Project Stakeholder Management Days 1 & 2

What is a stakeholder? Anyone with a vested interest in the outcome of the project whether positive or negative PMBOK: An individual, group, or organization who may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project

Project Stakeholder Management Includes processes required to Identify the people or organizations that could impact or be impacted by the project Analyze stakeholder expectations and their impact on the project Develop appropriate management strategies for effectively engaging stakeholders in project decisions and execution

Project Stakeholder Management Includes processes required to… Continuously communicate with stakeholders to understand their needs and expectations Address stakeholder issues as they occur Manage conflicting interests Fostering their engagement in project decisions and activities Manage their satisfaction as a key project objective

Project Stakeholder Management Stakeholders Exist on all projects Impact or are impacted by the project in positive or negative ways May have significant influence on the project and its expected outcomes

Project Stakeholder Management Processes Identify Stakeholders Identify them and analyze their interest and needs Plan Stakeholder Management Develop a strategy to engage them throughout the project based on their needs, interest and their ability to impact the project’s success

Project Stakeholder Management Processes… Manage Stakeholder Engagement Collaborate with them to meet their needs, wants and expectations Address issues Keep them involved in project activities throughout the project Control Stakeholder Engagement Monitor stakeholder relationships and adjust strategies and plans for engaging them

Project Stakeholder Management The project manager’s ability to: Correctly manage stakeholders in an appropriate manner can mean the difference in success of failure

Project Stakeholder Management Overview

Project Stakeholder Management Overview

Identify Stakeholders The process of: Identifying people, groups or organizations that could impact or be impacted by a decision, activity or outcome of the project Analyzing and documenting relevant information regarding their interests, involvement interdependencies, influence and potential impact on project success

Identify Stakeholders The process’ key benefit is that: It allows the project manager to identify the appropriate focus for each stakeholder or group of stakeholders

Identify Stakeholders DFD

What will you discover? Stakeholders may: Be at different levels within the organization Possess different authority levels Be external to the project team

What is critical to project success? It’s critical to project success to: Identify the stakeholders early in the project or phase, but continuously Analyze their: Individual interest and expectations Importance and influence Recognize that most projects will have a diverse number of stakeholders depending on the size and complexity of the project

What is critical to project success? It’s critical to project success to: Realize that the project manager’s time is limited and should be used efficiently Classify the stakeholders according to their project: Interest Influence Involvement Realize that the affect or influence of a stakeholder may not occur or become evident until later states in the project or phase

Identify Stakeholder Inputs Project Charter Provides information about internal and external parties related with or affected by the product, service or result Procurement Documents If a project is the result of a procurement or is based on an established contract, the parties in that contract are key project stakeholders, including suppliers

Identify Stakeholder Inputs Enterprise Environmental Factors include, but are not limited to: Organizational culture and structure Gov’t or industry standards Global, regional trends and practices or habits

Identify Stakeholder Inputs Organizational Process Assets Stakeholder register templates Lessons learned from previous projects or phases Stakeholder registers from previous projects

Identify Stakeholder - TTs Stakeholder Analysis A way of systematically gathering and analyzing quantitative and qualitative information to determine whose interests should be taken into account throughout the project Identifies stakeholder: Interests, expectations and influence and relates them to project purpose Relationships with the project and other stakeholders that can be leveraged to enhance project success by Building coalitions and partnerships Influencing stakeholders at different stages of the project

Stakeholder Analysis Process Identify all potential stakeholders and relevant information like their: Departments and roles Interests Knowledge Expectations Influence Key stakeholders like decision makers or management are usually the easiest to find Find the rest through interviewing the ones you’ve found

Stakeholder Analysis Process Analyze the potential impact or support each stakeholder could generate Classify them as to define an approach strategy Prioritize them to ensure efficient use of effort to communicate and manage their expectations Assess how key stakeholders are likely to react or respond in various situations in order to plan how to influence them to enhance their support and mitigate potential negative impacts

Stakeholder Analysis Classification Models Power/Interest Grid - Groups stakeholders regarding project outcomes based on their: Power – Level of authority Interest – Level of concern Power/Influence Grid – Groups stakeholders regarding their active involvement based on their Influence – Active involvement in the project

Stakeholder Analysis Classification Models… Influence Influence Impact

Stakeholder Analysis Classification Models… Influence/Impact Grid – Groups stakeholders based on their: Influence – Active involvement in the project Impact – Ability to effect changes to the projects planning or execution Salience Model – Describes classes of stakeholders based on their: Power – Ability to impose their will Urgency – Need for immediate attention Legitimacy – Their involvement is appropriate

Stakeholder Analysis Classification Models…

Salience Model Definitions Salience - the degree to which managers give priority to competing stakeholder claims Power – to influence the firm Legitimacy – of the stakeholders’ relationships with the firm Urgency – the degree to which stakeholder claims call for immediate attention The more attributes – power, legitimacy, and urgency – stakeholder is perceived to have the higher their salience The greatest priority will be given to stakeholders who have power, legitimacy and urgency

Stakeholder Analysis Classification Models… Salience Model Green Latent stakeholders: one attribute, low salience. Managers may do nothing about these stakeholders and may not even recognize them as stakeholders. Amber Expectant stakeholders: two attributes, moderate salience. Active rather passive. Seen by managers as 'expecting something'. Likely higher level engagement with these stakeholders. Red Definitive stakeholders: all three attributes, high salience. Managers give immediate priority to these stakeholders. .

Stakeholder Type Or Class Description Dormant Stakeholders Possess power to impose their will through coercive, utilitarian or symbolic means, but have little or no interaction /involvement as they lack legitimacy or urgency Discretionary Stakeholders Likely to recipients of corporate philanthropy No pressure on managers to engage with this group, but they may choose to do so Examples are beneficiaries of charity

Stakeholder Type Or Class Description… Demanding Stakeholders Those with urgent claims, but no legitimacy or power Irritants for management, but not worth considering Examples are people with unjustified grudges, serial complainers or low return customers Dominant Stakeholders The group that many theories position as the only stakeholders of an organization or project Likely to have a formal mechanism in place acknowledging the relationship with the organization or project Examples are boards of directors, HR, public relations

Stakeholder Type Or Class Description… Dangerous Stakeholders Those with powerful and urgent claims will be coercive and possibly violent For example employee sabotage or coercive/unlawful tactics used by activists Dependent Stakeholders Stakeholders who are dependent on others to carry out their will, because they lack the power to enforce their stake For example local residents & animals impacted by the BP oil spill

Stakeholder Type Or Class Description… Definitive Stakeholders An expectant stakeholder who gains the relevant missing attribute Often dominant stakeholders with an urgent issue, or dependent groups with powerful legal support

Expert Judgment - TTs Judgment and expertise needed to ensure comprehensive identification from: Senior Management Other units within the organization Identified key stakeholders Other project managers SMEs Industry groups and consultants Professional and technical associations Through individual consultations like 1 on 1 meetings, interviews or a panel like focus group or survey

Meetings - TTs Profile analysis meetings Designed to develop an understanding of major project stakeholders, and they can be used to exchange and analyze information about roles, interests, knowledge, and the overall position of each stakeholder facing the project

Identify Stakeholder - Outputs Stakeholder Register contains all details related to those identified Identification information Name, organizational position, location, role in the project, contact information Assessment information Major requirements, main expectations, potential influence in the project, phase in the life cycle with the most interest Stakeholder classification Internal/external, supporter, neutral, resistor