Thorough stakeholder identification is essential for project success, and the Onion Model is the third technique in our post series that provides a unique, visual way to ensure no critical stakeholders are overlooked. Ian Alexander, together with Suzanne and James Robertson, popularized this technique in their books in the early 2000s. The Onion Model is now embraced by standards like the IIBA Guide to Business Body of Knowledge and seems to be a common practice.

This article explores the Onion Model, its stakeholder layers, and how to apply it to enhance project outcomes. At the bottom of the webpage, you’ll find a link to a short micro-learning course you can take right away.

What is the Onion Model?

The Onion Model is a visual representation of stakeholders, using layers to indicate proximity and influence on a project. Stakeholders closer to the center have direct engagement, while those in the outer layers exert influence from a distance. This layered approach emphasizes the interconnected roles stakeholders play.

The model is particularly useful for complex projects where stakeholders have varying degrees of interaction with the project and its deliverables.

How the Onion Model Works:

The Onion Model typically consists of four or more concentric layers. Each layer outward represents stakeholders with progressively less direct involvement.

Fig 1. Basic onion model with 4 layers

In addition to layers, the model provides generalized ‘slots’ such as ‘Normal Operator’ and ‘Maintenance Operator’, which must be filled with specific stakeholder roles for a particular project. These placeholders are akin to a layer-specific checklist.

1. The central circle, ‘The Product/Service/System’, denotes whatever it is that we are making—the hardware and software, the equipment, machinery, and installations of any kind that we are specifying and designing, and the stakeholders involved in creating it. IIBA calls this layer Solution Delivery. The generalized stakeholders are the project team and others directly involved in creating the solution.

2. The Impacted Business Area represents individuals or groups directly working with the central circle. IIBA calls this layer Affected Organizational Unit. The generalized stakeholders are end users, help desk, and maintenance teams, and roles whose work changes when the solution is delivered.

3. The Hosting Organization circle defines stakeholders who benefit from the development in some way, even though they are not in the operational area. IIBA calls this layer Organization or Enterprise. The generalized stakeholders are sponsors, executives, domain subject matter experts, and others interacting with the affected groups. An interfacing system can also be a stakeholder.

4. The Wider Environment circle contains other stakeholders who have an influence on or an interest in the product. IIBA calls this layer Affected External Stakeholders. The generalized stakeholders are customers, suppliers, regulators, competitors, and others. Ian Alexander also introduced the concept of a negative stakeholder – someone with ill intentions who can influence the project or the deliverables negatively, e.g. hackers, or malevolent people.

Applying the Onion Model: A Step-by-Step Process

We go through layers starting from the central circle and moving toward the outer circle.  At every circle, we use the generalized stakeholders which are replaced with specific stakeholder roles for a particular project.

Step 1: Identify the central circle.
Step 2: Add stakeholders to the immediate circle.
Step 3: Add stakeholders to the containing system circle.
Step 4: Study the external environment and add stakeholders.
Step 5: Review and confirm.

Benefits of the Onion Model

1 Clarity, through using layers, this model simplifies complex stakeholder landscapes by visually organizing them into clear, actionable groups (circles).

2 Holistic approach that ensures all relevant stakeholders, both internal and external, are considered.

3 Flexibility, this model can be customized for various industries and project types. You can extend it with your knowledge from previous projects.

Conclusion

The Onion Model provides a structured, visual method for stakeholder identification. By clearly mapping stakeholders in circles, organizations can ensure thorough stakeholder analysis, and prepare prioritization for stakeholder engagement.

Watch our micro-learning (Note: This is standalone content. The ‘Complete’ button at the last page is non-functional outside an LMS. Clicking it will do nothing.)

References

IIBA BABOK Guide

SCENARIOS, STORIES, USE CASES, Through the Systems Development Life-Cycle by Ian Alexander and Neil Maiden

Mastering the Requirements Process by James and Suzanne Robertsons