Stakeholder Analysis and Risk Management for Escapology

Stakeholder Analysis and Risk Management for Escapology
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Table of Contents TOC \o "1-3" \h \z \u Table of Contents PAGEREF _Toc86977541 \h 21. Introduction PAGEREF _Toc86977542 \h 2Part 1: Stakeholder Analysis PAGEREF _Toc86977543 \h 22(a) Definition of Stakeholder Analysis PAGEREF _Toc86977544 \h 22(b) Importance of Stakeholder Analysis to Project Planning PAGEREF _Toc86977545 \h 22 (c) Stakeholder analysis PAGEREF _Toc86977546 \h 4Part 2: Risk Management PAGEREF _Toc86977547 \h 63(a) What is Risk management? PAGEREF _Toc86977548 \h 63(b) Importance of Risk Management to Project Planning PAGEREF _Toc86977549 \h 63(c) Risk management plan PAGEREF _Toc86977550 \h 6
1. Introduction
This report has two main parts: stakeholder analysis and risk management. The first part describes the importance of stakeholder analysis to project planning. In fig (1), the table shows Escapology’s stakeholders, their position, ability to influence the project, predictability of their behavior, and the actions taken to manage them. The second part describes risk management and why it is an important part of project planning. In fig (2), the table describes each risk likely to be encountered by the company, its type, owner of the risk, a risk score probability impact calculated with probability occurrence and cost impact, and the best risk actions to avoid, mitigate, transfer, or accept the risk.
Part 1: Stakeholder Analysis
2(a) Definition of Stakeholder Analysis
Stakeholder analysis is a process of systematically gathering and analyzing qualitative information to determine whose interests should be considered when developing and/or implementing a policy or program CITATION Sch00 \l 1033 (Schmeer, 2000). It also refers to the techniques and tools used to determine the needs and expectations of the stakeholders inside and outside the project environment CITATION Smi00 \l 1033 (Smith, 2000). A stakeholder is any individual, group, or organization that is interested in the project and can mobilize resources to affect its outcome in some way CITATION Smi00 \l 1033 (Smith, 2000). Concisely, stakeholder analysis is the process of determining and managing the stakeholders’ expectations in a project environment.
2(b) Importance of Stakeholder Analysis to Project Planning
Stakeholder analysis is important for several reasons. Firstly, it helps determine the needs and objectives of each stakeholder in the project and devise a holistic plan in meeting them CITATION Ken87 \l 1033 (Goodpaster, 1987). Not all stakeholders are the same, and each has their objectives in the project(s). In addition, their power, interest, influence, and expectations differ greatly CITATION Smi00 \l 1033 (Smith, 2000). Thus, doing stakeholder analysis helps the project management team understand the needs of each of them and determine how best to invest the resources at their disposal to meet their expectations. Understanding the power, interest, and influence of stakeholders also reduces friction in the future.
Secondly, stakeholder analysis helps determine the influence of the stakeholder and only provides the right level of information and engagement with them. For example, sensitive financial information should not be shared with tertiary stakeholders like the community, media, or competitors. Such information is for the primary stakeholders like investors and shareholders. Stakeholder analysis also helps determine the right communication channels for each stakeholder and when to communicate with them CITATION Phi16 \l 1033 (Rabinowitz, 2016). Stakeholders with a higher power, influence, and interest need a secure and direct channel, unlike those with lower power, influence, and interest. Information passed on to shareholders and investors must be thorough and conveyed through secure and direct channels such as letters or direct emails, unlike information meant for tertiary stakeholders like the community, which can be communicated through the media.
2 (c) Stakeholder analysis
Fig (1)
Importance of stakeholder will be: A - Keep Informed, B – Max Attention Needed, C – Min Attention Needed, D – Address their Concerns.
Stakeholder

Importance of Stakeholder (Impact)

Likely position – Support or oppose?

Ability to influence project
(Very low, Low, Medium, High, Very high)

Predictability of behaviour

Actions taken to manage the stakeholders

001

Investors

B – Maximum attention needed

High

Predictable

Keep them informed on the progress of the project
Seek their approval on big-budget purchases and or expenses.

002

Shareholders

B – Maximum attention needed

High

Predictable

Keep them informed on the performance of the business.
Consult with them on the strategic direction of the company.

003

Government Agencies

D - Address their concerns

Low

Predictable

Ensure all relevant government directives are followed promptly.

004

Customers

B – Maximum attention needed

Very High

Predictable

Do market research to determine the key needs of the customers and address them.
Invest in creating a customer-centered business model to ensure that the customer is satisfied.

005

Employees

A – Keep informed

High

Predictable

Keep them informed on the progress of the project.
Involve them in decision making especially the things that directly impact them.

006

Community

C- Minimum Attention needed