STAKEHOLDERS MAPPING

: Bipul Singh Rajput – 09FT-041

C. Sasanka Reddy – 09FT-042
Deepul Jain – 09FT-046
 AGENDA
• Stakeholder – Definition
 STAKEHOLDER - DEFINITION
• “Any group or individual that can affect, or is
affected by, the performance of the
organisation”. (Freeman 1987)
• “Individuals or groups who depend on the
organisation to fulfil their own goals and on
whom, in turn, the organisation depends”.
(Johnson & Scholes 1999)
IDENTIFICATION - STAKEHOLDERS
 WHY CONSIDER STAKEHOLDERS
• Failure to account for stakeholders often leads to poor
performance, failure or even disaster.

• Increasing tendency to make organisations more visibly

accountable to shareholders and also the wider community.

• As entrepreneurial ventures grow they are likely to have

increasing numbers of stakeholders who can impact
performance.

• Nutt (2002) analysis.

• Considering and understanding stakeholders and then acting to
engage them is generally agreed as being one of the most
critical parts of any managed change initiative.
 STAKEHOLDERS ANALYSIS
• To categorize the stakeholders by drawing further pictures
of what the groups are, which interests they represent, the
amount of power they possesses, whether they represent
inhibiting or supporting factors for the organization.
• Please to one can cause unease to other.
• Some groups posses greater power than others.
• External group is differ between organizations and
industries.
– They are grouped into segments : Owners, Suppliers, Customers,
Financiers, Govt., Pressure Groups. (Cook and Farqularson, 1998)
 STAKEHOLDERS MAPPING
• Process of creating pictures to clarify the
position of the stakeholders of the
organization.
• 4 types of mapping:
– Power/Dynamism matrix
– Power/Interest matrix
– Power, Legitimacy and Urgency matrix
– Power, Attitude and Interest matrix (3D)
 IMPORTANCE OF MAPPING
• Mapping helps us in making judgments on 3
issues:
– How likely each stakeholder group is to impress its
expectations on the company.
– Whether they have the means to do so. This is
concerned with the power of stakeholder groups.
– The likely impact of stakeholder expectations on
future strategies.
 Power/Dynamism Matrix
• Classifies stakeholders in relation to the power
that they hold and the dynamism of their
stance.
 Power/Interest Matrix
• Classifies stakeholders in relation to the power
that they hold and the extent to which they
are likely to show interest in the strategies.
 Power, Legitimacy & Urgency Model

• This model maps Stakeholders behavior in 7

types.
 Lucid Thought 3D Grid
• Including a third dimension in the stakeholder grid will
make the technique even better at stimulating thought and
informing the project manager in a truly meaningful way.
• The three basic things (dimensions) that are important to
know when initially considering stakeholders are:
 Power or ability to influence in the organization.
(This may be their potential to influence derived from
their positional or resource power in the organization, or
may be their actual influence derived from their
credibility as a leader or expert.)
 Interest in the project as measured by the
extent to which they will be active or passive.

 Their attitude to the project as measured by

the extent to which they will ‘back’ (support)
or ‘block’ (resist).
• Considering any two of the three dimensions only
gives a partial and less than useful picture. Using a
three dimensional grid is certainly more difficult to
draw but at least maps out all the things that need to
be considered and gives some descriptive, and
hopefully useful, labels that can be checked out
during the overall process of stakeholder analysis and
subsequent ongoing stakeholder management.
…. Lucid Thought
 Using this approach each of the eight labels can be summarized as shown:

• Saviour – powerful, high interest, positive attitude or alternatively influential, active,

backer. They need to be paid attention to; you should do whatever necessary to keep
them on your side – pander to their needs.

• Friend – low power, high interest, positive attitude or alternatively insignificant, active,
backer. They should be used as a confidant or sounding board.

• Terrorist - powerful, high interest, negative attitude or alternatively influential, active,

blocker. They need to be engaged in order to disengage. You should be prepared to
‘clean-up after them’.

• Irritant – low power, high interest, negative attitude or alternatively insignificant,

active, blocker. They need to be engaged so that they stop ‘eating away’ and then be
‘put back in their box’.
• Sleeping Giant - powerful, low interest, positive attitude or alternatively
influential, passive, backer. They need to be engaged in order to awaken
them.

• Acquaintance –low power, low interest, positive attitude or alternatively

insignificant, passive, backer. They need to be kept informed and
communicated with on a ‘transmit only’ basis.

• Time Bomb - powerful, low interest, negative attitude or alternatively

influential, passive, blocker. They need to be understood so they can be
‘defused before the bomb goes off’.

• Trip Wire – low power, low interest, negative attitude or alternatively

insignificant, passive, blocker. They need to be understood so you can
‘watch your step’ and avoid ‘tripping up’.
 MANAGING STAKEHOLDERS
• Different styles for different stakeholder
groups.
– Participation: key players, need for
education/communication
– Intervention: low interest & high power, change agent
drives & controls the strategy, but threshold requirements
are met
– Education/communication: high interest/low power
(proponents), but Direction for opponents
– Direction: low power/low interest
 Tallman GmbH
• German bank providing retail and corporate banking services
through out Benelux, Germany and France
• Serviced from two centres:
Frankfurt (for Germany and Benelux)
Toulouse (for France)
• Customer X: multinational with operations through out
Europe – dissatisfied with the inconsistency
• Customer Y: a major French manufacturer – accounting for
20% of Toulouse corporate banking income.
 Conflict I
• Close Toulouse operation and service all
corporate clients from Frankfurt
• Results in significant job losses in Toulouse

Conflict II
• Close Frankfurt operation and service all
corporate clients from Toulouse
• Results in significant job losses in Frankfurt
 Mapping at Tallman
Map A: The likely situation Map B: The preferred situation

Shareholder M (-) French minister Shareholder M (-)

Toulouse office (-) Toulouse office (-)
Low
Customer X (+) Marketing (-)
French minister (-) IT supplier A (+)
Marketing (-)
IT supplier A (+)
Power A B A B
Customer Z Customer Y (-) Customer Z Customer X (+)
Customer Y (-)
German minister Frankfurt office (+) German minister
Frankfurt office (+)
Corporate finance (+)
High Corporate finance (+)

C D C D
Low High Low High

Interest Interest
 Tallman GmbH
Map A: The likely situation Map B: The preferred situation

Shareholder M (-) Shareholder M (-)

Toulouse office (+) Toulouse office (+)
Low
Customer X (+) Marketing (-)
French minister (+) IT supplier A (+)
Marketing (-) French minister (+)
IT supplier A (+)
Power A B A B
Customer Z Customer Y (+) Customer Z Customer X (+)
Customer Y (+)
Frankfurt office (-) German minister
Frankfurt office (-)
Corporate finance (+)
High Corporate finance (+)
German minister (-)
C D C D
Low High Low High

Interest Interest
 Note!!
• Stakeholder groups are usually not
homogenous
• Most stakeholder groups consist of large
number of individuals
• Role and the individual currently undertaking
the role need to be clearly distinguished