Why use this technique?
This technique is useful when a Business Analyst wants to understand the priority and level of attention a particular stakeholder. It helps too with selecting the proper communication approach for each stakeholder group. The alternative name for this technique is the salience model.
This model classifies stakeholders based on their salience in the organization. The salience of a stakeholder is based upon three factors: legitimacy, power, and urgency. Legitimacy is a claim on a company/project, based upon a contractual or legal obligation, a moral right, an at-risk status, or a stakeholder having a moral interest in the harms and benefits generated by a company’s actions. Power is the ability to influence a company/project behavior, whether or not the stakeholder has a legitimate claim. Urgency is the degree to which a stakeholder’s claim calls for immediate attention, adding a dynamic component for a stakeholder to attain salience in the minds of managers.
The idea of this model is to distinguish more salient or prominent stakeholders, give them priority and actively communicate with them.The model identifies 8 different stakeholder groups: dormant, latent, demanding, dominant, dangerous, dependent, definitive and non-stakeholders.
How to use it?
Assign stakeholders to one of eight categories:
1. Dormant stakeholders: These stakeholders have power to impose their will on others but they miss legitimacy and urgency. Therefore their power remain dormant. Tip: keep these stakeholders informed.
2. Latent stakeholders posses legitimate claims, but have no power to influence the organization nor urgent claims. Tip: Involve them only when really necessary (e.g. something is going very wrong).
3. Demanding stakeholders: These stakeholders have urgent claims, but neither power nor legitimacy to enforce them. Tip: Be careful not to invest too much time in keeping them up to date. There are more important stakeholders to communicate with.
4. Dominant stakeholders have both power and legitimate claims in the organization giving them strong influence in the project. Tip: Keep them informed.
5. Dangerous stakeholders have power and urgency, but lack of legitimacy. They are seen as dangerous as they may resort to coercion and even violence. Tip: Keep these stakeholders appropriately engaged or satisfied.
6. Dependent stakeholders lack power, but have urgent and legitimate claims. Tip: However, they need to be managed because they can quite easily choose to align themselves with other project stakeholders and hence influence your project.
7.Definite stakeholders have power, legitimacy and urgency, and therefore they need to be communicated with.
8. Nonstakeholders have no power, no legitimacy and no urgency. Tip: Do not invest time in any communication with them.
Common mistake is to draw the stakeholders where they should be or perhaps where a business analyst would like them to be instead of illustrating the actual situation.
Advantages and Disadvantages
- Illustrates the dynamic qualities by showing how stakeholders can shift from one group to another.
- Can be subjective
- To benefit this analysis must be performed on regular basis
Alternatively a Business Analyst can use the power/interest matrix.
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