What is the first step in stakeholder analysis?

The first step in stakeholder analysis is to identify stakeholders and their most critical needs. This foundational step is essential because understanding who the stakeholders are—be it customers, employees, suppliers, or community members—is critical for assessing their influence and the potential impact they may have on the organization. By identifying stakeholders, you gain insight into their interests, expectations, and the roles they play in the context of the business.

Once the stakeholders are identified, their critical needs can be assessed, which enables the organization to prioritize engagement strategies effectively. Knowing what stakeholders value helps inform business decisions and align them with the expectations of those groups, which is vital for effective management and successful outcomes.

In subsequent steps of stakeholder analysis, it becomes necessary to classify the importance of stakeholders, examine how business models might affect them, and clarify relationships. However, these actions are predicated on having first established a clear understanding of who the stakeholders are and what their needs entail.