932 Dodd started one of the first arguments that a company should not only focus on shareholders but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However Dodd did not use the term ''stakeholder'' since this was not developed within this field of study yet. The term ''stakeholder'' arose in the first half of the 1960´s. Among others Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of the literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> described their view on stakeholder theory as the existence of three types:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation have stakeholders and that there they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should take their stakeholders into consideration.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies so as to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisation will use different approaches.

=Process=
In the literature several description of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

The identification of stakeholders could be done by brain storming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typical also include a handful of more specific stakeholders depending on situation. The stakeholders can also be identified in a more detailed manner - fx. by different departments within the company/organisation if they fx. have different interest.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

When gathering information it is important to act neutral and not mix the collecting of information with the analysis it self.

Identifying the stakeholders priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can fx. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

Determine stakeholders strengths and weaknesses - or do a complete SWOT inventory will often be a beneficial part of the stakeholder analysis. The SWOT for the stakeholders will consist of determine the following elements:
*'''Strength:''' What are the stakeholders specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threads:''' Which challenges and difficulties can be seen from the stakeholder perspective? Will this develop into a thread for the project/programme/portfolio?

It is always important to know your friends. And that is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. But it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio where the support-opposing ratio will change. Fx. if you are a citizen living close construction of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

Analysing the stakeholdes support and role in different phases and situations also leads to predicting the stakeholders behaviour. But for doing this prediction other factor might also have to be considered - fx. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

Preparation stakeholder management strategy is about how to engage the stakeholdes in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - fx. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or lees interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. But support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because the represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and. Risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders with great danger they are associated with the greatest risks in the project/program/portfolio - but also the greatest opportunities.

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. And it might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}

<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-12-01T18:47:49Z

Nemo: /* Types of maps */

'''Summary:'''

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Many other versions of this definition can be found in the literature but in general containing the same content. It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also takes all other stakeholders into consideration.

Figure 1 shows a classic input/output model with suppliers, investors and employees that provide an input so the firm can generate an output to the customers. Figure 2 shows stakeholder model where the firm are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. But in order to act appropriate and create sustainability the management often has to consider these aspects and constraints not only from their own point of view but also from a number of other stakeholders views.

It is important for the management to know who their stakeholders are and there characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc.

In stakeholder analysis all stakeholders first have to be identified and relevant information gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can be foundation for planning how to deal with stakeholders.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can also create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Background=
In 1932 Dodd started one of the first arguments that a company should not only focus on shareholders but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However Dodd did not use the term ''stakeholder'' since this was not developed within this field of study yet. The term ''stakeholder'' arose in the first half of the 1960´s. Among others Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of the literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> described their view on stakeholder theory as the existence of three types:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation have stakeholders and that there they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should take their stakeholders into consideration.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies so as to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisation will use different approaches.

=Process=
In the literature several description of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

The identification of stakeholders could be done by brain storming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typical also include a handful of more specific stakeholders depending on situation. The stakeholders can also be identified in a more detailed manner - fx. by different departments within the company/organisation if they fx. have different interest.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

When gathering information it is important to act neutral and not mix the collecting of information with the analysis it self.

Identifying the stakeholders priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can fx. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

Determine stakeholders strengths and weaknesses - or do a complete SWOT inventory will often be a beneficial part of the stakeholder analysis. The SWOT for the stakeholders will consist of determine the following elements:
*'''Strength:''' What are the stakeholders specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threads:''' Which challenges and difficulties can be seen from the stakeholder perspective? Will this develop into a thread for the project/programme/portfolio?

It is always important to know your friends. And that is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. But it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio where the support-opposing ratio will change. Fx. if you are a citizen living close construction of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

Analysing the stakeholdes support and role in different phases and situations also leads to predicting the stakeholders behaviour. But for doing this prediction other factor might also have to be considered - fx. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

Preparation stakeholder management strategy is about how to engage the stakeholdes in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - fx. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or lees interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. But support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because the represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and. Risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders with great danger they are associated with the greatest risks in the project/program/portfolio - but also the greatest opportunities.

===Affected/Affecting===
In progress...

===3D mapping===
Could also be bobble chart

[[File:3D_map_vers2.PNG‎|300px|thumb|right|Figure 5: 3D mapping visualised as 3x3 matrix.]]

In progress...

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. And it might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}

<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-11-30T15:30:47Z

Nemo: /* Power/Dynamism diagram */

'''Summary:'''

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Many other versions of this definition can be found in the literature but in general containing the same content. It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also takes all other stakeholders into consideration.

Figure 1 shows a classic input/output model with suppliers, investors and employees that provide an input so the firm can generate an output to the customers. Figure 2 shows stakeholder model where the firm are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. But in order to act appropriate and create sustainability the management often has to consider these aspects and constraints not only from their own point of view but also from a number of other stakeholders views.

It is important for the management to know who their stakeholders are and there characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc.

In stakeholder analysis all stakeholders first have to be identified and relevant information gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can be foundation for planning how to deal with stakeholders.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can also create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Background=
In 1932 Dodd started one of the first arguments that a company should not only focus on shareholders but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However Dodd did not use the term ''stakeholder'' since this was not developed within this field of study yet. The term ''stakeholder'' arose in the first half of the 1960´s. Among others Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of the literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> described their view on stakeholder theory as the existence of three types:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation have stakeholders and that there they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should take their stakeholders into consideration.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies so as to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisation will use different approaches.

=Process=
In the literature several description of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

The identification of stakeholders could be done by brain storming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typical also include a handful of more specific stakeholders depending on situation. The stakeholders can also be identified in a more detailed manner - fx. by different departments within the company/organisation if they fx. have different interest.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

When gathering information it is important to act neutral and not mix the collecting of information with the analysis it self.

Identifying the stakeholders priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can fx. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

Determine stakeholders strengths and weaknesses - or do a complete SWOT inventory will often be a beneficial part of the stakeholder analysis. The SWOT for the stakeholders will consist of determine the following elements:
*'''Strength:''' What are the stakeholders specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threads:''' Which challenges and difficulties can be seen from the stakeholder perspective? Will this develop into a thread for the project/programme/portfolio?

