Stakeholder
A party who affects, or is affected by, the outcome of a project or decision.
A stakeholder is a party who affects, or is affected by, the outcome of a project or decision. In Japanese the literal translation is “rigai kankeisha” (interested parties), but in business the loanword “stakeholder” is usually used as is. The success of a project depends heavily on how accurately stakeholders are identified and involved, and failures in communication with the people involved have been repeatedly pointed out as a major cause of project failure.
Classifying stakeholders
Mendelow’s stakeholder matrix classifies stakeholders into 4 quadrants along two axes, Power and Interest. The best communication strategy differs by quadrant.
Typical examples of stakeholders
| Category | Examples | Concerns |
|---|---|---|
| Leadership | CEO, executives, department heads | Strategic impact on the business |
| Project members | PM, engineers, designers | Feasibility, resources |
| Users / customers | End users, purchasing staff | Ease of use, value |
| Cross-functional departments | Legal, security, HR | Compliance, risk |
| External parties | Vendors, regulators, shareholders | Contracts, laws and regulations, financial impact |
Checkpoints you cannot skip in identifying stakeholders
Stakeholders that are often overlooked
- Cross-functional departments (legal / security / accounting)
- The maintenance team that looks after things once in operation
- Existing customers who are affected
- Vendors / outside collaborators
- The silent majority (people who do not speak up but are opposed)
Deciding whom to invite to meetings
If you invite every stakeholder to every meeting, the discussion spreads out and nothing gets decided. A common design is to invite only members of the Manage Closely quadrant to important meetings such as a kickoff meeting and to replace attendance for everyone else with shared minutes. Applying the idea of a quorum makes it easier to decide whom to invite.