Outline Terms of Reference for Stakeholder Analysis
[TO BE ADAPAPTED FOR THE PARTICULAR CIRCUMSTANCES OF THE USER]
2. Objectives and Scope of the Work
The principal objective of the assignment is to conduct a stakeholder analysis, in order to inform the design and implementation of a labor program associated with the [PPI scheme name].
Stakeholders are groups or institutions that may be affected by or influence the design, implementation and outcomes of labour restructuring and PPI more broadly. Although the workforce is of particular interest, the analysis will look wider than workers alone, and consider all stakeholders involved in the reform of [PPI Scheme name].
The principal stakeholder groups will include representatives of:
Trade unions and worker representatives
Customers and users of PPI services.
[Client Name], to whom the consultant will report, will be the client.
[The timing and scope of this work may be coordinated with the design of an engagement and communications program, because the stakeholder analysis will be an important input to an engagement plan].
The outputs of this consultancy will be:
A draft report which will be circulated for comment
A presentation (workshop / seminar) summarizing the findings
A final report which takes into account any comments and suggestions from the presentation.
4. Consultant Tasks
The stakeholder analysis will involve the following tasks.
Task 1: Examine relevant available secondary documentation about the PPI scheme, and the processes and experiences of any previous PPI schemes (particularly the history of relationships with key stakeholder groups – positive or negative). This documentation may include:
Reports commissioned by Government
Informal enterprise or PPI scheme level information
Press and newspaper articles
Trade union policy and position papers, web sites or campaign materials
Other socio-economic assessments and reports for example NGO reports, poverty reports prepared under Poverty Reduction Strategies, UN Human Development reports; impact studies on structural adjustment or civil service reform prepared by international development and financing institutions, ILO reports.
Illustrative Stakeholder Map
Influence of Stakeholder
Importance of Stakeholder
Boxes A, B and C are the key stakeholders of the project. The implications of each Box are summarized here:
Box A: Stakeholders appearing to have a high degree of influence on the PPI scheme, who are also of high importance for its success. This implies that the government implementing agency will need to construct good working relationships with these stakeholders, to ensure an effective coalition of support for the project. Examples might be the senior officials and politicians (minister, prime minister) or trade unions.
Box B: Stakeholders of high importance to the success of the PPI scheme, but with low influence. This implies that they will require special initiatives if their interests are to be protected. An example may be relatively poor people for whom improved access to special low tariffs water or electricity would have a large social impact, but who have little “voice”
Box C: Stakeholders with high influence, who can therefore affect the project outcomes, but whose interests are not necessarily aligned with the overall goals of the PPI scheme. This conclusion implies that these stakeholders may be a source of significant risk, and they will need careful monitoring and management.
Box D: Stakeholders in this Box, with low influence on, or importance to PPI scheme objectives may require limited monitoring or evaluation, but are of low priority.
(Source: Adapted from DFID, 1993)
Task 2: Design, plan, and gain agreement for a stakeholder analysis methodology with [Client Name] and key Government officials. Obtain the views of this group on:
Overall objectives and goals of the PPI scheme
Critical stakeholders within the political system (including parliamentary committees) and the Government (national and local level), the enterprise (workers and managers) and existing interface between Government with civil society (including unions, regulators)
Key issues for stakeholder identification and analysis
Current levels of engagement and interface between government, enterprise, workers, unions and end-users (customers)
The most vulnerable groups among the poor and potential mechanisms to include their voices and perceptions are heard during the stakeholder analysis, and make sure they are not overlooked
Their views regarding civil society representation and participation.
Task 3: Undertake a stakeholder assessment which:
Is as participatory and inclusive in nature as feasible
Identifies primary, secondary and key stakeholders, where:
primary stakeholders are those ultimately affected by the PPI, either positively (e.g. consumers and other beneficiaries) or negatively (e.g. retrenched workers and managers);
secondary stakeholders are intermediaries in the reform process;
key stakeholders are those who can significantly influence the PPI scheme, or who are important to the success or failure of the PPI scheme
Maps the stakeholders, showing their degree of importance and influence (see Illustrative Stakeholder Map above). An analysis identifying key concerns of each stakeholder group will also be highly relevant.
Provides clear information on the concerns and interests of each of the key stakeholder groups.
Task 4: Conduct interviews or focus group discussions with a wide range of potential actors, including [as set out in the plan agreed during Task 2]:
Key officials involved in the PPI process
Key officials responsible for the sector
Managers in the regulatory agency for the sector (if any)
PPI / enterprise managers
National employment service staff
Advisers to Government, including:
Advisers engaged in all aspects of the PPI program
Communications and engagement advisers to Government (these may be located in a range of agencies)
Employees of the affected enterprise, including:
Senior and middle management
Workers and their families
Civil society groups:
Trade union representatives (national and local)
Workers association or works council representatives
NGOs with an active interest in the sector or in PPI processes
Business Development Support Agencies
Media representatives and journalists [as appropriate and with the prior approval of the implementing agency]
Private Sector Agents including:
Formal and informal private sector associations
Related businesses in the sector
Suppliers to the PPI scheme / enterprise
Private sector placement and job search agencies
Customers relevant to PPI, including:
Major industrial customers
Domestic and small business customers
Poor users, including those currently unable to afford connection or full tariffs (for say water or power)
Potential investors (as far as this is practical, given the timing within the PPI process, and the fact that some investors may be foreign direct investors based overseas).
Task 5: Assess the [Likely] Characteristics of Retrenched Workers
[This work may not be necessary if a worker survey has already been undertaken or is underway].
The consultants will:
Assess the profile of workers to be retrenched (age, educational characteristics, skills, years of service)
Develop illustrative “profiles” of different groups of workers [for example, see Box 5.19 in the PPIAF Labor Toolkit – which illustrates profiles of Ukraine mine workers]
Task 6: Advise the [Client Name] on:
The key stakeholders and their concerns
Any important sub-groups and (if appropriate) individuals
Options for [Client Name] and Government to respond to stakeholder concerns, paying particular attention to concerns that may risk the delay, postponement or cancellation of the PPI scheme
Recommended or preferred options, strategies and tactics for Government that reflect stakeholder concerns and Governments overall objectives for PPI
High-level “messages” to be considered during the detailed design of a communications and engagement plan.
The stakeholder analysis will take xxx weeks [suggested minimum 4 weeks] for completion, from initial research of secondary sources to finalization of the document after incorporating comments from the seminar.
6. Consultant Profile
The consultant undertaking the stakeholder analysis will have previous experience with stakeholder analysis, social, business and investment analysis, ideally in an economic reform context. The consultant will have good analytical and writing skills and will have previous experience with facilitating and conducting focus group discussions and interviews.
DFID (Department for International Development), United Kingdom. 1993. Guidance Note on How to Do Stakeholder Analysis of Aid Projects and Programmes. London: DFID