Stakeholder Analysis

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Stakeholder Analysis

• February 2006

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Stakeholder Analysis

• Purpose
• Timing
• Steps

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Purpose and Timing

• Purpose
• To identify the key stakeholder groups and assess
  their positioning with respect to the change
  initiative.
• Timing
• One of the initial exercises to begin to
  establish the change leadership challenges ahead.

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Step 1 Draw an Org Chart

• Draw a high-level company org chart (7 to 10
  boxes maximum).
• Example

CEO
Bus. Unit B
Marketing
Finance
Legal
HR
Bus. Unit A
Customer Group(s)
Supplier Group(s)
Regulator(s)
e.g. Sheet metal suppliers
e.g. Tax Authorities
e.g. Automotive Industry Customers
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Stakeholder Positioning Matrix - Identifying
Audiences

• The Board
• Senior Executives
• Executive Sponsor

• Senior Manager
• Senior Management Owners
• Process Owners

UPWARD

• Program Leadership
• Team
• Project Teams
• Supporting Teams

• External Customers
• Stockholders
• Government
• Broader Community

AUDIENCES
PROGRAM
EXTERNAL
INWARD

• Line Managers
• Resource Providers
• Staff Functions

• Internal Customers
• All areas of the organization
• that will be affected

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Step 2 Assessment

• For each group identified assess
• The criticality of having this group support the
  change (high medium low)
• The likely current orientation of this group
  regarding the change (supportive neutral
  resistant)
• The degree of influence this group will have on
  the change (large medium small). For
  internal groups this may be proportionate to
  their size in headcount but some groups may
  have influence beyond their size (legal or office
  of the CEO for example). For external groups the
  team will need to make an educated assessment.

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Step 2 Example
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Step 3 Matrix Building

• Build a 3x3 matrix (Criticality across the top
  Current Orientation along the side).
• Cut out paper circles for each group with the
  size representing their influence and position
  them on the 3x3 matrix.
• Discuss and rearrange until the team is satisfied
  that the map reflects the current reality.

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Step 3 Example
Criticality to Success
LOW
MEDIUM
HIGH
CEO
Finance
SUPPORTIVE
Marketing
Automotive Customers
NEUTRAL
Tax Authorities
Current Orientation
Business Unit B
Legal
Business Unit A
HR
RESISTANT
Sheet Metal Suppliers
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Step 4 Implications

• Discuss the implication of the positioning
  matrix.

• Example
• Finance and the CEO are our biggest allies
• Business Unit A is our biggest challenge with
  Legal and Automotive Customers close behind
• Need to keep Marketing Business Unit B and Tax
  Authorities from becoming problems
• Look for ways to make HR and Suppliers at least
  neutral to the change

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Step 5 Game Plan

• Purpose
• To develop a game plan to appropriately address
  and influence each stakeholder group.
• Timing
• Best to take an initial pass at this early in the
  change effort and revisit as needed.
• Steps
• Record each stakeholders current orientation and
  agree on a desired state.
• Note each stakeholders key issues or concerns.
• Devise a strategy to move each stakeholder toward
  the current state (or utilize supportive
  stakeholders to influence others).
• Assign responsibility to team members to initiate
  the strategies.

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Step 5 Example