1. Stakeholder Analysis

2. Why stakeholder participation? What is participation?
Some ideas… and introduction to exercises
What is a stakeholder?
Why stakeholder participation?
What is participation?
Why stakeholder analysis?
How to do a stakeholder analysis?

3. What is a stakeholder?
Stakeholders are those who have an interest in and/or affected by a particular decision, either as individuals or representatives of a group. This includes people who influence a decision, or can influence it, as well as those affected by it. Stakeholder Analysis helps clarify which people and organizations are directly or indirectly involved in or affected by a specific development problem. It helps identify which groups are supportive and which groups may oppose the project strategy and subsequently obstruct project implementation.

4. When to conduct Stakeholder Analysis?
1. Problem Identification – It serves as mechanism to identify important and influential stakeholders and draws attention on how to involve them in the analytical and planning process
2. A detailed stakeholder analysis carried out during project formulation supports design decisions and risk analysis
3. Continuing stakeholder analysis during project implementation serves to confirm the involvement of each stakeholder, keep track of changing circumstances and interests of stakeholders and plan stakeholder involvement in the evaluation process
Stakeholder analysis is a dynamic process and overlaps with the problem analysis. Stakeholder analysis should be updated and refined throughout the project cycle as it fulfills different functions of different stages:

5. Stakeholder grouping – could include…
Those who are affected by the project… . And those we depend on for its success… User group – people who use the resources or services in an area Interest groups – people who have an interest in, or who can affect the use of a resource or service Beneficiaries of the project/service Decision-makers Those often excluded for the decision-making process

6. Stakeholders – who?
Ex. Small scale water diversion project… Use – who uses or benefits from the use of the resources…? Economics – who may win or lose as a result…? Mandate – who makes decisions, who has rights… Proximity – who lives near the resources… Values – who may have strong beliefs about specific use…?

7. Dept. of Infrastructure Irrigation user group
Common goal - sustainability
Dept. of Infrastructure
Irrigation user group
Mining Company
Ministry of health
Government
Local
Local community
Financing institution
Ministry of Finance
Irrigation department
Water supply
company
NGO
biodiversity
Hydropower company
Int. donors
Can we achieve...
sustainability?
Economic
Ecological
Social

8. Good basis for accountability
Why stakeholder participation?
Benefits to planners
Good basis for accountability
More information and understanding of context
Benefits to decision-makers
Informed and improved decisions
Legitimacy of governance improved
Benefits to developers
Save costs as issues are identified upfront
Community relations improved
Developers’ image and reputation enhanced
Benefits to civil society
Capacity building and new knowledge through participation
More sustainable development

9. Why stakeholder participation?
Improved quality of decision-making (expands the knowledge base for decisions) Improved credibility and public support (helps to build broad-based consensus) Improved implementation and monitoring (supplements scarce government resources) Early warning of potential challenge (identify and address problems at an early stage)

10. Type of participation/ Stages in projects Inform Consult Partnership
Appropriate level of participation for different stakeholders
Type of participation/
Stages in projects
Inform
Consult
Partnership
Control
Identification/context analysis
Donor
Women
Local water authority
Project staff
Design
Implementation and monitoring
Reviewing
Evaluation

11. It is about taking responsibility, engaging and informing
What is Participation?
Participation takes place when stakeholders are part of the decision-making process
Participation requires that stakeholders at all levels of the social structure have an opportunity to participate in the decision-making process
A participatory approach is the only means for achieving long-lasting consensus and common agreement
It is about taking responsibility, engaging and informing
- Global Water Partnership

12. The objectives of stakeholder analysis:
Why stakeholders analysis?
The objectives of stakeholder analysis:
Improve the project’s understanding of the needs of those affected by a problem
Reduce, or hopefully remove, potential negative project impacts
Identify who should be encouraged to take part in the project planning and implementation
Identify and reduce risks which might involve identifying possible conflicts of interest and expectation among stakeholders so that conflict is avoided

13. …the stakeholder analysis seeks to answer:
How to do stakeholder analysis?
…the stakeholder analysis seeks to answer:
Who are the key stakeholders?
What are their interests and influence?
Develop strategic measures…
How should we best engage with various stakeholders?
Who needs their capacity built to be able to participate meaningfully?

14. How to do stakeholder analysis? Continued…
Anticipate the kind of interest/influence (positive or negative) the key stakeholders may have on the project. “Interest” could be described in terms of potential costs and benefits “Influence” in terms of power/control

15. Interest in process/ project Influence on process/ Project
Stakeholder identification , analysis and strategic considerations
Stakeholders
Example: Rural water supply project
Interest in process/ project
+/-
(affected)
Influence on process/ Project
(power)
How to engage?
Stakeholder needs for awareness and/or capacity building
Village women
+ Easy access to clean water
+ Direct user
- Less social
- Little voice in community

16. Group work – map stakeholders
High
Low
Influence
List of stakeholders X
Interest 1 10 2 3 4 5 6 7 8 9
High

17. Map stakeholders
High
Interest
High
Low
Influence

18. Map stakeholders
High
Low
Influence
Interest
Key players:
Very interested in the project, and high impact on decision-making

19. Map stakeholders
High
Low
Influence
Interest
Key subjects:
Very interested in the project, but little influence
Less impact on Decision-making

20. Map stakeholders
High
Low
Influence
Interest
Key setters:
Not so interested in the project, but has high influence.
Impact on decision making
Could be a risk?

21. Map stakeholders
High
Low
Influence
Interest
Crowd
Less important

22. Exercise 1
Group Exercise (20 min)
Identify the five most important stakeholders in your Change Project
List their main interests and influence
Insert them in the Stakeholder Map
Present group output

23. Sufficient information accessible
TIP #1 – Information provision to stakeholders
No information
Culture of secrecy
Sufficient information accessible
-Open door policy
-Fears
-Mistrust
-Understanding
-Trust
-Conflict
-Cooperation
-Joint problem solving
-Better decisions

24. Early engagement of stakeholders Transparency and honesty
TIP #2 – Good practice of stakeholder participation
Early engagement of stakeholders
Transparency and honesty
Independent facilitation
Special efforts for marginalized people
Accessibility (information, venues, comments)
Ongoing feedback and fairness

25. TIP #3 – Stakeholders – who…?
Stakeholders are not only those who shout the loudest. Those who are often excluded from the decision- making process due to age, gender or ethnicity are those who are most likely to lose out if they are not included in the project planning. We need to think about how to ensure that these stakeholders are also involved… But… very seldom… people are powerless… and they have responsibility to engage themselves

26. The objectives of stakeholder analysis:
TIP #4 – Why stakeholders analysis?
The objectives of stakeholder analysis:
Assist in assessment of how project objectives and activities relate to the different interests of various people, groups and organizations.
Give information about how different groups will be affected by (and potentially react on) the project – and thus assist in identifying critical points that might endanger the anticipated outcome.
Identify and assess the importance of key people, groups and organizations that may significantly influence (positive or negative) the success of the project.
Provide the basis for developing strategies to get the most effective support possible for the initiative and reduce any obstacles to successful implementation
Provide the basis for developing strong communications, education and outreach material, for preventing conflicts, and for developing strategic relations throughout project development and implementation.