MemoDate 29 th March 2022From HR ConsultantTo Vice PresidentSubject Importance of Stakeholder Analysis

A stakeholder analysis is an analysis that is used to describe the relationship between an
organization, its stakeholders, their expectations, and how those expectations can be aligned with
organizational goals. The process begins with identifying and mapping the organization’s key
stakeholders, identifying their power and influence, and then designing strategies for managing
the power and influence status of the different stakeholders. Different stakeholders depending on
their power and influence, change differently. For example, shareholders or business owners may
want to encourage change to increase their return and grow the value of their investment.
Employees are also key stakeholders and may benefit from the organizational change through
improved employee experience and training and development, which may come from
organizational change (Maheshwari & Vohra 2015). Stakeholders can also support by assisting
in monitoring the progress of the change implementation and making recommendations for areas
of improvement.
Stakeholders can also encourage or inhibit organizational change. One way that
stakeholders can encourage organizational change is by supporting and participating in change-
related activities. Stakeholder contribution to organizational change is essential in successful
change implementation. Lack of participation of stakeholders in the change process may affect
the making of critical change decisions, therefore, inhibiting the change.
Stakeholders can also provide the resources required to implement change (Kuusela et al.,
2016). For instance, the Accounting Manager may be required to approve budgets for training to

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ensure cultural integration between American and Singaporean. Lack of such approval or a delay
in releasing funds may negatively affect the change process. Prompt approval may lead to the
completion of training activities and faster implementation of the change.
Benefits of conducting stakeholder analysis.
Stakeholder analysis assists in identifying the barriers to organizational change.
Stakeholder analysis helps in identifying the supporters and opponents of organizational change
(Soja 2015). Stakeholder contribution to organizational change may help identify gaps in
resource allocation and training of change-related vital skills and competencies.
Stakeholder analysis helps to anticipate potential risks and opportunities that the
organization may benefit from in change implementation. Stakeholders in their different
capacities may help the organization take advantage of future opportunities and mitigate future
threats. This may help a forward-looking organization to plan better for the future. For example,
the organization may recommend an exchange program where employees in America and
Singapore change working locations to help cultural integration. This may help the organization
plan for personnel needs, financial resources, and logistical planning.
Stakeholder analysis helps in attaining organizational cohesion. The activities involved in
stakeholder analysis help in onboarding the different organizational stakeholders. Constant and
continuous engagements help to achieve organizational togetherness and cohesion.
The key people in the organization are the individuals who have high power and critical
stakeholders in the organization’s key department. They include the Board of Directors, Chief
Operating Officer President and Vice President, Sales Manager, Accounting Manager, Customer
Success Manager, and Customer Success Coordinator.

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The critical stakeholders in the organization are the customers, employees, the top
management, including the President, Vice President, Chief Operating Officer, and the Board of
Directors. They are the critical determinants of successful change implementation, key decision-
makers, providers of resources for change implementation, and organizational change monitoring
and implementors.
The top management and the employees could be interested in enabling organizational
change. They are the biggest beneficiaries of change implementation. For example, employees
benefit through cultural competency, training, and development (Maheshwari & Vohra 2015).
Shareholders and top management from increased revenues and the subsequent profits. The
business owners will benefit through cultural and diversity integration and increased business
performance in both America and Singapore.
Additional information and questions
A change implementation budget is essential for implementing change. Please clarify
whether the organization can fund professional training. Some of the changes we are
recommending include a performance management system. We may need to subcontract a
technological firm for this; let us get your opinion on this too.

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References

Kuusela, P., Keil, T., & Maula, M. (2016). Driven by aspirations, but in what direction?
Performance shortfalls, slack resources, and resource-consuming vs. resource-freeing
organizational change. Strategic Management Journal, 38(5), 1101–1120.
https://doi.org/10.1002/smj.2544
Maheshwari, S., & Vohra, V. (2015). Identifying critical HR practices impacting employee
perception and commitment during organizational change. Journal of Organizational
Change Management, 28(5), 872–894. https://doi.org/10.1108/jocm-03-2014-0066
Soja, P. (2015). A stakeholder analysis of barriers to enterprise system adoption: the case of a
transition economy. Information Technology and Management, 16(3), 253–271.
https://doi.org/10.1007/s10799-015-0245-1