Stakeholder Analysis - Revision history

Tkokotas at 11:17, 20 December 2018

2018-12-20T11:17:05Z

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			''Developed by Christian Nerup Sørensen''


	'''Summary:'''		'''Summary:'''
	A stakeholder can shortly be defined as one that can affect or be affected by the actual project, program or portfolio. A stakeholder can therefore be an employee or a customer - but also a union or a local society.		A stakeholder can shortly be defined as one that can affect or be affected by the actual project, program or portfolio. A stakeholder can therefore be an employee or a customer - but also a union or a local society.

Nemo at 22:50, 1 December 2014

2014-12-01T22:50:23Z

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	'''Summary:'''		'''Summary:'''
	A stakeholder can shortly be defined as one that can affect or be affected by the actual project, program or portfolio. A stakeholder can therefore be an employee or a customer - but also ~~the~~ union or a local society.		A stakeholder can shortly be defined as one that can affect or be affected by the actual project, program or portfolio. A stakeholder can therefore be an employee or a customer - but also a union or a local society.

	Management of a ~~projects~~, ~~programs~~ or ~~portfolios~~ happens to be complex and require an extensive overview of several aspects and constraints. In order to act appropriate and create sustainability, the management often has to consider these aspects and constraints not only from their own point of view, but also from a number of other stakeholders views.		Management of a project, program or portfolio happens to be complex and require an extensive overview of several aspects and constraints. In order to act appropriate and create sustainability, the management often has to consider these aspects and constraints not only from their own point of view, but also from a number of other stakeholders views.

	In stakeholder analysis, all stakeholders first have to be identified and relevant information has to be gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can serve as a foundation for planning how to deal with stakeholders. Dealing with stakeholders can contain both communication and other types of engagement.		In stakeholder analysis, all stakeholders first have to be identified and relevant information has to be gathered. The stakeholders are then mapped based on relevant parameters. Some of the most typical parameters when mapping are power, interest and influence, which is often visualised in a 2D diagram. The map gives an overview of the stakeholders and can serve as a foundation for planning how to deal with stakeholders. Dealing with stakeholders can contain both communication and other types of engagement.

Nemo: /* Conclusion */

2014-12-01T22:47:44Z

Conclusion

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	=Conclusion=		=Conclusion=
	Stakeholder analysis is a strong a relevant tool for both projects, programmes and portfolios. It creates valuable insight in internal organisation as well as all surrounding companies/organisations that affects or might be affected by the project, program or portfolio. This insight can be used for optimising communication and engagement. As well as ensuring a healthy long-term strategy.		Stakeholder analysis is a strong and relevant tool for both projects, programmes and portfolios. It creates valuable insight in internal organisation as well as all surrounding companies/organisations that affects or might be affected by the project, program or portfolio. This insight can be used for optimising communication and engagement. As well as ensuring a healthy long-term strategy.

	But the analysis might be heavy work and may not necessarily give 100 per cent clear answers. To which level of detail a stakeholder analysis should be conducted ~~should~~ therefore always be considered. However, identifying and to some degree ~~analyse~~ them should never be neglected.		But the analysis might be heavy work and may not necessarily give 100 per cent clear answers. To which level of detail a stakeholder analysis should be conducted therefore always has to be considered. However, identifying and to some degree analysing them should never be neglected.

	=References=		=References=

Nemo: /* Challenges and uncertainty */

2014-12-01T22:43:23Z

Challenges and uncertainty

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	Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.		Analysing stakeholders can be an extensive task. The amount of stakeholders, depending on circumstances and level of detail, will typically be between 15 and 50. The analysis will therefore require a significant amount of work.

	When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters but are a question of subjective assessment, which can result in an analysis with limited robustness.		When gathering information about the stakeholders, it might not be possible to collect all information by contacting stakeholders. It will therefore be necessary to assume some conditions. Some parameters such as power, dynamism and interest are typically not easy measurable parameters, but are a question of subjective assessment, which can result in an analysis with limited robustness.

	As discussed earlier their will typically be both supporters and opponents. It might turn out that one have to handle unpopular communication with opponents.		As discussed earlier, their will typically be both supporters and opponents. It might turn out that one have to handle unpopular communication with opponents.

