Let's talk about stakeholders.
After all, they are the most important part of any project. As development workers we are service providers, and our most important stakeholders are the end users of our services - the target communities we serve, whoever they may be - mothers, IDPs, girl children ...
After all, they are the most important part of any project. As development workers we are service providers, and our most important stakeholders are the end users of our services - the target communities we serve, whoever they may be - mothers, IDPs, girl children ...
Before we do, let's remember that in Results-Based Management we have a huge focus on the fundamentals - the situation analysis. And I think people have become sloppy with LFA over the years (many of you will object) and treat it as a box-filling exercise (to get all those boxes 'ticked' with your donors), and they let Log Frames take the attention away from communities. And that suits managers with their elite development languages and their Gantt charts, but doesn't really reflect how projects function and communities' real needs. Unless, as I say, it's done right. And there is a school of thought that says Results-Based Management is simply 'LFA done right'.
Obviously selecting a project your donors are going to get behind does matter. And you're not going to get off the ground at all unless you can tick those boxes of value, capacity and support.
And, of course, you need a good understanding of the problem. Now, in situation analysis understanding the context - that initial scanning of the project environment - is one part. And analysing the problem - it's causes and effects - is another, and a big foundation for setting objectives, designing a strategy and building a response that will get real, positive results for end users.
And the third part of situation analysis is the most important - stakeholder analysis.
One thing I've noticed in Results-Based Management is that it does encourage us to put our stakeholders and direct beneficiaries at the heart of what we do.
So it's not just about initial analysis involving stakeholders, but also about having a Management Information System that includes regular stakeholder engagement (and not just communication); and an M&E Plan that constantly evaluates change for our target groups and doesn't simply look at 'services delivered'. That's a measure of efficiency, not effectiveness. However well you may drive, if you are taking your passengers to the wrong destination (or somewhere they don't want to go), your driving skill is worthless.
So let's zoom in on the key things we need to consider when dealing with our stakeholders.
Any intervention we undertake will have indirect effects upon – and require cooperation from – other stakeholders. For example, a rural microcredit programme for women will involve more than just the women themselves – families (particularly husbands) may have a strong influence on success, as will other existing institutions. So, we analyse the stakeholders – identify their stakes in the problem – and modify the problem analysis if needed.
As well as the people who are directly affected by the problem, we must look at who benefits and who loses out in the current situation, and whose interests might be threatened by change.
Understanding our stakeholders' interests and concerns helps us identify which individuals or organisations we should include in project design and implementation; and what roles each should play and when. It helps us better understand what the stakeholders need from the project, and what we need from them (participation, permission, support). Identifying stakeholders whose concerns need to be addressed can help us better design interventions that minimise threats from others – we know who we need to develop relationships with. Stakeholder Analysis also helps us know who to inform and consult about the project.
As a result, we can involve the most powerful stakeholders early on in designing the project – in identifying problems, outcomes and approaches. As well as gaining stakeholders’ cooperation and support, their input will greatly improve the quality of the project. Stakeholder Analysis can also help us develop our communication strategy so that the right stakeholders receive the right kind of information at the right time. Involving stakeholders as early as possible is, then, crucial to project success.
Several stakeholder mapping processes exist. Representing data collected about stakeholders as maps – using tables, diagrams or pictures – is common practice. The mapping process helps us to present our analysis with a degree of objectivity and transparency and helps others understand the social dynamics of the situation.
Even so, all of the mapping techniques use a qualitative perception of a stakeholder’s ‘importance’ and do not represent a fully objective value for that person’s ‘importance’.
Most presentation styles use a matrix to show two dimensions – Interest and Power / Influence. ‘Interest’ represents their stake in the problem and the solution; while ‘Power’ / ‘Influence’ represents the ability of the stakeholders to positively or negatively influence the project.
How to Conduct Stakeholder Analysis
There are four main steps to analysing stakeholders’ influence and interest:
1. Identify the Stakeholders
2. Prioritise the Stakeholders
3. Determine the Needs of the Stakeholders
4. Document the Results in a Stakeholder Analysis Plan
1. Identify the Stakeholders
Who stands to win or lose from the project?
Who could potentially affect project success?
Obviously selecting a project your donors are going to get behind does matter. And you're not going to get off the ground at all unless you can tick those boxes of value, capacity and support.
And, of course, you need a good understanding of the problem. Now, in situation analysis understanding the context - that initial scanning of the project environment - is one part. And analysing the problem - it's causes and effects - is another, and a big foundation for setting objectives, designing a strategy and building a response that will get real, positive results for end users.
