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Stakeholder Analysis

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

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  1. Stakeholder Analysis | February 2006

  2. Stakeholder Analysis Purpose Timing Steps

  3. 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.

  4. 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

  5. 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

  6. 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.

  7. Step 2: Example

  8. 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.

  9. 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

  10. 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

  11. 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.

  12. Step 5: Example

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