 What
is Stakeholder Analysis? Description
A Stakeholder Analysis is an approach that is frequently used to identify
and investigate the Force
Field formed by any group or individual who can affect or is affected
by the achievement of the objectives of an organization. Stakeholder Analysis
identifies the ways in which stakeholders may influence the organization or
may be influenced by its activities, as well as their attitude towards the
organization and its targets.
According to the Stakeholder
Value Perspective of Edward Freeman (Strategic Management: a Stakeholder
Approach 1984), the very purpose of the firm is to serve as a vehicle for
coordinating stakeholder interests. In this view, Stakeholder Analysis
is an end in itself. But even when we take a
Shareholder Value Perspective,
stakeholder analysis is an important means to achieve the corporate purpose.
The role of management is to formulate and implement
strategies and to make decisions that satisfy all or most of the stakeholders,
or to ensure at least that no powerful and legitimate stakeholders are left
too unhappy.
Here is a comprehensive list of typical stakeholders:
- Owners and stockholders, investors
- Banks and creditors
-
Partners and suppliers
- Buyers, customers and prospects
- Management
- Employees, works councils and labor unions
- Competitors
- Government (local, state, national, international) and regulators
- Professional associations, Industry trade groups
- Media
- Non-governmental organizations
- Public, social, political, environmental, religious interest groups,
communities
More individuals or groups may be identifiable in specific circumstances.
Some individuals can be part of multiple stakeholder groups. Some stakeholders
may have an explicit, formal organization, others may not. There are Internal
Stakeholders (such as employees) and External Stakeholders (such
as government).
The interests of all stakeholders are closely related with the general
success and wealth of the organization. However, certain stakeholders interests
are particularly important at times when certain issues must be addressed,
for example:
- Customers are important when quality of products are discussed.
- Employees are important when circumstances or safety at work is discussed.
- Government is important when dealing with the environment or legislation.
 We
can also distinguish between Primary Stakeholders (such as stockholders)
and Secondary Stakeholders (such as government). Where the line is
drawn precisely, is a source of much debate.
Usage of Stakeholder Analysis. Applications
Steps in Stakeholder Analysis. Process
- Identify stakeholders (Brainstorming)
- Understand stakeholder needs and interests. Classify them into meaningful
groups. Compare: Stakeholder
Mapping
- Prioritize, balance, reconcile or synthesize the stakeholders
- Integrate stakeholder needs into the strategies of the organization
and into its actions
Results of Stakeholder Analysis. Benefits
Limitations of Stakeholder Analysis. Disadvantages
- Ideally, a Stakeholder Analysis should be performed regularly or even
continuously, since the relevant stakeholders, their power and associations
may change quickly.
- Note that the management of an organization has to assess the position
of each stakeholder. It is the subjective perception of management that
will ultimately decide the way in which the organization will act towards
its stakeholders.
- It is normally impossible for management to satisfy all demands of all
stakeholders completely. Therefore managing becomes a balancing act
or even a reconciliation or synthesizing act, with the following
options:
- Focusing on one leading stakeholder group, and satisfying all others
to the extent which is necessary or possible. The leading stakeholder
group could be the owners or stockholders (Shareholder
Value Perspective) or even the managers themselves.
- Trying to balance or reconcile or synthesize all interests according
to their weight, importance or urgency (Stakeholder
Value Perspective).
- Note that quite often, a constructive cooperation with stakeholders
is missing.
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In the forum section you will find recent discussions within this knowledge area.
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In the best practices section you will find the best forum discussions within this knowledge area.
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In the expert tips section you will find advices from experts within this knowledge area.
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In the Resources section you will find powerpoint presentations, micro-learning videos, articles, news items, etc. within this knowledge area.
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Introduction to Stakeholder Management
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Stakeholder Analysis Diagrams
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News about Stakeholder Analysis
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News about Analyzing Stakeholders
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Videos about Stakeholder Analysis
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Videos about Analyzing Stakeholders
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Presentations about Stakeholder Analysis
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Presentations about Analyzing Stakeholders
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Books about Stakeholder Analysis
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Books about Analyzing Stakeholders
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More about Stakeholder Analysis
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More about Analyzing Stakeholders
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Compare with Stakeholder Analysis:
Stakeholder Mapping |
Force Field Analysis
| Stakeholder Value
Perspective |
Shareholder Value Perspective
| Ashridge Mission
Model | Clarkson
Principles |
Intrinsic Stakeholder
Commitment |
Strategic Stakeholder
Management | PEST Analysis
| Crisis Management
| Scenario Planning
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