No Know how

1 Stakeholder

2 Some topics on the exam might seem easy to you-so much so that you might be inclined to
skip studying them. Does the topic of stakeholders1 fall into this category for you? Take note of an
example of one person who failed the exam because he did not understand proper project
management.

3 His method of managing projects was simply to tell people what to do.

4 And because he always worked with the same four people, he didn't think in terms of large
projects (those that include hundreds or thousands of stakeholders) and how having so many
stakeholders involved would significantly impact a project.

6 In his job, he acted as both a project manager and a subject matter expert, assigning work to
a small group of people as well as to himself. During the exam, he thought only in terms of his
personal experience, rather than the best practices of project management.

8 In reality, the project manager needs to be the expert in project management, while relying
on certain stakeholders to serve as experts in what needs to be done and how it should be
accomplished.

9 Also note that the project manager does not do all the work activities within a project-that is
the job of the project team.

10 The project manager facilitates, motivates, coordinates, and integrates all those work
activities into a successful outcome. The person described in the previous paragraph didn't think this
way; therefore, he answered questions incorrectly across all knowledge areas on the exam.

11

12 His failure to understand the importance of planning, managing, and continuously evaluating
stakeholder engagement had a huge impact on his understanding of project management.

13

14 What about you? Do you properly involve stakeholders on your projects? Have you had any
complaints from key stakeholders about your projects? Your projects won't be successful without
significant, continuous interactions with stakeholders.

Identify Stakeholders is the process of identifying project stakeholders regularly and

analyzing and documenting relevant information regarding their interests, involvement,
interdependencies, influence, and potential impact on project success.

Plan Stakeholder Engagement is the process of developing approaches to involve project

stakeholders based on their needs, expectations, interests, and potential impact on the project.

Manage Stakeholder Engagement is the process of communicating and working with

stakeholders to meet their needs and expectations, address issues, and foster appropriate
stakeholder involvement.
 Monitor Stakeholder Engagement is the process of monitoring project stakeholder
relationships and tailoring strategies for engaging stakeholders through modification of engagement
strategies and plans

16 Your team can build a great product or service, but if you're not in close contact with the
stakeholders who will use it, you may not realize you have missed the mark until it is too late.
Likewise, for a shared understanding to take place, you must facilitate the building of highly effective
team dynamics.

17

18 Let's think about another scenario. Imagine you're assigned as the project manager for a
new project.

19 The director of your department provides you with a scope of work and a charter, and tells
you to get

20 started.

21 What do you do next? Before you answer that question-and before you take the exam-you
need

22 to understand a simple concept: project management requires you to identify all

stakeholders, analyze

23 their power, interest, and level of engagement, elicit their requirements and expectations,
and then evaluate and incorporate all of that information into the product and project scope as
needed.

24

25 You cannot simply accept a scope of work or project charter without considering the
project's stakeholders and their requirements. And stakeholder involvement doesn't end there:
Engaging stakeholders should take place throughout the life of the project.

26

27 This means you need to build and maintain positive relationships with stakeholders and
make sure they continue to be involved in the project at the level necessary to make it a success.

28

29 Did you know that this level of stakeholder engagement may also be influenced heavily by
project methodology? Engaging stakeholders in product development by reviewing portions (demos)
of the evolving product is a common adaptive approach that can be used by a project manager. in
contrast, projects using traditional approaches have stakeholders review fully developed products.

30 In either scenario, it is the responsibility of the project manager to engage stakeholders and
maintain a positive relationship.

31

32 Showing interim deliverables comes with risks and .rewards. People typically only feel
comfortable sharing their work when it's fully developed. However, the opportunity to influence a
design declines over time while the cost of change increases.
33

34 When using this approach, project managers need to create a safe environment for the
team, a feedback will need to be collected from team members without fear of criticism or reprisal
for issue.

35

36 Engaging with stakeholders in this way requires increased levels of trust and collaboration.
Also note that

37 this approach may decrease project costs and shorten the project schedule when changes,
issues, or new

38 requirements are discovered early in the project.

39

40 If you have access to the PMBOK • Guide. Review it for the word "stakeholders," and you
will see just how many references occur. Think about whether the requisite involvement of
stakeholders is different from what happens on your projects, and make note of your gaps.

41

42 For the exam, you need to understand the stakeholder’s process in the PMBO Guide as well
as have a solid understanding of how the associated tasks within the Examination Content Outline
(ECO) are related to stakeholder engagement.

