Stakeholder analysis is the process of identifying people or groups who have an interest or influence in a project and understanding their needs, expectations, and power.
Why Managers Need to Know Stakeholder Analysis
1. Better Understanding of Stakeholders: It helps managers know who is involved, their expectations, and how they can impact the project.
2. Setting Priorities: Resources are limited, so focusing on the most important stakeholders ensures efficient use of time and effort.
3. Avoiding Problems: Understanding potential concerns early reduces conflicts and ensures smooth progress.
4. Stronger Relationships: Addressing stakeholders’ needs builds trust and cooperation.
5. Clear Communication: Tailored communication based on stakeholders’ roles helps keep everyone aligned.
Relationship Between Stakeholders’ Interest and Power:
1. High Interest, High Power
These are key players. They care about the project and have strong influence.
Action: Involve them actively and keep them informed.
Example: Project sponsors or senior management.
2. High Interest, Low Power
They care deeply but have little influence over decisions.
Action: Keep them informed and listen to their feedback.
Example: Team members or local communities.
3. Low Interest, High Power
They have authority but may not be very interested.
Action: Monitor their needs and engage with them strategically to avoid issues.
Example: Regulatory bodies or senior leaders with indirect roles.
4. Low Interest, Low Power
They have minimal involvement or influence.
Action: Provide updates only as needed.
Example: General public or peripheral stakeholders.
Stakeholders with more interest or power need more attention. Managers must balance these two factors to keep the project running smoothly and ensure everyone’s needs are addressed effectively.
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