Stakeholder Analysis

What is it?
Stakeholder analysis is a technique, typically done at the outset of any sort of change initiative that seeks to identify stakeholders and their attitudes, positive or negative, towards the change, the programme or project and the people involved bring about the change. It is very much concerned with risk management and is key to stakeholder management.
It is also a key technique for business analysts.

Why bother?
Whenever I have been involved in any sort of change initiative, failure to do a stakeholder analysis, lack of rigour in the analysis, has always resulted in problems somewhere down the line. Stakeholder management has been extremely curtailed and usually there was at least one nasty surprise.
Thinking about your own current (or past) projects, do you know who the real source of power is? Do you know all the key stakeholders? Do you know who is affected indirectly as well as directly? Who influences their opinions? And critically, who influences their opinion of you? If you are an external consultant, or you are working in an unfamiliar part of your organisation, do you understand the local (social) networks? It is said that knowledge is power. Lack of knowledge is certainly a weakness.

Getting starting
A simple device to start is create a ‘map’ with horizontal and vertical axes. The former represents increasing power and the latter represents increasing interest (in the change).
Identify as many stakeholders as possible, and put their names on the map in a position corresponding their interest and power. Dividing the map with one vertical and one horizontal line to create four quadrants can facilitate the placing of names. Note that stakeholders may be individuals or groups such as Human Resources.
Pre-pend each name with a ‘++’, ‘+’, ‘- -‘, ‘-‘ or an ‘N’ to denote degrees of support, neutrality or opposition. By the way, it is probably best not to leave this document lying around.

Analysis
Highlight risks and issues to your change project as highlighted by the map.
Attempt a preliminary analysis one why particular individuals or groups are supporters or opponents.
Create links between the names highlighting formal and informal connections. Informal connections may be social or may identify who shapes who’s opinion.

Using the analysis
Create strategies and tactics for stakeholder engagement.
Create strategies and tactics for turning opponents into supporters.
Determine how to capitalise on support and manage opposition.
Determine how to get to people or groups that you do not know, (e.g. sources of power), through people that you do know.

What can prevent a stakeholder analysis?
Lack of support from appropriate people within the organisation.
Deliberate prevention of an analysis by one or more of your managers.
Pressure to just get started with the project.