Stakeholder Mapping is a strategic tool used to categorize stakeholders based on two dimensions: their level of Power (influence over the business) and their level of Interest (how much they care about specific outcomes).
Key Players (High Power, High Interest): These stakeholders, such as major shareholders or key employees, must be managed closely and kept fully satisfied as they can significantly impact the business's direction.
Keep Satisfied (High Power, Low Interest): These groups, like the media or certain government bodies, have the power to disrupt operations and must be treated with care to avoid negative interference.
Keep Informed (Low Power, High Interest): Groups like the local community or minor pressure groups should be kept in the loop to maintain goodwill and prevent them from gaining power through collective action.
Minimal Effort (Low Power, Low Interest): These stakeholders require basic monitoring but do not necessitate intensive engagement strategies.
| Feature | Stakeholder Need | Business Requirement |
|---|---|---|
| Focus | The 'Why' (Problem Space) | The 'What' (Solution Space) |
| Nature | Abstract and high-level | Specific and measurable |
| Example | Need for faster communication | Requirement for a 5G network |
Identify the Conflict: In exam scenarios, look for situations where satisfying one stakeholder directly harms another (e.g., cutting costs to please shareholders while reducing employee wages).
Analyze the Power Shift: Consider how external factors like a recession or new legislation might increase the power of a previously 'low power' group, such as a trade union or environmental regulator.
Evaluate Engagement: When asked how to manage a stakeholder, use the Power-Interest matrix to justify your choice. A 'Key Player' requires a Partnership approach, while 'Keep Informed' might only need a newsletter.
Avoid Generalizations: Do not assume all stakeholders in a group think the same; for example, some shareholders may prioritize ethical growth over short-term dividends.
