A stakeholder can best be described as an organization or an individual with interest, especially in business. A stakeholder can have a negative or positive influence on an organization, and this explains why the type of stakeholders matters. Stakeholder analysis is the process of determining the significance of particular groups or individuals on a proposed action. The emphasis in stakeholder analysis is placed on identification of the impact of a proposed action and the involvement of stakeholders who may be having conflicting interests.
There are different perspectives when dealing with stakeholder analysis, and different teams may have different approaches to arriving at a long-lasting solution. The critical factor to consider in this case is that although the various individuals have been in the organization for a prolonged time, they have different qualifications. With the underlying challenge, the outlined steps will be essential in concluding on the stakeholders that will be needed by the organization to achieve the desired goals.
Step One: Brainstorming and Identification of all the Stakeholders
The potential stakeholders have different backgrounds and may be responsible for any negative impact on the organization. Consequently, stakeholders can comprise the state, employees, suppliers, and customers, among other parties (Fletcher et al., 2016). It is essential to note that the actions portrayed by different stakeholders may be aligned with different interests.
Step Two: Identifying the Different Interests of the Stakeholders
After all the stakeholders have been identified, then the next step would be finding out the interests of the stakeholders. Since the group may be having conflicting interests, it is essential to determine the specific benefit of each stakeholder (Mitchell, 2017).
Step Three: Classification of Groups of Interest
After eliciting information for each person, it will be essential to classify the groups of interest. Therefore, stakeholder mapping will be based on his/her expectations and vital areas of performance in the company. The groups can be hierarchically determined to base on the needs evident in the stakeholder network.
Step Four: Identification of Areas of Conflict
The different areas should be determined in the whole cycle. The variation in each stakeholder’s concern will enable the definition of balance in the organization to reduce contention among stakeholders. One of the areas that can lead to conflicting views is stakeholder’s interest versus the interest of the organization. Some stakeholders may be having a conflicting interest to that of the organization. When such a scenario arises, then the organization’s interests must prevail.
Step Five: Prioritization of Conflicting Stakeholders.
This step will make it possible to provide a balance of all the factors that seem to be competing in the organization. After that, the needs of the stakeholders can be aligned with strategies to be adopted in the organization (Turner, 2018).
The following format stakeholder analysis matrix will be essential in establishing detailed information from each stakeholder.
|Interests of the Stakeholder
Stakeholder analysis is critical because it gives meaningful information about each stakeholder in terms of their interests, which in turn is vital in identifying possible risks. Consequently, it provides the organization with a chance to develop efficient decision making procedures to mitigate potential risks (Turner, 2018). Hence, the analysis will ensure that the organization develops acceptable actions aligned to the goals of the firm.
On the contrary, stakeholder analysis has some limitations. The analysis has to be a continuous process to realize positive results in the firm. Also, the assessment may tend to be subjective since the team responsible for conducting the analysis has individuals with varying educational backgrounds.
The project charter covers the project statement, scope, objectives, and participants involved in the project (Mitchell, 2017). All the varied interests of stakeholders should be integrated to suit the business setting. The charter stipulates the powers of the project manager and also outlines other stakeholders involved. It is an essential component of an organization because it acts as a reference point for future projects. Consequently, it highlights all the stakeholders’ names, and this points out why the document is essential in planning.
When a project commences, a point of reference is necessary to be able to manage deviations that may arise during the execution and implementation of the project. A project begins when an opportunity or an idea is identified. Often, the plan ought to be executed in line with the organization’s expectations, goals, and needs. Therefore, the charter should highlight aspects such as how the need was identified and how it was planned. Finally, after determining the need and how it was implemented, the charter has to link roles played by each member to the organization’s goals. This, in turn, ensures the effective execution of plans. Hence, a charter should connect the stakeholders to all the resources that have been disposed for the implementation of the project.
Project Charter Contents
- Management structure in the firm: The structure is essential because it identifies the pioneer of the project and the hierarchy used in the project team. Furthermore, the stakeholders involved in providing the necessary input in the project are also highlighted.
- Management processes: This part highlights the contents of documentation that can be used for reference by the stakeholders. The stakeholders must have a clear understanding of the management process.
- Project scope: In the scope of the project, the cost and scheduling needs involved in the project must be determined. It is also vital to include the goals and phases evident in the project.
- Management Practices: This part is vital to monitor the conduct of the project team and other stakeholders. Everyone is expected to execute their duties using the management practices stipulated in the charter.
- Communication: The project should have a clear channel of communication to ensure clarity at every stage of project execution. Additionally, the rate of communication must be outlined to ensure that the project ends at the specified time.
Project Charter Purpose
- The charter gives valid reasons why the project should be implemented.
- It highlights the goals and underlying constraints that may be evident in the project.
- It gives direction on how to deal with possible challenges that may occur when undertaking a project.
- The charter enhances effective communication and minimizes errors, which may have cost implications.
- The charter is essential in identifying possible risks during the initial stages of the project implementation.
Indeed, stakeholder analysis is the key to a successful project. It is essential to understand the different interests of stakeholders and aligning them with the objectives of the organization to avoid conflicts. Stakeholders can have either a negative or positive, and that is why they should be keenly selected and analyzed. With the help of project charter, it easier to define roles and to refer in case there is a misunderstanding among stakeholders.
Fletcher, A., et al. (2016). “Mapping stakeholder perceptions for a third sector organization.” in: Journal of Intellectual Capital 4(4): 505 – 527.
Mitchell, R. K. (2017). “Toward a Theory of Stakeholder Identification and Salience: Defining the Principle of Who and What Really Counts.” in: Academy of Management Review 22(4): 853 – 888.
Turner, J. R., et al. (2018). The Project Manager as Change Agent. London, McGraw-Hill Publishing Co.