What are Stakeholders? MENDELOW'S Stakeholder Analysis Simplified
Introduction to Stakeholders
Definition:
Stakeholders are any person, group, or company that can affect or be affected by a project or company.
Can be categorized as internal or external stakeholders.
Types of Stakeholders
Internal Stakeholders:
Individuals within the business or closely associated with its success/failure, including:
Employees
Company directors
Executive management
Internal auditors
Investors
Volunteers
External Stakeholders:
Individuals or entities that do not directly work for the company but are affected by its operations, including:
Customers
Business partners
Suppliers
Shareholders
Government organizations
Local communities
Example:
A customer who uses a gas station's loyalty program is an external stakeholder since their experience and satisfaction are influenced by the services provided, and they would be directly affected if the gas station closes or discontinues the loyalty program.
Understanding the Mandalo Stakeholder Matrix
Definition:
A visual tool to perform stakeholder analysis quickly and effectively.
Aids in prioritization of stakeholders and facilitates project explanation to others.
Structure:
X-axis: Level of interest of stakeholders
Y-axis: Amount of power or influence stakeholders have on the project
The Four Quadrants of the Mandalo Matrix
Low Power, Low Interest Stakeholders:
Characteristics:
Stakeholders with little power and interest in the project.
Examples: Clerical staff, interns.
Action:
Monitor their status, but they are not a priority.
Low Power, High Interest Stakeholders:
Characteristics:
Stakeholders heavily involved and affected by the project's outcome but lack power to influence direction.
Examples: Project team members not directly involved in decision-making.
Action:
Keep them informed about major project developments and aspects not directly related.
High Power, Low Interest Stakeholders:
Characteristics:
Stakeholders with potential influence but little interest in day-to-day project activities.
Examples: Senior management who are not directly involved in the project.
Action:
Provide regular updates to keep them satisfied (e.g., monthly or quarterly).
High Power, High Interest Stakeholders:
Characteristics:
Stakeholders who have direct involvement and significant influence on project success.
Examples: Heads of departments, project managers.
Action:
Engage closely with them through frequent communication to maintain alignment and address concerns.
Practical Example: "Good Insure" Case Study
Company Background: Good Insure is a car insurance provider facing issues of loss and low customer satisfaction.
Identified Problem:
Issues with booking software affecting customer experience.
Proposed Solution:
Invest in a new booking system integrated with website and app.
Stakeholder Mapping:
Project team listed stakeholders to create the Mandalo Matrix for better stakeholder management.
The Mandalo Matrix for Good Insure
Low Power, Low Interest:
Government agencies, non-profit organizations, one-off customers.
Action: Monitor and communicate as needed.
Low Power, High Interest:
Marketing department, loyal customers, organizational customers, website sales department.
Action: Keep informed about project developments.
High Power, Low Interest:
Play Store, App Store, insurance underwriters.
Action: Maintain satisfaction through regular updates on project impacts.
High Power, High Interest:
Project manager, project team members, Chief Technology Officer, IT department, purchasing team, website developer, apps team.
Action: Closely manage through frequent engagement and communication.
Conclusion
Importance of Stakeholder Management:
Essential for successful change management and project execution.
Development of a stakeholder engagement plan is crucial for communication throughout the project lifecycle.
Encouragement for Audience Engagement:
Viewers are invited to provide feedback on topics for future tutorials.