1.

What is the Difference between Stakeholder Management and Stakeholder

Engagement? – How might how we relate to stakeholders to a project influence project
success?

Stakeholder
For any corporation, a stakeholder is someone in a group that, without their support, the
organization would not exist. Stakeholders are linked with an organization either directly or
indirectly when it comes to the organization's objectives.
According to ISO Standard 26000 stakeholder is defined as an "individual or group that has an
interest in any decision or activity of an organization."

One question arises here what exactly is at stake? Or what is a stake? For this purpose, stake is
categorized as ownership, right (legal right), and interest.

For the organization, the Project manager could list stakeholders as following.

 Government
 Owners
 Community
 Employees
 Consumers

Differences between Stakeholder Management and Stakeholder Engagement

In project management, the two keys ideas, i.e., stakeholder management and stakeholder
engagement, differ in approaches and their focus

Stakeholder Engagement: For the participation of Stakeholders, a set of activities are required,
including informing, ensuring, and consulting. Let stakeholders influence cooperative decision-
making and the project's plan for success. (Knipe, 2015) Maintaining and building relationships
fall under the umbrella of stakeholder engagement. Before execution of any dynamics or changes
in the project, deep concern is required from stakeholders

Stakeholder matric is quite a handy technique that serves the purpose

right. This matrix depicts the understanding regarding the level of
impact of change on stakeholders meanwhile considering the
importance regarding stakeholder's success. (Stakeholder engagement
within a programme or project)

Stakeholder Management: The process revolves around monitoring,

organizing, and improving relationships with stakeholders. It requires
systematic and proper identification of stakeholders to analyze the
needs and expectations; last but not least, planning and
implementation are embedded in the process. The stakeholder
management process serves as the mean via which the project manager can synchronize
interaction while monitoring the status and quality of the relationship between him and the
stakeholders (Stakeholder Management The ultimate guide)

Three steps are included in the process, which could eventually expand the stakeholder
management plan. Let's discuss them one by one.

Stakeholder Identification
Everyone tends to become a stakeholder in an organization and should be supported. There are a
few queries that can help you identify stakeholders.

Who will be affected by the project?

Who is directly responsible for project decision-making?
Who influences the project theme or subject? 
Who was not involved but should have been on the project? 

Stakeholder Analysis
Once stakeholders are identified, the next step is to analyze them based on their interests, power,
expectations, and opinion about the project. Some stakeholders hold more importance as
compared to others when we go through this process. For the project manager, it is essential to
have such an environment where stakeholder is comfortable when it comes to expressing their
interests and concerns for the alignment of project

Management of Stakeholder’s Engagement

The project manager must constantly work to manage expectations, taking into account the
multicultural background of all stakeholders, their ability to interact with each other, such as
language barriers, and what is known about the project.

Stakeholders that have been engaged and are in good control of expectations:

Have been fully informed of the project

Get an idea of their role in the project

Sell the benefits that this project will bring to others

Support in the project's removal of obstacles. https://wellingtone.co.uk/stakeholder-management/

Role of stakeholders in Project’s success

Clear goals, project schedule based on reality, risk, budget, uncertainty management and
resources depicts the success. Stakeholders are the one who can drive project towards success
along with other processes.
The first step is to build on trust and goodwill with stakeholders, which can lead to improved
support and cooperation. People are more willing to share their expertise, resources and
influence in the success of a project if they feel valued and taken into account. In Pollack's 2007
opinion, stakeholder management is the development of relationships with interested parties in
order to obtain their commitment and support which has a significant impact on project
outcomes. When stakeholders are involved in the decision making process, they have a better
chance of providing useful feedback, offering an insight into issues and contributing to resolving
disputes. https://www.epicflow.com/blog/stakeholder-engagement-for-your-project-success/

Successful project is based on the active participation of stakeholders. As we have discussed

earlier, it begins from identifying key stakeholders. Then comes to set mutual concerns based on
common expectations which would lead to the agreement.
file:///C:/Users/Dell/Downloads/RoleofStakeholdersinProjectSuccess_TheoreticalBackgroundan
dApproach3.pdf

Communication and the mode of communication matter a lot for the project manager. The
project manager should be professional and prepare well- discussed reports which minimizes the
communication problem. Obtaining societal approval of a project can enhanced by stakeholder
risk management if it works effectively. Positive engagement also plays the role by minimizing
adversely affect by involving stakeholders in decision-making, concerns etc. it helps to have less
disputes

For the infrastructure of the project, stakeholders can play the important role in helping. Idea can
also be shaped by stakeholders. Grasping the way of funding and political support can also be
done by stakeholders fort the success of the project. Stakeholders also can guide in design via
their views and requirements. This will help in time saving when you do decision making.
Stakeholders can convert good scheme into the great scheme. There are a few tips with the help
of which stakeholders can be highly beneficial for the project. These are: to know the right
stakeholder for your project, have clear and open conversations, continue engagement, have
strong advocacy, and consider social media's impact on the project

Moreover, important sources of skills and experience that can assist in the achievement of a
project are frequently available to stakeholders. Project managers may benefit from their
knowledge and resources in order to make better decisions and resolve issues, if they involve
stakeholders at an early stage of the project. According to Baker, Murphy and Fisher, it is also
possible for stakeholders to provide key information and assistance in the identification of likely
risks and opportunities which can lead to better project planning and implementation.
Stakeholder collaboration increases the overall quality of project deliverables and outcomes
through engagement with a variety of views and skills.

In conclusion, success of project is based on the ways of interaction with stakeholders.

Establishing the trust, Syncing goals with stakeholder’s interest, encouraging open conversation,
using the expertise of shareholders and mitigating risks are all perks of the stakeholder
management and engagement.
http://www.infrastructure-intelligence.com/article/aug-2017/stakeholder-engagement-and-
advocacy-key-infrastructure-projects
References
www.slideshare.net. (n.d.). Stakeholder engagement and management. [online] Available at:
https://www.slideshare.net/andreknipe/stakeholder-engagement-and-management-55465398
[Accessed 19 May 2023].

Finance. (2015). Stakeholder engagement within a programme or project | Department of Finance.

[online] Available at: https://www.finance-ni.gov.uk/articles/programme-and-project-stakeholders.

Darzin Software (n.d.). What is What is Stakeholder Management? - The Ultimate Guide. [online] Darzin.
Available at: https://www.darzin.com/stakeholder-management-ultimate-guide/.

Silva, M. (2021). The Essential Guide to Stakeholder Management. [online] Wellingtone. Available at:
https://wellingtone.co.uk/stakeholder-management/.