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Identify Key Stakeholders

Stakeholders are individuals or groups that are affected by, or able to influence, the supply chain management (SCM) business practices employed.

It is imperative that the key stakeholders are identified during the preliminary stages of the purchase process. Stakeholder opinions and attitudes are formulated in the Conceptualize Need task of Process Step 1: Identify Needs. It is important to collect and assess the interests of all stakeholders, who may represent different Client groups, and to resolve conflicting needs. Failure to identify key stakeholders early in the supply process can create additional risks to the success of the project.

The first step in identifying key stakeholders is to brainstorm. Consider everyone affected by the supply decision, those who have influence or power over it, and those who have an interest in its outcome. One of the best ways to identify stakeholders is to plot them on an Influence/Impact Matrix. The next step is to prioritize stakeholders by influence and impact and to plot this on an Influence/Impact Matrix (illustrated below). The final step is to understand what motivates the stakeholders and how to gain their confidence with the eventual results.

Prioritize and Understand Stakeholders

After identifying the key stakeholders, perform a stakeholder-mapping exercise, using the Influence/Impact Matrix illustrated in Figure 1.3.

Figure 1.3

Influence/Impact Matrix for Stakeholder Prioritization

Classify key stakeholders by the extent to which they can influence the project and the degree to which it will/may affect them. A stakeholder's position on the grid illustrates particular actions that may be taken when interacting with him or her:

• High-influence, high-impact individuals: significant efforts should be made to satisfy this group.

• High-influence, low-impact individuals: Effort should be made to keep this group satisfied, but on a more limited basis than the high-impact group.

• Low-influence, high-impact individuals: This group is adequately informed, and close communication is stressed to ensure that major issues are addressed.

• Low-influence, low-impact individuals: Monitor members of this group for consideration and consultation.

Stakeholder Analysis will be critical in communicating with key stakeholders throughout the project life cycle. It will also be the foundation for developing the communication plan, which is discussed in the Prepare Project task of Process Step 2: Evaluate Sources.