13-1 © Copyright 2013 Project Masters Inc. All rights reserved. Project Stakeholder Management By Project Masters Inc.

13-2 © Copyright 2013 Project Masters Inc. All rights reserved. Project Stakeholder Management Chapter Objectives/Topics Define Project Stakeholder Management Define and Discuss the Project Stakeholder Management processes −Identify Stakeholders −Plan Stakeholder Management −Manage Stakeholder Engagement −Control Stakeholder Engagement

13-3 © Copyright 2013 Project Masters Inc. All rights reserved. Project Stakeholder Management

13-4 © Copyright 2013 Project Masters Inc. All rights reserved. Project Stakeholder Management The processes required to identify the people, groups, or organizations that could impact or be impacted by the project, to analyze stakeholder expectations and impact on the project, and to developed appropriate management strategies for effectively engaging stakeholders in project decisions and execution. (The PMBOK® Guide: Fifth Edition)

13-5 © Copyright 2013 Project Masters Inc. All rights reserved. Project Stakeholder Management Also focuses on the following: -Maintaining a continuous communication with stakeholders to meet their needs and expectations -Addressing issues as they occur -Managing conflicting interests -Fostering appropriate stakeholder engagement in project decisions and activities

13-6 © Copyright 2013 Project Masters Inc. All rights reserved. Project Stakeholder Management Project Stakeholders are individuals, groups, or organizations who may affect, be affected by, or perceive themselves to be affected by a decision, activity, or outcome of a project. (The PMBOK® Guide: Fifth Edition) Comprised of persons and organizations such as Customers, Sponsors, the Performing Organization, and the Public who are actively involved in the project, or whose interests may be positively or negatively affected by the execution or completion of the project. (The PMBOK® Guide: Fifth Edition)

13-7 © Copyright 2013 Project Masters Inc. All rights reserved. Initiating Planning Executing Monitoring & Controlling Close-out

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13-9 © Copyright 2013 Project Masters Inc. All rights reserved. Identify Stakeholders

13-10 © Copyright 2013 Project Masters Inc. All rights reserved. Identify Stakeholders The process of identifying the people, or organizations that could impact or be impacted by decision, activity, or outcome of the project, analyzing and documenting relevant information regarding their interests, involvement, interdependencies, and potential impact on project success (The PMBOK® Guide: Fifth Edition) The key benefit of this process is that it allows the project manager to identify the appropriate focus for each stakeholder or group of stakeholders. (The PMBOK® Guide: Fifth Edition)

13-11 © Copyright 2013 Project Masters Inc. All rights reserved. Identify Stakeholders The project manager must identify all of the stakeholders in order to ascertain their involvement, interest, expectations, importance, and influence. By doing this early in the life cycle, a strategy can be developed for communicating with all concerned.

13-12 © Copyright 2013 Project Masters Inc. All rights reserved. Identify Stakeholders In general, projects will have more stakeholders than are obvious – Who is in favor of the project/who is not? – Who is in power/ who is not?

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13-14 © Copyright 2013 Project Masters Inc. All rights reserved. Identify Stakeholders Inputs 1.Project Charter −Contains information on sponsors, customers, team members 2.Procurement Documents −Contracts, suppliers agreements, etc. 3.Enterprise Environmental Factors −Organizational/Company culture, structure, Government/industry standards, global/regional/local trends, practices, or habits

13-15 © Copyright 2013 Project Masters Inc. All rights reserved. Identify Stakeholders Inputs 4.Organizational Process Assets −Stakeholder register templates −Lessons learned −Prior stakeholder registers

13-16 © Copyright 2013 Project Masters Inc. All rights reserved. Identify Stakeholders Tools and Techniques 1.Stakeholder Analysis −A technique of systematically gathering and analyzing quantitative and qualitative information to determine whose interests should be taken into account throughout the project −Identifies interests, expectations, and influence of the stakeholders and relates them to the purpose of the project

