Stakeholder Management is one of the core skills that every Project Manager or Change Manager must master. However, in my experience, it is often overlooked or done poorly.
In this blog, I will present the Power Interest Matrix as one of the tools we at QBIX use to help manage project stakeholders effectively.
Stakeholder Management
Let’s start by defining what we mean by a stakeholder, particularly in relation to projects and change.
Simply put, a stakeholder is anyone who is either interested in the project or likely to be affected by it—whether during the project’s execution or after it has been completed. In fact, anyone with a stake in the project is, by definition, a stakeholder.
Before managing stakeholders, we first need to identify who they are. Stakeholders can be individuals (e.g., the project sponsor) or groups (e.g., customers, the general public, or staff).
A significant part of stakeholder management involves good communication. However, it’s important to remember that we communicate with individuals, not organisations. If a stakeholder group consists of organisations, we need to determine the key individuals within those groups with whom we will communicate.
Identifying the Stakeholders
The first step in Stakeholder Analysis is brainstorming who your stakeholders are. This process is best done by a small group from the core project team, led by the Project Manager. Think of all the people affected by the project, those who have influence or power over it, or those with an interest in its successful or unsuccessful conclusion.
Once we’ve identified the stakeholders, we can move to how we will manage them. This is where the Power Interest Matrix comes into play. It helps map the power and influence that stakeholders have on a project and its outcomes, guiding project managers in determining which stakeholders to focus on and the actions to take.
Using the Power Interest Matrix
Categorise your list of stakeholders based on their power and interest in the project. Some may have the power to block or advance your project, while others may have varying levels of interest.
This can often be an uncomfortable process for team members, especially in organisations with a strong internal culture. High levels of trust are needed among team members, and this is where an external facilitator or consultant, such as QBIX, can provide immense value. A third party can maintain objectivity and avoid getting caught in internal politics.
When plotting your stakeholders on a power/interest grid, you can determine who has high or low power to influence the project, and who has high or low interest.
- High Power – High Interest: These stakeholders are likely to be decision-makers and have the biggest impact on the project’s success. Keep these stakeholders close and manage their expectations closely.
- High Power – Low Interest: These stakeholders should be kept in the loop about project developments. Even if they’re not interested in the outcome, they hold power, which should be managed cautiously.
- Low Power – High Interest: Keep these stakeholders informed and engaged. These individuals can be very helpful with the details of the project.
- Low Power – Low Interest: Monitor these stakeholders but avoid excessive communication.
One tip I have to help visualise stakeholder potential impact on the project is colour-coding them: red for negative, green for positive, and blue for neutral. This visual approach can help develop management and communication strategies tailored to each stakeholder.
For simplifying stakeholder analysis, we at QBIX use an Excel template that categorises stakeholders into the four quadrants of the Power Interest Matrix. This tool combines the power and interest classification with two additional categories to assess their reaction to the project and the level of support required.
RACI Matrix
Another useful tool for managing project stakeholders is the RACI Matrix (Responsible, Accountable, Consulted, Informed). It’s an excellent framework for clarifying roles and ensuring that everyone knows their responsibilities throughout the project lifecycle.