It is always important to know your friends. And that is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. But it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio where the support-opposing ratio will change. Fx. if you are a citizen living close construction of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

Analysing the stakeholdes support and role in different phases and situations also leads to predicting the stakeholders behaviour. But for doing this prediction other factor might also have to be considered - fx. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

Preparation stakeholder management strategy is about how to engage the stakeholdes in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - fx. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two or three parameters that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or lees interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. But support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces a central selection of stakeholder maps.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because the represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and. Risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders with great danger they are associated with the greatest risks in the project/program/portfolio - but also the greatest opportunities.

===Affected/Affecting===
In progress...

===3D mapping===
Could also be bobble chart

[[File:3D_map_vers2.PNG‎|300px|thumb|right|Figure 5: 3D mapping visualised as 3x3 matrix.]]

In progress...

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. And it might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}

<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-11-29T18:44:39Z

Nemo: /* Power/Dynamism diagram */

'''Summary:'''

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Many other versions of this definition can be found in the literature but in general containing the same content. It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also takes all other stakeholders into consideration.

Figure 1 shows a classic input/output model with suppliers, investors and employees that provide an input so the firm can generate an output to the customers. Figure 2 shows stakeholder model where the firm are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. But in order to act appropriate and create sustainability the management often has to consider these aspects and constraints not only from their own point of view but also from a number of other stakeholders views.

It is important for the management to know who their stakeholders are and there characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc.

In stakeholder analysis all stakeholders first have to be identified and relevant information gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can be foundation for planning how to deal with stakeholders.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can also create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Background=
In 1932 Dodd started one of the first arguments that a company should not only focus on shareholders but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However Dodd did not use the term ''stakeholder'' since this was not developed within this field of study yet. The term ''stakeholder'' arose in the first half of the 1960´s. Among others Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of the literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> described their view on stakeholder theory as the existence of three types:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation have stakeholders and that there they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should take their stakeholders into consideration.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies so as to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisation will use different approaches.

=Process=
In the literature several description of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

The identification of stakeholders could be done by brain storming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typical also include a handful of more specific stakeholders depending on situation. The stakeholders can also be identified in a more detailed manner - fx. by different departments within the company/organisation if they fx. have different interest.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

When gathering information it is important to act neutral and not mix the collecting of information with the analysis it self.

Identifying the stakeholders priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can fx. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

Determine stakeholders strengths and weaknesses - or do a complete SWOT inventory will often be a beneficial part of the stakeholder analysis. The SWOT for the stakeholders will consist of determine the following elements:
*'''Strength:''' What are the stakeholders specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threads:''' Which challenges and difficulties can be seen from the stakeholder perspective? Will this develop into a thread for the project/programme/portfolio?

It is always important to know your friends. And that is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. But it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio where the support-opposing ratio will change. Fx. if you are a citizen living close construction of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

Analysing the stakeholdes support and role in different phases and situations also leads to predicting the stakeholders behaviour. But for doing this prediction other factor might also have to be considered - fx. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

Preparation stakeholder management strategy is about how to engage the stakeholdes in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - fx. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two or three parameters that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or lees interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. But support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces a central selection of stakeholder maps.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because the represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

===Affected/Affecting===
In progress...

===3D mapping===
Could also be bobble chart

[[File:3D_map_vers2.PNG‎|300px|thumb|right|Figure 5: 3D mapping visualised as 3x3 matrix.]]

In progress...

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. And it might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}

<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-11-29T18:42:55Z

Nemo: /* Power/Interest diagram */

'''Summary:'''

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Many other versions of this definition can be found in the literature but in general containing the same content. It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also takes all other stakeholders into consideration.

Figure 1 shows a classic input/output model with suppliers, investors and employees that provide an input so the firm can generate an output to the customers. Figure 2 shows stakeholder model where the firm are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. But in order to act appropriate and create sustainability the management often has to consider these aspects and constraints not only from their own point of view but also from a number of other stakeholders views.

It is important for the management to know who their stakeholders are and there characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc.

In stakeholder analysis all stakeholders first have to be identified and relevant information gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can be foundation for planning how to deal with stakeholders.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can also create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Background=
In 1932 Dodd started one of the first arguments that a company should not only focus on shareholders but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However Dodd did not use the term ''stakeholder'' since this was not developed within this field of study yet. The term ''stakeholder'' arose in the first half of the 1960´s. Among others Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of the literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> described their view on stakeholder theory as the existence of three types:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation have stakeholders and that there they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should take their stakeholders into consideration.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies so as to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisation will use different approaches.

=Process=
In the literature several description of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

The identification of stakeholders could be done by brain storming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typical also include a handful of more specific stakeholders depending on situation. The stakeholders can also be identified in a more detailed manner - fx. by different departments within the company/organisation if they fx. have different interest.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

When gathering information it is important to act neutral and not mix the collecting of information with the analysis it self.

Identifying the stakeholders priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can fx. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

Determine stakeholders strengths and weaknesses - or do a complete SWOT inventory will often be a beneficial part of the stakeholder analysis. The SWOT for the stakeholders will consist of determine the following elements:
*'''Strength:''' What are the stakeholders specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threads:''' Which challenges and difficulties can be seen from the stakeholder perspective? Will this develop into a thread for the project/programme/portfolio?

It is always important to know your friends. And that is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. But it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio where the support-opposing ratio will change. Fx. if you are a citizen living close construction of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

Analysing the stakeholdes support and role in different phases and situations also leads to predicting the stakeholders behaviour. But for doing this prediction other factor might also have to be considered - fx. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

Preparation stakeholder management strategy is about how to engage the stakeholdes in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - fx. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two or three parameters that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or lees interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. But support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces a central selection of stakeholder maps.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because the represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4.

The power/interest diagram gives good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and interest to some degree can be equalised with possibility for risks or opportunity to occur.

===Affected/Affecting===
In progress...

===3D mapping===
Could also be bobble chart

[[File:3D_map_vers2.PNG‎|300px|thumb|right|Figure 5: 3D mapping visualised as 3x3 matrix.]]

In progress...

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. And it might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}

<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-11-29T18:07:52Z

Nemo: /* Types of maps */

'''Summary:'''

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Many other versions of this definition can be found in the literature but in general containing the same content. It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also takes all other stakeholders into consideration.

Figure 1 shows a classic input/output model with suppliers, investors and employees that provide an input so the firm can generate an output to the customers. Figure 2 shows stakeholder model where the firm are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. But in order to act appropriate and create sustainability the management often has to consider these aspects and constraints not only from their own point of view but also from a number of other stakeholders views.

It is important for the management to know who their stakeholders are and there characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc.

