STAKEHOLDER MANAGEMENT

Meaning of stakeholder

Stakeholders are people or organizations that are internal or external to the project who
have a vested interest in its success. That interest can have a positive or negative impact on the
project execution. Therefore, it’s crucial to know your stakeholders.
More than just being able to identify who the stakeholders are in the project, you need to manage
them. It’s a big task. How do you know who needs what when communicating with them during
the project? That is the beginning of stakeholder management, and it starts with stakeholder
mapping.

Stakeholder mapping and Analysis

Understanding who the project stakeholders are is essential for a project success. Stakeholder
mapping and analysis is one effective way a project manager can better learn about the
stakeholders.

Stakeholder Mapping

Stakeholder mapping is a process of finding out all the stakeholders relating to a project. The
process involves identifying all individuals who have an interest in the project outcome. A
project stakeholder can be one individual or multiple individuals as in the case of large public
infrastructure projects.

Once all the project stakeholders are identified, the project manager must map, or categorize
them, according to different levels of engagement. Mapping of the stakeholder is done according
to the following two levels:

o The level of interest

o The level of influence

By influence, it means stakeholders have power in setting and modifying project

requirements.  On the other hand, interest means that stakeholders are affected by the project
outcome but they do not have any power to influence project requirements.
A project manager should focus on satisfying expectations of the stakeholders who have a high
level of influence relating to the project. On the other hand, stakeholders having a high level of
interest need to be merely kept informed of the project status.

Mapping of shareholders is a visual exercise. You can manually map the stakeholders or use
software to perform the action.  Once you have fully mapped the stakeholders, you need to create
an action plan on how to engage with them.

Stakeholder Map

A stakeholder map is a visual, four-quadrant influence-interest matrix used to identify

stakeholders and categorize them in terms of their influence and interest in the project.

The y axis determines the level of interest, from highest on the top to lowest on the bottom—
meaning how much the stakeholders are impacted by the outcome of the project. The x axis of
the grid measures the stakeholder’s level of influence, or how much can the stakeholder impact
the project, from low (left side) to high (right side).

Stakeholders are then plotted on this map depending on how they fall on those two metrics.
A stakeholder map is the first step towards stakeholder management in that it defines the
stakeholder’s relationship to the project. It will inform almost every decision a project manager
makes in regard to their stakeholders, including the frequency of their meetings and how much
information they are given about the project.

Importance of stakeholder mapping

Stakeholder mapping is essential for the success of a project. The fact is that most projects
involve a large number of stakeholders. When you have mapped the stakeholders, it will help in
better managing their expectations.
Stakeholder mapping is important because stakeholders are important to the success of a project.
There are usually many stakeholders, which means many and varied expectations. Without
mapping stakeholders in relation to their influence and interest in the project, you’re going to
have a hard time communicating with them and keeping them happy.

But it’s also a two-way street. Having good communications with stakeholders gives project
managers much needed insight into the project, which helps them in innumerable ways. It helps
to mitigate risk and discover the stakeholder’s real goals for the project.

In other words, stakeholder mapping is the start of an effective communication plan. Projects

cannot succeed if there is little to no communication. The better the communication, the
smoother the project will proceed and the easier it will be to understand your stakeholders’
desires.

Stakeholder mapping is also a way to manage expectations. By mapping out your stakeholders,
you know how they stand in regards to the project. Therefore, as the project is executed, a project
manager can incrementally deal with those expectations, bringing them in line with the project so
everyone is happy with the deliverables.

Moreover, actively engaging with the stakeholders will result in increased perception of success.
This is because stakeholders whose expectations are micro-managed through stakeholder
mapping are far likely to perceive the project as a success. 

There are four ways to manage your communication with stakeholders: Manage them closely,
keep them satisfied, keep them informed or simply monitor them.

 If your stakeholder has a high level of influence in the project but not as much interest,
they should be kept satisfied, which means they need regular updates and their feedback is
important.

 A stakeholder with both a high level of influence and interest needs to be managed
closely. That means meeting with them more than the group that is in the “keep satisfied”
category, and their feedback is also critical to any decision-making.

 Those who are lower in influence and higher in interest tend to be your customer base.
They need updates on progress, too, but not with the frequency of the “manage closely” and
 “keep satisfied” groups. Those who are low on both influence and interest need monitoring,
of course, but probably only need to be informed of big steps in the project.

