Stakeholder Analysis Tool

StakeholderAnalysis ToolBy Dr. Adi PrasetijoExecutive Director ICSD

Description

At the Earth Summit 2002, stakeholders were defined as “those who have an interest in a particular decision, either as individu-als or representatives of a group. This includes people who influence a decision, or can influence it, as well as those affected by it”. Stakeholders might include local community members, nongovernment organizations, governments, shareholders and employees.

StakeholderAnalysis Tool

ICSD (Indonesia Center for Sustainable Development)Jl. Mampang Prapatan VIII, Komp. Bappenas No. 53 Jakarta Selatan, 12790Telp. 021 - 7989548 Fax. 021 - 7989548 Email. [email protected] Website. www.icsd.or.idIndonesia Center for Sustainable Development

Purpose

Stakeholder analysis has the ultimate goal to gain cooperation among stakeholders for better achievement. Stakeholder analysis is conducted when there is a need to clarify the stakeholder’s existence and their role connection with our project. It is important to identify all stakeholders for the purpose of identifying their existences and consequences and turning these into quality goals.

The main purposes of stakeholder analysis are

Why we have to use this tool

The reason for doing a stakeholder analysis is to help you identify:

Title one Title two Title three

The identification of stakeholders’ interests in,

the role, and influence over the project;

The identification of each stakeholder type and level of strengths; and

The possible strategy and tactical approach for all

stakeholders in the various level of approach.

Which stakeholder to incorporate in your alliance and which stakeholder to monitor

What roles they are playing and how to handle

To provide client for the right decisions in approaching the stakeholder



Component of Stakeholder Analysis

MainIssue

UnderlyingIssue Type of

Actor

Strengths

KinshipNetworking

ActorDominant

Economic& Politic

Networking

Pro�ling TheActor

Identify andAnalysis The Issue

IdentifyThe Actor

Analysis The Actor

ActorDominantApproach

ProgramApproach

Strategy andRecomendation

LevelAdministration



Flow of thinking in this research is an approach that can provide a rational view of the situation, as well as the identification of approaches that are highly likely to produce the desired result. Thus, in this research, the following are some of the stages that indicate the relevance and effectiveness of the systems thinking approach.

Influential actors were associated with identified issues, i.e. this component attempted to understand the actor (his background, etc) who raised a particular issue or

concern.

The aim of these components is to identify and analyse the issues uncovered during the field exercise. The issues were unpacked into two main subjects, namely, the ‘main issue’ and the ‘underlying’ issue. The main issue refers to the issue raised by people through communication or through their actions, while the underlying issue is relates to the factors that influence the main issue

We developed a strategy and based recommendations to specifically cater for the main and underlying issues, the actor’s dominance within the community and preferred approach to gain the actor’s confidence and support and thus, collectively resolve the main and underlying issues.

The actor was analyzed and profiled based on the issue raised and the actor’s background. In the analysis stage, we applied various tools, such us kinship network, economic and politic network, and the strengths of the actor. To shape the actors background, we developed actor profile due to the administration level and type of actors. We also asked informants, his friends, colleagues, etc about the actor, where he works, what he likes, etc

Identification and Analysis of the Issue

Analyses and profiling the actor

Identification of the actor

Strategy and recommendation



How to use this tool?

Activities under this stage are requiring recognizing the possible stakeholder involve. Answering “who” possi-ble involve.

Method: limited workshop with client to identify some possible stakeholder involve

The stakeholder analysis tool is an effective tool for community development practitioner to analyze the stakeholder rapidly and easy to use.

Preparing Mapping Stakeholder workshop

Example:

Step 1: Mapping the stakeholder

Setting up the objective of the meeting and the partici-pants of the meeting

Ask the participants to list entire stakeholder possible related to the corporate oper-ational

Cluster and classify the stake-holders in to some groups that’s connected each out

2 31

No Stakeholder Location/Area Level Interest/Issue

This stage is important to check and verify the quality of each stakeholder listed at the previous stage. Answering “How”, “What”, and “When”.

