Stakeholder groups vs. UN Security Council

Identifying Stakeholder Groups: Lessons from the UN Security Council

Understanding and managing stakeholder groups is one of the most critical tasks in business analysis. Stakeholders influence project outcomes, shape requirements, and, in some cases, even determine a project's fate. Interestingly, the dynamics of stakeholder groups in an organization can often resemble the workings of the United Nations Security Council.

The UN Security Council and Stakeholder Groups: A Unique Parallel

You might wonder: how can there be any similarity between our stakeholder groups and the UN Security Council?

Indeed, there exists a beautiful correlation.

The United Nations (UN) is a globally recognized organization with most sovereign countries as member nations. However, within this body, five countries—the United States, United Kingdom, China, Russia, and France—hold permanent seats on the Security Council and possess a unique privilege: the VETO power.

This power enables them to obstruct any UN resolution, regardless of how many other member countries support it. Even if 100 nations are in favor of a resolution, these five elite countries can strike it down with their VETO.

Now, reflect on your organization. Do you have stakeholder groups that wield similar "VETO power"?

A Real-Life Experience with VETO-Wielding Stakeholders

Let me share a real-life example from one of our projects.

We were thrilled to move to the User Acceptance Testing (UAT) phase for a prestigious initiative. As part of the process, we prepared over 40 meticulously designed reports from the soon-to-be-deployed system. We displayed these reports in a dedicated conference room and invited stakeholders to provide feedback.

The business stakeholders were delighted with the results. Everything seemed to be progressing smoothly until, one day, the legal department walked into the room.

Though a relatively small function within the organization, the legal team had an apparent and non-negotiable demand: they required an entirely different set of 40 reports to meet regulatory compliance needs.

We attempted to persuade them to use the existing reports, but the answer was unequivocal: legal requirements were non-negotiable. Ultimately, we had to allocate additional resources and time to create a new set of reports specifically for them.

This experience demonstrated that while the legal team was small, their requirements carried a "VETO power." Unlike other stakeholders whose requests might be flexible, legal demands were absolute.

Lessons for Business Analysts

This scenario illustrates the importance of recognizing and understanding organizational stakeholder dynamics. Just like the UN Security Council, some stakeholder groups hold more influence and decision-making authority than others. Identifying these groups early can help you navigate project challenges effectively.

Here's how you can approach this:

1. Categorize Stakeholders by Influence:
   Identify which stakeholders have the authority to block or mandate certain decisions. These could be legal teams, compliance departments, senior executives, or regulatory bodies.
2. Engage Stakeholders Early:
   Proactively involve influential stakeholders in the project from the beginning. Understanding their needs early can prevent last-minute surprises and rework.
3. Prioritize Requirements:
   Acknowledge that not all requirements are equal. Focus on addressing the needs of stakeholders with critical "VETO power" while balancing the broader expectations of other groups.
4. Build Consensus:
   While some demands may be non-negotiable, fostering collaboration among all stakeholders can help align goals and reduce resistance.

To conclude, Stakeholder groups are diverse, each bringing unique perspectives and levels of influence to a project. By identifying and understanding these dynamics, business analysts can better manage requirements, avoid bottlenecks, and ensure smoother project execution.

So, the next time you navigate stakeholder dynamics, remember the lessons from the UN Security Council: Know who holds the VETO power and ensure their needs are addressed early to ensure project success.