stakeholder analysis

Requirements Excellence Framework™

Stakeholder Analysis

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Stakeholder Analysis

• Stakeholder Analysis is an important technique for stakeholder identification & analyzing their needs. It is used to identify all key (primary and secondary) stakeholders who have a vested interest in the issues with which the project is concerned.

• The aim of stakeholder analysis process is to develop a strategic view of the human and organizational landscape, and the relationships between the different stakeholders and the issues they care about most.

• The Stakeholder Analysis is usually performed by the Organizational Change Analyst, the Business Process Analyst, and the Software Requirements Analyst. It is important that all three of these roles know who the stakeholders are and how they will be impacted by the project.

• A stakeholder analysis can help a project to identify: – Sources of requirements to help reduce the risk of missing or incomplete requirements– Interests of stakeholders, who may affect or be affected by the project – Potential issues that could disrupt the project – Key people for information distribution during later phases of the project – Groups that should be encouraged to participate in different stages of the project – Ways to reduce potential negative impacts & manage negative stakeholders who may be unwilling to

participate in the requirements development process

Stakeholder Analysis 3

What is a Stakeholder?

• Any individual, group or institution who is affected by a project in a positive or negative way; or

• Any individual, group or institution that has an interest (or stake) in the project


Why Perform a Stakeholder Analysis?

• Understand your clients/beneficiary interests, needs and capabilities

• Clarify all groups that might have an interest in a project or project concept

• Identify potential opportunities and threats to project implementation

• Determine the extent to which certain groups should participate in project planning, implementation and evaluation


Steps in Analysing Stakeholders

1. Identify important stakeholders and their interests2. Assess the power and influence of stakeholders in

relation to the project3. Determine appropriate project response to each

stakeholder/group4. Plan which stakeholders will participate in the each

project cycle, when and how5. Identify initial risks from stakeholders6. Develop strategy for building participation and

stakeholder commitment.


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Stakeholder Classification

Suppliers Receivers Supporters• Project Sponsor• Customers• Users• Business SMEs• Business Process Experts• Business Rules Experts• Technical SMEs• Internal Auditors• Compliance Officers• Market Analysts• Legal• Organizational Change• Help Desk• Rule Book Owner

• Development Team Members

• Designers • System Architect• QA and Testing• Network Engineer• DBA• Data Warehouse Experts• ETL Experts• Workflow Rules manager• Business Continuity• Security• Configuration Management• End User Training• Business Rulebook Owners• Maintenance and Support

Staff• Help Desk• Technical Writers

• Project Sponsor• Business Process Owner• CEO• CFO• CIO• Project Investors


Prepare a Stakeholder Matrix

Stakeholder Type Interest Impact

Stakeholder #1

Stakeholder #2

Stakeholder #3


Who are the Stakeholder Groups?

Checklist for Stakeholders Stakeholder

• Have all stakeholders been listed?

• Have all potential supporters and opponents of the project been listed?

• Have gender issues been considered?

• Are new stakeholder groups likely to emerge as an outcome of the project?

Stakeholder#1

Stakeholder#2

Stakeholder#3


What are the Interests ofeach Stakeholder/Group?

Interests of each Stakeholder Stakeholder

• What are their expectations?• What benefits will they accrue?• What resources will they

commit (or avoid committing) to the project?

• Do they have other interests that might conflict with the project?

• How do they regard other stakeholders on the list?

Stakeholder#1

Stakeholder#2

Stakeholder#3


How will Stakeholders Affect the Project?

Potential Impact of Stakeholder

How? Stakeholder

Positive (+)Negative (-)Unknown (?)

Stakeholder #1

Stakeholder #2

Stakeholder #3


Factors to Consider in Assessing Stakeholder Power and Influence

• Legal or statutory authority• Authority of leadership• Control of strategic resources• Possession of specialist knowledge• Negotiating position & 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


Determine the Level of Involvement for each Stakeholder

Will they be:

• Provided information or informed about the requirements?

Informed

• Actively consulted on their needs ?

Consulted

• Partners in managing lifecycle activities?

Partners

• Controlling and directing the project?

Controlling


Determine When Stakeholders will Become Involved

Will they be involved in :

• Project Vision?

• Project Scope Definition• Business Process Analysis?• Needs Elicitation?

• Requirements Validation?

• Design Reviews

• User Acceptance Testing?


Develop a Participation Matrix

ParticipationType

Stage Inform Consult Partner Control

Needs Assessment

Planning

Implement

Monitoring & Evaluation

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Stakeholder Participation in the Lifecycle

• Extensive and continuous participation by the customer is a critical success factor for software development.

• Many studies have shown that insufficient customer involvement is a common cause of project failure.

• Unfortunately, busy customers often don’t participate constructively or perhaps at all in key requirements activities such as reviews.

• Many agile development methods assume that an “on-site customer” can serve as the single voice for all stakeholders on a project. It is unrealistic that a single individual has sufficient time, knowledge, expertise, and authority to make requirements decisions on behalf of the entire user community.

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Organizational Change Management

• Stakeholder analysis is key activity for organizational change management

• When gathering needs, it is important to gather not only software needs, but also training and organizational change needs for each stakeholder groups.

• Most organizational change efforts because nobody has taken the time to understand the stakeholder and their needs.


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Organizational Change Management

Organizational Change management is about managing change to realize business results.

• Change management is not a stand-alone process for designing a business solution. Change management is the processes, tools and techniques for managing the people-side of change.

• Change management is not a process improvement method. Change management is a method for reducing and managing resistance to change when implementing process, technology or organizational change.

• Change management is not a stand-alone technique for improving organizational performance. Change management is a necessary component for any organizational performance improvement process to succeed, including programs like: Six Sigma, Business Process Reengineering, Total Quality Management, Organizational Development, Restructuring and continuous process improvement.

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Organizational Change Requirements

• Achieving and Shared Vision• Motivating Change• Developing Political Support• Managing Transition• Sustaining Momentum

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Organizational Change Failure Rate

• Studies conducted by McKinsey & Co (2006), Shaffer & Thomson (1998), and Corporate Leadership Council (CLC, 2001) analyzed data from hundreds of companies that entered significant change programs. Their research indicates that 60% -70% of significant and complex change management programs grind to a halt because of their failure to produce the hoped-for results.

• If 70 percent of change efforts are failing, then an astonishing amount of money and human effort is being wasted. The dismal success rate suggests that something in the traditional way of dealing with or defining change is inadequate. The most likely culprit is the failure to communicate a clear vision and poor requirements.

• Most organizational change teams focus on outward communications instead of collaboration with stakeholders.

• Most organizational change teams often operate as a separate detached team from the rest project and often do not have a good understanding of the project vision, scope, and business objectives. Without this understanding, the OD team will fail.

• Similar to systems development, organizational development needs to start with eliciting needs from the stakeholders, analyzing the needs, and specifying requirements before embarking on organizational development activities. (Sounds familiar doesn’t it?)

• How can you be successful in communications, readiness assessments, or mentoring activities if the organizational team does not understand the project’s vision and scope, the business objectives, or the needs of the stakeholders?

• Change efforts have the highest likelihood of success when they are driven by visible support by the sponsor, when employees know what they have to do to support the change, and when adequate resources are dedicated to the change.

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