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stakeholder definition step 1 of stakeholder management

Stakeholder Definition Guide

by | reviewed 02/05/2024
This is step 1 of a 4 step guide, if you haven't read steps 2 - 4 you can access them here. Step 2 Stakeholder Analysis, Step 3 Stakeholder Planning, and Step 4 Stakeholder Engagement.

What is a Stakeholder?

A stakeholder is anybody who can affect or is affected by an organization, strategy or project. They can be internal or external and they can be at senior or junior levels. stakeholdermap.com
Word cloud centered on the question ‘What is a Stakeholder?’ with related terms such as people, group, affected, power, change, negotiate, strategic, future, and organization in various colors and sizes.
A colorful word cloud highlighting key ideas associated with stakeholders, including people, groups, power, change, negotiation, strategy, future, and organizational impact.
Our definition is broad and is the most widely accepted, however, some alternative definitions suggest that stakeholders must be those who have the power to impact an organization or project in some way. For example:
'People or small groups with the power to respond to, negotiate with, and change the strategic future of the organization' (Eden and Ackermann 1998: 117).
As Bryson states this is a somewhat restrictive definition because it excludes those who are affected, but who don't any power to respond to or negotiate with an organization. Bryson prefers a more inclusive definition which extends to all people who are affected by a change, this wider meaning is more compatible with notions of democracy and social justice. (Bryson 2004: 22).
A broader definition also aligns with Edward Freeman's view. In his influential book Strategic Management: A Stakeholder Approach (1984), he defines a stakeholder as:
'any group or individual who can affect or is affected by the achievement of the organization's objectives' (1984: 46).
I agree that a wider definition is preferable, but not just for ethical reasons. projects whether small or large will impact people who don't have power during the implementation, but may do so in business as usual.
Remember to include peope who feel positive, they might help you sell or market the benefits of your project.
For example, call center staff may not have a choice in the procurement or implementation of a CRM system, but can be the key factor in the long-term adoption of the software. If call center staff don't fully adopt the software, if they don't use it's full capabilities then they impact senior managements' perception of the software and it success or failure. Disgruntled call center staff could prevent achievement of ROI which would ultimately result in the software being replaced. Therefore stakeholder identification must include those who may at first appear to be powerless.
Stakeholder diagram with a bulleted list stating that stakeholders can be internal or external, senior or junior, individuals or groups, rich or poor, powerful or weak, saboteurs or champions, and activists or advocates, beside concentric circles labeled from the center out: the project team, then employees, HR, customers, legal, C-level execs, then partners, users, industry press, regulators, investors, resellers, influencers, and an outer ring labeled the rest of the world.
A stakeholder map placing the project team at the center, surrounded by employees, customers, executives, and wider external groups, and highlighting that stakeholders can range from powerful champions to potential saboteurs across both internal and external audiences.

Stakeholders can be:
  • Internal or external to your business
  • At Senior or junior level
  • Individuals or groups
  • Rich or poor
  • Powerful or weak
  • Saboteurs or champions
  • Activists or advocates
Deciding on the definition that you will use is an important choice that will drive your entire strategy. To help you decide, see more definitions at What is a Stakeholder?

How to identify your stakeholders

Stakeholders are crucial to the success of your project. Neglect them and they will actively work against you. Manage them well and they will actively promote you and your project (stakeholdermap.com)
The first step in is to identify your stakeholders. Get your project team together and list everybody that you can think of who is, or will be affected by the project.

Tools and techniques

ways to identify & find your stakeholders

Brainstorming

Is a great way to identify stakeholders. Ask someone to be the scribe and capture every name, organization and group you can think of. Alternatively you could give everybody a pad of sticky notes and ask them to write as many stakeholders as they can think of using one note per stakeholder. After 10 - 15 minutes put up the sticky notes on the wall or on flipchart paper. Read more on how to use brainstorming.
 

Mind mapping

Is also a useful way of unlocking your creativity and helping the ideas to flow. Your scribe can draw a mind map on a whiteboard or flipchart or you can use 'mind-mapping' software. See an example stakeholder mindmap for a software implementation project. There are many online and desktop providers of mindmapping software, offering free and paid options. A web search for 'mindmapping software' will find plenty of suggestions. We use mindmeister.com.
 

Stakeholder lists

Generic lists are a good starting point to identify potential stakeholders. This list suggests 105 stakeholders and you are welcome to use it. It is a generic list so it doesn't include many specialist or industry specific job titles, that said we hope it will be a useful to kick off your stakeholder mapping! For industry specific lists see BPM stakeholders, big data stakeholders, construction stakeholders, ecommerce stakeholders, IT stakeholders, ITIL stakeholders and government stakeholders. For projects see project stakeholders.
 

Previous projects

Search documentation from previous projects and talk to project teams to identify people likely to be involved for a particular project type or a particular client. You may be able to refer to a stakeholder map or glean stakeholders from project plans, PIDs, risk logs and so on. The ebook includes two completed stakeholder analyzes, one for a software project and one for a university construction project.
 

