Why is Stakeholder Classification Important?

Small projects have fewer stakeholders, and they can be managed easily. However, larger projects are
difficult because of the huge number of stakeholders.
With limited resources and time, it is difficult to treat every stakeholder equally. Every stakeholder has
different requirements and expectations. So, you must identify and classify your project stakeholders
and find their requirements and expectations so you can manage them accordingly.
Classifying stakeholders is an important process. Here, you separate stakeholders based on their power,
interest, urgency, etc. After classification, you will develop your stakeholder management strategy.
By classifying stakeholders, project managers can identify key stakeholders and understand their
interests and influence. This helps you manage their expectations and address their concerns
effectively.
Classifying stakeholders ensures that project managers know who is involved, communicate
effectively, allocate resources wisely, manage risks, and make informed decisions. This leads to better
relationships, smoother project execution, and a higher chance of project success.
What is the Salience Model to Classify Stakeholders?
Salience means “important or prominent.” So, stakeholder salience means the importance of
stakeholders.
The salience model analyzes stakeholders based on their power, legitimacy, and urgency. It helps
project managers prioritize stakeholders by assessing their influence, legitimacy, and immediate needs.
This model ensures effective focus and resource allocation for stakeholder management.
The stakeholder salience model uses three attributes:
1. Power: Power is the authority or influence of the stakeholder on your project or its objectives. Focus
on stakeholders with high power. These stakeholders are fewer in number.
2. Legitimacy: Legitimacy is how genuinely involved a stakeholder is with your project. You should
not spend your time on a stakeholder with no legitimate interest. Pay attention to stakeholders with
legitimate claims.
3. Urgency: Urgency is the degree to which stakeholder requirements call for immediate attention. It
depends on two factors: time sensitivity and criticality. You will determine whether any requirement is
time-specific or if mere fulfilment is important.
You will identify your project stakeholders, assign them the above attributes, and prioritize them
according to their attributes. Based on their ranking, you develop the stakeholder management strategy
and engage with them until the project is completed.
Stakeholder salience is dynamic and can change during the project life cycle; update the stakeholder
register to reflect the changes.
Stakeholders Salience Diagram
A stakeholder salience model diagram is a Venn diagram comprising circles representing three
attributes: power, legitimacy, and urgency. The intersection of circles shows stakeholders with multiple
attributes.
To develop strategy, divide these groups into three categories:
1. Latent Stakeholders
These stakeholders have one attribute: power, legitimacy, and urgency. Besides this one key attribute,
the other attributes are insignificant and receive little attention.
You will give them the least attention and keep them monitoring for any changes in their attributes.
Examples of latent stakeholders are dormant, discretionary, and demanding.
Dormant Stakeholders
These stakeholders have high power, low legitimacy, and low urgency. Because they have high power,
they can impact your project, so you will manage them carefully. A top management stakeholder does
not participate in meetings and is not interested in your project. However, you will still watch these
stakeholders as they have power, and you never know when they will change their minds.
Discretionary Stakeholders
These stakeholders have high legitimacy, low power, and low urgency. Although they have low power
and low urgency, you will fulfil their requirements because of their legitimacy. NGOs or charitable
organizations are examples of discretionary stakeholders. They do not have power or urgency, but they
are legitimate stakeholders.
Demanding Stakeholders
These stakeholders have high urgency, low legitimacy, and low power. They are usually vocal and can
influence other stakeholders if their requirements are unmet. These stakeholders want attention. You
will manage them carefully. For example, your project is in a public place, and residents from the
neighbourhood show interest in your project and ask for information.
2. Expectant Stakeholders
These stakeholders have two attributes: they are active and have expectations of the project. They are
actively involved with the project, and you must engage with them to keep them satisfied.
Examples of expectant stakeholders are dominant, dangerous, and dependent.
Dominant Stakeholders
These stakeholders have high power and high legitimacy but low urgency. As these stakeholders have a
legitimate interest in your project, you will manage them closely. Since the urgency is low, their rank is
below the core group. For example, you are constructing a building where local authorities are
stakeholders. Though they don’t have urgent issues with your project, you will manage them closely as
they have power and legitimacy.
Dangerous Stakeholders
These stakeholders have high power, and high urgency but low legitimacy, making them vulnerable.
They can be violent and can create trouble for your project. You will manage them cautiously. For
example, suppose you are working in a remote area of a country where good order is not maintained,
and terrorism is common; in this case, a group of local terrorists can act as dangerous stakeholders. The
security of your team members is paramount. You must identify these stakeholders and mitigate the
threats they pose.
Dependent Stakeholders
These stakeholders have high urgency and high legitimacy but low power. Since they have little power,
you will not pay as much attention. For example, if you are doing construction work in a public place,
residents can be an example of dependent stakeholders. You will monitor these stakeholders closely
because of their legitimacy and high urgency. They may form a group or associate with powerful
stakeholders and can create trouble for you if their requirements are not met.
3. Definitive Stakeholders
These stakeholders have three attributes and require the most attention. You will manage these
stakeholders closely.
An example of definitive stakeholders is “core.”
Core Stakeholders
These stakeholders have high power, urgency, and legitimacy. You will manage them closely. This
category is also referred to as “definitive.” Your top management can fall into this category.
Non-Stakeholders
These are not your project’s stakeholders, so you will not manage these people.
Strategy to Manage Stakeholders
You will manage your stakeholders as follows:
 You will give the highest priority to the core group because this group has all the attributes.
 The next highest priority should be given to dominant, dangerous, and dependent stakeholders
because they have a combination of these attributes.
 The lowest priority group consists of discretionary, demanding, and latent because they have one
attribute. You will give little importance to these stakeholders but observe them because you never
know when they will change their salience.
Changes in Stakeholders’ Attributes
The project environment is dynamic, so you will continuously get new stakeholders and lose old ones.
Stakeholders’ attributes can change as the project progresses. A powerless stakeholder may become
powerful, and an illegitimate stakeholder may become legitimate.
You should update your stakeholder management strategy to reflect changes in the stakeholder
attributes.
Benefits of the Stakeholder Salience Model
 Better Stakeholder Insight: This stakeholder classification model uses three parameters to define a
stakeholder, providing better insight than other two-dimensional models.
 Prioritization: It helps you identify and prioritize stakeholders based on their power, legitimacy,
and urgency and ensures that the most critical stakeholders receive appropriate attention and
resources.
 Enhanced Communication: It facilitates targeted communication strategies by identifying key
stakeholders and improves stakeholder engagement and satisfaction by addressing their specific
needs and concerns.
 Effective Resource Allocation: It guides project managers in allocating resources efficiently,
focusing on stakeholders with the highest salience. It reduces the risk of neglecting important
stakeholders who could impact the project.
 Improved Risk Management: It helps identify potential risks posed by influential stakeholders and
aids in developing strategies to mitigate these risks and leverage opportunities.
 Informed Decision-Making: It provides a clear framework for understanding stakeholder dynamics
and supports better decision-making by considering the influence and urgency of stakeholder needs.