In stakeholder analysis all stakeholders first have to be identified and relevant information gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can be foundation for planning how to deal with stakeholders.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can also create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Background=
In 1932 Dodd started one of the first arguments that a company should not only focus on shareholders but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However Dodd did not use the term ''stakeholder'' since this was not developed within this field of study yet. The term ''stakeholder'' arose in the first half of the 1960´s. Among others Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of the literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> described their view on stakeholder theory as the existence of three types:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation have stakeholders and that there they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should take their stakeholders into consideration.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies so as to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisation will use different approaches.

=Process=
In the literature several description of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

The identification of stakeholders could be done by brain storming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typical also include a handful of more specific stakeholders depending on situation. The stakeholders can also be identified in a more detailed manner - fx. by different departments within the company/organisation if they fx. have different interest.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

When gathering information it is important to act neutral and not mix the collecting of information with the analysis it self.

Identifying the stakeholders priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can fx. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

Determine stakeholders strengths and weaknesses - or do a complete SWOT inventory will often be a beneficial part of the stakeholder analysis. The SWOT for the stakeholders will consist of determine the following elements:
*'''Strength:''' What are the stakeholders specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threads:''' Which challenges and difficulties can be seen from the stakeholder perspective? Will this develop into a thread for the project/programme/portfolio?

It is always important to know your friends. And that is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. But it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio where the support-opposing ratio will change. Fx. if you are a citizen living close construction of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

Analysing the stakeholdes support and role in different phases and situations also leads to predicting the stakeholders behaviour. But for doing this prediction other factor might also have to be considered - fx. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

Preparation stakeholder management strategy is about how to engage the stakeholdes in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - fx. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two or three parameters that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or lees interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. But support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces a central selection of stakeholder maps.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.

At the same time the power/interest can help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because the represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4.

The power/interest diagram gives good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the impact and interest to some degree can be equalised with possibility for risks or opportunity to occur.

===Affected/Affecting===
In progress...

===3D mapping===
Could also be bobble chart

[[File:3D_map_vers2.PNG‎|300px|thumb|right|Figure 5: 3D mapping visualised as 3x3 matrix.]]

In progress...

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. And it might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}

<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-11-29T18:06:15Z

Nemo: /* Power/Dynamism diagram */

'''Summary:'''

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Many other versions of this definition can be found in the literature but in general containing the same content. It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also takes all other stakeholders into consideration.

Figure 1 shows a classic input/output model with suppliers, investors and employees that provide an input so the firm can generate an output to the customers. Figure 2 shows stakeholder model where the firm are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. But in order to act appropriate and create sustainability the management often has to consider these aspects and constraints not only from their own point of view but also from a number of other stakeholders views.

It is important for the management to know who their stakeholders are and there characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc.

In stakeholder analysis all stakeholders first have to be identified and relevant information gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can be foundation for planning how to deal with stakeholders.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can also create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Background=
In 1932 Dodd started one of the first arguments that a company should not only focus on shareholders but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However Dodd did not use the term ''stakeholder'' since this was not developed within this field of study yet. The term ''stakeholder'' arose in the first half of the 1960´s. Among others Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of the literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> described their view on stakeholder theory as the existence of three types:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation have stakeholders and that there they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should take their stakeholders into consideration.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies so as to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisation will use different approaches.

=Process=
In the literature several description of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

The identification of stakeholders could be done by brain storming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typical also include a handful of more specific stakeholders depending on situation. The stakeholders can also be identified in a more detailed manner - fx. by different departments within the company/organisation if they fx. have different interest.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

When gathering information it is important to act neutral and not mix the collecting of information with the analysis it self.

Identifying the stakeholders priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can fx. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

Determine stakeholders strengths and weaknesses - or do a complete SWOT inventory will often be a beneficial part of the stakeholder analysis. The SWOT for the stakeholders will consist of determine the following elements:
*'''Strength:''' What are the stakeholders specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threads:''' Which challenges and difficulties can be seen from the stakeholder perspective? Will this develop into a thread for the project/programme/portfolio?

It is always important to know your friends. And that is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. But it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio where the support-opposing ratio will change. Fx. if you are a citizen living close construction of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

Analysing the stakeholdes support and role in different phases and situations also leads to predicting the stakeholders behaviour. But for doing this prediction other factor might also have to be considered - fx. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

Preparation stakeholder management strategy is about how to engage the stakeholdes in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - fx. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two or three parameters that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or lees interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. But support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces a central selection of stakeholder maps.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.

The power/interest diagram gives good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the consequence and interest to some degree can be equalised with possibility for risks or opportunity to occur.

At the same time the power/interest can help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because the represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The power/dynamism diagram is not as common as the power/interest diagram

===Affected/Affecting===
In progress...

===3D mapping===
Could also be bobble chart

[[File:3D_map_vers2.PNG‎|300px|thumb|right|Figure 5: 3D mapping visualised as 3x3 matrix.]]

In progress...

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. And it might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}

<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-11-29T17:56:20Z

Nemo: /* Challenges and uncertainty */

'''Summary:'''

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Many other versions of this definition can be found in the literature but in general containing the same content. It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also takes all other stakeholders into consideration.

Figure 1 shows a classic input/output model with suppliers, investors and employees that provide an input so the firm can generate an output to the customers. Figure 2 shows stakeholder model where the firm are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. But in order to act appropriate and create sustainability the management often has to consider these aspects and constraints not only from their own point of view but also from a number of other stakeholders views.

It is important for the management to know who their stakeholders are and there characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc.

In stakeholder analysis all stakeholders first have to be identified and relevant information gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can be foundation for planning how to deal with stakeholders.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can also create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Background=
In 1932 Dodd started one of the first arguments that a company should not only focus on shareholders but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However Dodd did not use the term ''stakeholder'' since this was not developed within this field of study yet. The term ''stakeholder'' arose in the first half of the 1960´s. Among others Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of the literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> described their view on stakeholder theory as the existence of three types:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation have stakeholders and that there they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should take their stakeholders into consideration.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies so as to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisation will use different approaches.

=Process=
In the literature several description of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

The identification of stakeholders could be done by brain storming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typical also include a handful of more specific stakeholders depending on situation. The stakeholders can also be identified in a more detailed manner - fx. by different departments within the company/organisation if they fx. have different interest.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

When gathering information it is important to act neutral and not mix the collecting of information with the analysis it self.

