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Stakeholder Management

Chapter 13


Chapter 13Objectives

Understand the different Stakeholder Management Processes

Their Inputs, Tools and Techniques, Outputs

This chapter entails one to understand the various Stakeholder Management aspects required to ensure the desired information flows across the project team and stakeholders.

Managing the expectations and continuously refining the project in tune with the stakeholder needs as per project objectives make the project successful!


It includes processes to ensure identification of stakeholders, effective communication, engagement of them across project to garner their support/decisions for execution and success of project objectives.

Stakeholder Engagement towards their Satisfaction is by default one key project objective for project success.

Each Project Stakeholder will exert their influence on the project in one or the other manner.

Identifying key stakeholders, understanding their needs along with the relationships within themselves is one area, a Project Manager has to keep close watch to develop strategies to ensure the stakeholders are in favor of project objectives.

Knowledge Area: Stakeholder Management


There are 4 Stakeholder Management processes:

1. Identify StakeholdersIdentification of key stakeholders before the project starts, during the project kick off and the project execution to closure is critical towards the stakeholders engagement rightly and avoid the project being jeopardized.

2. Plan Stakeholder ManagementPlanning to engage identified stakeholders by understanding their implicit & explicit needs on the project along with development of strategies to transition them towards project needs.

3. Manage Stakeholder EngagementManaging stakeholder information needs, their aspirations & expectations during the project course along with resolution of any conflicts among the stakeholders.

4. Control Stakeholder EngagementControlling Stakeholders across the project duration to ensure the stakeholders are active, supportive to the project needs and success.

Knowledge Area: Stakeholder Management


13.1 Identify Stakeholders

Inputs

• Project Charter• Procurement

Documents• Enterprise

Environmental Factors• Organizational Process

Assets

Tools & Techniques

• Stakeholder Analysis• Expert Judgment

• Integration• Develop Project Charter

• Scope• Time• Cost• Quality• Human Resource• Communications• Risk• Procurement• Stakeholder• Identify Stakeholders

Initiating Process Identification of parties, internal or external, with stake in project & document their individual interests, involvement and influence over the project.

Completion of this process ensures Project manager has complete view of each individual stakeholder and can respond or cater his/her time accordingly.

This Process needs to be completed before “develop project charter” to ensure the charter is developed with right set of stakeholders & their interests in view.


Stakeholder AnalysisProject Manager’s can practically apply the Stakeholder Analysis as a technique performed in 3 different steps to engage stakeholders from before start of the project to until it is being closed out.

1. Identify Stakeholders to identify all the key or otherwise stakeholders both quantitatively and qualitatively.

2. Identify Potential Impact to understand each stakeholders power & interest level in project.

3. Assess reaction & response of key stakeholders in various situations, anticipate and prepare an approach to effectively mitigate the potential negative impact to the project.

Four Methods of Stakeholder Analysis:

1. Impact Vs Influence2. Power Vs Influence3. Power Vs Interest4. Salience Mode (Power, Urgency,

Involvement)

Impact Vs Influence


Various Models of Stakeholder Analysis

Power Vs InfluencePower Vs Interest


Salience ModelPower Urgency

Involvement

PowerUrgency

Urgency

Urgency

InvolvementInvolvementPower

Power

Involvement

Salience Model depicts Stakeholder Analysis representation across three areas:

– Power, Urgency, Involvement


One of the key outputs of Identify stakeholders process is the Stakeholder Register. This register(document) contains all details related to the identified stakeholders:

Identification InformationName, organizational position, location, role in the project, contact information

Assessment InformationMajor requirements, main expectations, potential influence in the project, phase in the life cycle with the most interest

Stakeholder ClassificationInternal/external, supporter/neutral/resistor, etc.

The register should be consulted and updated on an ongoing basis, as stakeholders may change — or new ones identified — throughout the life cycle of the project.

Stakeholder Register


13.2 Plan Stakeholder Management

Inputs

• Project Management Plan

• Stakeholder Register

• Enterprise Environmental Factors

• Organizational Process Assets

Tools & Techniques

• Expert Judgment

• Meetings• Analytical

Techniques

Planning Process

• Integration• Develop Project Management Plan

• Scope• Plan Scope Management• Collect Requirements• Define Scope• Create WBS

• Time• Plan Schedule Management• Define Activities• Sequence Activities• Estimate Activity Resources• Estimate Activity Duration• Develop Schedule

• Cost• Plan Cost Management• Estimate Costs• Determine Budget

• Quality• Plan Quality Management

• Human Resource• Plan HR Management

• Communications• Plan Communications Management

• Risk• Plan Risk Management• Identify Risks• Perform Qualitative Risk Analysis• Perform Quantitative Risk Analysis• Plan Risk Responses

• Procurement• Plan Procurement Management

• Stakeholder• Plan Stakeholder Management

This is the process to establish mechanisms to engage stakeholders towards the project success.

