Project Management & Agile Module 2 – Initiating: business case, charter and stakeholders
Identifying and analysing stakeholders
Build a stakeholder register, sort it with a power-interest grid and the salience model, see where they disagree, and plan how to engage each group.
What you will learn
- Build a stakeholder register that records each stakeholder's stake, power, interest and engagement
- Map stakeholders on a power-interest grid and classify them with the salience model
- Choose an engagement approach for each stakeholder group and plan the gap to close
- Find easily missed stakeholders such as regulators, unions, neighbours and users of old systems
Before you start
What you’ll learn · Before you start
What you will learn
- Build a stakeholder register that records each stakeholder's stake, power, interest and engagement
- Map stakeholders on a power-interest grid and classify them with the salience model
- Choose an engagement approach for each stakeholder group and plan the gap to close
- Find easily missed stakeholders such as regulators, unions, neighbours and users of old systems
Before you start
On this page
The first stakeholder list for a city’s electric-bus depot had five names, all of them people who pay for the depot or build it. The finished register has 14, and two of the nine it gained are the kind teams find too late: the mechanics whose diesel skills the depot retires, and the inspector who must inspect the chargers before they are switched on.
You will search for stakeholders group by group, record them in a register, sort them with a power-interest grid and with the salience model, see exactly where the two models disagree on the same list, and plan how far to engage each group.
Stakeholders include everyone the work affects, not only who pays
The Kanban Guide’s definition gives three tests in one line: a stakeholder: Any person, group or organisation responsible for, interested in or affected by a piece of work or what it produces, whether or not they asked to be involved. is any person, group or organisation responsible for, interested in or affected by the work and what it produces. The first list of the depot passed only the first test. The other two bring in people who never asked to be involved, such as residents who will hear chargers at night.
A search by group finds them faster than a brainstorm. Ask who decides and pays, who will run the result, who builds and supplies it, who must permit or inspect it, who lives or travels near it, and who competes with it. Step through that search for the depot:
The drawing shows the whole scene; its 7 steps are listed below.
Every step as text
- Who decides and pays. The first list is usually the people who decide and pay. Here that is the municipal commissioner, the sponsor, and the state transport department, which part-funds the buses.
- Who will run it. The city bus company will run the depot, and its drivers' union negotiates new shifts and training. The depot mechanics are easy to leave out because they work on the old diesel fleet.
- Who builds and supplies. The bus manufacturer delivers 40 buses under contract, and the electricity distribution company must connect the chargers. Both hold dates the plan depends on.
- Who must permit it. In this project the chargers stay switched off until the electrical inspector has inspected them, and the fire department and traffic police set conditions. Teams often find such bodies only when a permit is missing.
- Who lives and travels near. Residents worry about night charging noise and lorries, commuters gain quieter buses, and shopkeepers lose parking while the depot is built. They are affected without being asked.
- Who competes with it. Private bus operators fear losing routes to the new buses. They are not part of the project, but its outcome affects them, and they can make trouble for it.
- Fourteen in six groups. The register now holds 14 stakeholders. Searching by group, who decides, runs, supplies, permits, lives nearby and competes, is what turned up the mechanics and the inspector.
The search turned up both of the stakeholders the first list missed. The mechanics are users of the old system, and the depot changes their work completely. The inspector holds a power that is used only once, at the end, which is exactly why nobody thinks of it early.
Each name goes into a stakeholder register: The project's list of its stakeholders with what each holds at stake, their power and interest, and how engaged they are now and need to be; it is kept factual and revisited at every milestone.: who they are, what they hold at stake, how much power and interest they have, and, later in this lesson, how engaged they are now and need to be. PMI’s 2026 examination outline lists identifying and analysing stakeholders as the first steps of its task “Engage stakeholders”.
Stopping at the organisation chart
Wrong: listing only the departments of your own organisation. Right: run every group question, outside the organisation too, because regulators, unions, neighbours and competitors appear on no internal chart.
A power-interest grid turns a register into four approaches
With 14 names, the team needs to decide how much effort each one gets. The common tool is the power-interest grid: A two-by-two chart that places stakeholders by their power over the project and their interest in it, giving four approaches: manage closely, keep satisfied, keep informed and monitor.: score each stakeholder’s power, how far they could stop or reshape the project, and their interest, how strongly the outcome affects them or matters to them. This program holds the depot’s register with the team’s scores from 1 to 5 and places each stakeholder in a quadrant, with 3 or more counting as high:
"""A stakeholder register for an invented municipal e-bus depot, and the power-interest grid it gives.
