The Stakeholder Model – Freeman's Theory for Projects

Published 2026-07-02 · The research behind Project-simulator

Most projects that fail don't fail because the technology breaks down, but because some key person or group was never on the map: a manager who blocks progress, users who refuse to change how they work, a department that feels steamrolled. Thinking systematically about who these actors are has a theoretical origin — R. Edward Freeman's 1984 book Strategic Management: A Stakeholder Approach.

Freeman wrote for business executives, but his stakeholder model has become standard in project management. It underpins every stakeholder analysis and communication plan you have ever made — or should have made. Understanding the thinking behind the model, not just the template, makes the analysis considerably sharper.

What does the research say?

Freeman's central contribution is a definition that sounds simple but changes how you think: a stakeholder is any group or individual who can affect — or is affected by — the achievement of the organization's objectives. The definition cuts both ways. It captures both those who hold power over your project and those who have to live with its consequences, whether they have formal authority or not.

The point is that an organization cannot succeed in the long run by optimizing only for owners or sponsors. Freeman argues that management must actively identify its stakeholders, understand what each of them wants and needs, and deliberately shape its relationships and strategies accordingly. Stakeholders are not an obstacle to be dealt with after the fact — they are part of the playing field from the start.

For the project world, this became the foundation of stakeholder analysis: mapping early who is affected, what they want, how they can exert influence, and what the project needs from them. Later researchers have built on this with tools for prioritizing among stakeholders, but the mapping itself — and the two-way definition — comes from Freeman.

What does this mean for you as a project manager?

Map in both directions. When you do your stakeholder analysis, ask two questions about every possible actor: can they affect the project's success, and are they affected by its outcome? Many people miss the second group — those who lack formal power but whose daily work will change. That is often where resistance takes root, and it is also where the best improvement ideas tend to be found if you ask in time.

Do the analysis early and keep it alive. A stakeholder map drawn once at project kickoff and then filed away is almost worthless. New stakeholders appear, old ones change roles or positions, and the person who was supportive in the spring may be under pressure from something else by autumn. Review the map at every phase transition and whenever the organization changes significantly.

Let the analysis drive your communication. The map is not finished when it is drawn — it should be turned into a plan: who needs what, from whom, how often and through which channel? Stakeholders who are merely "informed" once decisions are already made rarely feel like stakeholders — they feel like casualties.

How to practice this

Stakeholder work only becomes real in the conversations: listening to a skeptical department head, getting a hard-pressed sponsor behind a decision, or winning the trust of the employees most affected by the change. In Project-simulator you practice these stakeholder conversations against AI counterparts in a safe simulator environment and get evidence-based feedback that points to your own wording. You can try it free for a week.