Method:

Step 2: Stakeholder veri�cation

● Questionnaire interview● In-depth interview to resource persons



1. Respondent Profile

No Information Remarks

Name ------------------------------------------------------

Address ------------------------------------------------------

Origins a. Local inhabitant (local / adat) b. Inhabitant from a transmigration programc. Outsider d. Others, .......................................

Sex a. Female b. Male

Education a. Did not finish Elementary b. Elementary School c. Junior High Schoold. High Schoole. Academy / Community Collegef. Universityg. Master h. Doctorate

Organization Status

Name of the Organization(if the founder of the organization is another person)

1

2

3

4

5

6

7

a. Owner b. Owner and Manager c. Manager, position…………….......

2. Organization profile

No Institution/Organization Name Remarks

Address

Contact Number Tel.: Fax.: Email :

Director/Chairperson Name

Year of establishment

Vision

Mission

Historical Name & Founders

1

2

3

4

5

6

7

Background and historical background on the establishment of the organization

8

Example Questionnaire interview



3. Activities, Human Resources and Finance

No Institution/Organization Name Remarks

Past and current Social activities a. Peace and conflict reconciliation b. Environmental and Natural Resourcesc. Education d. Health e. Agriculture and Forestryf. Law g. Women and Children h. Labor i. Governance and public policy j. Poverty Reductionk. Others ...(Please circle your choice, you may choose more than one)

1

Type of Activities a. Advocationb. Research c. Training and Assistantshipd. Mediation/Facilitatione. Counseling and Guidance f. Others ...(Please circle your choice, you may choose more than one)

2

Program Area Outside the Region : a. In What other provinces ? ...........................................b. In what other Regency or city ? ...................................

Inside the Region:a. In what districts? ..........................................................b. In what villages? ………………………………………………….......

3

Members size a. Permanent personnel : .................Personb. Non permanent personnel :…………Person

4

Does your organization have members? a. Yes, total members..................b. No

5

Where does your organization receive its funding? a. Membership feeb. From the government (central/local)c. From international donor & for what issue (please state) ………………………………….....d. From national donor & for what issue (please state)..................................……..e. From Private corporation f. Others ...

(may choose more than one)

6

Does your organization own branches or site offices in other areas?

a. Yes, in ………………………………………………..b. No

7

Does your organization join an association / alliances / forum / consortium?

8



Example interview guidance for in-depth interview

Understanding the Local social political condition

1. Has conflict occurred in your area recently, either between community groups, between community and corporate, or between community and government? Over what issue did the conflict arise? What has been the demand of the community?

2. Who was the stakeholder behind the conflict? What was the role and involvement of the actor when the conflict occurred?

3. What was the role and involvement of the community when the conflict occurred? Is there a party who was against the involvement of the community in the conflict? Who was against it?

4. How was the issue resolved in the conflict? Has it ended or is it still continuing? What was the resolution process? If it is still continuing, why is it?

5. Please state five persons or institutions that have a strong influence in your region? In your opinion, how big and how strong are their roles?

6. What is your opinion on the culture and custom of the community right now? Has it differed with the presence of the mining company? Have there been any social behavioral changes as a result of the presence of the mining compa-ny?

Understanding the Mining Company existence

1. Do you know any mining company that is still operational or will operate in your area? Who are those companies? (in the provincial level, the quantity of the mining companies may be more)

2. Have you ever been approached by any of those companies? If you have, on what topic and what is your impression of the company?

3. What are the social economic impacts of the company toward the communities in your area? a. If you think the company has given positive impacts on the lives of the community in its vicinity, please explain

what are those positive impacts?b. In your opinion, what are the factors that determine the positive impact of the company?c. If you think the company has given negative impacts on the live of the community in its vicinity, please explain

what are those negative impacts?d. In your opinion, what are the factors that determine the negative impact of the company?