Power is how far a stakeholder can stop or reshape the project, interest how strongly the outcome affects them or
matters to them, each scored from 1 to 5 by the project team. A score of 3 or more counts as high. The four quadrants
take the usual approaches: manage closely, keep satisfied, keep informed and monitor.
"""
REGISTER = [
# name, what they hold at stake, power, interest
("Municipal commissioner", "sponsor: answers for the depot's budget", 5, 4),
("State transport department", "part-funds the buses", 5, 3),
("City bus company", "will run the depot and the buses", 4, 5),
("Electricity distribution company", "must connect the chargers", 4, 2),
("Electrical inspector", "chargers stay off until inspected", 5, 1),
("Fire department", "battery fire safety of the depot", 4, 1),
("Traffic police", "diversions while the depot is built", 3, 1),
("Bus manufacturer", "delivers 40 buses under contract", 3, 4),
("Drivers' union", "shifts and training for drivers", 3, 5),
("Private bus operators' association", "fears losing routes", 3, 3),
("Depot mechanics", "their diesel skills stop being used", 2, 5),
("Residents' association", "night charging noise and lorries", 2, 4),
("Daily commuters", "quieter, cleaner buses", 1, 3),
("Shopkeepers on the depot road", "parking while it is built", 1, 2),
]
QUADRANTS = {
(True, True): "Manage closely (high power, high interest)",
(True, False): "Keep satisfied (high power, low interest)",
(False, True): "Keep informed (low power, high interest)",
(False, False): "Monitor (low power, low interest)",
}
print(f"{'Stakeholder':<36}{'Power':>6}{'Interest':>9} At stake")
for name, stake, power, interest in REGISTER:
print(f"{name:<36}{power:>6}{interest:>9} {stake}")
print()
for key, title in QUADRANTS.items():
members = [name for name, _, power, interest in REGISTER if (power >= 3, interest >= 3) == key]
print(f"{title}: {len(members)}")
for name in members:
print(f" {name}") Output
Stakeholder Power Interest At stake Municipal commissioner 5 4 sponsor: answers for the depot's budget State transport department 5 3 part-funds the buses City bus company 4 5 will run the depot and the buses Electricity distribution company 4 2 must connect the chargers Electrical inspector 5 1 chargers stay off until inspected Fire department 4 1 battery fire safety of the depot Traffic police 3 1 diversions while the depot is built Bus manufacturer 3 4 delivers 40 buses under contract Drivers' union 3 5 shifts and training for drivers Private bus operators' association 3 3 fears losing routes Depot mechanics 2 5 their diesel skills stop being used Residents' association 2 4 night charging noise and lorries Daily commuters 1 3 quieter, cleaner buses Shopkeepers on the depot road 1 2 parking while it is built Manage closely (high power, high interest): 6 Municipal commissioner State transport department City bus company Bus manufacturer Drivers' union Private bus operators' association Keep satisfied (high power, low interest): 4 Electricity distribution company Electrical inspector Fire department Traffic police Keep informed (low power, high interest): 3 Depot mechanics Residents' association Daily commuters Monitor (low power, low interest): 1 Shopkeepers on the depot road
Recorded with Python 3.14.8 on macOS 26 arm64. To run it yourself: mise exec python@3.14.8 -- python3 register.py
Six stakeholders land in “manage closely”, four in “keep satisfied”, three in “keep informed” and one, the shopkeepers, in “monitor”. Bryson’s survey of stakeholder analysis techniques describes the same grid and names the four groups players, context setters, subjects and the crowd. The names differ, but the advice is the same: spend the most effort where power and interest are both high.
