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Monday, May 9, 2011

Chapter 22: Stakeholder Analysis

In the previous chapter, we saw about how to identify potential stakeholders of a Project. In order to devise a plan as to how to handle/manage a projects stakeholders, the project manager must first analyze them. In this chapter, we are going to learn how this Stakeholder Analysis happens.

So, lets get started!!!

What is Stakeholder Analysis?

Stakeholder analysis is the activity that helps us to gather and analyze information about the stakeholders of a Project.

The 3 major steps in this process are:
1. Identify Stakeholders
2. Assess Stakeholders and
3. Classify Stakeholders

Let us look at them one by one.

Identify Stakeholders:

In this step, we identify all the important characteristics of each of stakeholders that were identified in the previous chapter. The information we capture about them will include:

 Name, department, and role. For example, Dr. John Serri, Vice President, Research and Development.
 Interest in the project. Why should the stakeholder be interested in the project—seeking to benefit or threatened?
 Knowledge level. What is the knowledge level of the stakeholder, especially about the project and in the application area of the project?
 Expectations. What are the expectations of the stakeholder from the project?
 Kind and level of influence. In which way and how much can the stakeholder influence the project?

Assess Stakeholders:

In this step, we make an assessment of how a stakeholder will react to various situations in our project. This will help us prepare to influence them in order to get their support and to better the chances of our projects success.

Classify Stakeholders:

When there are so many stakeholders, it’s important to classify and prioritize the stakeholders in order to manage them efficiently. This will help in efficient use of management efforts, including communication and expectations management.

A simple classification would be whether a stakeholder is a positive or negative stakeholder. Of course, there are other more complex/sophisticated classifications of stakeholders. Some are:

1. Based on Power/Interest Grid: In this model you place the stakeholders on a two-dimensional plot: authority level versus interest level. For example, if a powerful stakeholder has a lot of interest in the project, he is of great priority. If, on the other hand, a stakeholder lacks interest in the project, even if he has a lot of authority; then he potentially will not influence the project that much
2. Based on Power/Involvement Grid: Also called power/influence grid, this model plots the stakeholders in a two-dimensional space: authority level versus involvement in the project.
3. Based on Involvement/Impact Grid: Also called influence/impact grid, this model plots the stakeholders in a two-dimensional space: involvement in the project versus ability to impact the project. For example, a project stakeholder may be highly involved in the project but have no ability to impact the project, such as influence the changes in the project. In that case, this stakeholder is of lower priority compared to the stakeholder who has high involvement and high impact
4. Based on Salience Model: This model classifies stakeholders based on multiple characteristics, such as the ability to impose their will or authority; the urgency of their needs, expectations, or requirements; and the legitimacy of their involvement

Based on the stakeholder analysis, you develop the strategy for managing the stakeholders.

Previous: Identifying Project Stakeholders

Next: Stakeholder Management Strategy


  1. In PMBOK 5th edition. this has been moved to Stakeholder management. This is a new Knowledge Area added to this edition

    1. Yes Krishna - You are right. This topic is moved to the stakeholder management knowledge are. However, this article was written per PMBOK 4th edition only. That is why the discrepancy...


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