	=Conclusion=		=Conclusion=

Nemo: /* Benefits */

2014-12-01T22:42:42Z

Benefits

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	=Benefits=		=Benefits=
	Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation while a shareholder approach ~~focus~~ on short-term profit.		Among others Zhang (2011)<ref>Zhang, Yanru. 2011. “The Analysis of Shareholder Theory and Stakeholder Theory”. Proceedings - 2011 4th International Conference On Business Intelligence and Financial Engineering, Bife 2011, Proc. - Int. Conf. Bus. Intell. Financ. Eng., Bife: 90-92.</ref> argues that a stakeholder approach consider a long-term development strategy for the company/organisation, while a shareholder approach focuses on short-term profit.

	The stakeholder analysis will give a solid foundation for decision making and strategy development. Several ~~element~~ in execution can benefit from the stakeholder analysis since initiatives can be shaped more appropriate.		The stakeholder analysis will give a solid foundation for decision making and strategy development. Several elements in the execution process can benefit from the stakeholder analysis, since initiatives can be shaped more appropriate.

	Stakeholders ~~being~~ engaged ~~appropriate~~ will help the company/organisation obtain a better reputation among the ~~stakeholder~~, which ~~typical~~ will have a boomerang effect and ~~can~~ create value on the ~~company´s~~/organisations goodwill account.		Stakeholders that are engaged appropriately will help the company/organisation to obtain a better reputation among the stakeholders, which typically will have a boomerang effect and be able to create value on the companies/organisations goodwill account.

	Another account where value can be put in is CSR. Engaging ~~stakeholder~~ can directly be seen as increasing focus on corporate social responsibility. Taking your surroundings into consideration, and of course engaging them in a social responsible manner, is very much in line with the philosophy behind CSR.		Another account where value can be put in is CSR. Engaging stakeholders can directly be seen as increasing focus on corporate social responsibility. Taking your surroundings into consideration, and of course engaging them in a social responsible manner, is very much in line with the philosophy behind CSR.

	=Challenges and uncertainty=		=Challenges and uncertainty=

Nemo: /* Power/Dynamism diagram */

2014-12-01T22:39:49Z

Power/Dynamism diagram

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	===Power/Dynamism diagram===		===Power/Dynamism diagram===
	[[File:Power-dynamism.PNG‎\|300px\|thumb\|right\|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]		[[File:Power-dynamism.PNG‎\|300px\|thumb\|right\|Figure 4: Power/Dynamism diagram. Modified from Gardner et al.(1989).]]
	Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders~~. Since~~ the power can be seen as the magnitude of the impact and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.		Gardner et al. (1989) also described the power/dynamism diagram as shown in Figure 4. The diagram gives a good overview of the magnitude of potential risks and opportunities related to the stakeholders, since the power can be seen as the magnitude of the impact, and dynamism to some degree can be equalised with possibility for risks or opportunity to occur.

	The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and~~. Risk~~ mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders with great danger ~~they~~ are ~~associated with the greatest~~ risks in the project/program/portfolio ~~- but~~ also the greatest opportunities.		The power/dynamism diagram can be used for strategic planning and risk analysis based on the identification of the stakeholders "political" orientation. Stakeholders with low power and low dynamism will generate limited issues. Stakeholders with high power and low dynamism might be powerful but also predictable and risk mitigation related to this category can therefore be managed by proper planning. Stakeholders with low power and high dynamism might on the other hand be unpredictable and difficult to plan, but will be manageable due to their limited power. High power as well as high dynamism results in stakeholders associated with potential great danger - that are dangerous risks in the project/program/portfolio. But it is important to underline that the stakeholders carrying the greatest risks also are carrying the greatest opportunities. The high dynamism can generate a powerful impact but this can be positive as well as negative impact.

	=Benefits=		=Benefits=

Nemo: /* Power/Interest diagram */

2014-12-01T22:27:06Z

Power/Interest diagram

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	[[File:Power-Interest.PNG‎\|300px\|thumb\|right\|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]		[[File:Power-Interest.PNG‎\|300px\|thumb\|right\|Figure 3: Power/Interest diagram. Modified from Gardner et al.(1989).]]
	The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.		The power/interest diagram was introduced by Gardner et al. (1989)<ref>Gardner, J.R., Rachlin, R., Sweeny, H.W.A and Richards, A. 1989. Handbook of Strategic Planning. Blackwell Publishing Ltd</ref> and describes level of power as one dimension and stakeholder´s interest in the other dimension.
	The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication because the stakeholder´s limited interest means that he does not care ~~that~~ much about the project/program/portfolio and if an issue should occur ~~anyhow~~ his power is limited - ~~and thereby~~ a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more ~~than just informed because~~ they represent a limited risk since they ~~got~~ low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested but the ~~consequence~~ might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.		The diagram can be used for identifying what type of relationship the organisation should have with its stakeholders, and at the same time help in the analysis of communication and engagement planning. Stakeholders with low interest and low power will require a minimum of communication, because the stakeholder´s limited interest means that he does not care too much about the project/program/portfolio, and if an issue should occur his power is limited - also implying a limited risk. Stakeholders with high interest and low power should be well informed due to their interest, but not necessarily more due to the fact that they represent a limited risk since they have low power. Stakeholders with low interest and high power should be kept satisfied - the probability that a risk occurs might be low since they are not that interested, but the impact might be large due to the high power. It is therefore important to keep them satisfied in order to mitigate a potential large risk. Stakeholders with both high interest and power should be managed closely. Project/Program/Portfolio management are dealing with a group of stakeholders that can generate heavy risks. Therefore it is important that management carefully consider engagement for these stakeholders and to what degree special reservations should be taken.

