How to Develop a Stakeholder Matrix

Identify the stakeholders likely to influence your success.

A stakeholder matrix is a visual representation of the people or organizations that can influence the success of a project or a business. The matrix shows the different stakeholders and indicates their level of interest and the power they have to influence success. Developing a matrix helps you to understand the role and influence of different stakeholders so that you can plan a strategy for gaining the support of the most important stakeholders. The development of a matrix has three stages: identifying and understanding your stakeholders; assessing their interest and power; and plotting the relationship between interest and power on the matrix.

Instructions

1. List the stakeholders with a direct impact on your project such as employees, labor unions, contractors, suppliers and investors. Their performance and attitude can affect the timing and cost of the project. Identify other people or organizations that have indirect influence on your project such as government authorities, communities or the media. Government authorities, for example, may impose regulations or restrictions that act as barriers to your project. Communities may have concerns about the environmental or economic impact of your project. The attitude of the media may influence the attitudes of other stakeholders.

2. Research the level of interest and understanding among different stakeholders. If a stakeholder’s support or level of influence is important to the success of the project, it is essential that their level of interest and understanding is high. Check the media and online forums to discover existing attitudes towards your project or your business. Invite stakeholders to a meeting to hear their views. Appoint a research firm to survey attitudes.

3. Assess the level of power or influence that different stakeholders wield. Government authorities or regulators may not have developed legislation that is relevant to your project. Their power would therefore be low. Local communities may have a track record of successfully opposing similar projects. Their power is high.

4. Create a matrix that shows the position of different stakeholders. A typical stakeholder matrix has four sectors. Place stakeholders with high interest and high power in the most important sector. Ensure that you manage relationships with them carefully to maintain their support. Stakeholders with high power but lower interest go into the second sector. Keep them satisfied. The third sector is for stakeholders with high interest but little power. Keep them informed. The final sector includes stakeholders with lower levels of interest and no power. Monitor their attitudes.

Tips & Warnings

• Review the position of stakeholders in the matrix as the project progresses. Attitudes and levels of influence can change in line with project developments and actions by other stakeholders. An adverse campaign in the media, for example, can turn supporters into opponents.

References

• Mind Tools: Stakeholder Analysis
• International Centre for Development Oriented Research in Agriculture: Stakeholder Matrices – Guidelines
• Chartered Quality Institute: Stakeholders