KEY TAKEAWAYS
What are project stakeholders?
Stakeholders are defined as individuals, groups, or organizations who can affect or be affected by the execution and completion of a project. In every project, stakeholders are indispensable in shaping outcomes, influencing priorities, and determining overall project success.
They encompass a wide range of parties that include internal team members, executives, external customers, suppliers, and regulatory bodies. In environments where project scopes span multiple departments or external partners, the ability to manage diverse stakeholder interests becomes not merely beneficial but critical.
As such, effective stakeholder engagement is foundational to project success, as it ensures that expectations are aligned, risks are minimized, and goals are met efficiently.
Why is it important to understand the different types of stakeholders?
Navigating stakeholder dynamics often presents some of the most complex challenges for project managers operating within small- to mid-sized businesses or large, cross-functional enterprise environments. Competing expectations, shifting priorities, and varying levels of influence can derail even the most well-planned initiatives. Misalignment between stakeholder interests and project objectives frequently leads to communication breakdowns, delayed deliverables, or diminished project value.
By developing a clear understanding of stakeholder roles and employing structured engagement strategies, project managers can proactively address these challenges. Strengthening stakeholder communication not only mitigates risks but also enhances project credibility and fosters stronger long-term relationships with key decision-makers.
In this article, we’ll explore the different types of stakeholders, how to classify them, and how to properly engage them at every stage of your project. We’ll also cover stakeholder analysis and mapping, with practical tips you can apply to your projects immediately.
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What are the different types of project stakeholders?
Understanding the different classifications of stakeholders enables project managers to design more effective engagement strategies and allocate communication efforts appropriately. Broadly speaking, stakeholders can be categorized based on their relationship to the organization or project and are commonly differentiated between the following:
Internal stakeholders are individuals or groups within the organization who are involved in the project or directly affected by its results. The most common examples include department heads, executive sponsors, and functional managers. Their interests often center around resource utilization, departmental alignment, and strategic outcomes. Project managers and project team members also belong in this category, but while they are technically considered internal stakeholders, these individuals typically do not carry that label, as they are the ones doing the work.
External stakeholders, on the other hand, are entities outside the immediate organizational structure that have an interest in the project’s execution or success. These may include clients, vendors, regulators, investors, and community groups. External stakeholders frequently focus on deliverable quality, compliance, contractual obligations, and broader societal impact.
While these usually provide a good guide for project managers in properly defining the roles to be assigned to all involved stakeholders, stakeholder analysis also benefits from deeper categorization beyond internal and external. Further distinctions help project managers prioritize engagement and anticipate stakeholder behavior.
Here are other widely known stakeholder classifications:
Stakeholder types by influence and interest
A stakeholder in a project can be either direct or indirect, depending on the level of influence and interest they have in the project.
Direct stakeholders are actively engaged with project execution. They contribute resources, make decisions, or participate in activities that directly affect project outcomes. These usually include the project sponsor, project team members, and key suppliers.
Indirect stakeholders are affected by the project’s results but do not engage with the project’s day-to-day operations. Examples of indirect stakeholders include customers who will use the final product, employees impacted by a new system implementation, or citizens living near a construction project.
Stakeholder types by nature and level of involvement
In terms of nature of participation and level of involvement, a stakeholder can be classified as either primary or secondary.
Primary stakeholders have a fundamental interest in the project and are directly impacted, either positively or negatively, by its outcomes. Employees, clients, business partners, and investors typically fall into this category.
Secondary stakeholders, on the other hand, are less directly affected but may still exert influence or experience consequences as a result of the project. Advocacy groups, media outlets, and certain regulatory bodies are examples of secondary stakeholders. Although their connection is less immediate, their interests must still be acknowledged and managed appropriately.
Visual Guide: Stakeholder Classifications
| Stakeholder Type | Stakeholder Groups | Examples |
| Internal | Within the organization | Employees, Executives, Departments |
| External | Outside the organization | Customers, Vendors, Regulators |
| Direct | Actively involved | Project Sponsors, Project Teams |
| Indirect | Affected by outcomes | End-users, Local Communities |
| Primary | Directly impacted | Clients, Shareholders, Partners |
| Secondary | Indirectly impacted | Advocacy Groups, Media |
What are the stakeholder roles across the project life cycle?
Stakeholder engagement evolves along with the progression of the project life cycle. Therefore, it is not static. Recognizing the distinct roles played by internal and external stakeholders at each phase enables project managers to allocate responsibilities appropriately, manage expectations proactively, and drive project success.
From the start to the end of a project life cycle, these are the roles usually played by all stakeholders involved:
Initiation phase
During the initiation phase, internal stakeholders, particularly executive sponsors, portfolio managers, and steering committees, play a decisive role. They are responsible for formally authorizing the project, aligning it with organizational strategies, and securing the necessary budget and resources. Their endorsement establishes the project’s legitimacy and sets the foundation for stakeholder trust.
At this early stage that is the project initiation, external stakeholders are typically limited to advisory roles, such as consultants providing preliminary feasibility studies or external auditors reviewing compliance requirements.
