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Martyna Wronka, M.A., M.Sc.
are persons, groups or institutions with interests in a project or policy or who may be directly or indirectly affected by the process or the outcome anyone with an interest, a “stake” impacted by and impacting
are those who can significantly influence, or are important to the success of the project
Stakeholder theories evolve over time while the view of firm changes
Production view (19th century): Suppliers and Customers Managerial view (20th century): + Owners, Employees Stakeholder view (1960-80s) (Morgan & Freeman, 1984): + Competitors, Governments, News Media, Environmentalists, … E-commerce view (1990s - now): + International partners, NGOs, Online communities, Multinational employees, …
CSR Stakeholder Perspective? T R U ST F O R E M P L O Y E E S RESPONSIBILITY FOR . THE COMMUNITY Serve the C om m unity G reen the E nvironm ent Show P rofit H ave G row th P rospects P rom ote Q uality P rovide C ustom er Service R E L IA B IL IT Y F O R C U ST O M E R S CREDIBILTY FOR . INVESTORS G enerate T rust Instil P ride E m pow er .
However. groups of people. . even if it involves simply making a quick list of stakeholders and their interests You can use this technique alone or with your team members. a team approach is likely to be more effective than an individual doing the analysis alone.Stakeholders Analysis Stakeholder analysis is a technique you can use to identify and assess the importance of key people. and institutions that may influence the success of your activity or project Stakeholder analysis should always be done at the beginning of a project.
Use a stakeholder analysis to: identify people. and institutions that will influence the achievement of project outcomes (either positively or negatively) understand the viewpoints of these groups and the reasons behind the influence they have on the project develop strategies to get the most effective support possible for the project and reduce any obstacles to successful implementation . groups.
Steps in Analysing Stakeholders 1. 4. 2. 3. Identify important stakeholders and their interests Assess the influence and importance of stakeholders in relation to the project Start to identify risks from stakeholders Develop strategy for building participation and stakeholder commitment .
. Identify all the people. and institutions that will affect or are affected by your initiative and list them in the column under „Stakeholder” Once you have a list of all potential stakeholders.Step 1 Step 1: Identify important stakeholders and their interests Step: Organize group brainstorming. groups. review the list and identify the specific interests these stakeholders have in your project.
3. What are their expectations? What benefits will they accumulate? What resources will they commit (or avoid committing) to the project? Do they have other interests that might conflict with the project? What is their relation to other stakeholders on the list? .Stakeholders interests 1. 5. 4. 2.
charisma. budget holders) Authority of leadership (formal and informal. suppliers) Possession of specialist knowledge (eg. familial connections) Control of strategic resources for the project (eg. engineering staff) Negotiating position (strength in relation to other stakeholders in the project) . political.Step 2 Step 2: Assess the influence and importance of stakeholders in relation to the project Review each stakeholder asking the question: how important are the stakeholder's interests to the success of the proposed project and how strong is their influence? Variables affecting stakeholders' relative power and influence Legal hierarchy (command and control.
Influence is perhaps best understood as the extent to which people. Importance indicates the priority given by you to satisfying stakeholders’ needs and interests through the project. or are important to the success of. groups or organizations (i. Influence is the power which stakeholders have over a project.Assessing the influence and importance of stakeholders Key stakeholders are those who can significantly influence. . stakeholders) are able to convince or force others into making decisions and follow certain courses of action.e. the project. Importance is likely to be most obvious when stakeholder interests in a project meet closely with your objectives.
and they will need careful monitoring and management. This means that these stakeholders may be a source of significant risk. but are of low priority. but with low influence. Develop a strategy for working with these stakeholders.Quadrant A Stakeholders of high importance to the project. This means you will need to construct good working relationships with these stakeholders. Develop a strategy for working with these stakeholders. or importance to project objectives may require limited monitoring or evaluation. with low influence on. who can therefore affect the project outcomes. They are unlikely to be the subject of project activities or management. Quadrant C Stakeholders with high influence. Develop a strategy for working with these stakeholders. Remove these from your stakeholder list. . Quadrant B Stakeholders appearing to have a high degree of influence on the project. Quadrant D Stakeholders in this box. This means that they will require special initiatives if their interests are to be protected. to ensure an effective coalition of support for the project. and who are also of high importance for its success. but whose interests are not the target of the project.
