Project roles

Stakeholder Analysis: What it is, why it matters, and how to manage stakeholders effectively

Every project, regardless of industry or size, affects not only those who implement it but also those who are connected to it in any way. That is why one of the first and most important steps in starting a new project is stakeholder analysis. Find out why it is so important.

In this article, you’ll learn: What stakeholder analysis is and why it matters Who stakeholders are and how to identify them How to map stakeholders by power and interest How to plan effective communication Common mistakes to avoid Tools and tips for 2025 stakeholder management Real-world examples of successful stakeholder engagement

What is a stakeholder? - Definition + Project context

A well-conducted stakeholder analysis can determine the success or failure of an entire project. But what does this actually mean? And why is it so important in project management? To understand this concept, let’s first focus on the meaning of the word “stakeholder”. A clear definition of stakeholders helps project teams identify and prioritize the individuals and groups they need to engage with throughout the project lifecycle.

Stakeholder meaning is often misunderstood, but it generally refers to any person, group, or organization that can influence a project or be affected by it.

What is stakeholder analysis? Why it’s critical?

Stakeholder analysis is a process in which all individuals, groups, or organizations that influence a project or are influenced by it are identified. The project management structure defines their roles and responsibilities.

Importantly, stakeholders are sometimes decision-makers, sometimes future users of the product, and sometimes partners, suppliers, or even local residents. The purpose of stakeholder analysis is to understand their needs, expectations, and ways in which they can support the project or… pose a threat to its success.

Benefits of Stakeholder Analysis

Effective project stakeholder management involves many challenges. Failure to identify stakeholders in time can result in overlooking important requirements and failing to respond to the real needs of end users. It can also be a challenge when someone influential raises an objection at a point when it is too late to make changes. To avoid this, a stakeholder analysis should be carried out.

Stakeholder analysis provides answers to two fundamental questions:

• Who should be kept informed about the progress of the project?
• Who can help, and who can hinder the achievement of the set goals?

Furthermore, it should take into account the process of project decision-making, ensuring that the needs and expectations of individual project stakeholders are taken into account. Don’t forget that building trust in project management is essential for fostering open communication and ensuring stakeholder cooperation.

How to conduct a stakeholder analysis

Conducting a stakeholder analysis is a fairly complex task. Fortunately, with our step-by-step guide, it’s a piece of cake!

Defining stakeholders – who influences the project?

Make a list of all individuals and entities that may have anything to do with the project. Think not only about those who are officially involved, but also those who may be affected by it.

At this stage, the important role of the project committee or executive committee may already become apparent, as it not only provides opinions but also often approves decisions regarding stakeholder management and communication with stakeholders.

Stakeholder engagement and project influence: Interest vs. power grid

Once the list of stakeholders is ready, including both internal and external stakeholders, it needs to be organized in a stakeholder matrix. After all, not everyone has the same influence on the project, and not everyone is equally interested in it. To plan your activities properly, focus on two criteria:

• influence, i.e., the extent to which a given stakeholder can influence the course or outcome of the project
• interest, i.e., how much a given stakeholder is interested in the success or failure of the project

Impact	Interest	Approach
High	High	Maintain regular contact, actively engage, and consult on decisions.
High	Low	Inform about key issues and maintain good relations.
Low	High	Involve to a limited extent, share news.
Low	Low	Monitor from a distance, provide occasional updates.

Interest vs. Influence matrix

Stakeholder types and how to manage them

The final step is to make a stakeholder communication plan. For some, a short report once a month will be sufficient. Others will require involvement in workshops or working meetings. Effective business stakeholder alignment ensures that project goals are in sync with broader organizational objectives, minimizing resistance and maximizing value.

Effective stakeholder management requires the right strategy. To this end, answer the following questions:

• How will communication with stakeholders be conducted?
• What information do you need to provide them, and how often?
• Who in the team is responsible for a specific relationship?

