Assessment of stakeholders (analysis)

Developed by Carl Bygum Knudsen

Abstract

The assessment of stakeholders is a crucial element of any project or business strategy. It involves identifying, analyzing, and evaluating the stakeholders’ interests, potential, and influence to determine the best way to manage and interact with them. Stakeholder assessment, in essence, is the categorization and classification of stakeholders in a way that clarifies how each individual stakeholder should be managed.

This wiki article provides a comprehensive overview of the assessment of stakeholders, including a discussion of the key steps involved, some of the tools and techniques used, and the best practices. The article initially explains and discusses the importance of stakeholder assessment in project management.

The critical steps of the assessment process will be discussed followed by the different tools and techniques used to assess stakeholders at each step. The article includes and briefly describe tools that assists the overall process of stakeholder analysis such as brainstorming, various mapping tools, surveys and interviews, and other relevant data collection tools and techniques. The wiki article will touch upon these subjects but focus more on the tools that allow for the assessment of stakeholders such as stakeholder mapping and power-interest grid.

Finally, the wiki article will outline some of the potential challenges and risks associated with stakeholder assessment. These include the potential for conflict of interest, unequal access to resources, and difficulty in managing stakeholders with differing interests. In general, this article provides a comprehensive overview for project managers to understand and implement of the assessment of stakeholders and the key steps, tools, and best practices involved.

Assessment Process

Introduction

Stakeholder assessment is a part of the larger and complex task of stakeholder management. It is the initial process in stakeholder management of providing a clear understanding of stakeholders' interests and expectations, while stakeholder management is the ongoing process of engaging and meeting the expectations of stakeholders. To gain a thorough understanding of stakeholder assessment, it is crucial to explain the steps of stakeholder assessment in detail.

Brainstorm, identify and document stakeholders

Stakeholder identification is crucial to the success of any project, as it ensures that all individuals or groups affected by the project are identified and their needs and expectations are taken into account. This process is ongoing and requires effort to determine who will be impacted by the project, as well as to manage them throughout the project life cycle. To start the identification process, it is important to review relevant project documents, organizational policies, regulations, and guidelines to identify stakeholders who may have legal or regulatory requirements that need to be taken into account. Brainstorming with a diverse group of individuals can be beneficial to identify essential stakeholders who may not have been identified. A comprehensive stakeholder identification plan can be created using techniques such as stakeholder mapping, project charter, and stakeholder register, setting the project up for success.

Categorize and analyze their interests and potential

After stakeholders have been identified, documented and brainstormed upon, it is crucial to classify and evaluate their interests and potential effects on the project. This entails reviewing how the project's objectives correspond with the aspirations, expectations, and concerns of the stakeholders. By obtaining this information the project owner can more easily comprehend their potential impact on the project and how to engage with them effectively.

Evaluate stakeholder influence and prioritize

After categorizing and analyzing the stakeholders, it is critical to assess their level of influence and prioritize them according to their importance to the project's success. Some stakeholders may wield more power than others, either because of their position within the organization or because of their level of interest in the project. Understanding the level of influence of stakeholders allows you to develop strategies for engaging with them effectively and managing their expectations.

Plan, implement, and communicate

The final step in the stakeholder assessment process is to develop a plan to engage with the stakeholders, implement the plan, and communicate with them throughout the project lifecycle. This involves developing communication strategies that are tailored to the needs and interests of each stakeholder group, and ensuring that stakeholders are informed of the project's progress and any changes that may impact them. By engaging with stakeholders throughout the project lifecycle, you can build trust and establish strong relationships that assist in making the project succesful.

Tools and Techniques (PICTURES AND REFS PENDING)

Stakeholder Mapping

Stakeholder mapping is very useful to project managers since it provides an easy way to understand the various perspectives and needs of stakeholders and to create communication and engagement strategies accordingly. It can also help identify potential risks or opportunities associated with stakeholders and guide decision-making throughout the project. Stakeholder mapping primarily involves the visual representation of the ecosystem or the environment that the project is done in, but secondly also the identification of what kind of influence, power and interest the mapped stakeholders exercise. The concept of stakeholder mapping can essentially be both. In the following section, the tools and techniques to do such will be explained.

Ecosystem Map

This tool depicts the interactions of stakeholders relevant to your company, a product-service system, or a single product or offering. This tool's insights ensure that important aspects are identified and taken into account when developing new offerings and solutions. The ecosystem map maps the interactions between stakeholders at a detailed level. The relation between the stakeholders indicates the flows and transactions of money, information, products/parts and services. This tool is very much like a classical stakeholder map, but with higher granularity connected to the flow of resources.

Power-Interest Grid

The power interest grid is a tool used in stakeholder analysis to map stakeholders based on their level of power and interest in a project or organisation. It helps identify key stakeholders and develop effective communication and engagement strategies. The power-interest grid, also known as the stakeholder prioritization matrix, is a useful tool for analyzing stakeholders in a project or organization. It helps to identify the stakeholders that require the most attention and prioritize the allocation of resources accordingly. The grid works by plotting stakeholders based on their level of power and interest in the project. Here are the three steps for using a power-interest grid:

What is it?

A power-interest grid is a visual tool that helps to identify stakeholders who have a high level of power and interest in the project. It consists of a grid with four quadrants, with stakeholders plotted based on their level of power and interest.

Why use it?

The power-interest grid is an essential tool for stakeholder analysis because it helps project managers to focus their resources on the stakeholders who have the most significant impact on the project's success. It also helps to ensure that the stakeholders who are most interested in the project are kept informed and engaged throughout the process.

How to use it?

To use the power-interest grid, you first need to identify the stakeholders involved in the project and their level of power and interest. Then, plot each stakeholder on the grid according to their level of power and interest. Stakeholders in the ***high-power/high-interest*** quadrant should receive the most attention.

Next is those in the **high-power/low-interest** quadrant, then those in the **low-power/high-interest** quadrant. Finally, stakeholders in the **low-power/low-interest** quadrant should receive the least amount of attention. The power-interest grid can be updated regularly to reflect changes in stakeholder priorities and interests.

Challenges and Risks

Conflict of Interest

Bendtsen et al 2020: Clear definition of stakeholders and how to determine power and influence?

References (In progress - may be subject to change)

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