13-17 © Copyright 2013 Project Masters Inc. All rights reserved. Identify Stakeholders Tools and Techniques 1.Stakeholder Analysis (Cont’d) −Steps involved in stakeholder analysis a.Step 1: Identify all potential stakeholders and relevant information, e.g. role, department, interests, knowledge levels, expectations, and level of influence, (interview the ones you know)

13-18 © Copyright 2013 Project Masters Inc. All rights reserved. Identify Stakeholders Tools and Techniques 1.Stakeholder Analysis (Cont’d) b.Step 2: Analyze the potential impact or support each stakeholder could generate to develop a “handling strategy” Now prioritize the key stakeholders to establish the most efficient use of communications to manage their expectations. Think – Power/Interest/Concern, Authority Level/Involvement, Influence/Impact, Power/urgency/legitimacy c.Step 3: Assess reactions or response to situations

13-19 © Copyright 2013 Project Masters Inc. All rights reserved. Identify Stakeholders Tools and Techniques 1.Stakeholder Analysis (Cont’d) Following are some possible classification models Power/Interest Grid – Groups stakeholders by level of authority and level of concern Power/Influence Grid - Groups stakeholders by level of authority and active involvement Influence/Impact Grid - Groups stakeholders by active involvement and ability to effect changes to the project’s Planning or execution Salience Model – describes classes of stakeholders based on their power, urgency, and legitimacy

13-20 © Copyright 2013 Project Masters Inc. All rights reserved. Identify Stakeholders Tools and Techniques 2.Expert Judgment −Use the Above, Below, and Sideways model −Upper management −Team members – not management −Peers −Don’t forget suppliers/contractors −Industry Groups 3.Meetings

13-21 © Copyright 2013 Project Masters Inc. All rights reserved. Identify Stakeholders Outputs 1.Stakeholder Register −Identification Information Name, organization, position, etc. −Assessment Information Requirements, expectations, influence −Stakeholder Classification Internal/external, supporter/detractor/neutral

13-22 © Copyright 2013 Project Masters Inc. All rights reserved. Plan Stakeholder Management

13-23 © Copyright 2013 Project Masters Inc. All rights reserved. Plan Stakeholder Management Defined The process of developing appropriate management strategies to effectively engage stakeholders throughout the project life cycle, based on the analysis of their needs, interests, and potential impact on project success. (The PMBOK® Guide: Fifth Edition) The key benefit of this process is that it provides a clear, actionable plan to interact with project stakeholders to support the project’s interests. (The PMBOK® Guide: Fifth Edition)

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13-25 © Copyright 2013 Project Masters Inc. All rights reserved. Plan Stakeholder Management Inputs 1.Project Management Plan – Life cycle selected – Description of how work will be executed – How human resources requirements will be met – Change management plan – Need and techniques for communications among stakeholders 2.Stakeholder Register

13-26 © Copyright 2013 Project Masters Inc. All rights reserved. Plan Stakeholder Management Inputs 3.Enterprise Environmental Factors – Organizational culture, structure, and political climate 4.Organizational Process Assets – Lessons learned and historical information

13-27 © Copyright 2013 Project Masters Inc. All rights reserved. Plan Stakeholder Management Tools and Techniques 1.Expert Judgment – Senior Management – Project Team Members – Other units within the organization – Identified key stakeholders – Other Project Managers/Subject Matter Experts – Industry groups and consultants – Professional and technical organizations, regulatory bodies, and non-governmental organizations

13-28 © Copyright 2013 Project Masters Inc. All rights reserved. Plan Stakeholder Management Tools and Techniques 2.Meetings 3.Analytical Techniques – The current level of all stakeholders needs to be compared to the planned engagement levels required for successful project completion. – Some stakeholder engagement level classifications Unaware – Unaware of project and potential impacts Resistant – Aware of project and potential impacts and resistant to change