And the third part of situation analysis is the most important - stakeholder analysis.
One thing I've noticed in Results-Based Management is that it does encourage us to put our stakeholders and direct beneficiaries at the heart of what we do.
So it's not just about initial analysis involving stakeholders, but also about having a Management Information System that includes regular stakeholder engagement (and not just communication); and an M&E Plan that constantly evaluates change for our target groups and doesn't simply look at 'services delivered'. That's a measure of efficiency, not effectiveness. However well you may drive, if you are taking your passengers to the wrong destination (or somewhere they don't want to go), your driving skill is worthless.
So let's zoom in on the key things we need to consider when dealing with our stakeholders.
Any intervention we undertake will have indirect effects upon – and require cooperation from – other stakeholders. For example, a rural microcredit programme for women will involve more than just the women themselves – families (particularly husbands) may have a strong influence on success, as will other existing institutions. So, we analyse the stakeholders – identify their stakes in the problem – and modify the problem analysis if needed.
As well as the people who are directly affected by the problem, we must look at who benefits and who loses out in the current situation, and whose interests might be threatened by change.
Understanding our stakeholders' interests and concerns helps us identify which individuals or organisations we should include in project design and implementation; and what roles each should play and when. It helps us better understand what the stakeholders need from the project, and what we need from them (participation, permission, support). Identifying stakeholders whose concerns need to be addressed can help us better design interventions that minimise threats from others – we know who we need to develop relationships with. Stakeholder Analysis also helps us know who to inform and consult about the project.
As a result, we can involve the most powerful stakeholders early on in designing the project – in identifying problems, outcomes and approaches. As well as gaining stakeholders’ cooperation and support, their input will greatly improve the quality of the project. Stakeholder Analysis can also help us develop our communication strategy so that the right stakeholders receive the right kind of information at the right time. Involving stakeholders as early as possible is, then, crucial to project success.
Several stakeholder mapping processes exist. Representing data collected about stakeholders as maps – using tables, diagrams or pictures – is common practice. The mapping process helps us to present our analysis with a degree of objectivity and transparency and helps others understand the social dynamics of the situation.
Even so, all of the mapping techniques use a qualitative perception of a stakeholder’s ‘importance’ and do not represent a fully objective value for that person’s ‘importance’.
Most presentation styles use a matrix to show two dimensions – Interest and Power / Influence. ‘Interest’ represents their stake in the problem and the solution; while ‘Power’ / ‘Influence’ represents the ability of the stakeholders to positively or negatively influence the project.
How to Conduct Stakeholder Analysis
There are four main steps to analysing stakeholders’ influence and interest:
1. Identify the Stakeholders
2. Prioritise the Stakeholders
3. Determine the Needs of the Stakeholders
4. Document the Results in a Stakeholder Analysis Plan
1. Identify the Stakeholders
Who stands to win or lose from the project?
Who could potentially affect project success?
2. Prioritise the Stakeholders
Place each stakeholder at the appropriate point in the Influence / Interest grid. Knowing someone's position on the grid helps us understand how to interact with them.
Place each stakeholder at the appropriate point in the Influence / Interest grid. Knowing someone's position on the grid helps us understand how to interact with them.
Each part of the grid represents a different type of stakeholder. Their relative positions within the grid also illustrate differences between them. The four parts are:
Group A: High Influence BUT Low Interest
These are stakeholders whose actions can affect the project’s ability to meet it objectives. However they will neither gain nor lose much from the project. They may, for example, be local government bodies with no great involvement in the issue, but their cooperation is still necessary. We should still keep these stakeholders informed and engaged enough so that they do not hinder the project. It is also good to develop relationships with the most influential from this group, for example through regular executive reports, invitations to project-related events and participation on committees.
Group B: High Influence AND High Interest
These are stakeholders who stand to lose or gain significantly. They may have a powerful interest in change or an equally strong interest in maintaining the current situation. All the stakeholders in this group also have the ability to obstruct or support the project’s ability to meet its objectives. Within this group we may find powerful supporters such as donors or potential threats from employers, landowners, local politicians and even families. These are our most important stakeholders and thus need to be managed closely. We have to engage them fully, address their concerns and work hardest to satisfy them.
Group C: Low Influence AND Low Interest
Stakeholders in this group will neither benefit nor suffer much whether the project goes ahead or not. Furthermore, they have limited power to impact the project. Their inputs will have little effect on our planning, and they usually will only need the minimum of communication.