43

44 The following tables should help you understand how stakeholder management fits into the
overall project management process.

45

46 Stakeholder Involvement in Projects

47 Let's look at how you should involve stakeholders throughout the life of a project. Some of
this discussion includes tasks and processes that fall outside stakeholder management. This
demonstrates the important role stakeholders play in all aspects of projects. So, what should you do
with stakeholders throughout a project?

48

49 • Identify all of them.

50 The first step in working with stakeholders is identifying all of them as early as possible.
Stakeholders discovered later in the project will likely request changes, which can impact the project
and lead to delays.

51 Stakeholder. An individual, group, or organization that may affect, be affected by, or

perceive itself to be affected by a decision, activity, or outcome of a project, program, or portfolio.

52 • Determine their requirements.

53 The project manager must make every effort to obtain as many requirements as possible
before work begins. This applies to both plan-driven and change-driven approaches, although the
level of detail of the requirements may differ at different stages depending on the project life cycle.

54 Do you try to do this on your real-world projects? To understand why this is important, think
about the effects of starting a project without all the requirements.

55 Those effects would likely include changes, delays, and possible failure.

56 How would it look if you had to say to your sponsor, "I didn't know about that stakeholder's
requirement? Now that I know, I need to extend the schedule to accommodate their needs or cut
another stakeholder's needs out of the project." This is just bad project management, and can be
avoided with proper stakeholder management.

57 There are many ways to make sure you have the requirements-from just asking if you do, to
conducting requirements reviews, to explaining to people what the negative consequences to the
company and the project will be if a requirement is found later.

58

59 • Determine their expectations.

60 What are expectations? They are beliefs about (or mental pictures of) the future. These
expectations include what stakeholders think will happen to them, their department, and the
company as a whole as a result of the project.

61 Expectations tend to be much more ambiguous than stated requirements, or they may be
undefined requirements.

62 They may be intentionally or unintentionally hidden. For example, expectations that your
project will not interrupt other work, or that your project will produce dramatic improvements could
affect project success. Naturally, expectations that go unidentified will have major impacts across all
constraints.

63 Once captured, expectations are analyzed and may be converted to requirements and
become part of the project.

64 A difference between what a stakeholder thinks will happen and what actually happens
might cause conflicts, rework, and changes.

65 Why wait for a change? Why not prevent as many changes as possible by asking
stakeholders what they expect and clarifying any expectations that are not accurate or that are
poorly defined? This might involve walking stakeholders through what will occur to make sure there
are no undiscovered expectations or requirements that could be unrealistic.

66

67 • Determine their interest.

68 It's important to determine the level of interest each stakeholder has in the project.

69 Does the stakeholder care about the project? Are they likely to be engaged? Once you
gather and analyze that information, you can use it to plan out a strategy for maintaining or
increasing that stakeholder's interest and level of engagement.
70 You may also find that certain stakeholders are especially interested in working on a
particular part of the project-to learn new skills or prove their skills-or that you need attention and
support from a key stakeholder for deliverable reviews and acceptance.

71 A great project manager will determine each stakeholder's interests and engagement
related to the project, and will structure the work, roles, and responsibilities to maximize
engagement.

72

73 • Determine their level of influence.

74 To some degree, each stakeholder will be able to negatively or positively affect a project.
This is their level of influence, and it should be identified and managed.

75

76 • Determine their level of authority.

77 Each stakeholder’s level of authority will impact their effect on the work and outcome of the
project.

78

79 • Incorporate their values.

80 Project priorities should align with stakeholder priorities. Project managers should not plan
or initiate work that the stakeholders do not support or value.

81

82 • Plan to engage stakeholders.

83 Project management focuses on planning before taking action. You need to plan ahead! How
will you keep stakeholders involved in the project? How will you engage with them about their
interests, influence, and expectations? How will you include them in project decision-making?

84

85 • Plan how you will communicate with them.

86 Planning communications with your stakeholders is critical and is related to stakeholder

engagement.

87 How can you keep stakeholders involved and get them to communicate their thoughts and
concerns if you haven't planned out how information will be shared on the project? Remember that
poor communications are the most frequent cause of problems on projects, so careful
communication planning can help prevent problems.

88

89 • Manage their expectations, influence, and engagement.

