Enhancing Project Effectiveness and

Impact

Stakeholder Analysis
 A Stakeholder is

any person, group or organization

who can be positively or negatively
impacted by, or cause an impact on,
the actions or activities proposed.
Types of Stakeholders
 Key stakeholders: Those who can significantly influence
or are important to the success of an activity.
 Primary stakeholders: Those individuals and groups who
are ultimately affected by an activity, either as
beneficiaries (positively impacted) or otherwise (adversely
impacted).
 Secondary stakeholders: All other individuals or
institutions with a stake, interest or intermediary role in the
activity.

Given the different nature of their interests and

influence, different strategies are required for
these groups.
Why Conduct Stakeholder Analysis?
 The Stakeholder Analysis helps identify:
 The interests of all stakeholders who may affect or be
affected by the programme/project;
 Potential conflicts or risks that could jeopardize the initiative;
 Opportunities and relationships that can be built on during
implementation;
 Groups that should be encouraged to participate in different
stages of the project;
 Appropriate strategies and approaches for stakeholder
engagement; and
 Ways to reduce negative impacts on vulnerable and
disadvantaged groups.
What If …
 Peshawar City District Government plans to convert a public park
into a parking plaza to facilitate commuters. This involves cutting a
large number of trees. Environmental groups take the matter to the
court and the project is delayed by several months.

 The reconstituted School Management Committee has several local

notables as its members. However, their interest in school affairs
remains marginal because their children study elsewhere.

 The Project Manager does not engage the local influential people,
who are generally supportive of the road project. Consequently, he
has to spend a lot of time negotiating land acquisition with individual
owners.

These situations could have been avoided if stakeholders

had been identified upfront, their interests had been
understood and strategies had been devised accordingly.
Who is Most Important?
 The group with the money?
 The group with the most influence?
 The ‘trouble-maker’?
 The group with the biggest network?
When to do Stakeholder Analysis?
 Stakeholder Analysis serves different purposes at
different stages of the project.
 A critical component of the Situation Analysis in the define
phase.
 Informs risk analysis and helps develop mitigation strategies
in the design phase.
 In the implementation phase, it informs decisions on who is
to be involved when and how.
 During Assessment, it provides the benchmarks against
which effectiveness of various interventions can be
assessed.

Stakeholders’ interests change over time, hence

the Analysis needs to be continuously updated.
 Key Steps in Stakeholder Analysis

There are four main steps to analyzing

stakeholders’ influence and interest;
1. Identify the Stakeholders;
2. Prioritize the Stakeholders;
3. Determine the needs of the Stakeholders;
4. Document the Results in a Stakeholder
Analysis Plan

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 Key Steps in Stakeholder Analysis

Identify the Stakeholders

 Who Stands to win or lose from the project?

 Who could potentially affect project success?

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 Key Steps in Stakeholder Analysis
Prioritize the Stakeholders
A : Keep them Satisfied
A B
High

B : Manage Closely
Influence

Beware of a key player with strong

opposition
C D
C : Monitor / Bypass
Low

D : Keep informed

Interest Be mindful of marginalized groups

Low High
 Key Steps in Stakeholder Analysis
Group A: High Influence BUT Low Interest
 These are stakeholders whose actions can affect the
project’s ability to meet its objectives. However they will
neither gain nor lose much from the project;
 They may, for example, be local government bodies with
no great involvement in the issue, but their cooperation is
still necessary. We should still keep these stakeholders
informed and engaged enough so that they do not hinder
the project;
 It is also good to develop relationships with the most
influential from this group, for example through regular
executive reports, invitations to project-related events and
participation on committees.
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 Key Steps in Stakeholder Analysis
Group B: High Influence AND High Interest
 These are the stakeholders who stand to lose or gain
significantly. They may have powerful interest in change or
an equally strong interest in maintaining the current
situation;
 All the stakeholders in this group also have the ability to
obstruct or support the project’s ability to meet its
objectives;
 Within this group we may find powerful supporters such as
donors or potential threats from landowners, local
politicians etc;
 These are our most important stakeholders and thus need
to be managed closely. We have to engage them fully,
address their concerns and work hard to satisfy them.
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 Key Steps in Stakeholder Analysis

Group C: Low Influence AND Low Interest

 Stakeholders in this group will neither benefit nor
suffer much whether the project goes ahead or not.
Furthermore, they have limited power to impact the
project;
 Their inputs will have little effect on our planning,
and they usually will only need minimum of
communication.

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 Key Steps in Stakeholder Analysis
Group D: Low influence BUT High Interest:
 These are the stakeholders who are likely to win or lose
as a result of the project but they have little power to
affect the project;
 We still need to communicate enough to keep these
stakeholders satisfied because they have specific project
interests.

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 Key Steps in Stakeholder Analysis
Determine the Needs of the Stakeholders
Next we need to explore each stakeholder’s needs in more
depth. Depending on the group / individuals involved, this
consultation may be through interview, survey or focus
group discussion. Consider the following questions to help
you better understand the stakeholders’ individual needs
and motivations:

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 What kind of interest do they have in the project outcome? Is it financial
gain /loss? Is it emotional interest (e.g. attachment to tradition)? Is it
positive or negative? What motivates them?
 What support do you need from them? What role will they play in the
project?
 •What do they need from you? What expectations do they have? What
kind of information will they need?
 If the stakeholder’s attitude to the project is negative, what is their
•
underlying fear? What actions can you take to address their fears or
gain their support?
 •If they are going to oppose the project, how will you deal with their
opposition?
 •Will dissatisfied stakeholders / opponents be able to influence or
mobilise join the opposition?

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Key Analyses

Attitude Influence
 Supportive  Decision-maker
 Access ‘gate-keeper’
 Indifferent/neutral  Ability to ‘block’ if remaining
opposed
 Opposed

Supportive or opposed:

 Accessibility
 Open-mindedness
 Willingness to use influence to
change outcome
Factors to be Considered While
Assessing Influence of a Stakeholder

 Legal or statutory authority

 Networks
 Control of strategic resources
 Possession of specialist knowledge
 Negotiating position and the ability to influence
other stakeholders
 Social, economic and political status
 Formal/Informal links to other stakeholders
(including role as “gatekeeper”)
 Degree of dependence on other stakeholders
 Influence and Support Table

Stakeholder Category Level of Level of

Interest
importance influence

ABC Key … 3 4

DEF Primary … 5 2

XYZ Secondary …. 2 1

LMN Secondary … 1 2

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 Managing Stakeholders
Possible
Stakeholder Category Desired sanction/
Interest
change incentive

A Key …

B Primary …

C Secondary ….

D Key …

E Secondary …

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Thank You