A GUIDE FOR PROJECT MANAGERS. Stakeholder Analysis A GUIDE FOR PROJECT MANAGERS.

Introduction In this presentation, we will be analysing the stakeholders of a proposed project to launch a Primark store in the Trafford area within Manchester. Primark is a very popular and successful retail organisation that is growing within the UK, due to the nature of the industry it has various competitors such as Matalan and New Look. Introduction In this presentation, we will be analysing the stakeholders of a proposed project to launch a Primark store in the Trafford area, within Manchester. Primark is a very popular and successful retail organisation that is growing within the UK, due to the nature of the industry, it has a number of competitors such as Matalan and New Look.

What are Stakeholders? The classic definition of a stakeholder is “any group or individual who can affect or is affected by the achievement of the organisations objective”. (Freeman 1984:46) Stakeholders So what are stakeholders? Stakeholders are anyone that may have an interest within an organisation or project. It is essential for project managers to understand which stakeholders may have an interest or influence in a particular project, in order to manage them effectively.

Who could be a Stakeholder? The Onion Model The Onion Model The onion model is a useful tool to identify stakeholders in four areas of a project. The four layers consist of the product, the business system, the business and finally the wider environment. Layer 1: The Product Stakeholders are closely involved in the creation of the product, which could be a new system, new process or new venture. Stakeholders may include the project manager, software developer and business analyst. Using Primark as an example – the stakeholders identified for this layer are the board of directors who would initiate the venture of the opening of a new store. Layer 2: The Business System This business system involves a group of stakeholders that will directly contribute to putting the product together. It consists of not only the final product, but also those stakeholders who interact directly with it. Using Primark as an example, the Support Team in Primark’s Head office who will be coordinating the project and allocating resources such as new stock and employees. Layer 3: The Business The business looks at the organisation as a whole, with a particular focus at the project experts, who directly interact with the system, such as sponsors and executives. In the case of Primark, the Employees would have direct interaction with the system, as they will be dealing with the implementation of operations, which will be used in-store. Layer 4: The Wider Environment The wider environment consists of the external stakeholders who are outside the firm, but are still important. External stakeholders include customers, Suppliers, Government and Regulators. In relation to Primark, Media would play an important role. The media would raise awareness about the store and potential vacancies.

Power & Interest Grid - Primark Ltd. The Power and Interest Grid groups stakeholders into four sections: Stakeholders with High Interest & High Power should be Managed Closely Stakeholders with High Interest but Low Power should be Kept Informed Stakeholders with High Power and Low Interest should be Kept Satisfied And finally, Stakeholders with Low Power and Low Interest should be Monitored Power Interest Grid- Understanding Stakeholders The power and interest grid allows project managers to identify how stakeholders should be managed and how best to communicate with them, in order to establish the importance of a stakeholder and their influence on a project.

Communicating with Stakeholders Using Primark as an example, Stakeholders that should be managed closely include: The board of Directors and Shareholders of Primark Ltd. This stakeholder group is very important as they would have initially approved the project and therefore will want regular updates with regard to its progress. For this reason, face-to-face meetings with this stakeholder group would be most feasible. These meetings may take place on a weekly to monthly basis or even at key milestones within the project. If however, they are unavailable a video conference would also be viable. Another source of communication such as teleconferencing is practical, if more than one stakeholder group may be required for a meeting update. Stakeholders that fall into the ‘keep informed’ category, have a high level of interest and low level of power: In terms of this project, an example of a stakeholder would be the Project Support Team. The project support team would have a high interest in the project as they will be directly involved in the coordination of bringing a new store to market. The project manager will work closely with the support team to ensure tasks are completed on time and to specification. Contact via email and telephone would be viable forms of communication – the project manager should also meet face to face with their team to ensure objective of the project are being met. Other stakeholders that fall into the ‘keep satisfied’ category, have low interest but high power: For the opening of the new Primark store, an example may be the Media. It is essential that the project manager keep this stakeholder group satisfied, as they are highly influential and powerful. Giving exposure to this project would spread a positive message. For example, the press covering the potential job prospects would raise awareness of the benefits this project may have in the community. Stakeholders such as Competitors and Customers have low level of interest and power therefore will only need to be monitored: The project manager may not need to arrange formal communication, as they will not require an update on the project. These stakeholders are not affecting the project directly; therefore, it is not essential to keep them in the loop regarding the progress. Instead, the media will have a significant role in informing customers and competitors on the progress of our project. Having some level of communication with all the stakeholders will give us a chance to gain some feedback and suggestions. This would bring value to the project as everyone's contribution will be utilised for effective completion of the venture.

Thank you for listening We hope that this presentation has given you a deeper insight to stakeholders, their importance and involvement in projects. Along with the recommended techniques to manage and interact with them, which is essential for the success of any project. We hope that this presentation has given you a deeper insight to stakeholders, their importance and involvement in projects. Along with the recommended techniques to manage and interact with them, which is essential for the success of any project. Thank you for listening.