Planning phase
The planning phase demands close collaboration between internal and select external stakeholders. Project managers, business analysts, and functional leaders work internally to develop the project charter, define the scope, establish the schedule, and identify risks.
Simultaneously, external stakeholders such as vendors, contractors, and subject matter experts contribute expertise, cost estimates, and technical input that influence project planning. Their early involvement ensures that external deliverables and dependencies are accounted for and properly integrated into the project plan.
Execution phase
During execution, the distinction between internal and external stakeholders becomes operationally critical. Internal stakeholders such as project teams, technical leads, and product owners are responsible for completing project tasks, producing deliverables, and ensuring adherence to quality standards.
External stakeholders, including suppliers, subcontractors, and implementation partners, fulfill contractual obligations, deliver essential components, and provide specialized services. Maintaining strong communication channels between internal execution teams and external delivery partners is essential to minimize disruptions and ensure seamless integration.
Monitoring and controlling phase
In the monitoring and controlling phase, project managers, quality control teams, and compliance officers review metrics, assess risks, and enforce governance standards.
Meanwhile, external stakeholders, such as auditors, clients, or regulatory agencies, may conduct external reviews or audits to verify compliance with contractual, legal, or industry requirements. Their assessments provide additional layers of accountability and assurance.
Closing phase
The closing phase finalizes all project activities and formalizes stakeholder acceptance. Internal stakeholders, including project sponsors, project managers, and project management offices (PMOs), are tasked with verifying that all deliverables meet predefined acceptance criteria, completing contractual closures, and conducting lessons-learned sessions.
External stakeholders — clients, users, regulators, and partners — review final outcomes, sign off on acceptance documents, and may participate in post-project evaluations or benefits realization assessments.
How to do stakeholder analysis and mapping?
Effective stakeholder engagement begins with a disciplined approach to stakeholder analysis and mapping.
This foundational process enables project managers to systematically identify all relevant stakeholders, categorize them according to meaningful criteria, and prioritize engagement efforts based on their relative influence and interest in the project. Without this structured assessment, projects risk misallocating resources, overlooking critical relationships, and encountering resistance or disengagement at crucial stages.
Specifically, stakeholder analysis is valuable in complex projects involving cross-functional teams, multiple departments, or external partnerships, where competing interests can easily disrupt project momentum. By understanding who the stakeholders are, what they need, and how much power they hold, project managers can create effective stakeholder communication plans, anticipate challenges, and build stronger stakeholder alignment throughout the project life cycle.
These are the steps to conducting an effective stakeholder analysis and mapping:
1. Identify all potential stakeholders
Begin by compiling a comprehensive list of individuals, groups, and organizations that could affect or be affected by the project. Techniques such as brainstorming sessions with the project team, stakeholder interviews, organizational mapping, and analysis of project documentation (charters, contracts, regulatory requirements) can be employed. It is essential to think broadly at this stage to avoid overlooking hidden stakeholders whose influence may not be immediately visible.
2. Classify stakeholders
Once identified, categorize stakeholders according to established classification systems:
- Internal vs. external: Are they part of the organization or outside it?
- Direct vs. indirect: Are they actively engaged in the project or affected passively?
- Primary vs. secondary: Are they fundamentally impacted or only tangentially involved?
3. Assess stakeholders’ influence and interest
Using tools such as the Power-Interest Grid, plot stakeholders along two axes: their level of influence over the project and their degree of interest in the project’s outcomes. This will enable project managers to prioritize engagement resources and tailor communication to stakeholder needs and expectations.
- High power, high interest stakeholders require active, ongoing management
- High power, low interest stakeholders must be kept satisfied
- Low power, high interest stakeholders should be kept informed
- Low power, low interest stakeholders require minimal monitoring
4. Develop engagement strategies
Design communication and interaction plans that align with each stakeholder’s classification and position on the Power-Interest Grid. Consequently, adjust messaging style, communication frequency, and engagement methods to match stakeholder expectations at each phase of the project life cycle.
5. Finally, incorporate a RACI matrix
Further refine stakeholder management by incorporating the RACI chart. Mapping stakeholders against these roles clarifies responsibilities, minimizes overlap or confusion, and provides a visual framework for governance. A well-constructed RACI chart ensures that every stakeholder knows their function, expectations are transparent, and project communication remains structured and consistent.
| R – Responsible | A – Accountable | C – Consulted | I – Informed |
| Those who complete the task. | Those who approve and own the work. | Those whose input is sought before decisions or actions. | Those kept updated on progress or decisions. |
FAQs
Bottom line: How stakeholder analysis drives project success
Understanding the different types of stakeholders in a project — including their roles and individual responsibilities — and determining and meeting their needs and demands are keys to success in any project. Knowing how to use the responsibility matrix is also another factor that drives project success. Utlizing the RACI matrix makes for a good strategy for strengthening stakeholder engagement, further boosting the project’s chance of meeting its overall goals.
When all collaborators are operating on the same page, the whole project life cycle becomes a highly organized, efficient, and productive process that can lead to better, more impactful outcomes.