Identifying the stakeholders priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can fx. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

Determine stakeholders strengths and weaknesses - or do a complete SWOT inventory will often be a beneficial part of the stakeholder analysis. The SWOT for the stakeholders will consist of determine the following elements:
*'''Strength:''' What are the stakeholders specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threads:''' Which challenges and difficulties can be seen from the stakeholder perspective? Will this develop into a thread for the project/programme/portfolio?

It is always important to know your friends. And that is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. But it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio where the support-opposing ratio will change. Fx. if you are a citizen living close construction of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

Analysing the stakeholdes support and role in different phases and situations also leads to predicting the stakeholders behaviour. But for doing this prediction other factor might also have to be considered - fx. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

Preparation stakeholder management strategy is about how to engage the stakeholdes in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - fx. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two or three parameters that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or lees interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. But support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces a central selection of stakeholder maps.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.

The power/interest diagram gives good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the consequence and interest to some degree can be equalised with possibility for risks or opportunity to occur.

At the same time the power/interest can help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because the represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4.

===Affected/Affecting===
In progress...

===3D mapping===
Could also be bobble chart

[[File:3D_map_vers2.PNG‎|300px|thumb|right|Figure 5: 3D mapping visualised as 3x3 matrix.]]

In progress...

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. And it might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}

<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-11-29T17:51:06Z

Nemo: /* Mapping stakeholders */

'''Summary:'''

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Many other versions of this definition can be found in the literature but in general containing the same content. It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also takes all other stakeholders into consideration.

Figure 1 shows a classic input/output model with suppliers, investors and employees that provide an input so the firm can generate an output to the customers. Figure 2 shows stakeholder model where the firm are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. But in order to act appropriate and create sustainability the management often has to consider these aspects and constraints not only from their own point of view but also from a number of other stakeholders views.

It is important for the management to know who their stakeholders are and there characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc.

In stakeholder analysis all stakeholders first have to be identified and relevant information gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can be foundation for planning how to deal with stakeholders.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can also create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Background=
In 1932 Dodd started one of the first arguments that a company should not only focus on shareholders but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However Dodd did not use the term ''stakeholder'' since this was not developed within this field of study yet. The term ''stakeholder'' arose in the first half of the 1960´s. Among others Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of the literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> described their view on stakeholder theory as the existence of three types:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation have stakeholders and that there they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should take their stakeholders into consideration.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies so as to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisation will use different approaches.

=Process=
In the literature several description of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

The identification of stakeholders could be done by brain storming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typical also include a handful of more specific stakeholders depending on situation. The stakeholders can also be identified in a more detailed manner - fx. by different departments within the company/organisation if they fx. have different interest.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

When gathering information it is important to act neutral and not mix the collecting of information with the analysis it self.

Identifying the stakeholders priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can fx. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

Determine stakeholders strengths and weaknesses - or do a complete SWOT inventory will often be a beneficial part of the stakeholder analysis. The SWOT for the stakeholders will consist of determine the following elements:
*'''Strength:''' What are the stakeholders specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threads:''' Which challenges and difficulties can be seen from the stakeholder perspective? Will this develop into a thread for the project/programme/portfolio?

It is always important to know your friends. And that is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. But it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio where the support-opposing ratio will change. Fx. if you are a citizen living close construction of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

Analysing the stakeholdes support and role in different phases and situations also leads to predicting the stakeholders behaviour. But for doing this prediction other factor might also have to be considered - fx. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

Preparation stakeholder management strategy is about how to engage the stakeholdes in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - fx. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two or three parameters that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or lees interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. But support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces a central selection of stakeholder maps.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.

The power/interest diagram gives good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the consequence and interest to some degree can be equalised with possibility for risks or opportunity to occur.

At the same time the power/interest can help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because the represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4.

===Affected/Affecting===
In progress...

===3D mapping===
Could also be bobble chart

[[File:3D_map_vers2.PNG‎|300px|thumb|right|Figure 5: 3D mapping visualised as 3x3 matrix.]]

In progress...

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions, which for specific stakeholders can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. And it might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}

<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-11-29T17:45:26Z

Nemo: /* Types of maps */

'''Summary:'''

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Many other versions of this definition can be found in the literature but in general containing the same content. It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also takes all other stakeholders into consideration.

Figure 1 shows a classic input/output model with suppliers, investors and employees that provide an input so the firm can generate an output to the customers. Figure 2 shows stakeholder model where the firm are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. But in order to act appropriate and create sustainability the management often has to consider these aspects and constraints not only from their own point of view but also from a number of other stakeholders views.

It is important for the management to know who their stakeholders are and there characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc.

In stakeholder analysis all stakeholders first have to be identified and relevant information gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can be foundation for planning how to deal with stakeholders.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can also create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Background=
In 1932 Dodd started one of the first arguments that a company should not only focus on shareholders but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However Dodd did not use the term ''stakeholder'' since this was not developed within this field of study yet. The term ''stakeholder'' arose in the first half of the 1960´s. Among others Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of the literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> described their view on stakeholder theory as the existence of three types:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation have stakeholders and that there they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should take their stakeholders into consideration.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies so as to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisation will use different approaches.

=Process=
In the literature several description of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

The identification of stakeholders could be done by brain storming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typical also include a handful of more specific stakeholders depending on situation. The stakeholders can also be identified in a more detailed manner - fx. by different departments within the company/organisation if they fx. have different interest.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

When gathering information it is important to act neutral and not mix the collecting of information with the analysis it self.

Identifying the stakeholders priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can fx. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

Determine stakeholders strengths and weaknesses - or do a complete SWOT inventory will often be a beneficial part of the stakeholder analysis. The SWOT for the stakeholders will consist of determine the following elements:
*'''Strength:''' What are the stakeholders specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threads:''' Which challenges and difficulties can be seen from the stakeholder perspective? Will this develop into a thread for the project/programme/portfolio?

It is always important to know your friends. And that is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. But it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio where the support-opposing ratio will change. Fx. if you are a citizen living close construction of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

Analysing the stakeholdes support and role in different phases and situations also leads to predicting the stakeholders behaviour. But for doing this prediction other factor might also have to be considered - fx. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

Preparation stakeholder management strategy is about how to engage the stakeholdes in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - fx. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two or three parameters that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or lees interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. But support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces a central selection of stakeholder maps.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.

