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Stakeholder Analysis

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Page 1: Stakeholder Analysis.  What is a stakeholder?  Why stakeholder participation?  What is participation?  Why stakeholder analysis?  How to do a stakeholder

Stakeholder Analysis

Page 2: Stakeholder Analysis.  What is a stakeholder?  Why stakeholder participation?  What is participation?  Why stakeholder analysis?  How to do a stakeholder

What is a stakeholder?

Why stakeholder participation?

What is participation?

Why stakeholder analysis?

How to do a stakeholder analysis?

Some ideas… and introduction to exercises

Page 3: Stakeholder Analysis.  What is a stakeholder?  Why stakeholder participation?  What is participation?  Why stakeholder analysis?  How to do a stakeholder

Stakeholdersare those who have an interest in and/or affected

by a particular decision, either as individuals or representatives of a group. This includes people who influence a decision, or can influence it, as well as those affected by it.

Stakeholder Analysis helps clarify which people and organizations are directly or indirectly involved in or affected by a specific development problem.

It helps identify which groups are supportive and which groups may oppose the project strategy and subsequently obstruct project implementation.

What is a stakeholder?

Page 4: Stakeholder Analysis.  What is a stakeholder?  Why stakeholder participation?  What is participation?  Why stakeholder analysis?  How to do a stakeholder

When to conduct Stakeholder Analysis? 1. Problem Identification – It serves as

mechanism to identify important and influential stakeholders and draws attention on how to involve them in the analytical and planning process

2. A detailed stakeholder analysis carried out during project formulation supports design decisions and risk analysis

3. Continuing stakeholder analysis during project implementation serves to confirm the involvement of each stakeholder, keep track of changing circumstances and interests of stakeholders and plan stakeholder involvement in the evaluation process

Page 5: Stakeholder Analysis.  What is a stakeholder?  Why stakeholder participation?  What is participation?  Why stakeholder analysis?  How to do a stakeholder

Those who are affected by the project… . And those we depend on for its success…

User group – people who use the resources or services in an area

Interest groups – people who have an interest in, or who can affect the use of a resource or service

Beneficiaries of the project/service

Decision-makers

Those often excluded for the decision-making process

Stakeholder grouping – could include…

Page 6: Stakeholder Analysis.  What is a stakeholder?  Why stakeholder participation?  What is participation?  Why stakeholder analysis?  How to do a stakeholder

Ex. Small scale water diversion project…

Use – who uses or benefits from the use of the resources…?

Economics – who may win or lose as a result…?

Mandate – who makes decisions, who has rights…

Proximity – who lives near the resources…

Values – who may have strong beliefs about specific use…?

Stakeholders – who?

Page 7: Stakeholder Analysis.  What is a stakeholder?  Why stakeholder participation?  What is participation?  Why stakeholder analysis?  How to do a stakeholder

Dept. of InfrastructureIrrigation user group

Mining Company

Ministry of health

GovernmentLocal

Local community

Financing institution

Ministry of Finance

Irrigation department

Water supplycompany

NGObiodiversity

Hydropower company

Int. donors

Can we achieve...

sustainability?

Economic

Ecological

Social

Common goal - sustainability

Page 8: Stakeholder Analysis.  What is a stakeholder?  Why stakeholder participation?  What is participation?  Why stakeholder analysis?  How to do a stakeholder

Why stakeholder participation?

Benefits to planners-Good basis for accountability-More information and understanding of context

Benefits to decision-makers-Informed and improved decisions-Legitimacy of governance improved

Benefits to developers-Save costs as issues are identified upfront-Community relations improved -Developers’ image and reputation enhanced

Benefits to civil society-Capacity building and new knowledge through participation-More sustainable development

Page 9: Stakeholder Analysis.  What is a stakeholder?  Why stakeholder participation?  What is participation?  Why stakeholder analysis?  How to do a stakeholder

Improved quality of decision-making (expands the knowledge base for decisions)

Improved credibility and public support (helps to build broad-based consensus)

Improved implementation and monitoring (supplements scarce government resources)

Early warning of potential challenge (identify and address problems at an early stage)

Why stakeholder participation?

Page 10: Stakeholder Analysis.  What is a stakeholder?  Why stakeholder participation?  What is participation?  Why stakeholder analysis?  How to do a stakeholder

Type of participation/Stages in projects

Inform Consult

Partnership

Control

Identification/context analysis

Donor Women Local water authority

Project staff

DesignImplementation and monitoringReviewingEvaluation

Appropriate level of participation for different stakeholders

Page 11: Stakeholder Analysis.  What is a stakeholder?  Why stakeholder participation?  What is participation?  Why stakeholder analysis?  How to do a stakeholder

Participation takes place when stakeholders are part of the decision-making process

Participation requires that stakeholders at all levels of the social structure have an opportunity to participate in the decision-making process

A participatory approach is the only means for achieving long-lasting consensus and common agreement

It is about taking responsibility, engaging and informing

- Global Water Partnership

What is Participation?

Page 12: Stakeholder Analysis.  What is a stakeholder?  Why stakeholder participation?  What is participation?  Why stakeholder analysis?  How to do a stakeholder

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 which might involve identifying possible conflicts of interest and expectation among stakeholders so that conflict is avoided

Why stakeholders analysis?