90 Involving stakeholders doesn't end during initiating or planning. You need to work with them
and manage relationships throughout the life of the project.

91
92 • Communicate with them.

93 Stakeholders are included in project presentations and receive project information, including
progress reports, updates, changes to the project management plan, and changes to the project
documents, when appropriate.

94

95 • Monitor communications and stakeholder engagement.

96 Good communication and relationships with stakeholders are critical to success, so it's
essential to monitor these two areas on the project.

97 You need to determine if and where communication and/or relationships are breaking
down, and then adjust your approach as necessary.

98 A key involvement to your success as a project manager is how you handle stakeholder
relationship. Stakeholder must be involved may be involved, and their manager involvement must
be managed by the project manager.

99

100 That involvement may is how range from minor to extensive depending on the need of the
project and the performing organization.

101 In preparing for the exam, use the following list to help you evaluate your understanding of
stakeholder involvement and identify any gaps that may impact how you answer questions.

102 In your Exercise Notebook, check off the items you currently do in your project work.

103 If you are unable to check two or more of the following items, you should spend more time
studying this topic.

104

105 How the Project Manager Should Involve Stakeholders on the Project

106 1.      List all stakeholders by name; this can include individuals as well as groups.

107 2.      Determine all the stakeholders' requirements.

108 3.      Determine stakeholders' interest in being involved in the project and in the outcomes
of the project.

109 4.      Determine stakeholders' level of influence on the project.

110 5.      Determine stakeholders' expectations, and turn them into requirements as
appropriate.

111 6.      Determine when stakeholders will be involved in the project and to what extent.

112 7.      Get stakeholders to sign off that the requirements are finalized.

113 8.      Assess stakeholders' knowledge and skills, and make the best use of their expertise.

114 9.      Analyze the project to evaluate whether stakeholders' needs~ be met.
115 10.  Let stakeholders know which requirements will be met, which requirements and
expectations will not be met, and why.

116 11.  Get and keep stakeholders involved in the project by assigning them project work or
responsibilities.

117 12.  Manage and influence the stakeholders' involvement, engagement, and expectations.

118 13.  Communicate to stakeholders what they need to know (when they need to know it).

119 14.  Make sure stakeholders know what they need to communicate to the project manager
and other stakeholders.

120 15.  Involve stakeholders, as necessary; in change management and approval.

121 16.  Involve stakeholders in the creation of lessons learned.

122 17.  Negotiate project agreements with stakeholders.

123 18.  Get stakeholders' sign-off and formal acceptance of interim deliverables during the
project and at project or phase closing.

124 19.  Reassess stakeholders' involvement, and make changes throughout the project as
needed.

125 20.  Engage with stakeholders in demonstrations of increments of product or service built to
date.

126 21.  Ensure a shared understanding of the project objectives, goals, deliverables, work, and
acceptance criteria.

127 22.  Ask stakeholders to let you know about problems in project communications and
relationships.

128 23.  Frequently discuss with stakeholders what "done" looks like.

129

130 Stakeholder Analysis PAGE 501

131

132 The first stakeholders are likely those who identify a problem or need. They may be involved
in developing business documents for a project to provide a solution.

133 The business case and benefits management plan, created before project initiating, may
include lists of stakeholders who will benefit from or be affected by the project.

134 An ongoing, focused effort to identify stakeholders should continue from this point
throughout the project.

135

136 Why is it so essential to identify all stakeholders? Any stakeholders who are missed will likely
be found later.

137 When they are discovered, they will probably request changes, which may cause delays.
138 Changes made later in the project are much more costly and harder to integrate than those
made earlier.

139

140 Identifying all stakeholders helps to create a project that considers all the interests,
influence, and interdependencies of stakeholders. That said, changes within a project or organization
may introduce new stakeholders, or a

141 project manager may simply miss stakeholders in the initial identification.

142 It's important, therefore, to reassess the list of stakeholders throughout the project to
determine whether new ones should be added and, if so, what that will mean for the project.

143

144 Many project managers fail to consider the broad range of potential stakeholders.
Remember, stakeholders are any people or organizations whose interests may be positively or
negatively impacted by the project or its product, as well as anyone who can exert positive or
negative influence over the project.

145

146 This diverse group can include the sponsor, the team, senior management, subject matter
experts, End-users of the product or service, other departments or groups within the organization,
functional or operational managers, sellers, consultants, regulatory agencies, customers, financial
institutions, and many more.