The power/interest diagram gives good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the consequence and interest to some degree can be equalised with possibility for risks or opportunity to occur.

At the same time the power/interest can help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because the represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> also described the power/dynamism diagram as shown in Figure 4.

===Affected/Affecting===
In progress...

===3D mapping===
Could also be bobble chart

[[File:3D_map_vers2.PNG‎|300px|thumb|right|Figure 5: 3D mapping visualised as 3x3 matrix.]]

In progress...

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions, which for specific stakeholders can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. And it might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}

<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-11-29T16:05:38Z

Nemo: /* Types of maps */

'''Summary:'''

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Many other versions of this definition can be found in the literature but in general containing the same content. It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also takes all other stakeholders into consideration.

Figure 1 shows a classic input/output model with suppliers, investors and employees that provide an input so the firm can generate an output to the customers. Figure 2 shows stakeholder model where the firm are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. But in order to act appropriate and create sustainability the management often has to consider these aspects and constraints not only from their own point of view but also from a number of other stakeholders views.

It is important for the management to know who their stakeholders are and there characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc.

In stakeholder analysis all stakeholders first have to be identified and relevant information gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can be foundation for planning how to deal with stakeholders.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can also create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Background=
In 1932 Dodd started one of the first arguments that a company should not only focus on shareholders but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However Dodd did not use the term ''stakeholder'' since this was not developed within this field of study yet. The term ''stakeholder'' arose in the first half of the 1960´s. Among others Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of the literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> described their view on stakeholder theory as the existence of three types:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation have stakeholders and that there they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should take their stakeholders into consideration.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies so as to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisation will use different approaches.

=Process=
In the literature several description of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

The identification of stakeholders could be done by brain storming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typical also include a handful of more specific stakeholders depending on situation. The stakeholders can also be identified in a more detailed manner - fx. by different departments within the company/organisation if they fx. have different interest.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

When gathering information it is important to act neutral and not mix the collecting of information with the analysis it self.

Identifying the stakeholders priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can fx. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

Determine stakeholders strengths and weaknesses - or do a complete SWOT inventory will often be a beneficial part of the stakeholder analysis. The SWOT for the stakeholders will consist of determine the following elements:
*'''Strength:''' What are the stakeholders specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threads:''' Which challenges and difficulties can be seen from the stakeholder perspective? Will this develop into a thread for the project/programme/portfolio?

It is always important to know your friends. And that is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. But it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio where the support-opposing ratio will change. Fx. if you are a citizen living close construction of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

Analysing the stakeholdes support and role in different phases and situations also leads to predicting the stakeholders behaviour. But for doing this prediction other factor might also have to be considered - fx. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

Preparation stakeholder management strategy is about how to engage the stakeholdes in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - fx. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two or three parameters that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or lees interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. But support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces a central selection of stakeholder maps.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.

The power/interest diagram gives good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the consequence and interest to some degree can be equalised with possibility for risks or opportunity to occur.

At the same time the power/interest can help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because the represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-dynamism.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]

===Affected/Affecting===
In progress...

===3D mapping===
Could also be bobble chart

[[File:3D_map_vers2.PNG‎|300px|thumb|right|Figure 5: 3D mapping visualised as 3x3 matrix.]]

In progress...

===Stakeholder Circle===
In progress...

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions, which for specific stakeholders can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. And it might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}

<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-11-29T16:03:59Z

Nemo: /* Types of maps */

'''Summary:'''

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Many other versions of this definition can be found in the literature but in general containing the same content. It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also takes all other stakeholders into consideration.

Figure 1 shows a classic input/output model with suppliers, investors and employees that provide an input so the firm can generate an output to the customers. Figure 2 shows stakeholder model where the firm are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. But in order to act appropriate and create sustainability the management often has to consider these aspects and constraints not only from their own point of view but also from a number of other stakeholders views.

It is important for the management to know who their stakeholders are and there characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc.

In stakeholder analysis all stakeholders first have to be identified and relevant information gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can be foundation for planning how to deal with stakeholders.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can also create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Background=
In 1932 Dodd started one of the first arguments that a company should not only focus on shareholders but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However Dodd did not use the term ''stakeholder'' since this was not developed within this field of study yet. The term ''stakeholder'' arose in the first half of the 1960´s. Among others Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of the literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> described their view on stakeholder theory as the existence of three types:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation have stakeholders and that there they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should take their stakeholders into consideration.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies so as to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisation will use different approaches.

=Process=
In the literature several description of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

The identification of stakeholders could be done by brain storming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typical also include a handful of more specific stakeholders depending on situation. The stakeholders can also be identified in a more detailed manner - fx. by different departments within the company/organisation if they fx. have different interest.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

When gathering information it is important to act neutral and not mix the collecting of information with the analysis it self.

Identifying the stakeholders priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can fx. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

Determine stakeholders strengths and weaknesses - or do a complete SWOT inventory will often be a beneficial part of the stakeholder analysis. The SWOT for the stakeholders will consist of determine the following elements:
*'''Strength:''' What are the stakeholders specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threads:''' Which challenges and difficulties can be seen from the stakeholder perspective? Will this develop into a thread for the project/programme/portfolio?

It is always important to know your friends. And that is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. But it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio where the support-opposing ratio will change. Fx. if you are a citizen living close construction of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

Analysing the stakeholdes support and role in different phases and situations also leads to predicting the stakeholders behaviour. But for doing this prediction other factor might also have to be considered - fx. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

Preparation stakeholder management strategy is about how to engage the stakeholdes in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - fx. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two or three parameters that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or lees interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. But support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces a central selection of stakeholder maps.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.

The power/interest diagram gives good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the consequence and interest to some degree can be equalised with possibility for risks or opportunity to occur.

At the same time the power/interest can help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because the represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]

===Affected/Affecting===
In progress...

===3D mapping===
Could also be bobble chart

[[File:3D_map_vers2.PNG‎|300px|thumb|right|Figure 5: 3D mapping visualised as 3x3 matrix.]]

In progress...

===Stakeholder Circle===
In progress...

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions, which for specific stakeholders can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. And it might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}

<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

File:Power-dynamism.PNG

2014-11-29T16:02:23Z

Nemo:

Stakeholder Analysis

2014-11-29T16:01:48Z

Nemo: /* Types of maps */

'''Summary:'''

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Many other versions of this definition can be found in the literature but in general containing the same content. It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also takes all other stakeholders into consideration.

