01
Introduction
Innovations do not exist in isolation.
Every product, service, program, policy, platform or initiative affects people. Some people will support the innovation. Some may resist it. Others may influence its success without ever directly using it.
Many projects fail not because the idea is poor, but because stakeholders were misunderstood, overlooked or inadequately engaged.
Stakeholder analysis helps innovators understand the human ecosystem surrounding a challenge. It provides a structured way to identify who matters, understand their interests and develop strategies for collaboration and engagement.
Within the Evaluate stage of the 5E Design Thinking Framework, stakeholder analysis helps innovators move beyond individual users and consider the wider network of people, groups and organisations that influence outcomes.
Innovation is rarely about solutions alone.
It is about people.
02
What Is a Stakeholder?
A stakeholder is any person, group or organisation that can affect, influence or be affected by a decision, project, product, service or innovation.
Examples include:
- Customers
- Students
- Employees
- Educators
- Leaders
- Investors
- Governments
- Community members
- Suppliers
- Partners
Stakeholders may directly participate in an innovation or simply feel its consequences.
03
Why Stakeholder Analysis Matters
Innovators often focus heavily on end users.
While users are important, broader stakeholder perspectives frequently influence whether an innovation succeeds or fails.
Stakeholder analysis helps teams:
- Understand competing interests
- Identify supporters and critics
- Improve communication
- Reduce resistance
- Build alignment
- Strengthen decision-making
- Reveal hidden opportunities
The more complex the innovation, the more valuable stakeholder analysis becomes.
04
Stakeholders Are Not All Equal
Not all stakeholders have the same influence.
Some may:
- Make decisions
- Control funding
- Implement solutions
- Influence others
- Experience impacts directly
Effective innovators understand these differences.
The goal is not to treat everyone identically.
The goal is to understand their role within the system.
05
Types of Stakeholders
Stakeholders can often be grouped into two broad categories.
Internal Stakeholders
People within an organisation or system.
Examples include:
- Staff
- Managers
- Leadership teams
- Educators
- Project teams
These stakeholders often influence implementation.
External Stakeholders
People outside the immediate organisation.
Examples include:
- Customers
- Industry partners
- Government agencies
- Communities
- Suppliers
These stakeholders often influence adoption, legitimacy and impact.
06
Primary and Secondary Stakeholders
Another useful distinction involves proximity.
Primary Stakeholders
Directly affected by outcomes.
Examples:
- Students using a learning platform
- Customers using a product
- Employees using a system
Secondary Stakeholders
Indirectly affected.
Examples:
- Families
- Regulatory bodies
- Industry partners
- Community groups
Both groups can influence innovation success.
07
Identifying Stakeholders
A common mistake is identifying only the obvious stakeholders.
Effective stakeholder analysis begins with broad exploration.
Questions include:
- Who benefits?
- Who is affected?
- Who influences decisions?
- Who controls resources?
- Who implements changes?
- Who might resist the innovation?
- Who possesses expertise?
A comprehensive stakeholder map often reveals overlooked voices.
08
Stakeholder Mapping
Stakeholder mapping helps visualise relationships and influence.
The simplest mapping exercise places the innovation challenge at the centre and surrounds it with stakeholders.
Example:
Student Learning Platform
Stakeholders may include:
- Students
- Educators
- IT teams
- University leadership
- Administrators
- Employers
- Industry partners
Mapping encourages a broader perspective.
09
The Power-Interest Matrix
One of the most widely used stakeholder tools is the Power-Interest Matrix.
Stakeholders are assessed according to:
Power
How much influence they possess.
Interest
How strongly they care about the project.
High Power, High Interest
These stakeholders are critical.
Examples:
- Senior leaders
- Major clients
- Project sponsors
Engage closely.
High Power, Low Interest
Keep informed and satisfied.
Examples:
- Executive stakeholders
- Regulatory authorities
Low Power, High Interest
Maintain active communication.
Examples:
- Frontline staff
- User communities
Low Power, Low Interest
Monitor appropriately.
These stakeholders may still become important over time.
10
Influence Mapping
Power alone does not determine influence.
Some stakeholders influence outcomes through:
- Expertise
- Networks
- Reputation
- Relationships
- Informal leadership
Influence mapping explores these less visible forms of power.
Questions include:
- Who do people listen to?
- Who connects groups?
- Who shapes opinions?
Influence often exists beyond formal organisational structures.
11
Stakeholder Ecosystems
Stakeholders rarely operate independently.
They form ecosystems.
