Chapter 8

Project
Stakeholder Participation
and Analysis

Lec t ur er : M r . Sak ar i ye. M. Ahm ed

Stakeholder Analysis
 Why stakeholders analysis?

The objectives of stakeholder analysis:

 Improve the project’s understanding of the needs of those
affected by a problem
 Reduce, or hopefully remove, potential negative project
impacts
 Identify who should be encouraged to take part in the
project planning and implementation
 Identify and reduce risks – this involves identifying
possible conflicts of interest and expectation among
stakeholders so that conflict is avoided
Steps for stakeholder identification, stakeholder
mapping and assessment of the process
 Who are the stakeholders in SUMALOM ?
 Mapping stakeholder interests, influence and
characteristics
 Identify patterns and contexts of stakeholder
interaction
 Assess stakeholder power, potential, and
influence
 Assess options and use findings to make progress
1. Stakeholder Identification
 Identify and describe all individuals, groups,
organizations and institutions
 Identify stakeholders through key staff of key
agencies or records or stakeholder self-selection
or a combination of these methods
 Categorize stakeholders into primary and
secondary, internal and external
2. Mapping stakeholder interests, influence and
Characteristics
 Understand interests, expectations, benefits and
losses of stakeholders
 Differentiate between institutional/ organizational
and individual stakeholders
How to do stakeholder analysis?

…the stakeholder analysis seeks to answer:

 Who are the key stakeholders?
 What are their interests and influence?

Develop strategic measures…

 How should we best engage various
stakeholders?
 Who needs their capacity built to be able to
participate meaningfully?
 How to do stakeholder analysis? Continued…

Anticipate the kind of interest/influence (positive

or negative) the key stakeholders may have on
the project.
“Interest” could be described in terms of
potential costs and benefits
“Influence” in terms of power/control
 Stakeholder identification , analysis and strategic considerations

Stakeholders Interest in process/ Influence on How to engage? Stakeholder needs

SUMALOM – project process/ Project for awareness
NAM TON +/- +/- and/or capacity
(how affected) (how much building
power)
Village women + Easy access to clean + Direct user
water - Little voice in
+ Direct user community
- Less social
interaction
 Stakeholder Mapping

List of stakeholders
1 High
1. X
2
2. X
3 3. X
4. X
4 5. X
Interest 6. X
5
7. X
6 8. X
9. X
7 10. X
8
High
Low
9 Influence

10
Stakeholders Map

List

High

Interest

High
Low
Influence
Stakeholders Map – Types and Levels of Stakeholder Involvement

High
Key players

Very interested in
the project, and high
impact on decision-
Interest making

* Should be closely
involved throughout
to ensure their
support
Low High
Influence
Stakeholders Map – Types and Levels (cont.)

High Key subjects

Very interested in
the project, but little
influence
Interest
Less impact on
decision-making

*Require special
efforts to ensure that
needs are met and
Low High participation
Influence
meaningful
Stakeholders Map – Types and Levels (cont.)

High Key setters

Not so interested in
the project, but has
high influence.
Interest
Impact on decision
making
Could be a risk?

* Need to be kept
informed and views
Low High acknowledged
Influence
Stakeholders Map – Types and Levels (cont.)

High Crowd

Less important

*Unlikely to be
Interest
closely involved in
the project and no
special strategies are
required

High
Low
Influence
3. Identify patterns and contexts of stakeholder
interaction
 Understand the relationships between
stakeholders
 Explore points of cooperation and conflict among
them
 Explore points of convergence and/or divergence
with IWRM principles and framework
5. Assess options and use findings to make progress

 Review progress based on the four previous steps

and plan engagement pathways for stakeholders
accordingly
 Stakeholder tables can be used to organize
information on each stakeholders’ interests,
power, influence and involvement with the
project.
 Stakeholder Analysis
 A way of systematically gathering and analyzing quantitative
and qualitative information to determine whose interests
should be taken into account throughout the project
 Identifies stakeholder:
 Interests, expectations and influence and relates them to project
purpose
 Relationships with the project and other stakeholders that can be
leveraged to enhance project success by
 Building coalitions and partnerships
 Influencing stakeholders at different stages of the project