Figure 1 shows a classic input/output model with suppliers, investors and employees that provide an input so the firm can generate an output to the customers. Figure 2 shows stakeholder model where the firm are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. But in order to act appropriate and create sustainability the management often has to consider these aspects and constraints not only from their own point of view but also from a number of other stakeholders views.

It is important for the management to know who their stakeholders are and there characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc.

In stakeholder analysis all stakeholders first have to be identified and relevant information gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can be foundation for planning how to deal with stakeholders.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can also create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Background=
In 1932 Dodd started one of the first arguments that a company should not only focus on shareholders but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However Dodd did not use the term ''stakeholder'' since this was not developed within this field of study yet. The term ''stakeholder'' arose in the first half of the 1960´s. Among others Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of the literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> described their view on stakeholder theory as the existence of three types:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation have stakeholders and that there they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should take their stakeholders into consideration.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies so as to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisation will use different approaches.

=Process=
In the literature several description of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

The identification of stakeholders could be done by brain storming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typical also include a handful of more specific stakeholders depending on situation. The stakeholders can also be identified in a more detailed manner - fx. by different departments within the company/organisation if they fx. have different interest.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

When gathering information it is important to act neutral and not mix the collecting of information with the analysis it self.

Identifying the stakeholders priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can fx. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

Determine stakeholders strengths and weaknesses - or do a complete SWOT inventory will often be a beneficial part of the stakeholder analysis. The SWOT for the stakeholders will consist of determine the following elements:
*'''Strength:''' What are the stakeholders specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threads:''' Which challenges and difficulties can be seen from the stakeholder perspective? Will this develop into a thread for the project/programme/portfolio?

It is always important to know your friends. And that is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. But it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio where the support-opposing ratio will change. Fx. if you are a citizen living close construction of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

Analysing the stakeholdes support and role in different phases and situations also leads to predicting the stakeholders behaviour. But for doing this prediction other factor might also have to be considered - fx. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

Preparation stakeholder management strategy is about how to engage the stakeholdes in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - fx. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two or three parameters that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or lees interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. But support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces a central selection of stakeholder maps.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.

The power/interest diagram gives good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the consequence and interest to some degree can be equalised with possibility for risks or opportunity to occur.

At the same time the power/interest can help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because the represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

===Power/Dynamism diagram===
In progress...

===Affected/Affecting===
In progress...

===3D mapping===
Could also be bobble chart

[[File:3D_map_vers2.PNG‎|300px|thumb|right|Figure 5: 3D mapping visualised as 3x3 matrix.]]

In progress...

===Stakeholder Circle===
In progress...

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions, which for specific stakeholders can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. And it might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}

<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-11-29T14:48:18Z

Nemo: /* Types of maps */

'''Summary:'''

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Many other versions of this definition can be found in the literature but in general containing the same content. It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also takes all other stakeholders into consideration.

Figure 1 shows a classic input/output model with suppliers, investors and employees that provide an input so the firm can generate an output to the customers. Figure 2 shows stakeholder model where the firm are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. But in order to act appropriate and create sustainability the management often has to consider these aspects and constraints not only from their own point of view but also from a number of other stakeholders views.

It is important for the management to know who their stakeholders are and there characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc.

In stakeholder analysis all stakeholders first have to be identified and relevant information gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can be foundation for planning how to deal with stakeholders.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can also create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Background=
In 1932 Dodd started one of the first arguments that a company should not only focus on shareholders but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However Dodd did not use the term ''stakeholder'' since this was not developed within this field of study yet. The term ''stakeholder'' arose in the first half of the 1960´s. Among others Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of the literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> described their view on stakeholder theory as the existence of three types:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation have stakeholders and that there they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should take their stakeholders into consideration.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies so as to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisation will use different approaches.

=Process=
In the literature several description of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

The identification of stakeholders could be done by brain storming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typical also include a handful of more specific stakeholders depending on situation. The stakeholders can also be identified in a more detailed manner - fx. by different departments within the company/organisation if they fx. have different interest.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

When gathering information it is important to act neutral and not mix the collecting of information with the analysis it self.

Identifying the stakeholders priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can fx. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

Determine stakeholders strengths and weaknesses - or do a complete SWOT inventory will often be a beneficial part of the stakeholder analysis. The SWOT for the stakeholders will consist of determine the following elements:
*'''Strength:''' What are the stakeholders specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threads:''' Which challenges and difficulties can be seen from the stakeholder perspective? Will this develop into a thread for the project/programme/portfolio?

It is always important to know your friends. And that is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. But it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio where the support-opposing ratio will change. Fx. if you are a citizen living close construction of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

Analysing the stakeholdes support and role in different phases and situations also leads to predicting the stakeholders behaviour. But for doing this prediction other factor might also have to be considered - fx. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

Preparation stakeholder management strategy is about how to engage the stakeholdes in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - fx. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two or three parameters that gives an indication of the criticality of the stakeholders. Typical parameters are:
*'''Power:''' Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*'''Interest:''' The stakeholder might be more or lees interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*'''Attitude:''' Stakeholders might have positive or negative attitude towards the project.
*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
*'''Support:''' Support is often mixed up with attitude. But support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces a central selection of stakeholder maps.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.

The power/interest diagram gives good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the consequence and interest to some degree can be equalised with possibility for risks or opportunity to occur.

At the same time the power/interest can help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because the represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

In progress...

===Interest/Influence diagram===
In progress...

===Affected/Affecting===
In progress...

===3D mapping===
Could also be bobble chart

[[File:3D_map_vers2.PNG‎|300px|thumb|right|Figure 4: 3D mapping visualised as 3x3 matrix.]]

In progress...

===Stakeholder Circle===
In progress...

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions, which for specific stakeholders can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. And it might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}

<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-11-29T14:47:23Z

Nemo: /* Mapping stakeholders */

'''Summary:'''

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Many other versions of this definition can be found in the literature but in general containing the same content. It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also takes all other stakeholders into consideration.

Figure 1 shows a classic input/output model with suppliers, investors and employees that provide an input so the firm can generate an output to the customers. Figure 2 shows stakeholder model where the firm are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. But in order to act appropriate and create sustainability the management often has to consider these aspects and constraints not only from their own point of view but also from a number of other stakeholders views.

It is important for the management to know who their stakeholders are and there characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc.

