Stakeholder Identification and Categorization

Abstract

‘Stakeholders’ generally means any group or individual who can affect or is affected by the achievement of the organization’s objectives. . Stakeholders can also be defined as actors who have an interest in the issue under consideration, who are affected by the issue, or who – because of their position – have or could have an active or passive influence on the decision-making and implementation processes.

Stakeholder analysis comprises different methods, processes and has developed a lot of tools utilized in different industrials and business structure. Whatever approach is used, there are three essential steps in stakeholder analysis:
1) Identifying the key stakeholders and their interests.
2) Assessing the influence of, importance of, and level of impact upon each stakeholder;
3) Identifying how best to engage stakeholders .

The processes of stakeholder identification and categorization mainly belongs to the first two steps.

Purpose

Stakeholder analysis has many benefits for projects, not only in improving the satisfaction of those involved with or related to the project, but also in the progress and outcomes of the project.

On the one hand, stakeholder engagement can achieve mutual understanding and trust between the organization and the stakeholders in order to achieve a comfortable relationship of coexistence and mutual success. . This part aims to introduce three useful tools, including Stakeholder map (circle style), Interest / influence matrix, and System map.

Stakeholder map (circle style)

Stakeholder map is a representation of all the stakeholder involved in a project, aimed at clarifying roles and relationships . The activity of mapping stakeholders or “key connectors” is not only used to identify stakeholders but also to measure or predict their potential of influence and impact (Bourne and Walker, 2005; Walker, Bourne and Shelley, 2008).

Stakeholder map (interest / influence matrix)

Depending on the specific need, the map can be created as a simple quadrant with two axis (level of influence and level of interest or engagement in the process).

System map

A system map is a synthetic representation that shows in one single frame all the different actors involved in a service delivery, and their mutual links. The system map clarifies how the different service components and roles are connected one to the other, highlighting the values they exchange .

The use of system map is a well-established tool in detect gaps and opportunities in a project.

Limitations

Although it is important to engage stakeholders and get their feedback, it is not always beneficial as it may influence and alter the stakeholder’s position, reducing the utility of the analysis. Feedback of outputs may also be inappropriate if the stakeholders are in a position to influence or control the outcome of the analysis, where a preliminary assessment is not favorable to them..

Conclusion

Stakeholder engagement has a large range, not all can be included and considered. The challenge for a project is to listen to the “right” stakeholders in the right way and make the right decision depending on the topic. This is especially relevant when it comes to corporate responsibility for sustainability. Balancing different interests， identify the types of stakeholders and deciding how to communicate with them is eventually forms the foundations for the result of the project.