Stakeholder Analysis

• Identify and define the characteristics of key stakeholders;
• Draw out the interests of stakeholders in relation to the problems that the project is seeking to address;
• Identify conflicts of interests between stakeholders;
• Help to identify relations between stakeholders that may enable "coalitions" of project sponsorship, ownership and cooperation;
• Assess the capacity of different stakeholders to participate;

Conducting a stakeholder analysis can draw out the interests of stakeholders in relation to the problems which the project or programme is seeking to address or the purpose of the project.^[1] In evaluation, stakeholder analysis is conducted in order to identify people, groups and institutions that may influence directly the evaluation; anticipate the kind of influence these groups may have on the evaluation and; build early support for the project or programme as well as reduce possible obstacles to their successful implementation.^[2]

In development projects, a key purpose of stakeholders analysis is to understand and address distributional concerns, particularly in the context of effectively understanding the needs of vulnerable groups. ^[3]

Step by Step

1. Identifying major stakeholder groups:
   • Identify the groups that have a significant interest in the project (individuals, groups, communities, organizations, etc. ).
   • Define the interests and agenda of the agency directing the exercise. This can be redressed later in the process by allowing the inclusion of more stakeholders as their interests come to light.
2. Determining stakeholders' interests:
   • Investigate roles, relative power and capacity to participate in the project, in order to draw out key interests for each stakeholder group. Key questions could include:
     • What are the contributions the stakeholder can give to the project and what resources is it likely to commit (or avoid committing) to the project?
     • What interests the stakeholder has in the project and what are the benefits it can get?
     • What are the stakeholder expectations and requirements to the project?
     • What other interests the stakeholder has that may conflict with the project?
     • What actions can be taken to address the stakeholder's interests?
   • To collect all this information in a methodical way, use a stakeholder map .
3. Assessing stakeholders' influence and importance:
   • The relationship between stakeholders has to be observed, so as the extent of cooperation and/or conflict between them can be outlined.
   • Influence refers to how powerful a stakeholder is.
   • Importance refers to those stakeholders whose needs and interests coincide with the aim of the project.
   • To conduct an effective analysis, organize this information in a stakeholder matrix.
4. Establishing strategies for stakeholder's involvement:
   • Decide, in case the stakeholder is a group rather than an individual, whether all the group participate or only its representatives.
   • Manage and coordinate arrangements appropriately to promote stakeholder ownership, participation, and avoid conflicts of interest.
   • Design partnerships in a flexible way, allowing growth.
   • Interpret the findings of the analysis and incorporate relevant information in the project design, in order to plan strategies. ^[4]

Stakeholder Matrix

A stakeholder matrix allows for stakeholders to be plotted against different variables, taking into consideration their importance and their level of influence in the project. ^[5]