Stakeholder Analysis and Management
1. What Is a Stakeholder?
[Stakeholders are] those who depend on the organization for the realization of some of their goals, and in turn, the organization depends on them in some way for the full realization of its goals.
— A Logic for Strategic Management, I. Mitroff, R. Mason, 1980
The definition of the term stakeholder was put forward by Ian Mitroff and Richard Mason in their publication A Logic for Strategic Management in 1980. It defines stakeholders as those in the organisation who are interested in your project and can influence it either negatively or positively.
2. Agenda for the Series
3. Stakeholder Management: A Brief History
Various scholars and practitioners have articulated the concepts of Stakeholder Analysis and Management. While there isn’t a single definitive originator, key contributors include:
4. Stakeholder Identification and Management
Stakeholder Analysis and Management is a systematic process that involves identifying, assessing, and prioritizing the individuals, groups, or entities (stakeholders) who have an interest or influence in a project, organization, or system. This process is crucial for understanding stakeholders’ perspectives, expectations, and concerns to effectively manage relationships and achieve project objectives.
A list of an organization’s stakeholders can look like this:
The relationship between stakeholders and the organization (aside from the competitors) is mutual benefit. For example, suppliers can provide raw materials in return for money. On the other hand, competitors compete with the organization for market share and stakeholder contribution.
Stakeholders usually possess resources that the organization needs, and their ability to refrain from supplying those resources gives them power over the organization. Power can also stem from the ability to dictate alternatives or indirect influence.
This non-trivial power distribution in a group makes the problem of complex social groups and their interactions interesting.
Stakeholder management becomes vital because of its power over the organization and subsequent ability to cause unwanted damage. Their requirements must be considered in the decision-making processes or whenever a new project that might impact them is scheduled for implementation.
Project implementations satisfy the stakeholder’s requirements, but what if these requirements conflict? Conflicts can arise due to restricted budgets, confined schedules, and scarce resources.
When gathering business requirements, it is essential to consider all relevant stakeholders, weigh their needs, and balance the risks.
The need to incorporate stakeholder requirements does not necessarily mean all stakeholders for efficiency reasons. To assist in screening the key stakeholders, Mendelow proposes the following model.
5. Mendelow’s Stakeholder Matrix
Let’s start by looking at a paper published in 1981 by A. L. Mendelow titled Environmental Scanning–The Impact of the Stakeholder Concept. In this study, Mendelow proposes a model for managing stakeholder needs.
The model proposed by Aubrey Mendelow consists of four steps:
6. When Should You Care About Stakeholder Management?
The concepts of Stakeholder Analysis and Management apply across various domains, including:
7. Requirements Gathering and Stakeholders Management
Based on the above, the following can be recommended:
7. References
- Environmental Scanning–The Impact of the Stakeholder Concept — Aubrey Mendelow
- Toward a Theory of Stakeholder Identification and Salience: Defining the Principle of Who and What Really Counts — Ronald K. Mitchell, Bradley R. Agle, and Donna J. Wood