Stakeholder Analysis

Stakeholder analysis is a process or action research methodology used to explore the various opinions that different stakeholders may have on potential outcomes and their relative influence. It is a technique that is widely used for strategic programme planning and policy development. It is particularly popular in the fields of business management, international development and health care.

The term stakeholder has a long legal history, denoting a neutral third party that literally holds the ‘stakes' or assets for interested parties until their rightful owner is determined. However, in the 1960s, the term became popular in the management literature as a deliberate play on words to challenge the notion that corporate decision-makers should take into account only the interests of stockholders. The definition was expanded to include those who ought to be considered when management had to make important choices—consumers, suppliers, creditors, competitors and employees. Today, popular usage of the term denotes people, groups or networks that have a vested interest or are affected by or can influence actions.

Depending on the issue under study, stakeholders may include politicians, community groups or organizations, media outlets, corporations, faith-based agencies, funders and donors, academics, resident coalitions, unions, school boards and health-care agencies. They are groups, entities or individuals who are important to hear from when making a decision because they (could) have the power to sway the outcome and may be affected by it. Conducting a stakeholder analysis is a pragmatic approach to understanding who stands to win and who stands to lose from a variety of options.