What are Stakeholders? MENDELOW'S Stakeholder Analysis Simplified

Summary

In this tutorial, we explore the concept of stakeholders and the Mandalo Stakeholder Matrix, a key tool for mapping and managing stakeholders in business and projects. The video explains how stakeholders, both internal and external, influence or are affected by a project. It walks through the four quadrants of the Matrix—low power/low interest, low power/high interest, high power/low interest, and high power/high interest—detailing how to manage each group. A real-life example of a company addressing a project using the Matrix illustrates its practical application, emphasizing the importance of stakeholder communication and engagement.

Takeaways

• 😀 Stakeholders are individuals, groups, or companies that can affect or be affected by a project or business.
• 😀 Stakeholders can be classified as internal (e.g., employees, management) or external (e.g., customers, suppliers).
• 😀 The Mandalo Stakeholder Matrix is a tool used to prioritize stakeholders based on their level of interest and power.
• 😀 The Matrix has two axes: the X-axis measures interest (from low to high), and the Y-axis measures power (from low to high).
• 😀 The Matrix divides stakeholders into four quadrants based on their power and interest levels.
• 😀 Quadrant 1: Low Power, Low Interest – These stakeholders should be monitored, but they're not a priority.
• 😀 Quadrant 2: Low Power, High Interest – These stakeholders should be kept informed as they are impacted by the project.
• 😀 Quadrant 3: High Power, Low Interest – These stakeholders need to be kept satisfied, even though they may not be directly involved.
• 😀 Quadrant 4: High Power, High Interest – These stakeholders are crucial and should be managed closely due to their influence and involvement.
• 😀 A practical example with Good Insure illustrates how the Mandalo Stakeholder Matrix helps manage project stakeholders in real-world situations.

Q & A

What is a stakeholder in the context of project management?

A stakeholder is any person, group, or entity that can either affect or be affected by a project or company. They can be internal or external to the organization.

What are internal stakeholders and who are they typically?

Internal stakeholders are individuals within the organization or closely associated with its success or failure. They include employees, company directors, executive management, internal auditors, and investors.

What are external stakeholders and who are they typically?

External stakeholders are individuals or groups who don't work directly for the company but are affected by its actions. They include customers, business partners, suppliers, shareholders, government agencies, and local communities.

Can you give an example of an external stakeholder in a business context?

An example of an external stakeholder could be a customer who buys fuel from a specific gas station. This customer is affected if the gas station closes or discontinues its loyalty program, even though they don't work for the company.

What is the purpose of the Mandalo Stakeholder Matrix?

The Mandalo Stakeholder Matrix is a tool used to visually represent stakeholder analysis. It helps project managers and business leaders prioritize stakeholders based on their level of interest and power, ensuring effective communication and management.

How does the Mandalo Stakeholder Matrix work?

The matrix consists of two axes: the X-axis measures stakeholders' level of interest in the project, and the Y-axis measures their power or influence over the project. This results in four quadrants that categorize stakeholders into different priority groups.

What does the 'low power, low interest' quadrant represent?

This quadrant represents stakeholders who have minimal interest and power in the project, such as clerical staff, interns, or certain external entities. They are not a priority but should be monitored for any changes.

What should be done with stakeholders in the 'low power, high interest' quadrant?

Stakeholders in this quadrant are affected by the project but lack decision-making power. They should be kept informed about major developments in the project, especially those that directly impact them.

Why is it important to keep stakeholders in the 'high power, low interest' quadrant satisfied?

Stakeholders with high power but low interest, such as senior management or regulatory bodies, can influence the project's outcome. Keeping them satisfied with regular updates helps maintain their support and reduces potential risks.

Who belongs in the 'high power, high interest' quadrant, and how should they be managed?

Stakeholders in this quadrant are highly involved and influential, such as project team members, department heads, and key decision-makers. They need to be managed closely and kept in the loop throughout the project to ensure success.

How did Good Insure use the Mandalo Stakeholder Matrix in their project?

Good Insure, a car insurance provider, used the Mandalo Stakeholder Matrix to prioritize stakeholders after identifying issues with their booking system. They categorized stakeholders into the four quadrants, ensuring effective communication and management throughout the project.

What is a stakeholder engagement plan, and why is it important?

A stakeholder engagement plan is a strategy for communicating with stakeholders at the right time and in the right way throughout the project lifecycle. It ensures stakeholders are informed and engaged, which is crucial for project success.