13-29 © Copyright 2013 Project Masters Inc. All rights reserved. Plan Stakeholder Management Tools and Techniques 3.Analytical Techniques (Cont’d) – Some stakeholder engagement level classifications (Cont’d) Neutral – aware of project yet neither supportive nor resistant Supportive – Aware of project and potential impacts and supportive of change Leading – Aware of project and potential impacts and actively engaged in ensuring the project is a success

13-30 © Copyright 2013 Project Masters Inc. All rights reserved. Plan Stakeholder Management Outputs 1.Stakeholder Management Plan This Plan is part of, or is referenced in, the Project Management Plan. −The Stakeholder Management Plan provides the following information Desired and current engagement levels of key stakeholders Identified interrelationships between stakeholders Stakeholder communications requirements for the current project phase Information to be distributed to stakeholders including language, format, content, and level of detail

13-31 © Copyright 2013 Project Masters Inc. All rights reserved. Plan Stakeholder Management Outputs 1.Stakeholder Management Plan −The Stakeholder Management Plan provides the following information Reason for the distribution of the information and the expected impact to stakeholder engagement Scope and impact of change to stakeholders Identified interrelationships and potential overlap between stakeholders Information to be distributed including language, format, content, and level of detail Time frame and frequency for the distribution of information Method for updating and refining the stakeholder management plan as the project progresses and develops

13-32 © Copyright 2013 Project Masters Inc. All rights reserved. Plan Stakeholder Management Outputs 2.Project Documents Updates −Project Schedule −Stakeholder Register

13-33 © Copyright 2013 Project Masters Inc. All rights reserved. Manage Stakeholder Engagement

13-34 © Copyright 2013 Project Masters Inc. All rights reserved. Manage Stakeholder Engagement The process of communicating and working with stakeholders to meet their needs/expectations, address issues as they occur, and foster appropriate stakeholder engagement in project decisions and activities throughout the project life cycle. (The PMBOK® Guide: Fifth Edition) The key benefit of this process is that it allows the project manager to increase support and minimize resistance from stakeholders, significantly increasing the chances to achieve project success. (The PMBOK® Guide: Fifth Edition)

13-35 © Copyright 2013 Project Masters Inc. All rights reserved. Manage Stakeholder Engagement Techniques The process includes the utilization of one, or more of the following activities 1.Engaging stakeholders at appropriate project stages to obtain their commitment to success of the project 2.Managing stakeholder expectations through negotiation and communication 3.Addressing potential concerns that have not yet become issues and anticipating future problems 4.Clarifying and resolving issues that have been identified

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13-37 © Copyright 2013 Project Masters Inc. All rights reserved. Manage Stakeholder Engagement Inputs 1.Stakeholder Management Plan – Methods and technologies used for stakeholder communication 2.Communications Management Plan – Stakeholder communications requirements – Information to be communicated, language, format, content, and level of detail – Reason for distribution – Person or groups who will receive the information – Escalation process

13-38 © Copyright 2013 Project Masters Inc. All rights reserved. Manage Stakeholder Engagement Inputs 3.Change Log 4.Organizational Process Assets – Organizational communication requirements – Issue management procedures – Change control procedures – Historical information from previous projects

13-39 © Copyright 2013 Project Masters Inc. All rights reserved. Manage Stakeholder Engagement Tools and Techniques 1.Communications Methods − Based on the stakeholders communications requirements, the project manager decides how, when, and which communication methods to use for this project. 2.Interpersonal Skills – Building trust, Resolving conflict, Active listening, and Overcoming resistance to change 3.Management Skills – Presentation skills, Negotiating, Writing skills, and Public speaking

13-40 © Copyright 2013 Project Masters Inc. All rights reserved. Manage Stakeholder Engagement Outputs 1.Issue Log 2.Change Requests 3.Project Management Plan Updates 4.Project Document Updates 5.Organizational Process Assets Updates −Stakeholder notifications −Project reports −Project presentations −Project records −Feedback from stakeholders −Lessons learned documentation