In stakeholder analysis all stakeholders first have to be identified and relevant information gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can be foundation for planning how to deal with stakeholders.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can also create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Background=
In 1932 Dodd started one of the first arguments that a company should not only focus on shareholders but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However Dodd did not use the term ''stakeholder'' since this was not developed within this field of study yet. The term ''stakeholder'' arose in the first half of the 1960´s. Among others Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of the literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> described their view on stakeholder theory as the existence of three types:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation have stakeholders and that there they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should take their stakeholders into consideration.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies so as to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisation will use different approaches.

=Process=
In the literature several description of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

The identification of stakeholders could be done by brain storming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typical also include a handful of more specific stakeholders depending on situation. The stakeholders can also be identified in a more detailed manner - fx. by different departments within the company/organisation if they fx. have different interest.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

When gathering information it is important to act neutral and not mix the collecting of information with the analysis it self.

Identifying the stakeholders priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can fx. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

Determine stakeholders strengths and weaknesses - or do a complete SWOT inventory will often be a beneficial part of the stakeholder analysis. The SWOT for the stakeholders will consist of determine the following elements:
*'''Strength:''' What are the stakeholders specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threads:''' Which challenges and difficulties can be seen from the stakeholder perspective? Will this develop into a thread for the project/programme/portfolio?

It is always important to know your friends. And that is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. But it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio where the support-opposing ratio will change. Fx. if you are a citizen living close construction of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

Analysing the stakeholdes support and role in different phases and situations also leads to predicting the stakeholders behaviour. But for doing this prediction other factor might also have to be considered - fx. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

Preparation stakeholder management strategy is about how to engage the stakeholdes in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - fx. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two or three parameters that gives an indication of the criticality of the stakeholders. Typical parameters are:
*Power: Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio.
*Interest: The stakeholder might be more or lees interest in the project. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc. The interest is typically measured on a low-hig scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.
*Attitude: Stakeholders might have positive or negative attitude towards the project.
*Dynamism: The dynamism of a stakeholder indicates how predictable he is.
*Support: Support is often mixed up with attitude. But support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

The following subsections introduces a central selection of stakeholder maps.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.

The power/interest diagram gives good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the consequence and interest to some degree can be equalised with possibility for risks or opportunity to occur.

At the same time the power/interest can help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because the represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

In progress...

===Interest/Influence diagram===
In progress...

===Affected/Affecting===
In progress...

===3D mapping===
Could also be bobble chart

[[File:3D_map_vers2.PNG‎|300px|thumb|right|Figure 4: 3D mapping visualised as 3x3 matrix.]]

In progress...

===Stakeholder Circle===
In progress...

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions, which for specific stakeholders can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. And it might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}

<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.

Stakeholder Analysis

2014-11-29T13:39:10Z

Nemo: /* Mapping stakeholders */

'''Summary:'''

'''Keywords:''' Stakeholder, Stakeholder Analysis, Stakeholder Mapping, [[Project Management]], [[Program Management]], [[Portfolio Management]].

=Introduction=

[[File:Input-output_model_vers2.PNG‎|300px|thumb|right|Figure 1: Input-output model. Modified from Donaldson and Preston (1995).]]

[[File:Stakeholder corporation_vers2.PNG‎|300px|thumb|right|Figure 2: Stakeholder model. Modified from Donaldson and Preston (1995).]]

According to the ISO 21500 standard <ref>ISO21500. 2012. Guidance on Project Management. International Organization for Standardization.</ref> a stakeholder is defined as:

<blockquote>
''Person, group or organization that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project.''
</blockquote>

Many other versions of this definition can be found in the literature but in general containing the same content. It is important to distinguish between shareholder and stakeholder, and understand that stakeholder analysis includes analysis of the shareholders but also takes all other stakeholders into consideration.

Figure 1 shows a classic input/output model with suppliers, investors and employees that provide an input so the firm can generate an output to the customers. Figure 2 shows stakeholder model where the firm are interacting with several stakeholders. The transformation from Figure 1 to Figure 2 illustrates the difference of a shareholder and stakeholder approach.

Management of a projects, programs or portfolios happens to be complex and require an extensive overview of several aspects and constraints. But in order to act appropriate and create sustainability the management often has to consider these aspects and constraints not only from their own point of view but also from a number of other stakeholders views.

It is important for the management to know who their stakeholders are and there characteristics in relation to the project, program or portfolio. This might be their influence, impact, interest, attitude etc.

In stakeholder analysis all stakeholders first have to be identified and relevant information gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can be foundation for planning how to deal with stakeholders.

=Benefits=
Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach focus on short-term profit.

The stakeholder analysis will give a solid foundation for decision making and strategy development. Several element in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.

Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can also create value on the company´s/organisations goodwill account.

Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.

=Background=
In 1932 Dodd started one of the first arguments that a company should not only focus on shareholders but also consider the entire spectra of stakeholders when managing a company<ref>Dodd Jr., E. Merrick. 1932. “For Whom Are Corporate Managers Trustees?”. Harvard Law Review 45 (7): 1145.</ref>. However Dodd did not use the term ''stakeholder'' since this was not developed within this field of study yet. The term ''stakeholder'' arose in the first half of the 1960´s. Among others Freeman (1984)<ref>Freeman, R,E. 1984. Strategic Management: A Stakeholder Approach. Boston, MA: Pitman.</ref> are crediting an internal memorandum from Stanford Research Institute in 1963 for being the first to apply the term ''Stakeholder'' in this field of the literature. In 1995 Donaldson and Preston <ref>Donaldson, T., and LE Preston. 1995. “The stakeholder theory of the corporation - Concepts, evidence and implications”. Academy of management review 20 (1): 65-91.</ref> described their view on stakeholder theory as the existence of three types:

*'''Instrumental stakeholder theory''' argues that companies/organisations that take stakeholders into consideration will benefit from doing so.
*'''Descriptive stakeholder theory''' is just stating that the company/organisation have stakeholders and that there they should analyse not only the shareholders but all stakeholders.
*'''Normative stakeholder theory''' evaluates why a company/organisation should take their stakeholders into consideration.