How to Create a Stakeholder Map

When you’re ready to make your stakeholder map and start the stakeholder mapping process,
you’ll want to follow these four steps:

1. Identify Stakeholders

There can be many stakeholders in a project. The list you come up with will depend on your
organization, the impact of the project and its objectives. That means you might have to revise
the list throughout the course of the project.

2. Analyze Stakeholders

The next step asks for some analysis. This helps you figure out how relevant they are to the
project, as well as what perspective they bring. To do this, define what type of stakeholder they
are, how much they might contribute to the project and their legitimacy in so doing. Are they
willing to engage? How much influence and involvement in the project do they have?

3. Map Stakeholders

This is when you create your box and divide it into four, with the y-axis measuring the level of
influence from low (bottom) to high (top). On the x-axis, you map the level of interest, low (left)
to high (right). Using your list of stakeholders and the analysis you made, plot them according to
the two axes.

4. Prioritize Stakeholders

Now that you’ve listed, analyzed and plotted your stakeholders on the map, you can begin to
devise a plan on how you’ll engage with the stakeholders over the course of the project.
Depending on where they land on the map, you will either manage them closely to just monitor
them. This is the start of your stakeholder communication plan and overall stakeholder
management.

Best Practices When Stakeholder Mapping

It helps if you can get as much information on all your stakeholders as possible. You want to
know who they are and how they like to communicate. Some might just ask you to text them
updates, others want in-person presentations and some might prefer a phone call. Know the
method of communication they want and determine a frequency that is right for them.

Be Inclusive

Another aspect of your stakeholder mapping is understanding the cultural or linguistic diversity
among them. If they’re don’t speak your native language, it will require you to adjust your
messaging. It’s important to be inclusive and know what is right for one stakeholder might be
wrong for another.

Communicate Clearly

The content of your communications must be clear. You want to avoid jargon and simply present
the facts. Be transparent when you’re communicating, and always note what is certain and what
is not. Be open to your stakeholders’ feedback and know how they can impact your decisions.

Be Open and Honest

Never hold back on information, especially bad news. The sooner you can get it out in the open,
the faster you’ll be able to address stakeholder expectations and manage whatever concerns they
might have.

Remain Available

Finally, keep the lines of communication open. Stay in touch with your stakeholders, but also
give them a channel by which they can reach you if necessary. When they do, listen to what they
have to say, interact with them, ask your own questions. Communications is an exchange of
information.

Conclusion

The process of stakeholder mapping can be viewed as a form of risk management. Meeting the
stakeholders’ requirement and keeping them happy will reduce the risk of a project failure. One
way to keep stakeholders informed about the project status is by using an online work
management software.

An online project management software will help in keeping all types of stakeholders informed
regarding the project status. Looking at the project timeline, the stakeholders will know how
much work has been completed, and also how much work is left. In short, using an online work
management software will increase in better engagement with the stakeholders.
Satisfy
High Influence, Low Interest
These stakeholders are highly influential but
they don’t have a lot of interest, nor are they
actively engaged in your project.
Consider their objectives and keep them
satisfied to ensure they remain strong
advocates. Getting them off side poses a risk.
Examples:
 Regulators (eg. EPA, FDA, Tax)
 Administrators (ie. with discretion over
budgets)
Monitor
Low Influence, Low Interest
These stakeholders sit on the periphery of the
project. They are neither interested or have
much influence.
Monitor their activity from time to time to stay
on top of their involvement. Their relevance may
change over time. Communicate to keep them
informed and encourage their interest.
Examples:
 Support/Complementary Services
COMMUNICATION PLANNING
Manage
High Influence, High Interest
These are your key stakeholders.
They have a lot of influence and a strong interest
in the outcomes. Manage these stakeholders
well to build strong relationships and ensure you
retain their support. Involve them in decisions
and engage regularly.
Examples:
 Trade Unions
 Politicians and senior officials
 Investors
 Senior Management
 Project Sponsors
Inform
Low Influence, High Interest
These stakeholders have a strong interest in
your project but very little power to influence it.
Anticipate their needs and keep these
stakeholders informed to ensure their continued
support. Consult on their area of interest and
use their input to improve your chances of
success.
Examples:
 End users of a program or product
 Members of the community
 Community Action groups
 Media outlets
Communications management is about keeping everybody in the loop. The communications
planning process concerns defining the types of information you will deliver, who will receive it,
the format for communicating it, and the timing of its release and distribution. It turns out that
90% of a project manager’s job is spent on communication so it’s important to make sure
everybody gets the right message at the right time.