The key to success is to tailor communication to the real needs and expectations of individual stakeholders. The project management team, which plans the allocation of resources on an ongoing basis, can participate in this process. They are supported by the project sponsor, whose responsibilities include controlling the project budget.

The role of a Project Manager in stakeholder management

Project stakeholder management is a process in which the project manager plays a key role. They are responsible for project supervision – explaining intentions, resolving disputes, keeping communication running smoothly, and ensuring that no one feels left out.

Supervision in projects is not a piece of cake. A good project manager can sense tensions, identify risks, and maintain such relationships with stakeholders that, instead of slowing down the project, support its implementation. Here are the five pillars of effective stakeholder analysis.

Stakeholder management tools: what to use?

Effective analysis of key project actors requires effective tools that support the identification, assessment, and management of relationships with individuals and groups that are critical to the project. Here’s what you should keep in mind.

Stakeholder diagram – guide to Stakeholder Mapping

This is a basic tool for classifying stakeholder types according to their impact on the project and their level of interest. This makes it possible to determine who should be actively involved and who should simply be kept informed of progress.

Documenting key information about stakeholders should include their roles, expectations, level of influence, and communication preferences. All of this greatly facilitates action planning and monitoring the involvement of individuals and groups.

Workflow automation in project management can be a challenge for any project when communicating with stakeholders. With communication plans, you can easily determine what information should be provided to stakeholders, when, and how. In addition, interaction dashboards allow you to monitor stakeholder contacts and engagement on an ongoing basis, so you can respond quickly to changing needs and expectations.

In large projects, it is also worth implementing a project management system that facilitates the documentation of decisions and the organization of meetings. A project management system makes processes more transparent and improves work efficiency. How to integrate it? Stick to our checklist!

▢ All key stakeholders have been identified. ▢ Impact and level of interest have been assessed. ▢ A communication strategy and management plan have been developed. ▢ Relationship managers have been assigned. ▢ The ability to update the stakeholder list has been ensured.

Checklist for performing stakeholder analysis

Common mistakes in stakeholder management

Stakeholder analysis often seems like a piece of cake. Appearances can be deceiving! In practice, this stage can determine the further course of the project. Learn about the most common mistakes and how to avoid them.

Failure to identify key stakeholders

Often, the biggest problems arise from… small oversights. Some individuals or groups may not be sufficiently visible at the beginning of the project. However, their influence on decisions or the implementation of project results can be enormous!

How can you avoid this? Make sure you identify everyone at the planning stage, and don’t limit yourself to the “obvious” names. Also think about people who may be indirectly affected by the project. Don’t forget to consult the list of stakeholders with people from different departments of the project team.

Lack of analysis of attitudes and influence

A list of stakeholders alone is definitely not enough. You need to know what their attitude toward the project is. Are they supportive? Neutral? Or perhaps they are skeptical?  Also check what real influence they can have on the project.

To avoid this mistake, classify them using stakeholder mapping. Take into account emotions, concerns, and previous experiences. These often shape the attitudes of stakeholders!

Avoiding difficult conversations

Not every stakeholder is enthusiastic about the project. Sometimes people have concerns, doubts, or even outright opposition to change. Sweeping problems under the rug can lead to conflicts later in the project, when changes are costly and difficult to implement.

Try to treat criticism as a source of information rather than a threat, and communicate openly from the very beginning of the project. Don’t forget to listen actively. Sometimes resistance is a cover for specific needs that can be included in the project.

Real-World applications of stakeholder analysis

Stakeholder analysis is widely used in real-world projects, ranging from infrastructure construction and the implementation of new technologies to local initiatives. For example, in a construction project, thinking about the interests of the local community or environmental organizations can help avoid protests and delays. In IT projects, understanding the needs of both end users and operational departments leads to solutions that really meet their needs.  Regardless of the application, improved project visibility enables stakeholders to monitor progress, understand challenges, and support timely decision-making.

Want to identify key players and ensure project alignment from day one? Discover how FlexiProject helps you manage stakeholders smarter and build lasting relationships.