Analyze the Stakeholders

The STAKEHOLDERS’ INTEREST/POWER MATRIX is a tool that will allow you to analyze the power and expectations of the stakeholders in your business. Stakeholders are individuals and organizations that are impacted by the activities of the business. They can be shareholders, financial backers, suppliers, clients, employees, interest groups, etc. These individuals and organizations have expectations of the business and, depending on their power, they may be able to use pressure tactics to ensure that these expectations are met.

The matrix consists of a horizontal and a vertical axis (see the schema on the right). Use the horizontal axis to evaluate the level of expectation of the stakeholders in the business. Use the vertical axis is to estimate the degree of power held by these same stakeholders. By positioning the stakeholders with respect to the two axes, you can determine what type of stakeholders they are and how you should manage your relationships with them.