Key benefit of this process is to ensure the clear, actionable plan to interact with project stakeholders to support projects interests.

Engaging stakeholders effectively to gain maximum support and key decisions at critical points from stakeholders or group of stakeholders is essence of Plan Stakeholder Management.

Stakeholder engagement is a continuous process to establish how the relationships can be sustained, exploited and harnessed for the benefit of the success of the project outcome.


Engagement levels of the Stakeholders and Stakeholder groups need to be defined and compared to the planned engagement levels using a Stakeholder Engagement Assessment Matrix.

Different nature of behaviors of Stakeholders can be observed as shown such as Leading, Supportive, Neutral, Resistant, Unaware.

Stakeholders ↓ Unaware Resistant Neutral Supportive Leading

Ramya C D

Shilpa C D

Roopa C D D

Jaya C DC – Current Engagement Level D – Desired Engagement Level

EngagementLevels

Unaware

Resistant

Neutral

Supportive

Leading

Analytical Techniques


It is often required and is also a best practice to have project stakeholders engaged effectively. All these strategies documented constitute this plan.

Based on the project needs a high level document or a granular scale plan with strategies and actions defined.

Having a defined strategy based on which project manager can act to engage stakeholders will result in increase of probability of project being successful.

Once established, due diligence should be taken to ensure the stakeholder management plan is updated continuously and the underlying assumptions are validated to ensure continued accuracy and relevancy.

Typical Stakeholder Management Plan would consist of:Desired & current key stakeholder engagement levelScope and impact of change to stakeholdersIdentified interrelationships and potential overlap between stakeholdersCommunication Requirements for current phaseInformation dissemination format, language, content, level of detail, timeframe, frequencyExpected impact for stakeholders, Actions required by stakeholders and so on

Stakeholder Management Plan


13.3 Manage Stakeholder Engagement

Inputs

• Stakeholder Management Plan

• Communications Management Plan

• Change Log• Organizational Process

Assets

Tools & Techniques

• Communication Methods• Interpersonal Skills• Management Skills

Executing Process

• Integration• Direct and Manage Project

Work• Scope• Time• Cost• Quality

• Perform Quality Assurance• Human Resource

• Acquire Project Team• Develop Project Team• Manage Project Team

• Communications• Manage Communications

• Risk• Procurement

• Conduct Procurements• Stakeholder

• Manage Stakeholder Engagement

It is the process of engaging the stakeholders over the course of the project to gain their support and increase the chances of meeting the project objectives.

Key benefit is it helps to increase the stakeholder confidence levels and build their support towards the project objectives while minimizing their resistance levels during the changes.

Activities to manage stakeholders engagement involves:

Engaging the stakeholders at the suitable stages of discussions and keeping them informed

about the potential achievements and upcoming threats

Continuous communication and open discussions with the stakeholders to ensure their support towards the project objectives

Understand & resolve the potential concerns or threats or risks that they foresee and provide them required information at requested intervals

Actively engaging stakeholders ensure the project changes are smooth and appropriately acted.


13.4 Control Stakeholder Engagement

Inputs

• Project Management Plan

• Issue Log• Work Performance

Data• Project Documents

Tools & Techniques

• Information Management Systems

• Expert Judgments• Meetings

Monitoring & Controlling Process

• Integration• Monitor and Control Project Work• Perform Integrated Change Control

• Scope• Validate Scope• Control Scope

• Time• Control Schedule

• Cost• Control Costs

• Quality• Control Quality

• Human Resource• Communications

• Control Communications• Risk

• Monitor & Control Risks• Procurement

• Control Procurements• Stakeholder

• Control Stakeholder Management

It is the process of effectively engaging stakeholders and managing stakeholder relationships with adjusting the communication needs and stakeholder relationships.

Adjusting the stakeholder management plan and strategy ensures the stakeholders are rightly identified, their individual objectives and motivations inclined towards the project are considered at all stages of the project execution.

Individual stakeholders may be supportive, resistive, neutral during the execution of the project. Project Management Team is responsible to identify such intentions of the stakeholders and transition them towards the project benefits.


Chapter 13 - Debrief


THIS BRINGS TO “STAKEHOLDER MANAGEMENT” COMPLETION.

From what we have understood so far is:

4 Stakeholder Management Knowledge Area Processes Identified their Inputs, Tools & Techniques, Outputs

Chapter 13


Acknowledgements & Disclaimer

PMI, PMBOK, PMP, CAPM, PgMP, PMI-ACP, PMI-RMP, PMI-SP are registered marks of Project Management Institute, Inc.All registered trademarks, symbols, names are marks of their respective owners and acknowledged.

online pmp training material for pmp exam - stakeholdermanagement knowledge area

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