Group D: Low Influence BUT High Interest
These are stakeholders who are likely to win or lose as a result of the project but they have little power to affect the project. We still need to communicate enough to keep these stakeholders satisfied because they have specific project interests.
3. Determine the Needs of the Stakeholders
Next we need to explore each stakeholder’s needs in more depth. Depending on the group / individuals involved, this consultation may be through interview, survey or focus group discussion. Consider the following questions to help you better understand the stakeholders’ individual needs and motivations, and to decide the best way to involve the stakeholders in the project.
What kind of interest do they have in the project outcome? Is it financial gain / loss? Is it emotional interest (e.g. attachment to tradition)? Is it positive or negative? What motivates them?
What support do you need from them? What role will they play in the project?
What do they need from you? What expectations do they have? What kind of information will they need?
If the stakeholder’s attitude to the project is negative, what is their underlying fear? What actions can you take to address their fears or gain their support?
If they are going to oppose the project, how will you deal with their opposition?
Will dissatisfied stakeholders / opponents be able to influence or mobilise others? Do we also need to address these others as stakeholders before they join the opposition?
4. Document the Results in a Stakeholder Analysis Plan
The Stakeholder Analysis Plan is a table that describes how you will engage the identified stakeholders in the project. Sometimes you may wish to include this plan in your proposal, especially when dealing with issues where there are strong opponents to the project.
And if you want to go deeper into Stakeholder Analysis, join our online RBM / M&E course.
This part of the course covers Stakeholder Analysis as well as developing your own stakeholder communication plan. We also explore the often-overlooked concept of stakeholder engagement - developing a strategy for managing our stakeholders' interests and expectations with minimum impact on project resources - freeing us up to focus on delivering development results for our communities and target groups.
Group A: High Influence BUT Low Interest
These are stakeholders whose actions can affect the project’s ability to meet it objectives. However they will neither gain nor lose much from the project. They may, for example, be local government bodies with no great involvement in the issue, but their cooperation is still necessary. We should still keep these stakeholders informed and engaged enough so that they do not hinder the project. It is also good to develop relationships with the most influential from this group, for example through regular executive reports, invitations to project-related events and participation on committees.
Group B: High Influence AND High Interest
These are stakeholders who stand to lose or gain significantly. They may have a powerful interest in change or an equally strong interest in maintaining the current situation. All the stakeholders in this group also have the ability to obstruct or support the project’s ability to meet its objectives. Within this group we may find powerful supporters such as donors or potential threats from employers, landowners, local politicians and even families. These are our most important stakeholders and thus need to be managed closely. We have to engage them fully, address their concerns and work hardest to satisfy them.
Group C: Low Influence AND Low Interest
Stakeholders in this group will neither benefit nor suffer much whether the project goes ahead or not. Furthermore, they have limited power to impact the project. Their inputs will have little effect on our planning, and they usually will only need the minimum of communication.
Group D: Low Influence BUT High Interest
These are stakeholders who are likely to win or lose as a result of the project but they have little power to affect the project. We still need to communicate enough to keep these stakeholders satisfied because they have specific project interests.
3. Determine the Needs of the Stakeholders
Next we need to explore each stakeholder’s needs in more depth. Depending on the group / individuals involved, this consultation may be through interview, survey or focus group discussion. Consider the following questions to help you better understand the stakeholders’ individual needs and motivations, and to decide the best way to involve the stakeholders in the project.
What kind of interest do they have in the project outcome? Is it financial gain / loss? Is it emotional interest (e.g. attachment to tradition)? Is it positive or negative? What motivates them?
What support do you need from them? What role will they play in the project?
What do they need from you? What expectations do they have? What kind of information will they need?
If the stakeholder’s attitude to the project is negative, what is their underlying fear? What actions can you take to address their fears or gain their support?
If they are going to oppose the project, how will you deal with their opposition?
Will dissatisfied stakeholders / opponents be able to influence or mobilise others? Do we also need to address these others as stakeholders before they join the opposition?
4. Document the Results in a Stakeholder Analysis Plan
The Stakeholder Analysis Plan is a table that describes how you will engage the identified stakeholders in the project. Sometimes you may wish to include this plan in your proposal, especially when dealing with issues where there are strong opponents to the project.
And if you want to go deeper into Stakeholder Analysis, join our online RBM / M&E course.
This part of the course covers Stakeholder Analysis as well as developing your own stakeholder communication plan. We also explore the often-overlooked concept of stakeholder engagement - developing a strategy for managing our stakeholders' interests and expectations with minimum impact on project resources - freeing us up to focus on delivering development results for our communities and target groups.
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