some risks emerge from the matrix diagram. These key stakeholders may be able to "block" the project. . risks will be evident from those stakeholders in box C which have high influence. In general. but whose interests are not the target of the project.Step 3 Step 3: Identify stakeholders risks By assessing the influence and importance of key stakeholders. who can therefore affect the project outcomes.
mode and frequency depends on the cost and the level of influence of the stakeholder. different stakeholder groups.Step 4 Step 4: Develop strategy for building participation and stakeholder commitment. Communication effort. and sufficiently inform. others will require regular. Information will need to be tailored to effectively communicate with. The end product of a stakeholder analysis is a communication plan that forms part of the overall project plan. . Some will require simple and infrequent updates. detailed and frequent communications.
How to communicate with stakeholders? .
email or printed – more information Information displays – visual representation of project progress in public venues .Communications tools and channels Formal Meetings – with powerful stakeholders Informal Meetings – with interested people Mailing list – to disseminate information to people on project progress Newsletters – either through the mailing list.
magazines. notice boards .Communications tools and channels Web site – regular updates of project information for ‘self service’ Individual briefings – for those with more interest who are prepared to attend Tours and Demonstrations – for interested external people and organizations Public forums – more appropriate where there are community stakeholders Media releases – report on achievement of significant project milestones Advertisements and Postings – Newspapers.
Health Centre Example .
Health Centre Example Because of insufficient nursing staff to meet client need. a health centre receives complaints from users regarding the quality of the services. which appears to have started following a reduction in staff. . Main problem is the number of complaints currently being received in comparison to the previous year. Patient dissatisfaction is affecting both patients and staff. The number of complaints is now reaching a volume that is unacceptable.
a brainstorming session was held with fellow staff members and a representative from the professional association.Identifying the stakeholders and creating a list Using the Health Centre example. The list of stakeholders included the following: Clients Clients’ families Local community Staff – Nursing Staff – Others Management of centre Local politician Local media Department Head Union Professional association Other local health services Department Chief Nurse Minister of Health Local general medical practitioners .
Not interested in change since the health centre is now operating within its budget.Example (1) Stakeholder Clients Clients families Local community Staff – Nursing Staff – Others Management of centre Local politician Local media Interest Have a very strong interest but not a unified group. Have a very strong interest but not a unified group. . Concerned that change will bring more trouble. There is some self-interest here. Some of the staff just want the problem to go away and do not want to get involved. Not much interest at the moment but if given the right information at the right time (election) could be very interested. All the nursing staff are affected but a few of them do not want to get involved. Want the problem to go away. Is not interested at the moment but an election is coming up. Have a very strong interest but not a unified group.
Local general medical . and are therefore putting pressure on their resources. Has done this so does not want the problem revisited at all. Have to deal with disgruntled clients practitioners therefore they may provide some support to the project. Have an interest as clients are starting to move to use their services. Interested but has limited resources.Example (2) Stakeholder Department Head Professional association Other local health services Department Chief Nurse Minister of Health Interest Has been told to sort out the budget problem. Can provide hidden support but has a conflict of interest. This project may not be a priority but an election is coming up so may wish to have this issue resolved quickly.
Stakeholders Interest Influence 1=Little/No influence 2=Some influence 3=Moderate influence 4=Significant influence 5=Very influential Importance 1=Little/No importance 2=Some importance 3=Moderate importance 4=Very important 5=Critical player Clients Clients families Local community Staff – Nursing Staff – Others Management of centre Local politician Local media 2 2 U 3 U 4 4 4 5 5 5 5 2 2 2 2 .
Stakeholders Interest Influence 1=Little/No influence 2=Some influence 3=Moderate influence 4=Significant influence 5=Very influential Importance 1=Little/No importance 2=Some importance 3=Moderate importance 4=Very important 5=Critical player Department Head Professional association Other local health services Department Chief Nurse Minister of Health Local general medical 5 3 3 2 5 4 1 5 4 5 2 2 .
Partnership: This requires joint. implementation and evaluation.Identifying appropriate stakeholder participation Inform: One-way information on the plan and progress. active involvement in planning. implementation and/or evaluation. . Consult: Seeking the views on the planning.
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