Project Management Knowledge Area

STAKEHOLDER MANAGEMENT

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Table of Contents
1. Baseline 10. Prepare Stakeholder Register
2. Definitions 11. Perform Regular Assessment of
3. Project Stakeholders, Communities & Stakeholders
Ecosystem 12. Stakeholder Analysis – Descriptive
4. Stakeholder Engagement Life Cycle 13. Planning Stakeholder Management
5. Stakeholder Identification by a Project 14. Managing Stakeholder – Engagement
Manager – 4 Methods 15. Ways to Control / Engage Stakeholders
6. Project Manager – Points to consider 16. Stakeholders Communication
7. Power / Interest Grids Management
8. Salience Model 17. Best Practices
9. Analyse – Attention & Attributes 18. Deliverables and Tools for Project
Manager
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Baseline

Why I have selected “Stakeholder Management” as a Process for the assignment?

I am working in an IT industry with both Software and Systems as projects. Hence took an

approach to work on the process “Stakeholder Engagement” that will help me to understand

the subject better by doing do a deep-dive into various engagements by research, interviews

and also the online published resources..

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Definition
Definition:
As per PMI definition, a stakeholder is “Any individual, group, or organisation that may
affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a
project, program, or portfolio.”

Stakeholders include:
1. Sponsors and Executives
2. Team Members
3. Business Representatives
4. Customers and users
5. Vendors and Suppliers
6. Other Stakeholders (This group includes advisors, reviewers, subject matter experts,
journalists/media, expert third party contributors, Government/policy makers).

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Project Stakeholders, Communities & Ecosystem

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Stakeholder Engagement Life Cycle

We need to understand the stakeholders within our project ecosystem. This includes
understanding their attitudes, requirements, influence and authority. Then create a plan
and engage them.
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Stakeholder Identification by a Project Manager – 4 Methods
The usual suspects: Review each of the Common Stakeholder Groups
categories and list who is impacted or can influence the project.

Ask the Team: Take the same questions to the team, ask them individually,
then collectively brainstorm who the project stakeholder are.

Surveys and Questionnaires: Ask all other stakeholders to tell us who we may
have missed. Using Survey and Questionnaires, we can canvas relevant
stakeholders for their opinions on additional stakeholders and/or groups we
should consider.

Document Analysis: Look at the other similar project documentation that

exists in the organisation such as Project Charter. It will help to identify and
point to the likely stakeholders that are applicable to the project.

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Project Manager – Points to consider
Stakeholders will be identified by performing a stakeholder analysis in which potential
stakeholders and relevant information (interests, involvement, interdependencies, influence, and
potential impact on project success) are gathered, documented and analyzed.

Post the following questions internally and to self as Project Manager to drive the key points:

Some questions that are relevant for deciding who should be considered a stakeholder for the
project:
1. Will the person or their organization be directly or indirectly affected by this project?
2. Does the person or their organization hold a position from which they can influence the
project?
3. Does the person have an impact on the project’s resources (material, personnel, funding)?
4. Does the person or their organization have any special skills or capabilities the project will
require?
5. Does the person potentially benefit from the project or are they in a position to resist this
change?
6. At what point does the person have the greatest impact on the project?

If there are interdependencies between stakeholders that might impact the project, identify those,
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as well
Power / Interest Grids
There are few permutations and
combinations in which the grid can be
presented.

Sometimes instead of plotting Power

and Interest on the axes, they may be
shown as “Power and Influence” or
“Impact and Influence”, but the
concept remains same.

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Salience Model
The Salience Model classifies stakeholders
on three attributes viz., Power, Legitimacy
and Urgency.

When these groups overlap, we get sub-

groups viz., Core (Dominant), Dangerous
and Dependent.

Important:
Stakeholders in the Core area need the
most attention since they have power,
legitimacy and urgency. Eg. Project
Sponsor.

Stakeholders sitting in Dominant,

Dangerous and Dependent regions still need
plenty of attention as they yield influence to
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derail the project.
Analyse – Attention & Attributes
During Stakeholder Analysis of a project, the project manager shall pay attention on the
following impactful attributes:

1. Determine which stakeholders to manage closely and which will require less efforts.
2. Determine the level of participation required from each stakeholder
3. Document the interests and motivations of stakeholders in the project
4. Identify the stakeholders that can make the project unsuccessful.
5. Look for any conflicting interests and relationships between stakeholders
6. Determine communication strategies and medium best suited

Please note: Impact is measured by High (H), Medium (M) or Low (L).

The state of change or readiness can be labeled or categorise as:

U – Unaware – this group has no information about the project
R – Resistant – aware of project and resistant to the changes and impacts the project may bring
N – Neutral – aware of the project and neither supportive nor resistant
S – Supportive – aware of the project and the potential changes and impacts and is supportive
L – Leading – aware of the project and actively engaged to ensure the project’s success
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Prepare Stakeholder Register
Sample Stakeholder Register

Name Position Internal/ Project Role Contact Information

External
Stephen VP of Operations Internal Project sponsor stephen@abcd.com

Berthinah CFO Internal Senior manager, approves funds brobert@abcd.com

Chien CIO Internal Senior manager, PM’s boss chien@abcd.com

Ryan IT analyst Internal Team member ryan@abcd.com
Lori Director, Accounting Internal Senior manager lori@abcd.com

Sanjay Director, Refineries Internal Senior manager of largest refinery sanjay@abcd.com

Debra Consultant External Project manager debra@abcd.com
Suppliers Suppliers External Supply software suppliers@abcd.com

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Perform Regular Assessment of Stakeholders
Periodically review and update the stakeholders register

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Stakeholder Analysis - Descriptive

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Planning Stakeholder Management
After identifying and analyzing stakeholders, project teams should develop a plan for
management them.

1. Limit Availability

2. Restrict who prepares it

3. Don’t write everything down

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Managing Stakeholder – Engagement
Project success is often measured in terms of customer/sponsor satisfaction

Prepare Expectations Management Matrix

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Ways to Control / Engage Stakeholders
1. Participation in kick-off meetings
• Meet before hand with key stakeholders

2. Engagement activities and deliverables throughout the project

3. Stakeholders As Key Project Team Members

• On some IT projects, important stakeholders are invited to be members of the project
teams

4. Maintain communication with stakeholders

• Keep frequent communication with Relevant Stakeholders with Relevant
Information with Transparency.

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Stakeholders Communication Management

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Best Practices
Project managers are often faced with challenges, especially in managing stakeholders

Suggestions for handling these situations include the following:

• Be clear from the start

• Explain the consequences

• Have a contingency plan

• Avoid surprises

• Take a stand

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Deliverables and Tools for Project Manager
1. Stakeholder Register

2. Stakeholder Engagement Plan

3. Assess work performance information

4. Organisational Process Assets

5. Expert Judgement

6. Meetings

7. Power or Influence vs. Impact Grid

8. Interpersonal skills

9. Management skills

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Thank you

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