4. What are the things that must be done by the company to deal with the problem? (Suggestions and ideas for the company and the authority/government)

Understanding the community development program of a mining company

1. Have you ever heard of the community development program undertaken by the company?2. In particular, have you ever heard of or do you know of any community development program conducted by a mining

company operating in your area?a. If yes, what is your opinion on the community development program conducted by that company?b. Is the community development program good, why do you think it’s good?c. Is the community development program bad, why do you think it’s bad? What do you think community develop-

ment implemented by the company is?



Example:Kind of Stakeholder Actors

• Location area level (administration or area where the stakeholder operate)

Step 3: Stakeholder analysis

4%Private Sector

36%Individual

60%Institution

Example:

No Level of area

Total

1 Village

2 District/Township

3 Regency

4 Province

ActorsTotal

Individuals Institutional Private sector


It is important stage to analyze the stakeholder regarding information we got from previ-ous stages, stakeholder verification.

Method: Profiling the stakeholder in to kind of stakeholder types Stakeholder category. The stakeholder chosen for this research consist of individ-

ual, institutional, and private sector actors.• Individual comprising of community leaders; youth leaders; and religious

leaders.• Institutional actors comprising of: government entities, which can be further

sub divided as; non-village unit; and village units such as Village Authority. • Non-government Organisations (NGOs).


Map of stakeholder influence and power Develop sheet to recognize the strengths of actor with define in to 4 column – high power –

low influences – low power – high influences Stakeholder influence refers to the ability of the Actors to inspire and encourage others to

accept their ideas and thoughts through their intellect and competency in particular issues. Specifically, it describes the stakeholder’s capability to construct, communicate and manage issue(s) and problem(s) that they create. Stakeholder power refers their capability to conduct and lead mass-mobilization.

It’s developed a stakeholder matrix clustering using these two-parameters where one actor will only fit into one category. The categories are as follow: • The Actor(s) that have robust capability to influence and carry out and lead mass-mobiliza-

tion. They are classified as stakeholders with high influence – high power; • The Actor(s) that have robust capability to influence and but low in carrying-out and

leading mass-mobilization. Classed as stakeholder with high influence – low power; • The Actors that have low capability to influence but robust capability in carrying-out and

leading mass-mobilization. Classified as stakeholder with low influence - high power;• The Actors that have low capability to influence and low capability in carrying-out and

leading mass-mobilization. Cluster them as low influence – low power stakeholder.

Example:High Influence Low Influence

High Power

Low Power

Example:

No Issues BasedAdministrative Level

TotalVillage District Regency Province



Map of stakeholder kinship and interest networking This map attends to give big picture of kinship networking and interest of stakeholder in

economic and politic issues.

Detail sheet of the most prominent actor among stakeholders. The term of dominant actor in this study refers to actor’s power towards the formulated variables. There are 5 parameters to be noticed to determine someone as the most prominent actor or not. Those five are: Influence capacity, refers to the actor’s power to manage issue or problem Push capacity, refers to actor’s power to mobilize people Position in the community, refers to actor’s position power in the community both at formal

or informal position Kinship network - refers to actor’s family relations or kinship power Interest network - refers to actor’s power to establish economic and/or political network.

Those parameters will perform in spider web and support with 5 rank indicator: 1 – Highly low 2 – Low 3 – Middle 4 – Strong 5 – Highly strong

Kinship networking

Close relationship

Inharmonious relationship

C

B

D

A



Power to convey an idea

M. Hardiansyah

Social and PoliticNetwork

Ability toMobilize People

Positional Strength in the Community

KinshipNetworking



5

4

3

2

1

0

Strategic recommendations – focused on comprehensive and strategic approach which is involv-ing long-term approach with attend to permanent resolution

Step 4: Stakeholder Mitigation

Example:

No Stakeholder Background Approach


It is important stage to mitigate and resolve the problem that involve of stakeholder. Recommendations for managing stakeholder relationships have been summarized into two categories:, Tactical recommendations - focused at the most prominent Actors; andStrategic recommendations - comprehensive and strategic recommendations

Method: Tactical recommendations - focused at the most prominent actors and put the

intense approach for each stakeholder. Tactical recommendations mostly is related to short-term approach to handle the conflict with related stakeholder


Documents

Stakeholder Analysis Tool