Stakeholder mapping helps businesses prioritise which stakeholder groups to engage with based on their power and level of interest in the business.
What is Stakeholder Mapping?
Stakeholder mapping is a strategic decision-making tool that allows businesses to visually assess and categorise the individuals or groups who are affected by or have an interest in a business's activities. These individuals or groups—collectively called stakeholders—can have a significant impact on the success or failure of business decisions.
In every business decision, from launching a new product to restructuring the organisation, different stakeholders may be affected in different ways. Stakeholder mapping allows managers to:
Understand which stakeholders are most relevant to a particular decision.
Allocate appropriate resources to engage and communicate with each stakeholder group.
Anticipate the potential reactions and influence of stakeholders.
Manage potential risks and conflicts more effectively.
The process involves evaluating two key factors for each stakeholder: power (the level of influence they hold) and interest (the degree to which they are concerned about or affected by a decision). These factors are then plotted on a power-interest matrix, also known as Mendelow’s Matrix, which forms the foundation for stakeholder strategy.
Mendelow’s Power-Interest Matrix
Mendelow’s Matrix is a commonly used stakeholder analysis model that classifies stakeholders into one of four categories based on their level of power over a decision and their level of interest in the outcome. Each category comes with different engagement strategies to ensure stakeholders are managed appropriately.
Overview of the Matrix
The matrix is a 2x2 grid with the following axes:
Horizontal axis: Interest (low to high)
Vertical axis: Power (low to high)
The result is four quadrants, each representing a stakeholder management strategy:
High Power, High Interest → Manage Closely
High Power, Low Interest → Keep Satisfied
Low Power, High Interest → Keep Informed
Low Power, Low Interest → Monitor
Let’s examine each quadrant in detail.
1. High Power, High Interest – Manage Closely
These are the most important stakeholders. They have both the ability to significantly influence business decisions and a strong personal or professional interest in the outcomes. Failing to engage this group appropriately can lead to serious opposition, delays, or failure of a project.
Examples:
Company directors
Major shareholders
Executive managers
Key government regulators in industries like energy or healthcare
Management strategy:
Engage in regular, two-way communication (e.g. meetings, detailed reports).
Consult them in the early stages of planning and throughout the decision-making process.
Build trust through transparency and responsiveness.
Involve them directly in key decisions where appropriate.
Why this matters:
These stakeholders can make or break a project. Keeping them engaged ensures their support, guidance, and potential resources are aligned with the business’s goals.
2. High Power, Low Interest – Keep Satisfied
Stakeholders in this quadrant hold significant power to influence outcomes, but they may not be particularly interested in the business’s current activities or decisions—unless those decisions begin to impact them directly.
Examples:
Corporate investors with a diversified portfolio
High-ranking government officials not directly involved in the business
Parent companies or major strategic partners
Management strategy:
Keep them informed at a high level without overwhelming them with detail.
Provide reassurance that the business is operating effectively and within boundaries.
Respond quickly to any concerns or issues that might raise their interest levels.
Be proactive in managing potential sources of dissatisfaction.
Why this matters:
These stakeholders may appear disengaged, but their power means they can step in and assert control if something goes wrong. Keeping them satisfied ensures they remain passive rather than disruptive.
3. Low Power, High Interest – Keep Informed
This group is highly interested in the business’s decisions but lacks the influence to significantly alter outcomes. However, their opinions can shape public perception, workplace culture, or customer loyalty. They can become powerful advocates or vocal critics depending on how they are treated.
Examples:
Local communities
Non-managerial employees
Environmental or social interest groups
Small customers
Management strategy:
Provide clear, accessible, and regular updates.
Use surveys, forums, or meetings to listen to feedback and show appreciation.
Create opportunities for them to express concerns or suggestions.
Keep communication open even if their influence is limited.
Why this matters:
Ignoring this group can damage reputation or employee morale. Keeping them informed helps prevent misinformation and builds goodwill.
4. Low Power, Low Interest – Monitor
These stakeholders are neither influential nor particularly invested in the business’s operations. They do not need intensive communication or engagement, but should not be ignored entirely.
Examples:
General public with no business involvement
Suppliers not critical to the supply chain
Departments unrelated to the specific decision being made
Management strategy:
Observe for any signs of change in power or interest.
Maintain minimal communication (e.g. occasional newsletters or updates).
Be prepared to engage more actively if their status changes.
Why this matters:
Situations evolve. A stakeholder with low power or interest today may become more relevant due to external factors or organisational changes.
Applying Stakeholder Mapping in Business Decisions
Stakeholder mapping is most effective when integrated into the planning phase of business decisions. It ensures that communication and engagement strategies are tailored to the specific needs of each stakeholder group, which reduces resistance and increases support.
Step-by-Step Process
Step 1: Identify Stakeholders
Create a comprehensive list of internal and external stakeholders who might be affected by or interested in the decision.
Step 2: Assess Power and Interest
Power: Determine the stakeholder’s ability to influence business decisions. This might come from financial control, regulatory authority, or strategic importance.
Interest: Evaluate how invested the stakeholder is in the specific decision or activity. Consider how much the decision affects them directly or emotionally.
Step 3: Place Stakeholders in the Matrix
Use your judgement and any available data (e.g. past behaviours, current involvement) to categorise each stakeholder into the correct quadrant.
Step 4: Devise Engagement Strategies
Create a communication and involvement plan tailored to each group:
Manage closely: Detailed meetings and involvement in decision-making.
