What does the onion diagram indicate in stakeholder analysis?

The onion diagram is a visual tool used in stakeholder analysis to represent the varying levels of stakeholder involvement with a project or solution. The layers of the "onion" signify different degrees of engagement, influence, and interest in the project from the stakeholders involved.

In the innermost layer, you may find key stakeholders who have the most direct involvement and influence over the project's outcome. As you move outward, the layers represent stakeholders with decreasing levels of involvement and influence. This helps project teams to identify and understand who needs to be engaged at different stages of the project, allowing them to tailor their communication and collaboration strategies accordingly.

This approach is crucial for effective stakeholder management, ensuring that the right people are involved in the decision-making processes, and that their interests and influences are considered throughout the project lifecycle. Thus, the correct interpretation of the onion diagram relates specifically to the level of stakeholder involvement, which is essential for successful project outcomes.