Project stakeholders can make or break an implementation of an HR business process, technology solution or business initiative. Communicating with stakeholders early in the project can help clarify project scope and desired outcomes, create advocates who

Stakeholder analysis is an important tool used to identify the key people (stakeholders) involved with a project. The project manager usually performs this analysis with inputs from project team members and project sponsors.

The first step in stakeholder analysis is to identify who the stakeholders are. A
stakeholder is anyone who is impacted, either directly or indirectly, by the project or who
has an interest in the project. It can be very helpful to have a brainstorming session with
the project team and/ or project sponsors to list all of the individuals who may be
affected by the project. However, determining the final listing of stakeholders is
generally best left to the project manager and project sponsor. Examples of stakeholders

It is very important to identifyi n d i v i d u a l s as the stakeholders--and not organizations or departments. For example, if a stakeholder for an HR technology implementation is the Web portal group, project manager should engage with this group early to identify an individual who will be the point of contact.

After identifying all of the stakeholders, the next step is to rank the stakeholders. There are several methods for doing this, but the best method available is the power/ interest model. For each stakeholder, the degree of his or her interest in the project must be identified, along with the degree of power or influence over the project and within the organization. It can be helpful to plot this information on a chart (see Figure 1).

Other stakeholders may also have high influence within the organization, but may not be overly interested in the project (see the blue box in Figure 1). These stakeholders need to be kept satisfied. This group can be the most difficult to manage because they may behave passively throughout the project but can exert enormous impact if left unhappy. It is best to engage with these stakeholders early to understand their needs and

Other stakeholders have a high interest in the project but fairly low power within the
organization (see the green box in Figure 1). It is best to keep these individuals
informed in a timely manner because they may be able to provide valuable and helpful

these individuals as necessary and avoid excessive communications. That said, it is wise to monitor this group in case any of the stakeholders increase their degree of influence or interest.

understand the needs and agendas of each stakeholder, focusing on the key
stakeholders. This will help identify those stakeholders who could be advocates,
blockers, supporters, etc. The best method of identifying and understanding the needs
and agendas of stakeholders is by interviewing each stakeholder on a one-on-one basis.

After identifying and ranking all of the stakeholders and understanding their individual
needs and agendas, the next and final step in stakeholder analysis is to better
understand how the stakeholders relate to each other. This will help manage stakeholder
expectations, ensure positive stakeholders remain positive, minimize the effects of
negative stakeholders and help persuasion/ communication efforts.