Relationships may involve:
- Collaboration
- Competition
- Dependency
- Communication
- Authority
Understanding ecosystem relationships helps innovators navigate complexity more effectively.
12
Stakeholder Needs
Each stakeholder brings different priorities.
For example:
Students
May prioritise learning and flexibility.
Educators
May prioritise quality and engagement.
Universities
May prioritise outcomes and sustainability.
Industry Partners
May prioritise capability development.
Strong stakeholder analysis explores these differing perspectives.
13
Stakeholder Expectations
Innovation often involves balancing competing expectations.
Questions include:
- What does success look like?
- What concerns exist?
- What risks are perceived?
- What outcomes are desired?
Expectations influence support and resistance.
14
Stakeholder Engagement
Identifying stakeholders is only the beginning.
Engagement creates understanding.
Common engagement methods include:
Interviews
Understanding perspectives.
Workshops
Co-creation and collaboration.
Surveys
Gathering input at scale.
Focus Groups
Exploring diverse viewpoints.
Ongoing Communication
Building trust and transparency.
Effective engagement is continuous rather than occasional.
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Co-Creation
Stakeholder engagement becomes more powerful when stakeholders actively participate.
Examples include:
- Design workshops
- Community consultations
- Participatory research
- Innovation studios
Co-creation often improves both ideas and stakeholder commitment.
16
Managing Resistance
Resistance is often viewed negatively.
In reality, resistance can provide valuable information.
People may resist because:
- Concerns have not been addressed
- Risks appear unclear
- Communication is insufficient
- Past experiences influence perceptions
Rather than dismissing resistance, innovators should explore it.
Resistance often reveals important insights.
17
Building Stakeholder Alignment
Alignment emerges when stakeholders share understanding and purpose.
Strategies include:
Shared Vision
Clarifying goals.
Transparency
Communicating openly.
Participation
Encouraging involvement.
Listening
Seeking perspectives.
Trust Building
Maintaining consistency and respect.
Alignment does not require universal agreement.
It requires sufficient shared commitment to move forward.
18
Stakeholder Analysis in Education
Educational innovations involve diverse stakeholders.
Examples include:
- Students
- Educators
- Program managers
- Professional staff
- Industry partners
- Accreditation bodies
Understanding these perspectives helps create more successful learning experiences.
19
Stakeholder Analysis in Entrepreneurship
Founders often focus heavily on customers.
However, startup success may also depend on:
- Investors
- Advisors
- Communities
- Strategic partners
- Regulators
A broader stakeholder perspective reduces blind spots.
20
Stakeholder Analysis and Systems Thinking
Systems thinking and stakeholder analysis complement one another.
Systems thinking explores:
- Relationships
- Structures
- Interactions
Stakeholder analysis explores:
- Interests
- Motivations
- Influence
Together they help innovators understand complex ecosystems.
21
Common Stakeholder Analysis Mistakes
Focusing Only on Users
Many other stakeholders influence outcomes.
Ignoring Resistance
Resistance often contains valuable information.
Assuming Stakeholders Are Homogeneous
Different people have different priorities.
Engaging Too Late
Early engagement improves learning and trust.
Focusing Only on Formal Authority
Influence often exists informally.
22
OpenStudios Activity
Stakeholder Mapping Workshop
Objective
Develop a comprehensive understanding of the stakeholder ecosystem.
Instructions
- Define the challenge.
- List stakeholders.
- Assess power and interest.
- Map relationships.
- Identify engagement strategies.
- Highlight potential risks and opportunities.
Expected Outcome
A stakeholder map that supports more informed innovation decisions.
Estimated Time
60 minutes.
23
OpenStudios Challenge
Choose a current project and create:
- A stakeholder map
- A power-interest matrix
- An influence network map
Then identify three stakeholders you have not adequately engaged and develop plans to involve them.
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Reflection Questions
- Who has the greatest influence on your project?
- Which stakeholder perspectives are missing?
- Where might resistance emerge?
- Who could become an innovation champion?
- How can engagement be strengthened?
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Key Takeaways
- Innovation is shaped by people and relationships.
- Stakeholders possess different levels of power and interest.
- Early engagement improves outcomes.
- Resistance can reveal valuable insights.
- Informal influence matters.
- Co-creation strengthens commitment.
- Stakeholder ecosystems are often complex.
- Successful innovations build alignment rather than simply delivering solutions.
26
Your Next Step
Create a stakeholder map for your current project and identify one stakeholder whose perspective has been overlooked. Reach out to them this week and seek to understand their goals, concerns and expectations before making further decisions.