The first step in defining your communication plan is figuring out what kind of communication
your stakeholders need from the project so they can make good decisions. This is called
the communications requirements analysis. Your project will produce a lot of information; you
don’t want to overwhelm your stakeholders with all of it. Your job is to figure out what they feel
is valuable. Communicating valuable information doesn’t mean you always paint a rosy picture.
Communications to stakeholders may consist of either good news or bad news. The point is that
you don’t want to bury stakeholders in too much information but you do want to give them
enough so that they’re informed and can make appropriate decisions.

Communications technology has a major impact on how you keep people in the loop. Methods of
communicating can take many forms, such as written reports, conversations, email, formal status
reports, meetings, online databases, online schedules, and project websites. You should consider
several factors before deciding what methods you’ll choose to transfer information. The timing
of the information exchange or need for updates is the first factor. Do you need to procure new
technology or systems, or are there systems already in place that will work? The technologies
available to you should figure into your plan of how you will keep everyone notified of project
status and issues. Staff experience with the technology is another factor. Are there project team
members and stakeholders experienced at using this technology, or will you need to train them?
Finally, consider the duration of the project and the project environment. Will the technology
you’re choosing work throughout the life of the project or will it have to be upgraded or updated
at some point? And how does the project team function? Are they located together or spread out
across several campuses or locations?

The answers to these questions should be documented in the communication plan.

 All projects require a sound communication plan, but not all projects will have the same types of
communication or the same methods for distributing the information. The communication plan
documents the types of information needs the stakeholders have, when the information should be
distributed, and how the information will be delivered.

The types of information you will communicate typically include project status, project scope
statements and updates, project baseline information, risks, action items, performance measures,
project acceptance, and so on. It’s important  that the information needs of the stakeholders be
determined as early in the planning phase of the project management life cycle as possible so that
as you and your team develop project planning documents, you already know who should
receive copies of them and how they should be delivered.

Types of Communication

Completing a complex project successfully requires good communication among team members.
If those team members work in the same building, they can arrange regular meetings, simply
stop by each other’s office space to get a quick answer, or even discuss a project informally at
other office functions. Many projects are performed by teams that interact primarily through
electronic communication and are, therefore, called virtual teams. To avoid miscommunication
that can harm trust and to include team members in a project culture, the project team needs a
plan for communicating reliably and in a timely manner. This planning begins with
understanding two major categories of communication.

Synchronous Communications

If all the parties to the communication are taking part in the exchange at the same time, the
communication is synchronous. A telephone or Skype conference call is an example of
synchronous communication. The following are examples of synchronous communications:

 Live meeting: Gathering of team members at the same location

 Conference call: A telephone call in which several people participate

 Audio conference: Like a conference call, but conducted online using software like Skype
 Computer-assisted conference: Audio conference with a connection between computers
that can display a document or spreadsheet that can be edited by both parties

 Video conference: Similar to an audio conference but with live video of the participants.
Some laptop computers have built-in cameras to facilitate video conferencing

 IM (instant messaging): Exchange of text or voice messages using pop-up windows on

the participants’ computer screens

 Texting: Exchange of text messages between mobile phones, pagers, or personal digital

assistants (PDAs)—devices that hold a calendar, a contact list, a task list, and other support
programs

 Modern communication technologies make it possible to assemble project teams from

anywhere in the world. Most people work during daylight hours, which can make
synchronous meetings difficult if the participants are in different time zones. However, it
can be an advantage in some circumstances; for example, if something must be done by
the start of business tomorrow, team members in Asia can work on the problem during
their normal work hours while team members in North America get some sleep.
 Remember Time Zones
 It is important to remember time zones and calculate the difference between yours and
your associates’ zones correctly so as not to miss important meetings or deadlines. Cities
and countries to the north or south of each other all observe the same local time. Be
aware that many well-educated people in the United States and Canada think of South
America as directly south of North America.  As you can see, South American countries
can be up to five time zones east of North America.  
Time zones are calculated in reference to the time zone of the Royal Observatory in Greenwich,
England. The time at that location is Greenwich Mean Time (GMT). More recent references
designate it as Coordinated Universal Time (UTC) instead of GMT. The time zones advance
from Greenwich in an easterly direction (Figure 15.1). However, at the international dateline
(about the midpoint around the world from Greenwich), you subtract the time zone from GMT.
To prevent confusion between a.m. and p.m., times are often given using a 24-hour clock. For
example, midnight is indicated as 00:00, noon is 12:00 and 1 p.m. is 13:00.
 Asynchronous Communications

Getting a team together at the same time can be a challenge—especially if they are spread out
across time zones. Many types of communication do not require that the parties are present at the
same time. This type of communication is asynchronous. There are several choices of
asynchronous communications.

