Stakeholder Identification
The first step in developing a stakeholder management plan is to identify all individuals or groups who may influence—or be influenced by—the project. This process often starts with internal brainstorming sessions among the project team and sponsor. Team members examine organizational charts to capture all relevant departments and reporting lines, which helps reveal stakeholders who may not be immediately visible.
In addition, contract documents and project charters should be reviewed to identify external parties such as suppliers, clients, subcontractors, and regulatory agencies. For more complex projects, consulting with subject matter experts can be essential, since they often have practical knowledge about stakeholders who are not listed on formal documents but still play a critical role (such as informal influencers within a department or influential community groups).
It’s important to consider both direct and indirect stakeholders.
- Direct stakeholders are those actively involved in the project (e.g., project sponsors, team members, end-users).
- Indirect stakeholders may not participate in the day-to-day activities but could still feel the project’s impact (e.g., employees in other departments, customers, or members of the public).
- A thorough identification process ensures that all relevant voices are acknowledged before moving into planning and execution.
Stakeholder Classification
Once stakeholders have been identified, the next step is to classify them based on their relationship to the project. This helps the project team understand where to focus its engagement efforts.
Stakeholders are commonly assessed against the following three dimensions:
Level of Interest
This refers to how much the stakeholder cares about the project and its outcomes. Some stakeholders may have a strong personal or professional interest (e.g., end-users of a new system), while others may only be marginally affected.
Degree of Influence
This measures the stakeholder’s power to impact project decisions, outcomes or access to resources. Some stakeholders—such as executive sponsors or regulatory bodies—may have authority to approve budgets, change scope, or halt progress.
Potential Impact
This evaluates how much the project will affect the stakeholder, positively or negatively. For instance, an end user may not have formal decision-making power, but the project will significantly change their daily processes—therefore they carry a high impact rating.
Why Classification Matters
By understanding each stakeholder’s interest, influence, and potential impact, the project team can determine how much time and effort should be devoted to managing each relationship.
- Stakeholders with high influence and high interest require close engagement and frequent communication.
- Those with low influence and low interest may only require periodic updates.
This structured classification avoids a one-size-fits-all approach and ensures that stakeholder engagement strategies are targeted, efficient, and effective.
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