Stakeholder Definition Guide (2024)

This is step 1 of a 4 step guide, if you haven't read steps 2 - 4 you can access them here. Step 2 Stakeholder Analysis, Step 3 Stakeholder Planning, and Step 4 Stakeholder Engagement.

What is a Stakeholder?

A stakeholder is anybody who can affect or is affected by an organization, strategy or project. They can be internal or external and they can be at senior or junior levels. stakeholder-map.com
Stakeholder Definition Guide (1)

Our definition is broad and is the most widely accepted, however, some alternative definitions suggest that stakeholders must be those who have the power to impact an organization or project in some way. For example:

'People or small groups with the power to respond to, negotiate with, and change the strategic future of the organization' (Eden and Ackermann 1998:117).

As Bryson states this is a somewhat restrictive definition because it excludes those who are affected, but who don't any power to respond to or negotiate with an organization. Bryson prefers a more inclusive definition which extends to all people who are affected by a change, this wider meaning is more compatible with notions of democracy and social justice. (Bryson 2004: 22).

  • Learn how to identify your stakeholders

A broader definition also aligns with Edward Freeman's view. In his influential book Strategic Management: A StakeholderApproach (1984), he defines a stakeholder as:

'any group or individual who can affect or isaffected by the achievement of the organization's objectives' (1984: 46).

I agree that a wider definition is preferable, but not just for ethical reasons. projects whether small or large will impact people who don't have power during the implementation, but may do so in business as usual.

Remember to include peope who feel positive, they might help you sell or market the benefits of your project.

For example, call center staff may not have a choice in the procurement or implementation of a CRM system, but can be the key factor in the long-term adoption of the software. If call center staff don't fully adopt the software, if they don't use it's full capabilities then they impact senior managements' perception of the software and it success or failure. Disgruntled call center staff could prevent achievement of ROI which would ultimately result in the software being replaced. Therefore stakeholder identification must include those who may at first appear to be powerless.

Stakeholder Definition Guide (2)Your project can be impacted by a wide range of people!

Stakeholders can be:

  • Internal or external to your business
  • At Senior or junior level
  • Individuals or groups
  • Rich or poor
  • Powerful or weak
  • Saboteurs or champions
  • Activists or advocates

Deciding on the definition that you will use is an important choice that will drive your entire strategy. To help you decide, see more definitions at What is a Stakeholder?

Get the Stakeholder Management ebook and templates

How to identify your stakeholders

Stakeholders are crucial to the success of your project. Neglect them and they will actively work against you. Manage them well and they will actively promote you and your project (stakeholder-map.com)

The first step in is to identify your stakeholders. Get your project team together and list everybody that you can think of who is, or will be affected by the project.

Tools and techniques

Stakeholder Definition Guide (3)

Brainstorming

Is a great way to identify stakeholders. Ask someone to be the scribe and capture every name, organization and group you can think of. Alternatively you could give everybody a pad of sticky notes and ask them to write as many stakeholders as they can think of using one note per stakeholder. After 10 - 15 minutes put up the sticky notes on the wall or on flipchart paper. Read more on how to use brainstorming.

Mind mapping

Is also a useful way of unlocking your creativity and helping the ideas to flow. Your scribe can draw a mind map on a whiteboard or flipchart or you can use 'mind-mapping' software. See an example stakeholder mindmap for a software implementation project. There are many online and desktop providers of mindmapping software, offering free and paid options. A web search for 'mindmapping software' will find plenty of suggestions. We use mindmeister.com.

Stakeholder lists

Generic lists are a good starting point to identify potential stakeholders. This list suggests 105 stakeholders and you are welcome to use it. It is a generic list so it doesn't include many specialist or industry specific job titles, that said we hope it will be a useful to kick off your stakeholder mapping! For industry specific lists see BPM stakeholders, big data stakeholders, construction stakeholders, ecommerce stakeholders, IT stakeholders, ITIL stakeholders and government stakeholders. For projects see project stakeholders.

Previous projects

Search documentation from previous projects and talk to project teams to identify people likely to be involved for a particular project type or a particular client. You may be able to refer to a stakeholder map or glean stakeholders from project plans, PIDs, risk logs and so on. The ebook includes two completed stakeholder analyzes, one for a software project and one for a university construction project.

Get the Stakeholder Management ebook and templates

Organization charts and directories

Perhaps the first place to look for stakeholders is your company organization chart or directory. Interesting insights can also be gained by reviewing LinkedIn and social network sites. For example, use advanced people search on LinkedIn to filter by company, industry, job title, and/or seniority.

Stakeholder Categories

If you are struggling you could try using categories to identify potential stakeholders. For example the OGC suggest that it can be helpful to organise people by the following categories:

  • users/beneficiaries:
    • customers
    • staff
    • freelancers
    • contractors
  • governance:
    • board of directors
    • steering groups
    • project boards
    • audit
    • regulatory
  • influencers:
    • trade unions
    • media
    • local interest groups
  • providers:
    • suppliers
    • partners

For example, your mind map could start off looking something like this:

Stakeholder Definition Guide (4)

What is a Stakeholder mindmap


Create your own version of this mindmap.

