Source: European Commission’s PCM Guidelines, 2004.

Source: European Commission’s PCM Guidelines, 2004.

Stakeholder analysis

A basic premise behind stakeholder analysis is that different groups have different concerns,
capacities and interests, and that these need to be explicitly understood and recognized in
the process of problem identification, objective setting and strategy selection.

The key questions asked by stakeholder analysis are therefore “whose problems or
opportunities are we analysing?” and “who will benefit or lose-out, and how, from a proposed
project intervention?”, considering that the ultimate aim is to help maximize the social,
economic and institutional benefits of the project to target groups and ultimate beneficiaries,
and minimise the potential negative impacts (including stakeholder conflicts).

The main steps involved in stakeholder analysis are:

1) Identify the general development problem or opportunity being

addressed/considered;

2) Identify all those groups who have a significant interest in the (potential) project;

3) Investigate their respective roles, different interests, relative power and capacity
to participate (strengths and weaknesses);

4) Identify the extent of cooperation or conflict in the relationships between

stakeholders;

5) Interpret the findings of the analysis and incorporate relevant information into
project design to help ensure that:

(i) resources are appropriately targeted to meet distributional/equity objectives

and the needs of priority groups,

(ii) management and coordination arrangements are appropriate to promote

stakeholder ownership and participation;

(iii) conflicts of stakeholder interest are recognized and explicitly addressed in

project design.
Stakeholders and basic Interests and how affected by Capacity and motivation to bring
characteristics the problem(s) about change
 INTERVENTION LOGIC
OVERALL The broad development goal to which the
project contributes – at a national or sectoral
OBJECTIVE(S level. It is characterized by a future improved
) situation, a positive impact on the wider
society.
PROJECT This is the focus of the project, i.e. the
development outcome at the end of the
PURPOSE project – more specifically the expected
benefits to the target group(s).
It is the consequence of the results described
at the level below. The purpose often
describes a change in the behaviour of
beneficiaries, caused by the project’s results /
outputs.
RESULTS The direct/tangible results or outputs
(goods and services) and the outcomes
(intangible effects) that the
project delivers, and which are largely under
project
management’s control.
They are the results or products of the
activities described at the level below.
Basically, results describe WHAT you want
the project to deliver and what is the IMPACT
of it.
ACTIVITIES The tasks (work programme) that need to be
carried out to deliver each of the planned
results.
[Activities
can be Activities define HOW the project team will
broken down implement the project to achieve each of the
results in the logframe. The list of activities
into smaller will provide the basis for more detailed work
steps, i.e. plans.
sub-
activities]
OBJECTIVELY VERIFIABLE SOURCES OF VERIFICATION
INDICATORS
Measures the extent to which a
contribution to the overall
objective has been made. Used
during evaluation. However, it is
often not appropriate for the
project itself to try and collect
this information.
Helps answer the question
‘How will we know if the purpose
has been achieved’? Should
include appropriate details
of quantity, quality and time.
Helps answer the question
‘How will we know if the results
have been delivered’? Should
include appropriate details of
quantity, quality and time.
MEANS
The physical and non-physical
resources or inputs (human and
material) that are necessary to carry
out the planned activities and manage
the project.
Sources of information and
methods used to collect and
report it (including who and
when/how frequently).
Sources of information and
methods used to collect and
report it (including who and
when/how frequently)
Sources of information and
methods used to collect and
report it (including who and
when/how frequently)
COSTS
The translation into financial terms
of all the identified means. These
costs will be further broken down
and presented in the project’s
budget.
PRE-CONDITIONS
External factors that have to be present and decisions that have to be
taken before a project can start up
ASSUMPTIONS
Assumptions (factors outside
project management’s control)
that may impact on the
purpose-objective linkage
Assumptions (factors outside
project management’s control)
that may impact on the
result-purpose linkage
ASSUMPTIONS
Assumptions are statements
about the external factors that
have the potential to influence
(or even determine) the success
or failure of a project, but lie
outside the direct control of
project managers.
 INTERVENTION LOGIC OBJECTIVELY VERIFIABLE SOURCES OF VERIFICATION ASSUMPTIONS
INDICATORS
OVERALL
OBJECTIVE(S
)

PROJECT
PURPOSE

RESULTS

ACTIVITIES MEANS COSTS ASSUMPTIONS

[Activities
can be
broken down
into smaller
steps, i.e.
sub-
activities]
PRE-CONDITIONS