Stakeholder Analysis

Stakeholder analysis
English Teaching Professional, (109), March, 2017

Stakeholder is a common lexical item in business circles. However, on a linguistic level it is not
immediately recognised, recalled or, sometimes, understood. Ostensibly, it both looks and sounds like
the more widely-recognised and less ambiguous shareholder, which itself is a hyponym of stakeholder in
a business context.
The word can be defined in three ways:
 any entity (person or organisation) whom a business unit (company, trader or organisation)
affects or influences;
 any entity which is affected or influenced by a business unit’s activities;
 any entity which can reasonably complain about the activities of a business unit.
Stakeholder analysis
Stakeholder analysis is one of many analytical tools – which also include SWOT analysis, PESTEL
analysis, the Marketing Mix and Product Life Cycle, amongst many others – that business English
trainers may use with their trainees, whether in closed classes (in which all the students are from one
company, possibly one department) or open classes (in which the students are from different companies,
sectors, departments, and so on), or one-to-one.
Business success involves stakeholder management at all stages, which makes stakeholder analysis a
useful task, both for the language content and for the actual analytical content. Stakeholder analysis is a
multiple-stage process which can serve to develop skills and mindset for international business, creative
problem-solving, decision-making and communication – all of which require language and fall within
the domain of the business English trainer. This useful tool requires little preparation and no specialised
knowledge on behalf of the trainer, yet it can be used as a driver for discussions, presentations,
simulations and other tasks.
Identifying stakeholders
Identifying stakeholders is not as easy as it may seem. Stakeholders may be internal or external; they
may be financial or non-financial, and involved with the business unit in question through direct or
indirect contact and through passive influence, network connection or proximity. Stakeholders will
include employees, shareholders and debt investors, financiers, suppliers, clients and customers; they
may also include interest groups, monitors and regulators, the state and government, and anyone in the
location or sphere of influence of the business unit.
To identify our stakeholders, the two most obvious tools are group or whole-class brainstorming and
mind-mapping. Brainstorming is a simple tool to understand, yet to be truly effective, group
brainstorming requires the context to be conducive and there to be a focus on the quantity rather than the
initial quality of the ideas put forward: quality will result later from the volume and combination of
ideas. Feedback should be positive and affirmative during the brainstorming process, and ideas should
flow without judgements being made on how realistic or achievable they may be. The results of
brainstorming can be recorded in linear notes or, arguably better for showing connections, as a mind-
map. This gives us the raw data we need for analysis.
Analysing stakeholders
After identification comes the analysis. Key variables relating to stakeholders which can be compared
and contrasted include:
 the power of each stakeholder;
 the interest each stakeholder has.
1
Power is, broadly speaking, the ability to do, act, force, effect or, more broadly, to influence. In this
case, the influence is two-way: from the stakeholder upon the business unit or from the business unit
upon the stakeholder. The degree and effect of this power will be different from case to case.
Interest is the other variable to consider. This is the attention or concern given to something. From our
identified stakeholders, there will be a spectrum of both power and interest, as each unique stakeholder
or stakeholder group has varying degrees of both power and interest. The two variables of power and
interest are independent of one another, yet, when cross-referenced, will inform the action taken to
handle them, the level of attention they are given or the concern they may cause.
A classic stakeholder analysis will produce a power–interest grid, with stakeholders placed into one of
the four groups, or a graph showing more specifics than either high or low (see page 42). Where a
stakeholder fits depends on their relative degrees of power and interest. Who or what fits into each
category is unique to the business; whoever these are, there is no universal solution for each group as,
again, this will be particular to the business whose stakeholders are under scrutiny. At different relative
positions, we can place individuals, groups or organisations.
The next question to consider is how likely each stakeholder is to use the power they possess. The power
they have does not affect anyone or anything unless it is deployed, and having an interest does not
necessarily dictate the exercising of power or that there is any power to use. Consideration of the
likelihood of power being used will allow us to identify, or at least speculate about, the relative risk each
stakeholder poses. Motivations may also be something to consider, as might any conflicts or clashes in
stakeholder interests.
Managing
stakeholders
Analysis of stakeholders
will, through critical and
often creative thinking,
provide the basis for
creation of an action
plan for managing the
stakeholders and solving
or mitigating the
challenges which each
creates. Analysis may
be interesting, but it is
only useful if it informs
decisions, actions and
strategy.
Depending on who or
what may fall into the
various, perhaps broad, categories, approaches may include the following, depending on the relative
probability of the power actually being used:
 High power, high interest: clearly the group that requires the closest management, especially if
they present a risk in terms of influence being used.
 High power, low interest: their level of power means we need to engage with them and keep
information flowing, even if there may be low or little reciprocation. Efforts should be made to
ensure that this group is satisfied.;
 Low power, high interest: these groups can, as far as is desirable, be kept informed; closer
management may be needed if power grows.
 Low power, low interest: these groups can be watched, but do not require any particular effort to
be made; if power and interest are low enough, they may become largely irrelevant.
2
Once the various analyses above are completed, an action plan should be formed for each group: the
likelihood of power usage may guide a business as to how to prioritise a stakeholder management
strategy. Power and interest can show importance, while likelihood of using power may advise on the
urgency of an action plan.
Stakeholder analysis training

A training session using stakeholder analysis may follow a simple format:
1. Define stakeholder or check understanding.
2. Brainstorm all stakeholders, perhaps using a mind-map or lists.
3. Apply the stakeholder analysis for power versus interest.
4. Decide who is more likely to use their power.
5. a) If you are working with an open class, discuss and decide how to handle each student’s
stakeholders in the form of a whole-class meeting, with each student acting as chair when
discussing their own particular stakeholders.
b) If you are working with a closed class or one-to-one, create and present a justified action plan
for how to handle each stakeholder.
6. Share reflections and provide feedback on communication, language and other relevant variables.
Stakeholder analysis may take up varying amounts of time, depending on the matters being discussed
and whether this is a whole-class or individual activity. These tasks lend themselves well to
communicative group interactions as well as to functions – such as meetings, at the brainstorming stage,
or a presentation, once the analysis and action planning have concluded.
The focus of a training session involving stakeholder analysis will not be purely linguistic, although
analysis provides a perfect series of tasks to give the trainer a rich source of production for feedback.
These tasks demand the application of cognitive processes which are critical and creative and so have an
impact upon the mindset of those involved.
With one-to-one sessions, the analysis may be a foundation for discussion; with closed classes, this
could be pairwork, small-groupwork or whole-class discussion, depending on the class size, while with
open classes, this can be conducted as an individual activity leading to whole-class discussion. All of
this must be followed by feedback, focused on language and communication from the trainer and other
students, and reflection from individuals.
Ben Dobbs is an independent communications trainer and accredited Cert IBET provider. He has most
recently been delivering intensive training with companies in the UAE, Russia, Saudi Arabia and China,
as well as teacher training in the UK.
Source: https://www.etprofessional.com/stakeholder-analysis

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Stakeholder analysis

English Teaching Professional, (109), March, 2017

Stakeholder analysis training

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