Stakeholder Analysis: The Foundation of Project Success

In any project—whether it's launching a new product, redesigning a business process, or implementing Lean Six Sigma—there’s one critical truth:

People make projects happen.

Some people support your efforts, others may resist change, and your results impact many. The way you manage these relationships can determine the success or failure of your project. That’s where stakeholder analysis comes in.

In this blog, we’ll break down what stakeholder analysis is, why it matters, and how to do it effectively.

What Is Stakeholder Analysis?

Stakeholder analysis is the process of identifying, understanding, and managing the individuals and groups who are affected by or have influence over a project.

It helps answer key questions like:

• Who are the stakeholders in this project?

• What are their interests, concerns, and motivations?

• How much influence do they have?

• What communication or engagement strategy should we use for each one?

This analysis becomes the cornerstone of your communication plan, risk mitigation strategy, and even change management approach.

Why Stakeholder Analysis Matters

Ignoring stakeholder expectations can lead to delays, resistance, or outright failure. Engaging stakeholders early and often leads to:

✅ Better decision-making✅ Smoother implementation✅ Stronger support and buy-in✅ Fewer surprises during the project✅ Improved customer and employee satisfaction

In Lean Six Sigma, stakeholder analysis is crucial in the Define and Measure phases of DMAIC to ensure alignment with customer and business needs.

Who Are Your Stakeholders?

Stakeholders can be internal or external, direct or indirect. Some typical examples include:

• Executive sponsors (e.g., VP of Operations)

• Process owners

• Frontline employees

• Customers and end-users

• Suppliers

• IT teams

• Finance and compliance teams

• Regulatory bodies

• Unions or employee representatives

Tip: If someone can influence, be influenced by, or have an interest in your project—consider them a stakeholder.

How to Perform a Stakeholder Analysis (Step-by-Step)

Step 1: Identify Stakeholders

Start by brainstorming everyone who might be affected by or can influence the project. Use:

• SIPOC diagrams

• Process maps

• Organization charts

• Project charters

• Team discussions

Step 2: Assess Their Influence and Interest

For each stakeholder, assess two key dimensions:

• Power: How much authority or influence do they have?

• Interest: How much do they care about this project?

This leads to a classic Power vs. Interest Grid, dividing stakeholders into 4 categories:

Category	Description	Strategy
High Power, High Interest	Key players	Engage closely, manage actively
High Power, Low Interest	Keep satisfied	Update regularly, involve selectively
Low Power, High Interest	Keep informed	Communicate frequently, listen to feedback
Low Power, Low Interest	Monitor	Provide minimal updates

Step 3: Understand Their Perspective

Ask yourself:

• What are their concerns or potential objections?

• What do they want to gain (or avoid)?

• What motivates them—data, risk reduction, cost savings, visibility?

You can gather this through interviews, surveys, informal chats, or team workshops.

Step 4: Plan Engagement Strategies

Tailor your communication and involvement plans based on the stakeholder type:

Stakeholder	Engagement Tactic
Senior Sponsor	One-on-one briefings, business impact reviews
Frontline Staff	Town halls, kaizen events, hands-on involvement
Process Owner	Joint decision-making, dashboards, regular updates
IT Team	Technical meetings, scope alignment sessions

Use a Stakeholder Engagement Plan to track your approach and touchpoints.

Example Stakeholder Analysis Template

Here’s a basic Excel-friendly format:

Stakeholder Name	Role	Power (H/M/L)	Interest (H/M/L)	Concerns	Strategy
Jane Smith	Process Owner	High	High	Downtime concerns	Weekly meetings, dashboards
John Lee	IT Analyst	Medium	Low	Integration complexity	Involve during testing
Alex Johnson	Operator	Low	High	Fear of job change	Kaizen workshop, feedback loops

Common Pitfalls to Avoid

• Assuming instead of asking: Don’t guess what people care about—ask them.

• One-size-fits-all communication: Customize based on roles and motivations.

• Forgetting low-power stakeholders: Even those with less power can derail a project if ignored.

• Skipping re-assessment: Stakeholder roles and sentiments may change over time. Revisit your analysis periodically.

Real-World Application

Imagine you’re leading a Lean project to reduce patient discharge time in a hospital.

• Nurses and physicians are key stakeholders—they execute the process.

• IT team is needed to automate discharge paperwork.

• Billing department needs visibility into the new timeline.

• Patients and families are the end customers.

By conducting stakeholder analysis early, you anticipate that nurses may resist standardization due to autonomy concerns. So you involve them in solution design. You also schedule regular updates with IT to avoid late-stage surprises.

Result? Smoother implementation and stronger team support.

Summary

Stakeholder analysis is more than a checkbox—it’s a strategic necessity.

When done well, it:

• Builds trust

• Minimizes resistance

• Aligns goals

• Enhances communication

• Improves project outcomes

Whether you’re rolling out Lean, Six Sigma, Agile, or any other change initiative—start with people. Map them, understand them, and engage them.

"If you want to go fast, go alone. If you want to go far, go together."