1. Project Stakeholder Management
Days 1 & 2

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

3. 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

4. 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

5. 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

6. 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

7. 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

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

9. Project Stakeholder Management Overview

10. Project Stakeholder Management Overview

11. 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

12. 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

13. Identify Stakeholders DFD

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

15. 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

16. 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

17. 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

18. 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

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

20. 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

21. 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

22. 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

23. 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

24. Stakeholder Analysis Classification Models…
Influence
Influence
Impact

25. 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

26. Stakeholder Analysis Classification Models…

27. 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

28. 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. .

29. 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

30. 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

31. 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

32. 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

33. 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

34. 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

35. 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