Organization charts and directories

Perhaps the first place to look for stakeholders is your company organization chart or directory. Interesting insights can also be gained by reviewing LinkedIn and social network sites. For example, use advanced people search on LinkedIn to filter by company, industry, job title, and/or seniority.
 
 

Stakeholder Categories

If you are struggling you could try using categories to identify potential stakeholders. For example the OGC suggest that it can be helpful to organise people by the following categories:
  • users/beneficiaries:
    • customers
    • staff
    • freelancers
    • contractors
  • governance:
    • board of directors
    • steering groups
    • project boards
    • audit
    • regulatory
  • influencers:
    • trade unions
    • media
    • local interest groups
  • providers:
    • suppliers
    • partners
For example, your mind map could start off looking something like this:

What is a Stakeholder mindmap



Create your own version of this mindmap.

Step 1 - Click here to download the map to your computer. Extract all files.
Step 2 - Create your Mindmeister account.
Step 3 - Import Stakeholder_Identification.mind.
There are eight (8) other mindmaps in the zip folder which you are free to use. 23 bonus mindmaps are included with Stakeholder Management ebook.
The mindmap above is adapted from OGC, Managing Success Programmes, London: TSO, 2007 pg. 51.

Here is another example stakeholder map from the OGC Successful Delivery Toolkit 2005.
stakeholder definition map

Why your stakeholder definition really matters

The way you define who counts as a stakeholder shapes every decision you make about engagement. If you focus only on people with formal power – senior executives, regulators, major customers – you risk missing those who will determine whether your project works in practice.

A broad, inclusive definition helps you:

  • Spot hidden risks – people with little formal power can derail a project through resistance, slow adoption or negative word of mouth.
  • Unlock unexpected support – frontline champions, subject matter experts and early adopters can become powerful allies.
  • Improve quality of decisions – a wider range of perspectives reduces blind spots and groupthink.
  • Protect reputation and trust – by showing that you have considered those who are affected but not always heard.

Examples of stakeholders in different contexts

To make the definition more concrete, here are examples of stakeholders across different types of organization and change.

1. IT and digital projects

  • Frontline users (for example, call centre staff, customer service teams)
  • Team leaders and operations managers
  • IT architects, developers and support teams
  • Data protection officers and information security
  • Customers who will experience new channels, apps or portals
  • Suppliers and implementation partners

2. Organizational change and restructuring

  • Employees whose roles, location or reporting lines may change
  • Trade unions and staff representatives
  • Senior leadership teams and board members
  • HR and internal communications
  • Regulators or professional bodies (for example, where licenses or registrations are affected)
  • Key customers and partners who may worry about continuity of service

3. Public sector and community projects

  • Citizens and service users
  • Local communities and interest groups
  • Elected representatives and policy makers
  • Taxpayers and funding bodies
  • Charities, NGOs and advocacy groups
  • Media and commentators

These examples show why it is dangerous to narrow the definition of stakeholder to only those with formal decision-making power. People on the receiving end of change often decide whether your project works after go-live, when you may have little control over their behaviour.

Primary, secondary and key stakeholders

Once you have decided on your definition, it can be useful to categorise stakeholders further. One common approach is to distinguish between primary, secondary and key stakeholders:

  • Primary stakeholders – those who are directly affected by the project or strategy. For example, users of a new system, residents affected by construction, or customers impacted by a service change.
  • Secondary stakeholders – those who are indirectly affected. This might include regulators, professional bodies, media, or internal support functions.
  • Key stakeholders – a subset of primary or secondary stakeholders who have disproportionate influence over success or failure. They may have decision rights, resources, legitimacy, or the ability to shape opinion.

Primary, secondary and key stakeholders can all be internal or external, powerful or apparently weak. A call centre team leader, an influential subject matter expert or a respected informal leader can all be key stakeholders, even if they do not appear on the formal governance chart.

Common mistakes in stakeholder identification

Even experienced project managers fall into traps when identifying stakeholders. Here are some common mistakes to avoid:

  • Only listing the “usual suspects”
    Stopping after naming the steering group, project sponsor and main supplier, and forgetting customers, users, support teams and those affected downstream.
  • Focusing only on supporters
    Ignoring potential opponents or sceptics because it feels uncomfortable. These are often the people who can create the biggest problems later.
  • Confusing role with attitude
    Assuming that senior managers are always supportive and frontline staff are always resistant. In practice, attitudes vary within every group.
  • Treating “the business” as one stakeholder
    Large organisations contain many sub-groups with different priorities and constraints. “The business” is not a single stakeholder.
  • Failing to revisit the list
    Stakeholders change across the life of a project. New groups appear, old groups lose interest, and power shifts. Identification should be updated at key milestones.

A simple rule of thumb is: if someone can help or hinder your objectives – or will feel the impact of them – treat them as a stakeholder.

From identification to engagement

Identifying stakeholders is only the first step. Once you know who your stakeholders are, you need to decide:

  • What you want from them (support, resources, information, permission, advocacy)
  • What they want from you (benefits, assurance, protection from risk, recognition)
  • How much power and interest they have in your project
  • What messages they need to hear, and from whom
  • How you will involve them – inform, consult, collaborate or empower

Tools like the power–interest grid, stakeholder mapping workshops and structured interviews can help you move from a long list of names to a focused engagement plan.