Step 1 - Click here to download the map to your computer. Extract all files.
Step 2 - Create your Mindmeister account.
Step 3 - Import Stakeholder_Identification.mind.
There are eight (8) other mindmaps in the zip folder which you are free to use. 23 bonus mindmaps are included with Stakeholder Management ebook.

The mindmap above is adapted from OGC, Managing Success Programmes, London: TSO, 2007 pg. 51.

Stakeholder Definition Guide (2024)

FAQs

Stakeholder Definition Guide? ›

Stakeholder means any people or groups who are positively or negatively impacted by a project, initiative, policy or organisation. They could be internal (people within your organisation) or external (people outside of your organisation).

How should we define a stakeholder? ›

A stakeholder is a person, group or organization with a vested interest, or stake, in the decision-making and activities of a business, organization or project. Stakeholders can be members of the organization they have a stake in, or they can have no official affiliation.

Which definition best describes a stakeholder? ›

Quality Glossary Definition: Stakeholder. The international standard providing guidance on social responsibility, called ISO 26000, defines a stakeholder as an "individual or group that has an interest in any decision or activity of an organization."

What are the 4 stakeholders? ›

The primary stakeholders in a corporation include its investors, employees, customers, and suppliers. With the increasing attention on corporate social responsibility, the concept has been extended to include communities, governments, and trade associations.

What is the definition of a stakeholder in Six Sigma? ›

Stakeholders are the people who have an interest or influence in your Lean Six Sigma project, such as customers, sponsors, team members, suppliers, or managers.

When defining stakeholders, you should? ›

How to identify key stakeholders
  1. Review your stakeholders. Make a list of all the stakeholders at your company. ...
  2. Understand the purpose behind identifying your key stakeholders. ...
  3. Determine their impact on your operations. ...
  4. Learn their needs in relation to your business. ...
  5. Prioritize your list.
Mar 10, 2023

How do you determine who is a stakeholder? ›

Stakeholders can be people or organizations who have an interest in the issue you are researching. Stakeholders may be community organizations, government agencies, or people of a specific demographic or identity.

What is the broad definition of a stakeholder? ›

Stakeholder means any people or groups who are positively or negatively impacted by a project, initiative, policy or organisation. They could be internal (people within your organisation) or external (people outside of your organisation).

What are the characteristics of a stakeholder? ›

Stakeholders are those who may be affected by or have an effect on an effort. They may also include people who have a strong interest in the effort for academic, philosophical, or political reasons, even though they and their families, friends, and associates are not directly affected by it.

Which of the following is not a stakeholder? ›

Answer and Explanation:

Competitors are not considered to be a stakeholder. Although competitors may directly or indirectly impact an organization, they are not stakeholders.

What are the 4 P's of stakeholders? ›

Introducing the Key Stakeholders: Patients, Providers, Payors, and Policymakers (the Four P's) – Connecting Health Information Systems for Better Health.

Is a stakeholder a person or entity? ›

A stakeholder is anyone who is impacted by a company or organization's decisions, regardless of whether they have ownership in that company. Shareholders are those who have partial ownership of a company because they have bought stock in it. All shareholders are stakeholders, but not all stakeholders are shareholders.

Who is categorized as stakeholders? ›

Despite being grouped together, stakeholders are individuals, with specific needs and demands. They also may straddle different groups. An employee may also be an investor. A politician may also reside in the community in which the company operates.

What is a stakeholder in simple terms? ›

A stakeholder is either an individual, group or organization that's impacted by the outcome of a project or a business venture. Stakeholders have an interest in the success of the project and can be within or outside the organization that's sponsoring the project.

What is the ITIL definition of a stakeholder? ›

A person who has an interest in an organization, project, IT service etc. Stakeholders may be interested in the activities, targets, resources or deliverables. Stakeholders may include customers, partners, employees, shareholders, owners etc. ”

What is the stakeholder theory in simple words? ›

Stakeholder Theory is a view of capitalism that stresses the interconnected relationships between a business and its customers, suppliers, employees, investors, communities and others who have a stake in the organization.

What are the criteria for identifying a good stakeholder? ›

Four criteria for selecting stakeholders are:
  • their legitimacy.
  • their real and potential power.
  • the urgency they assign to the problem.
  • practical considerations.
Oct 28, 2021

Which of the following best defines stakeholders? ›

Expert-Verified Answer

The best definition of stakeholders is option C: anyone directly or indirectly affected by the organization.

Why is it important to define stakeholders? ›

If you know who your stakeholders are, you'll be in a much better position to manage and engage them, and turn them into advocates and supporters. In fact, this study looked at whether stakeholders mattered in an organization's strategic decision making.

Why should you identify stakeholders? ›

Why Are Stakeholders Important? To sum it up - without stakeholders, there would be no projects. Engaging project stakeholders can bring many benefits to the project. They can get involved in the decision-making process and influence the organisation's actions in a way that is helpful to the project management team.

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