	===Power/Dynamism diagram===		===Power/Dynamism diagram===

Nemo: /* Benefits */

2014-12-01T22:22:57Z

Benefits

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	Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can create value on the company´s/organisations goodwill account.		Stakeholders being engaged appropriate will help the company/organisation obtain a better reputation among the stakeholder, which typical will have a boomerang effect and can create value on the company´s/organisations goodwill account.

	Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility.		Another account where value can be put in is CSR. Engaging stakeholder can directly be seen as increasing focus on corporate social responsibility. Taking your surroundings into consideration, and of course engaging them in a social responsible manner, is very much in line with the philosophy behind CSR.

	=Challenges and uncertainty=		=Challenges and uncertainty=

Nemo: /* Types of maps */

2014-12-01T22:15:54Z

Types of maps

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	==Types of maps==		==Types of maps==
	Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:		Several types of stakeholder maps are described in literature, many comparing two parameters in a diagram or matrix that gives an indication of the criticality of the stakeholders. Typical parameters are:
	*'''Power:''' Power can be defined as how much power a stakeholder ~~got~~ in relation to affecting the project/programme/portfolio.		*'''Power:''' Power can be defined as how much power a stakeholder has in relation to affecting the project/programme/portfolio.
	*'''Interest:''' The stakeholder might be more or less ~~interest~~ in the project. The ~~interest indicates the stakeholder´s~~ interest in the project/programme/portfolio~~, this~~ can both be social, economical or environmental interests etc. The interest is typically measured on a low-~~hig~~ scale, but can also be measured on other scales that depends on the type of interest rather than the amount, fx. a scale spanning from national to international or from short-term to long-term.		*'''Interest:''' The stakeholder might be more or less interested in the project. The stakeholders interest in the project/programme/portfolio can both be social, economical or environmental interests etc. The interest is typically measured on a low-high scale, but can also be measured on other scales that depends on the type of interest rather than the amount, e.g. a scale spanning from national to international or from short-term to long-term.
	*'''Attitude:''' Stakeholders might have positive or negative ~~attitude~~ towards the project.		*'''Attitude:''' Stakeholders might have positive or negative attitudes towards the project/programme/portfolio.
	*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.		*'''Dynamism:''' The dynamism of a stakeholder indicates how predictable he is.
	*'''Support:''' Support is often mixed up with attitude. However, support should be seen as taking action - fx. you might have a negative attitude but you do not obstruct and therefore your support is neutral.		*'''Support:''' Support is often mixed up with attitude. However, support should be seen as taking action - e.g. you might have a negative attitude but you do not obstruct and therefore your support is neutral.

	The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.		The following subsections introduces two common types of stakeholder maps. Other types and further information about mapping stakeholders can be found at http://apppm.man.dtu.dk/index.php/Mapping_stakeholders.

Nemo: /* Identify stakeholders */

2014-12-01T22:12:25Z

Identify stakeholders

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	The list will typically also include a handful of more specific stakeholders depending on the situation. The stakeholders can also be identified in a more detailed manner - e.g. by different departments within the company/organisation if they e.g. have different interests.		The list will typically also include a handful of more specific stakeholders depending on the situation. The stakeholders can also be identified in a more detailed manner - e.g. by different departments within the company/organisation if they e.g. have different interests.

	It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described in the mapping section further below.		It will often make sense to identify which stakeholders are key stakeholders. The definition of a key stakeholder vary depending on type of project, programme or portfolio. Key stakeholders might by identified when mapping the stakeholders as described in the mapping section further below. A key stakeholder could be defined based on e.g. power and interest.

	===Gather information on stakeholders===		===Gather information on stakeholders===