1. An overview of methods and an illustration on a Philippine case
Using stakeholder analysis to analyse decision making in the water sector
An overview of methods and an illustration on a Philippine case
Leon Hermans
Presentation for Watertime Stakeholder Workshop
11 April 2003, University of Greenwich, London
Faculty of Tecnology, Policy and Management - Policy Analysis Section

2. Stakeholder analysis in the water sector
Introduction to stakeholder analysis
How to do a stakeholder analysis?
Approaches and methods
Illustration of a (far away) case application
Relevant lessons for WaterTime
Leon Hermans, April 11, 2003

3. Stakeholder analysis and decision making
Decision makers operate in a political arena
Arenas consist of different stakeholders
Stakeholders behave strategically
Analysing decision making therefore requires:
Understanding political arena
Understanding the role of stakeholders
Leon Hermans, April 11, 2003

4. What to analyse? Political arena can be characterized as a network
Stakeholders, relations and rules
Institutions, culture
Stakeholders in networks: strategic behaviour
Objectives, resources, perceptions
Interests, influence, knowledge
Networks influence stakeholders; context for action
Stakeholders’ actions shape networks
Dynamic interrelated concepts
Leon Hermans, April 11, 2003

5. Example of an analytical framework
Leon Hermans, April 11, 2003

6. How to do a stakeholder analysis?
Three general approaches:
Theoretical analysis approach
Pragmatic analysis approach
(most reported approach for “stakeholder analysis”)
In-between analysis approach: theory-based methods
Leon Hermans, April 11, 2003

7. Theoretical analysis approach
Theoretical approach
theory-driven: applying and extending existing theories for in-depth scientific case studies
Policy network theory, stream model, advocacy coalition framework, Actor Network Theory, etc.
Some strengths and weaknesses:
Framework and explanatory power of theory
Time consuming - operationalisation and observation of theoretical concepts
High demands on theoretical expertise
Leon Hermans, April 11, 2003

8. Pragmatic analysis approach
Pragmatic approach
mapping key aspects in matrices or graphs to support strategic management
Classical stakeholder analysis, e.g. mapping interests and influence, cooperation and importance (ODA, USAID, World Bank)
Some strengths and weaknesses (“Quick and dirty”):
Can be done in relatively short period of time
Focus on key aspects
Relatively easy to apply and to learn
Limited theoretical basis: Analyst’s interpretation central
Limited transparency, more difficult to check validity
Leon Hermans, April 11, 2003

9. In between: Theory-based methods
Methods that are theory-based but that have been used before for stakeholder analysis
Theoretical base improves transparency
Operationalisation by method helps to guide analyst
You get analytical rigor, at the expense of broadness and room for “pragmatic freedom”
Choice of method defines focus
Leon Hermans, April 11, 2003

10. Classifying methods and approaches
Note that:
- objectives are not in a separate column
- methods and approaches may cover more than one column
Leon Hermans, April 11, 2003

11. Overview of theory-based methods
Perceptions
Cognitive analysis (cognitive maps, soft systems)
Discourse analysis (public debate, arguments)
Resources (strategic behaviour)
Conflict analysis (game theory)
Transactional analysis (social theory)
Networks (relation between stakeholders)
Social Network Analysis (sociometry)
Three types of methods supplement each other
Leon Hermans, April 11, 2003

12. Illustrative case: Water management in the Philippines
Water resources management in the Philippines
Explore the stakeholder environment of a starting research project aimed at supporting decision making
Leon Hermans, April 11, 2003

13. Leon Hermans, April 11, 2003

14. Sketch of existing situation
Rapid industrial and commercial development in Metro Cebu area: “Ceboom”.
Increasing pressure on existing groundwater resources
Degradation of inland watersheds threatens soil quality and water recharge
Metro Cebu needs more water but cannot control watershed population or other areas on Cebu island
Leon Hermans, April 11, 2003

15. Stakeholder analysis design
Supporting a starting water management research project
Analysis design:
Questions to be answered by analysis
Time and people available for analysis
Available information and access to stakeholders
Using theory-based methods; the in-between approach
Argumentative analysis (discourse analysis)
Analysis of options (conflict analysis)
Leon Hermans, April 11, 2003

16. Argumentative analysis
Leon Hermans, April 11, 2003

17. Analysis of options - a simple example
Leon Hermans, April 11, 2003

18. Analysis of options
Leon Hermans, April 11, 2003

19. Analysis of options
Leon Hermans, April 11, 2003

20. Analysis of options
Leon Hermans, April 11, 2003

21. Stakeholder analysis execution
Short preparatory literature study (1-2 weeks)
Interviews with selected stakeholders (4 weeks):
Representative sample (network and stakeholders)
“Friends” easier to access than others
Selected methods guide type of interviews needed
Common language, different culture; especially important for argumentative analysis
At least some interviews seem required for any stakeholder analysis to “get the feeling”
Analysis of data, workshop and reporting (3 weeks)
Methods provide structures for interpretation and presentation of results
Leon Hermans, April 11, 2003

22. Main outcomes of Philippine case
Focal points in broad range of project issues
Additional expertise and elements to include in project
Ways to understand positions of stakeholders: three basic views on water management, linked with interests and options of actors
Leon Hermans, April 11, 2003

23. Watertime relevant lessons and guidelines
Decision making can be analysed through different approaches for stakeholder analysis with varying levels of thoroughness and underlying theoretical basis
Each approach contains variety of methods
What is appropriate for Watertime?
Position on SA classification-matrix: what is the purpose of stakeholder analysis in research and how important is it as part of the work?
Are there methods that (some) project partners are familiar with? What is their focus?
Leon Hermans, April 11, 2003

24. WaterTime relevant lessons and guidelines (continued)
If possible, theoretical approach or theory-based methods would have advantages for WaterTime:
They help to gain and communicate insights that go beyond the obvious
Underlying theory provides starting point for developing a decision making model
Important factors for stakeholder analysis:
Available input data (incomplete, inaccurate, dissimilar)
Validity of results (also due to quality input data)
Efficiency (efforts required and expected quality of results)
Leon Hermans, April 11, 2003

25. Thank you for your attention!
For questions or references to literature feel free to ask:
Leon Hermans
Faculty of Technology, Policy and Management
Delft University of Technology
P.O. Box 5015
2600 GA Delft
The Netherlands
Tel:
Fax:
Leon Hermans, April 11, 2003