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Stakeholder Analysis. | February 2006. Stakeholder Analysis. Purpose Timing Steps. Purpose and Timing. Purpose To identify the key stakeholder groups and assess their positioning with respect to the change initiative. Timing
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Stakeholder Analysis | February 2006
Stakeholder Analysis Purpose Timing Steps
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.
Step 1: Draw an Org Chart • Draw a high-level company org chart (7 to 10 boxes maximum). • Example: CEO Bus. Unit A Bus. Unit B Marketing Finance Legal HR Customer Group(s) Supplier Group(s) Regulator(s) e.g., Sheet metal suppliers e.g., Tax Authorities e.g., Automotive Industry Customers
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 • Internal Customers • All areas of the organization • that will be affected • Line Managers • Resource Providers • Staff Functions
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.
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.
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
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
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 stakeholder’s current orientation and agree on a desired state. • Note each stakeholder’s 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.
