How can you use stakeholder analysis to improve your strategic thinking?

We often forget that Stakeholders are not industry insiders. 1. List all stakeholders to your biz, 2. include the employees families as well, 3. Map the stakeholders in a matrix (power they have to influence your biz, and how close you are to them), 4. Develop initiatives for the Stakeholders in 3 quadrants of the matrix. 5. No action needed for Stakeholders in the quadrant low power/low closeness. You can simulate a matrix to project future stakeholders.

Stakeholder analysis involved mapping everyone and everything that may have (or think they have) an interest or influence on your project, initiative, or change - positive or negative. If a project is important enough you will undertake this analysis in advance of it - work out who your stakeholders are, determine they levels of power and interest (help or hinder) and have a comms plan to engage, communicate or inform them as to what's happening in their language. Managing expectations is a key skill that should be taught in every business school. But sadly it takes us to get a kicking or two before we realise many of the influences at play in every project and then we learn to be more strategic in our messaging from that day onwards.

Who are the key people who can approve/advocate for your project, can stop/ derail your project and/ or will be affected by your project? Start here. And if your project is not important to your boss (your ultimate stakeholder), ask if you should be doing it right now. What has their attention and how can you support their strategy with your strategy?

Understanding what each stakeholder is 'on the hook for', what matters to them and where they are coming from is crucial in any senior role. Identifying those with the most influence, those who might be detractors and understanding why helps you to build your approach, your narrative and collate the right data.

I have found stakeholder analysis particularly useful when undertaking an enforced change within a business. By stopping to think about the impacts and influence that can be made by, through and to people almost always ensures a more positive outcome. This is simply good governance and better placed risk management.

I think I'd frame this a bit differently - successful strategies are inclusive. They listen to the views of everyone, play back the trade offs of different positions, seek alignment where it is possible, and shape unified thought and action. You can't do any of that if you cynically engage in stakeholder analysis and engagement. If you look at your stakeholders narrowly by their power to influence or as people to be persuaded rather than people with essential insights into possible and likely overlapping futures, you've already started on the wrong foot. Three horizons, baby!

Stakeholder analysis is a critical component of strategic thinking designed to provide valuable insights, identify, limit or manage potential risks, build relationships and enhance the decision-making process in a way that aligns with the needs and expectations of the organization and those impacted by it. It's an essential tool for achieving long-term success and sustainability.

Satkeholders have a stake in what you are doing and are impacted by your decisions. In today's world we are dependent on our stake holders for much of our success. Your strategic thinking needs to consider your stakeholders risks and challenges and strengths. Without such an in-depth analysis of your stakeholders your strategic thinking can leave you vulnerable to risks which may not be under your control.

Stakeholder analysis is vital for strategic thinking because it illuminates the interests and influences surrounding an initiative. Identifying key players, their motivations, and their potential impact it allows for better-informed decisions. Engaging with stakeholders can identify opportunities, mitigate risks, and foster collaboration. Without this analysis, there's a risk of overlooking crucial perspectives or facing unforeseen opposition. Furthermore, understanding stakeholders helps tailor communication and engagement strategies, ensuring alignment and buy-in. This comprehensive understanding facilitates proactive planning, ensuring systems are robust, adaptable, and inclusive, optimizing chances of success in any strategic endeavor.

Stakeholder analysis is key to strategic thinking. It applies across nearly all of my postgraduate leadership teaching. Often, some stakeholders are not given the strategic focus which is needed so undertaking this analysis offers balanced understanding of how to engage them

An Affinity Diagram is a great tool to support Stakeholder Analysis. Once you have identified your stakeholders, you need to get their input and you need a way to document their ideas and feedback. Firstly, these are used in a collaborative setting which stimulates people and teams to be creative and document each point they want to make. It then allows the group or you as the facilitator to simplify and categorize the information into manageable groups or themes. This makes it easier to identify patterns and trends. The structured approach of affinity diagrams can save time by preventing discussions from becoming chaotic or disorganized. It streamlines the brainstorming and idea-capturing process.

Everything you read here is great practical advice and if you follow it you will be a lot further ahead than most others, however, projects are not linear and involve people. People are not rational so don't try and solve things rational. We all have our biases and have noise that clouds our judgement.

Brainstorm all potential stakeholders and map them out visually. Categorize stakeholders in a power/interest matrix based on their influence and level of interest. This spotlights who to prioritize. Create a table listing each stakeholder's needs, concerns, risks, and influence. Gather intel by interviewing them or researching. With these insights, thoughtfully plan your engagement strategy. Tailor communications and collaboration methods to each group.

A stakeholder analysis has four parts. First, you need to understand how stakeholder relationships align with your operational goals. Second, you need to get to profile your stakeholders. Who are they? What do they know (or think they know) about you? How are they feeling about you? What do they value? Create personas for each. Third, you need to prioritize them. How much influence do they have over your organization? How close is your relationship? Mapping tools can help. Fourth, based on the above, you need to set objectives for each based on your operational goals and how important they are to you. Once you have this analysis, then you can develop strategies for improving the relationship.

The most simple version is to book in coversations with your key stakeholders (possibly with some question themes in mind). Stakeholder engagement is the front, people facing element to stakeholder analysis - build your understanding and relationships and then collaborate to shape ways forward. Of course, you can also then pull together diagnostic tools and surveys to quantify what you are hearing, but stakeholders are people - the biggest investment here should be through the time you spend getting to know why they are engaging with your organisation and how you can make that better for you both.

