Stakeholder Analysis

Systematic identification of who cares about a project, how much they care, and how much power they have — to decide how much to involve each of them.

Explanation

Stakeholders divide into two classes:

  • Primary stakeholders — benefit directly from the project’s success
  • Secondary stakeholders — impacted indirectly

The three steps

  1. List all stakeholders the project impacts — team, sponsor, customers/users, vendors, regulators, adjacent teams, legal, leadership.
  2. Rate each one on interest and influence:
    • Influence — how much power they have and how much their actions affect project outcome
    • Interest — how much they’re affected by the project’s operations and outcomes
  3. Assess each stakeholder’s ability to participate and find ways to involve them.

The power/interest grid (Mendelow)

A 2×2 maps stakeholders to engagement strategy:

Low InterestHigh Interest
High PowerKeep SatisfiedManage Closely
Low PowerMonitor (minimum effort)Keep Informed
  • Manage Closely (High Power, High Interest) — sponsor, key customer. Bring them into decisions, share deeply.
  • Keep Satisfied (High Power, Low Interest) — senior leadership not directly involved. Don’t overload them; keep them happy with occasional updates.
  • Keep Informed (Low Power, High Interest) — users, team members’ managers. Regular status updates.
  • Monitor (Low Power, Low Interest) — peripheral parties. Minimum effort.

Stakeholder buy-in

The process of involving stakeholders in decision-making to reach broader consensus. The source treats this briefly; in practice, buy-in typically combines:

  • Framing the project’s value in terms each stakeholder already cares about (see conger-influencing-steps)
  • Involving Manage Closely stakeholders in the charter sign-off
  • Sharing progress via the communication-plan at the frequency appropriate to each quadrant

Application

Run a stakeholder analysis at the start of course-2-project-initiation. It feeds directly into the raci-chart, the project-charter team section, and the communication-plan.

Connections

Open Questions

  • The source’s “Stakeholder buy-in” section is thin — just a one-line definition. A later source on stakeholder management (McKinsey-style Change Practice or Kotter’s 8 steps) would fill this out.

Source References