Stakeholder Analysis. A. General. B. Stakeholder Analysis Matrix

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1 Chapter 4.3.2: Problem Analysis and Scoping 1 Module 4: Planning Technical Annex Stakeholder Analysis A. General A basic premise behind stakeholder analysis is that different groups have different concerns, capacities and interests, and that these need to be explicitly understood and recognised in the process of problem identification, objective setting and strategy selection. The main steps involved in stakeholder analysis are to: Identify the general development problem or opportunity being addressed / considered Identify all those groups who have a significant interest Investigate their respective roles, different interests, relative power and capacity to participate (strengths and weaknesses) Identify the extent of cooperation or conflict in the relationships between stakeholders Interpret the findings of the analysis and incorporate relevant information into project design and into intervention measures to help ensure that: (a) resources are appropriately targeted to meet distributional / equity objectives and the needs of priority groups; (b) management and coordination arrangements are appropriate to promote stakeholder ownership and participation; and (c) conflicts of stakeholder interest are recognised and explicitly addressed in the design. There are a variety of tools that can be used to support stakeholder analysis, which can be divided into the following two broad categories: Tools to analyse the stakeholder landscape, such as the stakeholder Analysis Matrix and Venn Diagrams Tools to analyse the situation of individual stakeholders, such as the SWOT Analysis and Spider Diagrams. In using any of these tools, the quality of information obtained will be significantly influenced by the process of information gathering. In this regard, the effective use of participatory planning and facilitation tools 1 can help ensure that the views and perspectives of different stakeholder groups are adequately represented and understood. On the following pages, four stakeholder analysis tools are introduced. The examples used to illustrate results of the application of these tools are based on the issue of river water pollution and its impact on income and health. B. Stakeholder Analysis Matrix The Stakeholder Analysis Matrix examines the subject of how different stakeholders are affected by issues such as different problems or opportunities. The stakeholders and their basic characteristics are listed in the first column and the issues of interest in the following columns (see table 1). The type of information that is collected, analysed and presented in the columns of this kind of matrix can be adapted to meet the needs of different circumstances. For example, 1 See also: TA: General Description and Application of Selected Participatory Techniques [1.1.7] TA: Technical Description of Selected Participatory Techniques [1.1.7]

2 Chapter 4.3.2: Problem Analysis and Scoping 2 additional columns could be added to specifically deal with the different interests of women and men. Also, when analysing potential project objectives in more detail (at a later stage in project planning), greater focus should be given to analysing the potential benefits and costs of a proposed intervention to different stakeholder groups. Table 1: Example of a Stakeholder Analysis Matrix Format Stakeholder and basic characteristics Interests and manner in which they are affected by the problem(s) Capacity and motivation to bring about change Possible actions to address stakeholder interests Fishing families: c.20,000 families, low income earners, small scale family businesses, organised into informal cooperatives, women actively involved in fish processing and marketing Maintain and improve their means of livelihood Pollution is affecting volume and quality of catch Family health is suffering, particularly that of children and mothers Keen interest in pollution control measures Limited political influence given weak organisational structure Support capacity to organise and lobby Implement industry pollution control measures Identify / develop alternative income sources for women and men Households: c.150,000 households discharge waste and waste water into river, also source some drinking water and eat fish from the river Aware of industrial pollution and impact on water quality Want to dispose of own waste away from the household Want access to clean water Limited understanding of the health impact of their own waste / waste water disposal Potential to lobby government bodies more effectively Appear willing to pay for improved waste management services Raise awareness of households as to the implications of their own waste disposal practices Work with communities and local government on addressing water and sanitation issues C. Venn Diagrams Venn diagrams are created to analyse and illustrate the nature of relationships between key stakeholder groups. The size of the circle used can help indicate the relative power / influence of each group / organisation, while the spatial closeness or separation is used to indicate the relative strength or weakness of the working relationship / interaction between different groups / organisations. Venn diagrams are commonly used as a participatory planning tool with target groups, to help them profile their concept of such relationships. Venn diagrams can also be used to analyse and highlight potential conflicts between different stakeholder groups. An example of a Venn diagram is shown in figure 1.

3 Chapter 4.3.2: Problem Analysis and Scoping 3 Figure 1: Stakeholder Relationships An Example D. SWOT Analysis SWOT analysis (strengths, weaknesses, opportunities and threats) is used to analyse the internal strengths and weaknesses of a group of stakeholders or organisation and the external opportunities and threats that it faces. It can be used either as a tool for general analysis, or to look at how a stakeholder might address a specific problem or challenge. The quality of information derived from using this tool depends (as ever) on who is involved and how the process is managed it basically just provides a structure and focus for discussion. SWOT is undertaken in three main stages, namely: 1. Ideas are generated about the internal strengths and weaknesses of a group or organisation as well as the external opportunities and threats it encounters. 2. The situation is analysed by looking for ways in which the group / organisation s strengths can be built on to overcome identified weaknesses, and opportunities can be taken to minimise threats. 3. A strategy for making improvements is formulated (and then subsequently developed using a number of additional analytical planning tools). An example of a SWOT matrix, analysing the capacity of fishing cooperatives to represent members interests and manage change, is shown in the table below.

4 Chapter 4.3.2: Problem Analysis and Scoping 4 Table 2: Example of a SWOT Matrix Strengths Grassroots based and quite a broad membership Focused on the specific concerns of a relatively homogenous group Men and women are both represented Provide a basic small scale credit facility Opportunities Growing public / political concern over health impacts of uncontrolled waste disposal New government legislation in preparation on environmental protection largely focused on making polluters pay The river is potentially rich in resources for local consumption and sale New markets for fish and fish products developing as a result of improved transport infrastructure to nearby population centres Weaknesses Limited lobbying capacity and environmental management skills Lack of formal constitutions and unclear legal status Weak linkages with other organisations Internal disagreements on limiting fishing effort in response to declining fish stocks Threats Political influence of industrial lobby groups who are opposed to tighter environmental protection laws (namely waste disposal) New environmental protection legislation may impact on access to traditional fishing grounds and the fishing methods that can be employed E. Spider Diagrams Spider diagrams can be used to help analyse and provide a visual summary of institutional capacity. The collection of relevant information can be undertaken using a variety of tools, including inspection of administrative records and management reports, interviews with staff and clients and observation of on the ground operations / activities. figure 2 below illustrates an analysis of the capacity of an environmental protection agency.

5 Chapter 4.3.2: Problem Analysis and Scoping 5 Figure 2: Spider Diagram of Organisational Capacity Environmental Protection Agency The figure indicates that: The agency has relatively strong technical and financial management skills / capacity, and that its policy and planning systems are satisfactory. However, the agency has some critical shortcomings in terms of transparency and accountability, its relationship with other agencies and with its clients. This suggests that the critical constraints of this agency s capacity to address the poor quality of the river water are therefore related more to organisational culture and management priorities than to either technical skills or basic management competencies. References and Sources for Further Reading [1] Europe Aid Commission, 2004: Project Cycle Management Guidelines. Volume 1. Aid Delivery Methods. df

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