Each quadrant implies a different kind of contact. Answer the questions in the figure for a stakeholder of your own and see which approaches still fit; the third question is one the grid itself never asks:
Answer the questions above: the table then marks what fits your case and says why the rest does not.
| Approach | How often | How | Part in decisions |
|---|---|---|---|
| Manage closely For example: the commissioner and the bus company | Good every week, and before every decision that affects them | Good meetings in person, with their views in the decision papers | Good consulted on scope and milestones, or deciding them |
| Keep satisfied For example: the inspector and the fire department | Mixed at the points where their rules or permits apply | Mixed short, formal updates and early sight of what they must check | Mixed their conditions are met, not debated |
| Keep informed For example: residents and depot mechanics | Mixed at every milestone and whenever their situation changes | Good briefings, notices and a named contact who answers | Poor heard, but they do not decide |
| Monitor For example: shopkeepers on the depot road | Poor rarely: watch for a change in their power or interest | Mixed general notices that reach everyone | Poor no part unless their position changes |
How the answers decide
- “Could this stakeholder stop the project or force a change to it?” Yes, they could: rules out Keep informed and Monitor. Someone who can stop the project needs more than notices; ignoring them risks a halt late in the work.
- “Could this stakeholder stop the project or force a change to it?” No, not on their own: rules out Manage closely and Keep satisfied. Without the power to stop or change the work, they need information and a hearing rather than a seat in every decision.
- “Does the outcome strongly affect them, or matter a great deal to them?” Yes, strongly: rules out Keep satisfied and Monitor. People strongly affected by the outcome need regular contact; occasional formal updates leave them guessing.
- “Does the outcome strongly affect them, or matter a great deal to them?” No, only a little: rules out Manage closely and Keep informed. Weekly meetings with people the outcome barely affects waste their time and yours.
- “Is their claim pressing right now, for example noise that starts next month?” Yes, it is pressing: adds a caveat to Keep informed and Monitor. The grid has no urgency axis. A pressing, legitimate claim needs an answer now and someone with power to act on it, as the salience model shows.
The grid is a snapshot of judgements. Scores move when people change jobs, when a decision lands on someone’s desk or when a protest starts, so the register is revisited at every milestone, not filled in once.
Checkpoint
Check: Finding every stakeholder · The power-interest grid and its four approaches
The salience model adds legitimacy and urgency to power
The grid has two axes; Mitchell, Agle and Wood’s salience model, published in 1997, has three yes-or-no attributes. Power: can the stakeholder impose its will on the project? Legitimacy: is its claim proper, by law, contract or accepted norms? Urgency: does the claim demand attention now? A stakeholder with all three is definitive; the salience model: Mitchell, Agle and Wood's model that classes stakeholders by three attributes, power, legitimacy and urgency; a stakeholder with all three is called definitive. names seven classes in all, from dormant (power only) to definitive. The program below classes the same 14 stakeholders and lists every place where the two models disagree:
"""The same 14 stakeholders of the invented e-bus depot, classed by the salience model, and where it disagrees with the
power-interest grid.
The salience model (Mitchell, Agle and Wood, 1997) asks three yes-or-no questions: does the stakeholder have power to
impose its will on the project, a legitimate claim, and a claim that is urgent now? The seven classes are the
combinations: dormant, discretionary and demanding have one attribute; dominant, dangerous and dependent have two;
definitive stakeholders have all three. The grid's quadrant comes from the register's scores (3 or more is high).
"""
# name, power score, interest score (the register's), then power, legitimacy, urgency (the salience questions)
STAKEHOLDERS = [
("Municipal commissioner", 5, 4, True, True, True),
("State transport department", 5, 3, True, True, False),
("City bus company", 4, 5, True, True, True),
("Electricity distribution company", 4, 2, True, True, False),
("Electrical inspector", 5, 1, True, True, False),
("Fire department", 4, 1, True, True, False),
("Traffic police", 3, 1, True, True, False),
("Bus manufacturer", 3, 4, True, True, False),
("Drivers' union", 3, 5, True, True, True),
("Private bus operators' association", 3, 3, True, False, True),
("Depot mechanics", 2, 5, False, True, True),
("Residents' association", 2, 4, False, True, True),
("Daily commuters", 1, 3, False, True, False),
("Shopkeepers on the depot road", 1, 2, False, True, False),
]
CLASSES = {
(True, False, False): "dormant (power only)",
(False, True, False): "discretionary (legitimacy only)",
(False, False, True): "demanding (urgency only)",
(True, True, False): "dominant (power, legitimacy)",
(True, False, True): "dangerous (power, urgency)",