For practical templates to move beyond identification into analysis and planning, see the Stakeholder Management ebook and templates.

Quick stakeholder checklist

Use the checklist below to test whether you have taken a broad enough view of your stakeholders:

  • Have you included people who are affected but have little or no formal power?
  • Have you considered both internal and external stakeholders?
  • Have you covered senior, middle and frontline levels?
  • Have you identified potential saboteurs and potential champions?
  • Have you looked beyond the organization chart to informal leaders and networks?
  • Have you checked previous projects and lessons learned for “missing” stakeholders?
  • Will your list still make sense during business-as-usual, not just during implementation?

Stakeholder FAQs

Are shareholders the same as stakeholders?

No. Shareholders own shares in an organisation. They are an important stakeholder group, but they are only one part of the wider stakeholder set. A stakeholder is anyone who can affect, or is affected by, the achievement of the organisation’s objectives or the outcomes of a project. This includes employees, suppliers, customers, regulators, communities and many others.

Are employees always stakeholders?

Yes. Employees are always stakeholders because they are affected by the organisation’s strategy, culture, performance and change initiatives. In projects, specific groups of employees may be primary stakeholders if their roles, processes or tools are changing, or key stakeholders if their support is critical for adoption.

What is the difference between internal and external stakeholders?

Internal stakeholders are inside the organisation, for example employees, managers, executives, owners and internal support functions. External stakeholders sit outside the formal boundary of the organisation, such as customers, suppliers, regulators, partners, local communities and the media. Both internal and external stakeholders can be powerful, supportive, neutral or opposed.

Do stakeholders have to be powerful?

No. Some definitions focus only on people with formal power, but this is too narrow. People who appear to have little power during a project can still decide whether the change sticks in day to day work. For example, frontline staff using a new system may not have chosen it, but they can make or break adoption and return on investment. A broad definition makes it more likely that you identify these groups early.

Can one person belong to more than one stakeholder group?

Yes. The same individual can sit in several groups at once. For example, a senior manager can be:

  • an internal stakeholder,
  • a key decision maker on a project board, and
  • a user of the new process or system.

Your analysis should reflect these overlapping roles, and your engagement plan should recognise the different interests a single stakeholder may have.

Are customers always stakeholders?

Customers are almost always stakeholders, even if the project looks “internal”. Changes to processes, systems or organisation design usually affect service levels, response times, quality or price. Even when the change is behind the scenes, customers can feel the impact over time, for better or worse.

Should I include people who are only indirectly affected?

In most cases, yes. People who are indirectly affected can still influence outcomes. For example, an internal support team might not use a new system every day, but they may provide training, resolve issues, shape perceptions and advise senior leaders. If they can help or hinder your objectives, treat them as stakeholders and decide how you will engage with them.

How many stakeholders is too many?

There is no perfect number. It is better to start with a long and inclusive stakeholder list, then use analysis techniques to focus your effort. Tools like the power interest grid help you decide who needs close management, who needs regular updates and who needs only light touch communication. Do not try to give every stakeholder the same level of attention, but do record why some groups are lower priority.

When should I review my stakeholder list?

Stakeholders change over time. You should revisit your stakeholder list at major milestones, for example at the start of each phase, after key decisions or when risks and issues change. New stakeholders may appear as the project becomes more visible, and the power or interest of existing stakeholders can grow or shrink. Regular review keeps your engagement plan realistic and up to date.

For practical tools to move from definition to analysis and planning, see the Stakeholder Management ebook and templates.

If you answer “no” or “not sure” to any of these questions, it is worth revisiting your stakeholder identification before moving on to detailed planning.

Next steps

Resources

Stakeholder Management

What is a stakeholder? Mind map

Example stakeholder mind map

Stakeholders - List of 105 typical stakeholders

FREE stakeholder analysis power/interest template

Basic Stakeholder Analysis Method

Stakeholder Analysis Pleasure and Displeasure List

Stakeholder Salience

References and further reading

Bryson, J. (2004) What to do when stakeholders matter. Public Management Review, 6 (1), p.21 - 23. Available at https://archive.hhh.umn.edu/people/jmbryson/

Eden, C. and Ackermann, F. (1998) Making Strategy: The Journey of Strategic Management, p117, London: Sage Publications.

Freeman, R. E. (1984) Strategic Management: A Stakeholder Approach, p46, Boston, MA: Pitman. Latest edition.

Freeman, Edward. (2010) Strategic Management: A Stakeholder Approach, Cambridge: Cambridge University Press.

Freeman, Edward., Jeffrey S Harrison, Andrew C Wicks. (2007) Managing for Stakeholders: Survival, Reputation, and Success (Business Roundtable Institute for Corporate Ethics Series in), Yale: Yale University Press. Latest edition.

OGC, Managing successful programmes, London: TSO, 2007 pg. 51. Latest edition Managing successful programmes.
OGC, OGC Successful Delivery Toolkit, London: TSO, 2005. Unfortunately the toolkit appears to have been removed from the National Archives see OGC Successful Delivery Toolkit.

Guide to Stakeholder Management

Next step - stakeholder analysis