Page 13: Stakeholder Analysis.  What is a stakeholder?  Why stakeholder participation?  What is participation?  Why stakeholder analysis?  How to do a stakeholder

…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 with

various stakeholders? Who needs their capacity built to be

able to participate meaningfully?

How to do stakeholder analysis?

Page 14: Stakeholder Analysis.  What is a stakeholder?  Why stakeholder participation?  What is participation?  Why stakeholder analysis?  How to do a stakeholder

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

How to do stakeholder analysis? Continued…

Page 15: Stakeholder Analysis.  What is a stakeholder?  Why stakeholder participation?  What is participation?  Why stakeholder analysis?  How to do a stakeholder

StakeholdersExample: Rural water supply project

Interest in process/ project

+/-(affected)

Influence on process/ Project

+/-(power)

How to engage?

Stakeholder needs for awareness and/or capacity building

Village women

+ Easy access to clean water+ Direct user- Less social

+ Direct user- Little voice in community

Stakeholder identification , analysis and strategic considerations

Page 16: Stakeholder Analysis.  What is a stakeholder?  Why stakeholder participation?  What is participation?  Why stakeholder analysis?  How to do a stakeholder

High

High

LowInfluence

List of stakeholders

1. X2. X3. X4. X5. X6. X7. X8. X9. X10.X

Interest

1

10

2

3

4

5

6

7

8

9

Group work – map stakeholders

Page 17: Stakeholder Analysis.  What is a stakeholder?  Why stakeholder participation?  What is participation?  Why stakeholder analysis?  How to do a stakeholder

High

LowInfluence

High

Interest

Map stakeholders

Page 18: Stakeholder Analysis.  What is a stakeholder?  Why stakeholder participation?  What is participation?  Why stakeholder analysis?  How to do a stakeholder

High

LowInfluence

High

Interest

Key players:

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

Map stakeholders

Page 19: Stakeholder Analysis.  What is a stakeholder?  Why stakeholder participation?  What is participation?  Why stakeholder analysis?  How to do a stakeholder

High

LowInfluence

High

Interest

Key subjects:

Very interested in the project, but little influence

Less impact on Decision-making

Map stakeholders

Page 20: Stakeholder Analysis.  What is a stakeholder?  Why stakeholder participation?  What is participation?  Why stakeholder analysis?  How to do a stakeholder

High

LowInfluence

High

Interest

Key setters:

Not so interested in the project, but has high influence.

Impact on decision making Could be a risk?

Map stakeholders

Page 21: Stakeholder Analysis.  What is a stakeholder?  Why stakeholder participation?  What is participation?  Why stakeholder analysis?  How to do a stakeholder

High

LowInfluence

High

Interest

CrowdLess important

Map stakeholders

Page 22: Stakeholder Analysis.  What is a stakeholder?  Why stakeholder participation?  What is participation?  Why stakeholder analysis?  How to do a stakeholder

Group Exercise (20 min)

Identify the five most important stakeholders in your Change Project

List their main interests and influence

Insert them in the Stakeholder Map

Present group output

Exercise 1

Page 23: Stakeholder Analysis.  What is a stakeholder?  Why stakeholder participation?  What is participation?  Why stakeholder analysis?  How to do a stakeholder

No information-Culture of secrecy

Sufficient information accessible-Open door policy

-Fears-Mistrust

-Understanding -Trust

-Conflict -Cooperation-Joint problem solving-Better decisions

TIP #1 – Information provision to stakeholders

Page 24: Stakeholder Analysis.  What is a stakeholder?  Why stakeholder participation?  What is participation?  Why stakeholder analysis?  How to do a stakeholder

Early engagement of stakeholders

Transparency and honesty

Independent facilitation

Special efforts for marginalized people

Accessibility (information, venues, comments)

Ongoing feedback and fairness

TIP #2 – Good practice of stakeholder participation

Page 25: Stakeholder Analysis.  What is a stakeholder?  Why stakeholder participation?  What is participation?  Why stakeholder analysis?  How to do a stakeholder

Stakeholders are not only those who shout the loudest. Those who are often excluded from the decision-making process due to age, gender or ethnicity are those who are most likely to lose out if they are not included in the project planning.

We need to think about how to ensure that these stakeholders are also involved…

But… very seldom… people are powerless… and they have responsibility to engage themselves

TIP #3 – Stakeholders – who…?

Page 26: Stakeholder Analysis.  What is a stakeholder?  Why stakeholder participation?  What is participation?  Why stakeholder analysis?  How to do a stakeholder

The objectives of stakeholder analysis: Assist in assessment of how project objectives and activities relate to

the different interests of various people, groups and organizations. Give information about how different groups will be affected by (and

potentially react on) the project – and thus assist in identifying critical points that might endanger the anticipated outcome.

Identify and assess the importance of key people, groups and organizations that may significantly influence (positive or negative) the success of the project.

Provide the basis for developing strategies to get the most effective support possible for the initiative and reduce any obstacles to successful implementation

Provide the basis for developing strong communications, education and outreach material, for preventing conflicts, and for developing strategic relations throughout project development and implementation.

TIP #4 – Why stakeholders analysis?