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Stakeholder Mapping
LMC explains Stakeholder Mapping
Mapping stakeholders is a strategic business tool which identifies and assesses the effect of a different individual or group of stakeholders on a company. It examines the power stakeholders can exert, the relative likelihood of them using that power, and their level of interest regarding the company's activities. The goal of the analysis is to gauge which stakeholder or group of stakeholders has the greatest potential to affect the company and therefore decide which stakeholders will need particular attention.
Stakeholders are categorised on a graph rating their level of interest against the power they possess to exercise those interests. The stakeholders in this way are broadly divided into four groups; low interest/low power (A), high interest/low power (B), low interest/high power (C) and high interest/high power (D).
Group A
The company may require little or no effort to be focused on this group. The stakeholders pose no threat due to a lack of both interest and power.
Group B
This group, although having a high interest, has little power to exercise control so they can be maintained through the management of information to keep them informed of company events.
Group C
This group may or may not realise the degree of effect they have over the company and therefore must be kept satisfied. However, because of their low interest in events, they are unlikely to cause significant disruption.
Group D
The company must try to satisfy this group first and foremost as they have the power to effect the company and a high degree of likelihood that they will use their power.
Main benefits
There are two main benefits to this tool:
1. It helps categorise stakeholders and identify groups most likely to affect and be affected by company decisions.
2. It lets the company assess ways to improve its communication based on proven interest of stakeholders. For example a stakeholder who is greatly interested, but exercises little power, may only require a newsletter to keep them informed of company events. Alternatively, a major shareholder, wielding both power and interest, may demand direct involvement in any big company decisions, such as direct voting at an Annual General Meeting. By analysing the different groups of stakeholder, companies can prioritise and focus their efforts to maximise the effectiveness of their stakeholders' interest and power on big strategic decisions.