147 If the project includes procurements, the parties to the contract(s) are also stakeholders.

148 Keep in mind that you don't need to do the work of identifying stakeholders alone.

149 The project team should be involved in this process. You can also consult subject matter
experts, project managers in the organization who have worked on similar projects, and professional
associations.

150 And as new stakeholders are identified, they may be able to suggest other stakeholders to
add to the list.

151 The following tools and techniques can be used during the Identify Stakeholders process
(which includes a complete stakeholder analysis).

152

153 Questionnaires and Surveys

154 Stakeholders, team members, and subject matter experts may be asked to name other
potential stakeholders and to provide input regarding management of particular stakeholders or
stakeholder groups.

155

156 Brainstorming and Brain Writing

157 Participants may take part in brainstorming sessions to help identify additional stakeholders.
Brain writing is an individual effort, while brainstorming involves a group of people interacting and
working together.

158

159 Stakeholder Analysis

160 There are many factors to consider when analyzing stakeholders. Consider their roles and
responsibilities on the project, as well as their level of authority and influence within the
organization.

161 Every stakeholder has expectations and attitudes toward the project that must be
uncovered. You must also determine how interested they are in the project. What is at stake for
them? Examples of stakes include the following;

162

163 Ownership.

164 The stakeholder may have to sell property for the new freeway expansion that is proposed.

165 Knowledge

166 The stakeholder may be the expert who designed a legacy inventory management system
that is being replaced.

167 Rights.

168 The stakeholder may be concerned that the new development will endanger the community
by destroying the watershed.

169 Rights.

170 A government official may be responsible for ensuring that the safety practices on the
construction site comply with state and federal laws.

171 Interest.

172 The community may be concerned that additional traffic will come into their residential
neighborhood if the new commuter rail stop does not have adequate parking facilities.

173 Contribution.

174 The resource manager may be concerned that resource team members assigned to the
project will not be able to complete their normal operational work with the addition of project work.

175 Document Analysis.

176 Using this technique involves assessing all project documents and reviewing any lessons
learned as well as other historical information (organizational process assets) from past projects.
This analysis can be used to identify stakeholders and to collect information about the stakeholders
and their stakes in the project.

177

178 Stakeholder Mapping

179 In addition to analyzing each stakeholder's potential impact and influence, you need to
identify ways to manage them effectively. Stakeholder mapping, which groups stakeholders into
categories, is a data representation technique that project managers use to analyze and plan how
the project team will build relationships with stakeholders.

180 Creating a stakeholder map with categories and classifications can help you determine how
to prioritize your efforts to engage stakeholders on the project.

181

182 The following are examples of stakeholder mapping;

183 1.      Power/interest grid. This grid is used to group stakeholders based on their level of
power and their interest in the project's outcome. Variations of this tool emphasize other
stakeholder attributes, such as power/influence or impact/influence. An example of this grid is
shown in figure 13.2.

184 2.      Stakeholder cube. This three-dimensional model is used to represent aspects or
dimensions of a stakeholder group. An example is shown in figure 13.3.

185 3.      Salience model. This model is used to group stakeholders based on the appropriateness
of their involvement (legitimacy), their authority or ability to influence outcomes (power), and their
need for immediate attention (urgency). An example of this model is shown in figure 13.4.

186

187 Stakeholders can also be grouped by directions of influence (upward, downward, outward,
and sideward).

188

189 Outputs of Stakeholder Analysis

190 The Identify Stakeholders process results in a stakeholder register, personas, change
requests, and updates to the project management plan and project documents such as the
assumption log, issue log, and the risk register.

191

192 Stakeholder Register

193 Information about stakeholders is compiled in the stakeholder register, a key output of the
Identify stakeholders process. The stakeholder register may include each stakeholder's name, title,
supervisor, project role, contact information, major requirements and expectations, assessment
information, impact and influence, attitude about the project, stakeholder classification, and other
relevant information. Figure 13.5 shows an example of a stakeholder register.

194

195 The stakeholder register is an important input to the Plan Stakeholder Engagement process,
as well as to several other planning processes, including Plan Communications Management.
Remember that the register will be added to and updated throughout the life of the project.