Stakeholder analysis is non-negotiable. Before every key meeting, conversation and project, we need to know exactly who we’re speaking to, what their needs and interests are, and how our agendas intersect. Only then would we be able to deliver our audiences what they need and deliver impact.

Leaders that find the greatest success align actions and messages, building trust and fostering positive relationships. In addition, they excel in - Hone their Vision, Goals, and Values - Anticipating Stakeholder Impacts - Identifying opportunities to create maximum value - Evaluating growth and performance At the end of the day, stakeholder analysis provides a comprehensive framework for understanding, prioritizing, and engaging with the various parties that have a vested interest in the success of the organization. By incorporating these insights into their strategic thinking process, an executive can make more informed decisions that lead to mutually beneficial outcomes, driving the organization towards measurable success.

Stakeholder analysis is a valuable tool for sharpening strategic thinking. It provides insights that help refine your vision, goals, and approach to be more aligned and effective. By illuminating potential impacts on stakeholders, you can anticipate challenges and opportunities. This allows for more informed, proactive decision making. Understanding stakeholder interests and motivations enables you to craft targeted strategies and messages that will resonate and garner support. Evaluating feedback and results from their perspective helps assess performance and progress. This fuels continuous improvement of strategic plans.

One valuable aspect to consider is the timeline of the strategy and how each step within that timeline will impact various stakeholders. It's important to recognise that the first step of the strategy will not have the same impact or create the same opportunities as step number 10. This anticipation of varying impacts over an extended period is particularly crucial when we are contemplating a strategy of change - and how it will affect each stakeholder group at different stages of the strategy.

Stakeholder's are people, organisations are made up of people - stakeholder engagement builds the relationships with the right people, stakeholder analysis lets you put numbers and views to analyse the intersection of all these stakeholders and what it means for your business strategy going forward. If at all possible, "Keep it Simple" is a great tool here - taking on the views of all stakeholders can be complex when using this information to influence your future strategy.

While there are a number of formal ways to conduct stakeholder analysis I am an advocate for clearly identifying who your stakeholders are and regularly speaking with them informally to 'temperature check' where they are in their lives in terms of navigating the important decisions that will, ultimately, impact the projects you lead. It takes a human approach, and the development of deeper connections and genuine relationships to do this effectively. Take the time to get to know your stakeholders. Even break bread with them (dine together) if you can. Make a point of scheduling these catch ups as a priority action in your stakeholder management plan.

To improve your stakeholder analysis skills (and create a stakeholder map), answer the questions in the following 3 steps: Step 1: What work needs to be done? What is the desired outcome? Step 2: Who is at this table? What are their interests or concerns? Are they voicing the interests and concerns of people who aren’t at the table? What are they trying to grow? What are they trying to protect? Step 3: For each person or interest mentioned in step 2, what pressures or people exert their influence over each stakeholder? What are they trying to achieve? What are they trying to protect?

I work with organizations helping to design their analytics strategy for key talent development initiatives. One area which I haven't seen touched on in this article is analyzing feedback during / after an initiative, to create a cycle of continuous improvement. It is so important to understand if stakeholders believe that programs are having the impact for which they were designed. Front-end analysis is incredibly valuable, but then we also need to understand whether goals are being achieved or if we've missed the mark!

One of the biggest challenges in stakeholder engagement is getting comfortable with vulnerability. Often, leaders spend their time in air-conditioned offices and other privileged spaces that insulate them from what their stakeholders are experiencing. That insulation is comfortable, and it's understandable that hearing things you don't want to hear might cause you to become defensive. But your stakeholders know things you don't know—or you do know but don't want to admit.

Stakeholder engagement and analysis is all about relationship building, both informally and formally so that the right information is up to date, relevant and influencing your strategic priorities in a sensible way. Keep talking to the your stakeholders, add in your diagnostics where appropriate, make it a 2 way conversation - co-collaboration on solutions or new ideas can lead to some fantastic new partnerships.

When I work with stakeholder analysis, I usually compliment it with Empathy Mapping, especially when it comes to resistance or negativity as it gives you a good window into motivation and a opportunity to be more effective in your execution and collaboration. Resistance is a expression of a underlying concern, by addressing the concern, you most likely will move the person from resistance to support or even championing. So in essence, understand and meet your stakeholders where they are and bring them along the journey.

Design Thinking helps you do a Stakeholder Analysis in the Empathize Stage through its Stakeholder Journey Maps and enables you to identify stressors. These stressors help you accurately determine the problem statement, leading to a solution prototype for testing and scale. Design Thinking is emerging as a Strategic tool for Complex Human Centric Problems.

Like any skill, improving your stakeholder analysis abilities takes continuous effort and learning. I've found soliciting candid feedback from colleagues on your engagement strategies provides valuable critiques to strengthen your approach over time. Additionally, reflecting on previous projects helps identify what analysis methods worked smoothly versus encountering blindspots or resistance - learn from experience. Of course, simply gaining more practice through engagements develops instincts and mastery. Consider executive coaching focused on enhancing capabilities, as an outside expert perspective can guide honing this crucial strategic skill.

Benefits of stakeholder analysis include: Better Communication: Understanding stakeholders allows for tailored communication addresses specific needs. Risk Management: By identifying potential issues or conflicts early on, you can develop strategies to manage or mitigate them. Increased Buy-in and Support: Engaging stakeholders leads to increased support for your project or decision, ensuring smoother implementation. Informed Decision Making: Gathering insights from a diverse set of stakeholders leads to better, more informed decisions. Conducting a thorough stakeholder analysis can be key to the success of a project, policy, or decision, as it ensures that all voices are considered and potential challenges are addressed proactively.