18
 Identify all potential stakeholders and relevant information
like their:
 Departments and roles
 Interests
 Knowledge
 Expectations
 Influence
 Key stakeholders like decision makers or management are
usually the easiest to find
 Find the rest through interviewing the ones you’ve found

19
 Analyze the potential impact or support each stakeholder
could generate
 Classify them as to define an approach strategy
 Prioritize them to ensure efficient use of effort to
communicate and manage their expectations
 Assess how key stakeholders are likely to react or respond in
various situations in order to plan how to influence them to
enhance their support and mitigate potential negative impacts

20
 Power/Interest Grid - Groups stakeholders regarding project
outcomes based on their:
 Power – Level of authority
 Interest – Level of concern
 Power/Influence Grid – Groups stakeholders regarding their
active involvement based on their
 Power – Level of authority
 Influence – Active involvement in the project

21
Influence

Influence

Impact
22
 Influence/Impact Grid – Groups stakeholders based on their:
 Influence – Active involvement in the project
 Impact – Ability to effect changes to the projects planning or execution
 Salience Model – Describes classes of stakeholders based on
their:
 Power – Ability to impose their will
 Urgency – Need for immediate attention
 Legitimacy – Their involvement is appropriate

23
24
 Salience - the degree to which managers give priority to competing
stakeholder claims
 Power – to influence the firm
 Legitimacy – of the stakeholders’ relationships with the firm
 Urgency – the degree to which stakeholder claims call for immediate
attention
 The more attributes – power, legitimacy, and urgency – stakeholder is
perceived to have the higher their salience
 The greatest priority will be given to stakeholders who have power,
legitimacy and urgency

25
 Salience Model
Latent stakeholders: one attribute, low
salience. Managers may do nothing about .
Green
these stakeholders and may not even
recognize them as stakeholders.

Expectant stakeholders: two attributes,

moderate salience. Active rather passive.
Amber Seen by managers as 'expecting something'.
Likely higher level engagement with these
stakeholders.

Definitive stakeholders: all three attributes,

Red high salience. Managers give immediate
priority to these stakeholders.

26
 Dormant Stakeholders
 Possess power to impose their will through coercive, utilitarian or symbolic
means, but have little or no interaction /involvement as they lack legitimacy
or urgency
 Discretionary Stakeholders
 Likely to recipients of corporate philanthropy
 No pressure on managers to engage with this group, but they may choose to
do so
 Examples are beneficiaries of charity

27
 Demanding Stakeholders
 Those with urgent claims, but no legitimacy or power
 Irritants for management, but not worth considering
 Examples are people with unjustified grudges, serial complainers or low
return customers
 Dominant Stakeholders
 The group that many theories position as the only stakeholders of an
organization or project
 Likely to have a formal mechanism in place acknowledging the relationship
with the organization or project
 Examples are boards of directors, HR, public relations

28
 Dangerous Stakeholders
 Those with powerful and urgent claims will be coercive and possibly
violent
 For example employee sabotage or coercive/unlawful tactics used by
activists
 Dependent Stakeholders
 Stakeholders who are dependent on others to carry out their will,
because they lack the power to enforce their stake
 For example local residents & animals impacted by the BP oil spill

29
 Definitive Stakeholders
 An expectant stakeholder who gains the relevant missing
attribute
 Often dominant stakeholders with an urgent issue, or
dependent groups with powerful legal support

30
 Judgment and expertise needed to ensure comprehensive
identification from:
 Senior Management
 Other units within the organization
 Identified key stakeholders
 Other project managers
 SMEs
 Industry groups and consultants
 Professional and technical associations
 Through individual consultations like 1 on 1 meetings, interviews or
a panel like focus group or survey

31
 Profile analysis meetings
 Designed to develop an understanding of major project
stakeholders, and they can be used to exchange and
analyze information about roles, interests, knowledge,
and the overall position of each stakeholder facing the
project

32
 Stakeholder Register contains all details related to those
identified
 Identification information
 Name, organizational position, location, role in the project,
contact information
 Assessment information
 Major requirements, main expectations, potential influence in the
project, phase in the life cycle with the most interest
 Stakeholder classification
 Internal/external, supporter, neutral, resistor

33