13-41 © Copyright 2013 Project Masters Inc. All rights reserved. Lessons Learned Lessons Learned focuses on identifying project successes/failures, and includes recommendations for improving future performance on projects. Some examples of information gained from lessons learned are as follows: – Input to the knowledge management system – Updated corporate policies, procedures, processes – Improved business skills – Overall product and service improvements – Updates to the Risk Management Plan

13-42 © Copyright 2013 Project Masters Inc. All rights reserved. Control Stakeholder Engagement

13-43 © Copyright 2013 Project Masters Inc. All rights reserved. Control Stakeholder Engagement Inputs The process of monitoring overall project stakeholder relationships and adjusting strategies and plans for engaging stakeholders. (The PMBOK® Guide: Fifth Edition) The key benefit of this process is that it will maintain or increase the efficiency of and effectiveness of stakeholder engagement activities as the project evolves and its environment changes. (The PMBOK® Guide: Fifth Edition)

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13-45 © Copyright 2013 Project Masters Inc. All rights reserved. Control Stakeholder Engagement Inputs 1.Project Management Plan 2.Issue Log −Also referred to as “Action-item Logs”; updated as new issues are identified and current issues are resolved 3.Work Performance Data – Start and finish dates of scheduled activities, Number of change requests, etc. 4.Project Documents – Schedule, Stakeholder Register, Issue log, Change Log, Project communications etc.

13-46 © Copyright 2013 Project Masters Inc. All rights reserved. Control Stakeholder Engagement Tools and Techniques 1.Information Management Systems – System that allows for the capture, storage, distribution, and retrieval of project information 2.Expert Judgment – Senior Management – Other units within the organization – Identified key stakeholders – Other project managers and subject matter experts – Etc. 3.Meetings

13-47 © Copyright 2013 Project Masters Inc. All rights reserved. Control Stakeholder Engagement Outputs 1.Work Performance Information 2.Change Requests 3.Project Management Plan Updates – Updates to every knowledge area of the Project Management Plan as necessary 4.Project Documents Updates −Stakeholder Register −Issue Log

13-48 © Copyright 2013 Project Masters Inc. All rights reserved. Control Stakeholder Engagement Outputs 5.Organizational Process Assets – Stakeholder notifications – Project reports – Project presentations – Project records – Feedback from stakeholders – Lessons learned documentation

13-49 © Copyright 2013 Project Masters Inc. All rights reserved. Project Stakeholder Management Chapter Objectives/Topics Define Project Stakeholder Management Define and Discuss the Project Stakeholder Management processes −Identify Stakeholders −Plan Stakeholder Management −Manage Stakeholder Engagement −Control Stakeholder Engagement

13-50 © Copyright 2013 Project Masters Inc. All rights reserved. Chapter 13 – Stakeholder Management Practice Exam Turn to Page 518 in the “All in One” Text Book Take the 20 Question Exam

13-51 © Copyright 2013 Project Masters Inc. All rights reserved. Practice Exam Answers 1)B. Communication management plan 2)C. Identify and document the stakeholder information, prioritize and classify the stakeholders, plan for stakeholder management. 3)A. A power/influence grid 4)D. Influence 5)C. Stakeholder register

13-52 © Copyright 2013 Project Masters Inc. All rights reserved. Practice Exam Answers 6) A. Unaware 7) A Resistant 8) D. Leading 9) D. Stakeholder engagement assessment matrix 10) B. Project stakeholder management plan

13-53 © Copyright 2013 Project Masters Inc. All rights reserved. Practice Exam Answers 11) C. Because it communicates changes to the stakeholders 12) C. Conflict resolution 13) C. Influence 14) D. Project schedule for stakeholder communications 15) D. Corrective actions

13-54 © Copyright 2013 Project Masters Inc. All rights reserved. Practice Exam Answers 16) C. Profile analysis meeting 17) A. Interactive 18) A. Pull 19) C. A project newsletter for the stakeholders from the project manager 20) C. 1711