(False, True, True): "dependent (legitimacy, urgency)",
(True, True, True): "definitive (power, legitimacy, urgency)",
}
QUADRANT = {(True, True): "manage closely", (True, False): "keep satisfied",
(False, True): "keep informed", (False, False): "monitor"}
print("Salience classes")
for attributes, title in CLASSES.items():
members = [s[0] for s in STAKEHOLDERS if tuple(s[3:]) == attributes]
print(f" {title}: {len(members)}")
for name in members:
print(f" {name}")
print("Where the grid and the salience model disagree")
for name, power_score, interest_score, power, legitimate, urgent in STAKEHOLDERS:
quadrant = QUADRANT[(power_score >= 3, interest_score >= 3)]
if quadrant == "manage closely" and not legitimate:
print(f" {name}: the grid says {quadrant}, but its claim is not legitimate")
if quadrant in ("keep informed", "monitor") and urgent:
print(f" {name}: the grid says {quadrant}, but its claim is urgent") Output
Salience classes
dormant (power only): 0
discretionary (legitimacy only): 2
Daily commuters
Shopkeepers on the depot road
demanding (urgency only): 0
dominant (power, legitimacy): 6
State transport department
Electricity distribution company
Electrical inspector
Fire department
Traffic police
Bus manufacturer
dangerous (power, urgency): 1
Private bus operators' association
dependent (legitimacy, urgency): 2
Depot mechanics
Residents' association
definitive (power, legitimacy, urgency): 3
Municipal commissioner
City bus company
Drivers' union
Where the grid and the salience model disagree
Private bus operators' association: the grid says manage closely, but its claim is not legitimate
Depot mechanics: the grid says keep informed, but its claim is urgent
Residents' association: the grid says keep informed, but its claim is urgent
Recorded with Python 3.14.8 on macOS 26 arm64. To run it yourself: mise exec python@3.14.8 -- python3 salience.py
Three disagreements come out. The private operators’ association lands in “manage closely” on the grid, beside the sponsor, yet its claim is not legitimate, which makes it dangerous in the model’s terms: engage it so that it cannot disrupt the work, but give it no part in decisions. The mechanics and the residents sit in “keep informed”, yet their claims are legitimate and urgent, which makes them dependent: they need someone with power to act for them, the bus company for the mechanics’ retraining and the commissioner for the residents’ noise limits, and they need an answer now rather than a newsletter.
Key idea
Use the grid to share out effort and the salience model to test whose claims are legitimate and pressing; where the two disagree about a stakeholder, look again at that stakeholder first.
Engagement is planned as the gap between now and what the work needs
Knowing who matters is half the job; the other half is moving them. A simple five-level scale records how engaged each stakeholder is now and how engaged the project needs them to be: unaware, resistant, neutral, supportive and leading. PMI’s outline makes carrying out such an engagement plan part of the same task. Here are five of the depot’s stakeholders, with the action that closes each gap:
| Stakeholder | Now | Needed | Action |
|---|---|---|---|
| Depot mechanics | Resistant | Supportive | A retraining plan with the bus company, before the buses arrive |
| Residents’ association | Unaware | Neutral | A meeting on charging hours and noise limits, then monthly notices |
| Electrical inspector | Unaware | Neutral | Early sight of the charger design and an inspection week in the plan |
| Drivers’ union | Neutral | Supportive | Shift and training proposals agreed before the first buses arrive |
| Municipal commissioner | Supportive | Leading | Opens the first route and answers residents’ questions in public |
The mechanics start as resistant because the depot threatens their skills, which a retraining plan addresses. The commissioner needs to move from supportive to leading, because residents trust a public answer more than a notice.
Opinions in a register many people can read
Wrong: “Head mechanic: difficult, blocks everything.” Right: “Head mechanic: concerned that retraining is not yet planned; raised it twice.” Record what people said and need, not what you think of them, and limit who can read the register.
A register holds information about named people, so it needs the same care as any other personal data: collect only what the engagement needs, and keep it where only the project’s leads can open it.
Stakeholder registers in India
A register of named people’s views is digital personal data under India’s Digital Personal Data Protection Act, 2023. The Act and its rules rest on principles that include purpose limitation, data minimisation and security safeguards, so record only what the project needs and protect it.
Checkpoint
Check: Power, legitimacy and urgency · Engagement gaps and a careful register
Practise: registers, grids and gaps
The questions bring stakeholders from other projects: a hospital, a factory and a software rollout. Your first answer to each counts towards that idea’s level, and you may try again as often as you like:
Practice that adapts to you
Practise this lesson
10 questions about 4 ideas of this lesson. Each answer is explained at once, and what you get right is kept in this browser.