Mail and Package Delivery

Many companies prefer that final contracts are personally signed by an authorized representative
of each party to the agreement. If several signatures are required, this can take weeks to get all
the signatures if the contracts are transferred by a postal service. If this process is holding up the
start of the project, you can use an overnight delivery service to minimize the time spent
transferring the documents.

Fax

Fax machines have been around a long time and enjoy a high level of trust for transmitting
documents accurately. Although it might seem archaic to still use fax transmissions, in many
countries a fax of a signed contract is legal, but a computer-scanned image is not.

Email

Electronic mail (email) is widely used to coordinate projects and to communicate between team
members. It has several valuable characteristics for project management:

 Information can be sent to a list of team members.

 Messages can be saved to document the process in case of a misunderstanding or
miscommunication.

 Files can be attached and distributed.

Project Blog

A blog is an online journal that can be private, shared by invitation, or made available to the
world. Some project managers keep a journal in which they summarize the day’s challenges and
triumphs and the decisions they made. They return to this journal at a later date to review their
decision-making process after the results of those decisions are known to see if they can learn
from their mistakes. Many decisions in project management are made with incomplete
knowledge, and reflecting on previous decisions to develop this decision-making skill is
important to growth as a project manager.

Really Simple Syndication (RSS)

Some projects are directly affected by external factors such as political elections, economic
trends, corporate mergers, technological or scientific breakthroughs, or weather. To keep
informed about these factors, you can subscribe to online news sources. A technology that
facilitates this process is Really Simple Syndication (RSS). Web pages with RSS news feeds
have labeled links.

If the user clicks on the RSS feed, news from the website is automatically sent to the user’s news
reader, such as Google Reader. The news reader can be set to filter the news for key words to
limit the stories to those that are relevant to the project.

Communication Plan Template

So how do you create a communication plan?

1. Identify your stakeholders (to whom)

2. Identify stakeholder expectations (why)

3. Identify communication necessary to satisfy stakeholder expectations and keep them

informed (what)

4. Identify time-frame and/or frequency of communication messages (when)

5. Identify how the message will be communicated (the stakeholder’s preferred method)
(how)

6. Identify who will communication each message (who)

7. Document items – templates, formats, or documents the project must use for
communicating.

Example stakeholder communication

Audience Massage Medium Schedule Responsible
(who) (what) (how) (when)
Steering
committee
Management
committee,
advisory
committee
Project
implementation
team
Departmental
administrators
End users

Dr Prosper Nkurunzizaa
15 (+ 250)788658582 7/ 21/ 2021
 Example stakeholder communication
Audience Message (what) Medium Schedule Responsible
(who) (how) (when)
Steering Status reports, strategies, issues, budget, Meetings, Monthly Project
committee technology requirements, change to formal paper- sponsors,
corporate business processes. based reports, project lead,
demos implementatio
n team
Managemen System overview, goals, implementation Meetings, As required Project lead,
t committee scope, risk, objectives, timetables for stage formal paper- implementatio
Advisory 1 Vs future stages, status reports, based reports, n team
committee corporate issues, budget, technology demos
requirements, strategies (e.g rollout user
training, reporting, print ), change mgt
Implementa Roles, responsibilities, progress reports, Meetings, Weekly for Implementatio
tion team issues resolutions, strategies bulletin board, status n team leads
email, meetings as (internal and
workshops required for external)
others
DepartmentDr Prosper
System overview, phase 1 scope Vs future
Nkurunzizaa E-mail, mailings Early stage Implementatio
al 16 phases, goals, objectives, new business
(+ 250)788658582 through training I, mid stage n7/ 21/ 2021
administrato processes, forms, deadlines, access, roll sessions I, first live Functional