What is the purpose of stakeholder analysis?

The purpose of stakeholder analysis is to identify stakeholders and assess their impact and influence on the project. This process is crucial in project management because stakeholders can significantly affect the project's success. Through stakeholder analysis, project managers can understand who the stakeholders are, what their interests and expectations are, and how they can influence the project either positively or negatively.

This understanding allows project managers to develop strategies for engagement and communication, ensuring that stakeholders are adequately informed and their needs are addressed. By assessing the power and interest levels of different stakeholders, project managers can prioritize their efforts and resources towards those who hold more influence over the project's outcomes, thereby minimizing risks related to stakeholder dissatisfaction or opposition.

In contrast, identifying potential project delays pertains to monitoring and controlling project timelines, which is a different aspect of project management. Creating a project budget involves financial planning and resource allocation, while defining project deliverables relates to establishing the outputs of the project. Both of these tasks are important but do not encompass the comprehensive evaluation and engagement strategy that stakeholder analysis provides.