Interview questions
Warm-up (fresher to 2–5 years): what does a power-interest grid tell you, and what does it leave out?
A power-interest grid places each stakeholder by how far they could stop or reshape the project and by how strongly the outcome affects them, giving four approaches: manage closely, keep satisfied, keep informed and monitor. It tells you where to spend engagement effort. It leaves out whether a stakeholder’s claim is legitimate and whether it is urgent, which is why the salience model adds those two attributes. It is also a snapshot of judgements: scores change when people move, decisions land or a protest starts, so the grid must be revisited at every milestone rather than filled in once.
Two harder questions follow, about a group that was never consulted and a powerful stakeholder who stays away. Work out your answer before you open each first step:
Model answers open with any pass: ₹79 for 1 week ($2.99), one payment that never renews.
-
Mid to senior
Two weeks before a new payroll system goes live, the internal audit team says it was never consulted and asks for the launch to be held until it has tested the controls. What went wrong, and what do you do now?
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Senior to staff
A department head whose budget your project draws on opposes it and skips every meeting you invite them to. Their deputy attends but cannot decide anything. How do you plan your engagement with this person?
Flashcards · 5 cards
Recall it, then check
Say the answer to yourself before you look: recalling it is what makes it stick.
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What three tests does the Kanban Guide's definition give for a stakeholder?
Anyone responsible for, interested in or affected by the work and what it produces. A first list usually passes only the first test, so a search by group (who pays, uses, builds, permits, lives near or competes with the work) finds the rest.
-
What does a power-interest grid give you, and what does it miss?
Four approaches by score: manage closely, keep satisfied, keep informed, monitor. It misses whether a stakeholder's claim is legitimate and whether it is urgent, which Mitchell, Agle and Wood's salience model (1997) adds. The grid is a snapshot and must be revisited at every milestone.
-
Which three yes-or-no attributes does the salience model use?
Power (can the stakeholder impose its will on the project?), legitimacy (is its claim proper, by law, contract or accepted norms?) and urgency (does the claim demand attention now?). A stakeholder with all three is definitive; the model names seven classes in all.
-
How is stakeholder engagement planned?
As the gap between how engaged each stakeholder is now and the level the work needs them to be, on a five-level scale (unaware, resistant, neutral, supportive, leading). The register records what people said and need, not opinions about them, and is open only to the project's leads.
-
How does India's DPDP Act affect a stakeholder register?
A register of named people's views is digital personal data under the DPDP Act, 2023, so purpose limitation, data minimisation and security safeguards apply: collect only what the engagement needs and keep it where only the project's leads can read it.
Key takeaways
- Stakeholders are everyone responsible for, interested in or affected by the work, and a search by group, from who pays to who competes, finds the ones a first list misses.
- A power-interest grid scores power and interest to share out effort among four approaches, and it must be revisited as people and decisions change.
- The salience model adds legitimacy and urgency to power, and where it disagrees with the grid, that stakeholder needs a second look.
- Engagement is planned as the gap between each stakeholder’s level now and the level the work needs, recorded in a factual register that few people can read.
Terms in this lesson
- power-interest grid
- A two-by-two chart that places stakeholders by their power over the project and their interest in it, giving four approaches: manage closely, keep satisfied, keep informed and monitor.
- salience model
- Mitchell, Agle and Wood's model that classes stakeholders by three attributes, power, legitimacy and urgency; a stakeholder with all three is called definitive.
- stakeholder
- Any person, group or organisation responsible for, interested in or affected by a piece of work or what it produces, whether or not they asked to be involved.
- stakeholder register
- The project's list of its stakeholders with what each holds at stake, their power and interest, and how engaged they are now and need to be; it is kept factual and revisited at every milestone.
References
- The Kanban Guide (v2025.5) (John Coleman and Daniel Vacanti)
- Toward a theory of stakeholder identification and salience: defining the principle of who and what really counts (Academy of Management Review)
- What to do when stakeholders matter (Public Management Review)
- PMP Examination Content Outline (2026) (Project Management Institute)
- DPDP Rules, 2025 notified: a citizen-centric framework for privacy protection (Press Information Bureau, Government of India)
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