Baker and Nofsinger (2012)<ref>Baker, H. Kent., and John R. Nofsinger. 2012. Socially Responsible Finance and Investing : Financial Institutions, Corporations, Investors, and Activists. Wiley.</ref> use Coca-Cola for examplifing the three types of stakeholder theory:

<blockquote>
*An instrumental stakeholder theorist might say: Coca-Cola should manage its water policies so as to minimize the negative impact of reputation effects on firm value.
*A descriptive stakeholder theorist might say: Coca-Cola´s water policies are an important defining characteristic of the firm.
*A normative stakeholder theorist might say: Coca-Cola has a duty to protect the environment, so it should pay more attention to its water policies.
</blockquote>

All three theories are used in stakeholder analysis depending on need and interest. Different companies/organisation will use different approaches.

=Process=
In the literature several description of stakeholder analysis processes can be found and most large companies/organisations will have their own definition of the process. They generally follow this structure:

*A: Identify stakeholders
*B: Analyse stakeholders
*C: Engage stakeholders

Cleland (1994)<ref> Cleland, David. 1994. Project Management: Strategic Design and Implementation. McGraw-Hill Inc.</ref> states a typical process:

# Identify stakeholders
# Gather information on stakeholders
# Identify stakeholders priorities
# Determine stakeholders strengths and weaknesses
# Identify stakeholder support
# Predict stakeholder behaviour
# Prepare stakeholder management strategy

The identification of stakeholders could be done by brain storming. Typical stakeholders are:

{|
| <nowiki>-</nowiki> Employees
| <nowiki>-</nowiki> Shareholders
|-
| <nowiki>-</nowiki> Media
| <nowiki>-</nowiki> Suppliers
|-
| <nowiki>-</nowiki> Government
| <nowiki>-</nowiki> Customers
|-
| <nowiki>-</nowiki> Community
| <nowiki>-</nowiki> Managers
|-
| <nowiki>-</nowiki> Directors
| <nowiki>-</nowiki> Competitors
|-
| <nowiki>-</nowiki> Sponsors
| <nowiki>-</nowiki> Consumers
|}

The list will typical also include a handful of more specific stakeholders depending on situation. The stakeholders can also be identified in a more detailed manner - fx. by different departments within the company/organisation if they fx. have different interest.

It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described below.

When gathering information it is important to act neutral and not mix the collecting of information with the analysis it self.

Identifying the stakeholders priorities is the first step of the more in depth analysis. Priorities will often include cost, schedule and quality and can fx. be measured on a 3 level scale: 1.Acceptable, 2.Adaptable; 3.Not acceptable.

Determine stakeholders strengths and weaknesses - or do a complete SWOT inventory will often be a beneficial part of the stakeholder analysis. The SWOT for the stakeholders will consist of determine the following elements:
*'''Strength:''' What are the stakeholders specialities and forces? How can this strengthen the project/programme/portfolio?
*'''Weaknesses:''' In which area does the stakeholder not excel? To what degree can this weaken the project/programme/portfolio?
*'''Opportunities:''' Which beneficial situations and options can the stakeholder possible experience? How can the project/programme/portfolio benefit from this opportunity?
*'''Threads:''' Which challenges and difficulties can be seen from the stakeholder perspective? Will this develop into a thread for the project/programme/portfolio?

It is always important to know your friends. And that is what identifying stakeholder support is about. It is of course good to know who are supporting and who are opposing the project/programme/portfolio in general. But it might also be relevant to consider specific scenarios or stages in the project/programme/portfolio where the support-opposing ratio will change. Fx. if you are a citizen living close construction of a new metro station. Then you will have several opposes during the noisy and dusty construction works, but you will probably support the project when it is completed and you have a new metro station next door.

Analysing the stakeholdes support and role in different phases and situations also leads to predicting the stakeholders behaviour. But for doing this prediction other factor might also have to be considered - fx. power, interest and influence. This is typically analysed by mapping the stakeholders, which will be discussed in the section below.

Preparation stakeholder management strategy is about how to engage the stakeholdes in the project/programme/portfolio in an appropriate way. This can result in creating an engagement plan that will not only contain engagement actions but also in which phase of the project/programme/portfolio the actions shall be applied.

As a tool for combining the analysis a stakeholder table and map are often created. A stakeholder table can typically contain:
*Stakeholder name.
*Category - fx. internal, authorities or end users.
*Relation
*Role
*Priorities
*SWOT
*Engagement plan
The table will then act as an overview of the analysis. The mapping of stakeholders will be discussed in the section below.

=Mapping stakeholders=

==Why mapping stakeholders==
Mapping stakeholders can be seen as the central part of the stakeholder analysis because it creates an insight in the comparison between different essential parameters, and thereby creates a tool that can be used for determine level of support, predict behaviour and shape engagement plan.

Companies/Organisations might develop their own type of stakeholder map for evaluation. The map can then consider very specific parameters related to the actual project/programme/portfolio.

==Types of maps==
Several types of stakeholder maps are described in literature, many comparing two or three parameters that gives an indication of the criticality of the stakeholders.

The following subsections introduces a central selection of stakeholder maps.

===Power/Interest diagram===
[[File:Power-Interest.PNG‎|300px|thumb|right|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension. Power can be defined as how much power a stakeholder got in relation to affecting the project/programme/portfolio. The interest indicates the stakeholder´s interest in the project/programme/portfolio, this can both be social, economical or environmental interests etc.

The power/interest diagram gives good overview of the magnitude of potential risks and opportunities related to the stakeholders. Since the power can be seen as the magnitude of the consequence and interest to some degree can be equalised with possibility for risks or opportunity to occur.

At the same time the power/interest can help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care that much about the project/program/portfolio and if an issue should occur anyhow his power is limited - and thereby a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more than just informed because the represent a limited risk since they got low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the consequence might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

In progress...

===Interest/Influence diagram===
In progress...

===Affected/Affecting===
In progress...

===3D mapping===
Could also be bobble chart

[[File:3D_map_vers2.PNG‎|300px|thumb|right|Figure 4: 3D mapping visualised as 3x3 matrix.]]

In progress...

===Stakeholder Circle===
In progress...

=Challenges and uncertainty=
Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions, which for specific stakeholders can result in an analysis with limited robustness.

As discussed earlier their will typically be both supporters and opponents. And it might turn out that one have to handle unpopular communication with opponents.

=References=
{{Reflist}}

<references/>

=Further reading=
*Reed, Mark S., Anil Graves, Norman Dandy, Helena Posthumus, Klaus Hubacek, Joe Morris, Christina Prell, Claire H. Quinn, and Lindsay C. Stringer. 2009. “Who'S In and Why? A Typology of Stakeholder Analysis Methods For Natural Resource Management”. Journal of environmental management 90 (5): 1933-1949.