5 min
FOUNDATIONS · LESSON 01.07beginner

Stakeholders 101.

Who decides, who blocks, who you forgot about.

↳ tl;dr

A stakeholder is anyone whose interests are affected by the project — or who can affect it. The job isn't to please all of them; it's to identify them, understand what each cares about, and engage them proportionally to the influence they have. The power-interest grid is the most common tool for that.

The definition

Freeman (1984) gave us the modern definition: a stakeholder is "any group or individual who can affect or is affected by the achievement of the organization's objectives." The definition is broad on purpose — it forces you to think past the obvious sponsors and remember the people who can quietly torpedo the project (legal, security, the team that owns the system you depend on).

The categories

  • Sponsor — the person whose budget pays for it. Usually one. Their job is to fund + unblock. Your job is to keep them confident.
  • Decision-makers — people who can say yes or no to scope, design, and trade-offs. Often not the sponsor.
  • Doers — the team building the thing. Their feedback is craft-grade; their morale is your problem.
  • Affected parties — people whose work changes because of yours. Easy to forget. Often the source of the "we should have asked them earlier" postmortem line.
  • Influencers — people without formal authority who can build or kill momentum (a respected senior IC, a vocal customer).

Mendelow's power-interest grid

Mendelow (1981) gave us the 2×2 grid most PMs end up drawing on a whiteboard. Plot each stakeholder by how much power they have over the project (low/high) and how much interest they have in it (low/high). The four quadrants dictate how to engage:

QuadrantPowerInterestHow to engage
Manage closelyHighHighHeavy involvement. Frequent updates. They get a say.
Keep satisfiedHighLowLight updates, but never surprise them. Their power is latent.
Keep informedLowHighThey want to know — give them the standing update. Don't burn cycles negotiating.
MonitorLowLowAwareness only. Don't waste energy.

in the wild

The mistake everyone makes once: putting Legal or Security in "monitor" because they're quiet — until 3 weeks before launch when one of them surfaces a blocker that costs you a quarter. They're "keep satisfied" (high power, currently low interest) — your job is to keep their interest from spiking accidentally.

The mapping is dynamic

A stakeholder's position on the grid changes as the project progresses. A sponsor who was "manage closely" in discovery often shifts to "keep satisfied" in execution. Re-map quarterly, or after any major event (a leadership change, a budget cut, a scope expansion).

the question that catches missed stakeholders

"Whose work changes because of this project?" If you can't name them, your stakeholder list is incomplete. Affected parties are where the late-stage surprises live.

// practice this

Map a real stakeholder set

In the simulator, every chapter has 3–5 NPCs you'll have to engage. Their reactions track your communication choices — you can see the power-interest grid playing out in real time.

// sources

Sources cited

  1. [01]
    A Guide to the Project Management Body of Knowledge (PMBOK Guide), 7th Edition

    Project Management Institute (PMI) · 2021 · retrieved 2026-04

    PMI's flagship reference. 7e shifted from process groups to performance domains.

  2. [02]
    Strategic Management: A Stakeholder Approach

    Freeman, R. E. · Pitman · 1984 · retrieved 2026-04

    Foundational text for the modern definition of "stakeholder".

  3. [03]
    Environmental Scanning — The Impact of the Stakeholder Concept

    Mendelow, A. L. · ICIS Proceedings · 1981 · retrieved 2026-04

    Origin of the power-interest grid (Mendelow's matrix).

// sources

Further reading

  1. [01]
    A Guide to the Project Management Body of Knowledge (PMBOK Guide), 7th Edition

    Project Management Institute (PMI) · 2021 · retrieved 2026-04

    PMI's flagship reference. 7e shifted from process groups to performance domains.

  2. [02]
    Strategic Management: A Stakeholder Approach

    Freeman, R. E. · Pitman · 1984 · retrieved 2026-04

    Foundational text for the modern definition of "stakeholder".

  3. [03]
    Environmental Scanning — The Impact of the Stakeholder Concept

    Mendelow, A. L. · ICIS Proceedings · 1981 · retrieved 2026-04

    Origin of the power-interest grid (Mendelow's matrix).