Keep satisfied: Briefings, executive summaries, relationship management.
Keep informed: Newsletters, Q&A sessions, open-door policies.
Monitor: Occasional check-ins or updates when necessary.
Step 5: Review and Update
Stakeholder positions can change. Re-evaluate their power and interest periodically, especially when business conditions or external environments shift.
Real-World Examples
Example 1: Business Relocation
A business plans to relocate its headquarters to a new city.
Employees (High Interest, Medium Power): May fall into Keep Informed or Manage Closely depending on influence and involvement.
Local government of new location (High Power, High Interest): Manage Closely due to zoning, incentives, and local approval processes.
Shareholders (High Power, Low Interest): Keep Satisfied as long as relocation improves cost-efficiency.
Old community members (Low Power, High Interest): Keep Informed to mitigate any reputational damage or negative press.
Using stakeholder mapping, the business can create a relocation strategy that includes community meetings, detailed plans for employee support, and strategic briefings for government and investor stakeholders.
Example 2: Launching an Eco-Friendly Product Line
A consumer goods company wants to release a line of environmentally sustainable products.
Eco-conscious customers (Low Power, High Interest): Keep Informed through targeted marketing and transparent product information.
Retail partners (High Power, Medium Interest): May fall into Keep Satisfied or Manage Closely depending on market influence.
Environmental NGOs (Low Power, Medium Interest): Keep Informed or Monitor depending on history of engagement.
Board of Directors (High Power, High Interest): Manage Closely due to implications for brand direction and profitability.
This strategy enables the business to align marketing, compliance, and operations with stakeholder expectations.
Why Stakeholder Mapping is Crucial
Understanding and prioritising stakeholder engagement can lead to:
Better decision-making: By considering diverse perspectives early in the process.
Risk reduction: Anticipating resistance allows businesses to take proactive steps.
Improved reputation: Transparent and inclusive communication builds trust and goodwill.
Efficient use of resources: Time and energy are focused where they are most impactful.
For students, mastering stakeholder mapping is essential in understanding real-world business strategy. The Mendelow Matrix offers a practical way to analyse complex stakeholder dynamics and their impact on strategic choices.
FAQ
Yes, a stakeholder’s position in the matrix can change due to shifts in interest or power. For example, a local community group might become more influential if a planning issue gains media attention. Similarly, an investor previously uninterested may take a more active role during financial downturns. Businesses must regularly reassess stakeholder positions to ensure their engagement strategy remains effective. Ignoring changing dynamics could result in missed risks, stakeholder resistance, or poor alignment between business actions and stakeholder expectations.
Poor stakeholder mapping can lead to inadequate engagement with key players, resulting in missed warnings, conflict, or outright failure of the project. For instance, failing to manage closely a high power, high interest stakeholder—such as a major investor—could lead to withdrawal of funding or public criticism. It also wastes resources by over-engaging those with minimal influence. Ultimately, poor mapping weakens trust, damages relationships, and increases the likelihood of resistance, delays, or reputational harm.
To assess stakeholder power, businesses examine factors such as control over resources, decision-making authority, legal or regulatory influence, and financial stakes. For interest, they consider previous involvement in similar decisions, expressed concerns, public statements, or the degree to which a decision impacts them directly. Internal communications, past meeting minutes, public records, or stakeholder surveys are commonly used to gather this information. This evidence-based approach ensures stakeholders are placed accurately in the matrix and engagement is well-targeted.
Technology can support stakeholder mapping by organising stakeholder data, tracking changes in influence and interest, and enabling targeted communication. Software tools can categorise stakeholders visually using dashboards and update profiles based on real-time input. CRM systems, stakeholder management platforms, and communication analytics help monitor responses and engagement levels. Digital tools also allow automated updates, feedback collection, and risk alerts, making the engagement process more efficient, data-driven, and responsive to stakeholder behaviour and needs.
When making decisions involving ethical or social concerns—such as environmental impact or labour practices—businesses must consider a broader range of stakeholders, including NGOs, local communities, and advocacy groups. These stakeholders may have lower formal power but high moral influence and the ability to mobilise public opinion. In such cases, transparency and inclusive dialogue are key. Mapping should reflect not just commercial interests but ethical considerations, ensuring the business maintains legitimacy, reduces backlash, and protects long-term reputation.
Practice Questions
Explain how Mendelow’s Matrix can help a business manage stakeholders during a major organisational change.
Mendelow’s Matrix helps businesses identify which stakeholders to prioritise based on their power and interest. During a major change, such as a restructure, high power, high interest stakeholders—like senior managers—should be managed closely through direct involvement. High power, low interest stakeholders—such as shareholders—must be kept satisfied with timely updates to avoid sudden opposition. Low power, high interest groups, like employees, should be kept informed to maintain morale. By mapping stakeholders accurately, businesses can tailor communication strategies, prevent resistance, and increase support, improving the likelihood of successful implementation.
Analyse the value of using stakeholder mapping in a product launch decision.
Stakeholder mapping allows a business to allocate communication resources effectively during a product launch. High power, high interest stakeholders—such as major retail partners—require close management to secure distribution and promotional support. High power, low interest stakeholders, like corporate investors, need to be reassured of financial viability. Low power, high interest stakeholders, such as loyal customers, benefit from targeted information to generate early demand. By using Mendelow’s Matrix, the business ensures that each group’s needs are addressed proportionately, reducing the risk of backlash and improving the coordination and effectiveness of the launch strategy.
