Stakeholder Analysis


The final area to be covered in the Analysis stage is that of the Stakeholders in the organisation. It is important to conduct a Stakeholder Analysis, as the most powerful stakeholders are the ones who ultimately determine the purpose and direction of the organisation. It may be easy to assume that the owners of an organisation are the most powerful stakeholders, however, this is often not the case and so the leader in an organisation should have a clear view of where the most powerful influences are likely to come from.

Stakeholder Analysis is a process that involves the following stages:

  • Identify – who are the stakeholders?
  • Assess and rank – which stakeholders have the most power or influence over the organisation?
  • Decide criteria – what are the stakeholders’ expectations?
  • Decide actions – are we meeting the stakeholders’ expectations?  If not, what should we do?
  • Assess performance – are our actions on generating the appropriate outcomes, or should we change?

From our Stakeholder Analysis we should have more information which can be carried forward to the SWOT analysis.

 Mendelows Matrix

Mendelow's Matrix

Another method often used to analyse stakeholders is the Mendelows Matrix. The Mendelows matrix assesses the extent to which the stakeholders can affect the activities of the organisation depending on the relationship between the stakeholder and the organisation.

Mendelows Matrix categorises stakeholders as the following

  • High interest and power – This category of stakeholders are very important to the organisation and largely influence the activities of the organisation.
  • Low interest and high power – This category of stakeholders are also important to the business and these types of stakeholders have to be kept satisfied by the business in order to prevent them from gaining interest into the organisation and hence influence their activities.
  • High interest and Low power – This category of stakeholders have to be kept assured that the organisaiton is performing accordingly otherwise may try and join other parties with more power in order to influence the activities of the business.
  • Low interest and power – This category of stakeholders are of a lesser importance to the organisation and its activities.