Stakeholder Analysis

The relationship that you will build with each stakeholder on a project is unique. Some people will be easier to communicate with than others. You will like some stakeholders better than others. It will be beneficial for you to think through what you know (or have heard) about each person to plan your communication techniques and your project tasks.

In thinking about an individual stakeholder, there are probably hundreds of things that you could consider. Human beings are so complex and never really completely understand each other. In the context of a work environment, only a limited view of each individual is available. Having acknowledged that complexity, there are several concrete characteristics of each individual which you should consider and plan for:

• Do you already have a relationship with the stakeholder?

• Is it a good working relationship?

• Do you think the stakeholder trusts you?

• What is the stakeholder’s relationship to the project? (Will the project have a significant effect or a minor effect on the stakeholder’s work?)

• What is the stakeholder’s attitude toward the project? Is he or she excited about it or dreading it?

• How knowledgeable is the stakeholder about the business area?

• How many years has the stakeholder been with the organization?

• At what level in the organization (management?) is the stakeholder?

• How does the stakeholder communicate? Does he or she explain concepts clearly? Is he or she detail oriented?

• How does the stakeholder learn?

Obviously, you will not know the answers to all of these questions for every stake-holder on a project. The more you know about a particular stakeholder, the better able you will be to tailor your communications to him or her. For stakeholders with whom you haven’t worked before, you will be adjusting your communications as you get to know them. This is a good example of an area where a BA must be flexible. You will try a particular communication technique, and if it doesn’t work, you will try something else.

Balancing stakeholder needs

When there is more than one stakeholder on a project (and there almost always is!), stakeholder needs must be balanced. This is an important and challenging part of the work of the BA. The BA’s role is to represent the business stakeholders to the technical team and make sure that the business needs are met. But what if the business people don’t agree on what their needs are? This requires the BA to be a strong facilitator, consensus builder, and even a negotiator at times.

To balance stakeholder needs in the way that benefits the enterprise as a whole the most, the BA must first understand the goals and strategy of the enterprise. This will be discussed in Chapter 3. Second, the BA must understand which stakeholder/group is funding a particular project and the specific goals the project is trying to address. Hopefully, the project goals are in line with and support the enterprise-wide goals. If not, it will be difficult for the project to be successful. The PM and sponsor need to address this problem.

Even when the project and enterprise goals are aligned, different stakeholder needs may arise. Enterprise and project goals can be accomplished in various ways, and different stakeholders will have different ideas to accomplish them. The BA’s role is to listen very carefully and work to understand each of the different stakeholder issues. The first step in resolving a conflict is to clearly understand both sides. This will often be difficult because you may personally agree with one side and have a difficult time being open minded about the other. Work hard to maintain your neutrality—a BA is Switzerland! If the differing groups have difficulty discussing the issue together because they are emotional or impatient, talk with them individually. Work to really understand their perspectives and their motives. Don’t try to change their minds or convince them of another way until you can completely see their side; use the win-win approach (Covey, 1989).

Occasionally, when you truly listen and understand each side of a conflict, you will see common ground. This is the important area on which to begin your consensus building. Help both sides see their shared knowledge, goals, and desires. Show them that the areas of disagreement are small by comparison and can be resolved. Consensus does not mean that everyone agrees; it means that everyone can support the solution.

When the two sides have large areas of disagreement, be open and honest in acknowledging the issues. Let everyone know that reaching consensus may be impossible. Ultimately, the project sponsor will be the decision maker, and all stakeholders should understand this reality.