Limitations of the Stakeholder Salience Model

 Time and Resource Consuming: Developing this model requires more time and effort than
developing other models. Monitoring three attributes continuously also takes resources and time.
 Subjectivity: Assessing power, legitimacy, and urgency can be subjective and vary based on
individual perceptions. This subjectivity can lead to inconsistencies in stakeholder classification.
 Dynamic Nature of Stakeholders: Stakeholder salience can change over time as project conditions
evolve. The model requires continuous monitoring and updating, which can be resource-intensive.
 Complexity: Balancing the three attributes (power, legitimacy, urgency) can be complex and
challenging. Classifying stakeholders accurately may require detailed analysis and significant effort.
This model assumes attributes are present or absent, though they may vary.
 Potential for Overemphasis: Focusing too much on high-salience stakeholders may lead to
neglecting less influential ones who could still impact the project. This imbalance can result in
unforeseen issues or conflicts.
 Limited Scope: The model primarily focuses on identifying and prioritizing stakeholders without
providing detailed strategies for engagement and management. Additional tools and methods are
needed to develop comprehensive stakeholder management plans.
Conclusion
The salience model helps you manage your stakeholders effectively. Although this model is more time-
consuming than others, it gives you a better analysis and understanding of your stakeholders. This
model lets you focus your energy on important stakeholders and keeps you from wasting time on less
important ones.