196
197 Personas6 Personas are quick guides of key stakeholders on the project and their interests.
Agile software projects, for example, commonly create personas for the different types of people
who will use the system that is being built. Personas may be based on profiles of real people or
composites of multiple users. When they are used as a project tool, personas should:

198

199 1.      Provide an archetypal description of users

200 2.      Be grounded in reality

201 3.      Be goal-oriented, specific, and relevant

202 4.      Be tangible and actionable

203 5.      Generate focus

204

205 Personas help keep stakeholders' values and needs in mind during the project. Agile teams
often use personas to focus the project on delivering the features that users will find valuable, which
leads to better decision making on the project.

206

207 Finally, remember that there are many outputs that are common to many or all knowledge
areas, such as change requests and project management plan and document updates. For example,
a project management update particular to stakeholders is the stakeholder register, while you of
course could also have changes to the stakeholder engagement plan.

208

209 Plan Stakeholder Engagement PAGES 516 and 523

210

211 Managing the impact, relationships, and engagement of the stakeholders identified and
analyzed during the previous process is essential to project success, but it can take a lot of time.
That's why it's so important, as is the case with much of project management, to think and plan
ahead before taking action.

212

213 Stakeholders can be an asset or a problem on the project, depending on how well the
project is planned. To effectively manage relationships with this many people, you need to develop a
stakeholder engagement plan.

214 You need to think ahead about how the project will impact stakeholders, how you and the
project team will interact with stakeholders, how you will involve stakeholders in making decisions,
how you will manage their expectations, and how you can keep them satisfied-to ensure they are an
asset on the project.

215 Planning stakeholder engagement requires you to strategize about your approach to
stakeholder involvement, and develop actionable plans. This means you should schedule time to get
to know your stakeholders and to check in with them throughout the project.
216 If you know your stakeholders well, you'll have more success engaging them and will be
better able to predict what engagement will look like throughout the project. Only through ongoing
stakeholder engagement can the project manager and team be confident they will deliver the
expected end result

217

218 The gulf of evaluation7 (as shown in figure 13.6) is so common because it is easy for
mismatches to arise between what one person envisions and tries to describe and how another
person hears and interprets that description. If the mismatch is left unchecked for too long, costly
rework or project failure can (and often does) result.

219

220 Now you may be thinking, "I have hundreds of stakeholders on my project, located all over
the world.

221 How can I possibly build and maintain relationships with them?" This is exactly why you
need a plan. You may not be able to have a close relationship with every stakeholder, but you can't
afford not to have relationships with key stakeholders and as many project team members as you
are able. It's also important for you to plan ways in which you and your team members can develop
relationships with stakeholders who are not a part of the project team.

222

223 Keep in mind, the closer you are to stakeholders, the more comfortable they will be to come
to you with problems and concerns, and the easier it will be for you to pick up on verbal and
nonverbal cues that can tell you when something might be wrong.

224 This can be an early warning system for problems on your project. How do you build positive
and powerful relationships with your stakeholders? The same way you have built them with your
friends and family: by spending time getting to know them and allowing them to get to know you.
The more time you spend with someone, the better you'll be able to ascertain their impressions and
concerns.

225 What are the characteristics that define a good relationship? Take a few minutes to think
about this.

226 Draw on your experience with your family, friends, coworkers, and others. You may come up
with different

227 or additional qualities, but here are a few potential characteristics of good relationship:

228 1.      Trust

229 2.      Respect

230 3.      Honesty

231 4.      Concern

232 5.      Interest

233 6.      Empathy

234 7.      Sincerity

235 8.      Good communication

236

237 As you plan how you will get to know your stakeholders, remember that these are the
qualities you want to nurture in your relationships with them.

238 During planning, you need to determine which stakeholders will require most of your time
and effort. These decisions require you to think about the role of each stakeholder, the environment
within which they operate, and the specific needs of your project.

239 If there are any procurements in place, you will need to coordinate with the procurement
department to plan stakeholder engagement efforts related to parties of

240 the contract.

241

242 To plan stakeholder engagement, you will need the details of what has already been planned
and documented in plans including resource and communications management, information from
the stakeholder register, and any relevant information from past, similar projects.

243

244 Let's consider an example. Imagine you are managing a project to replace the online
application process for open positions in your company. Your sponsor is the human resources
director, who wants to streamline the process and encourage candidates with advanced technical
experience to apply for jobs.

245

246 Even though your stakeholders include anyone who is a potential job candidate (possibly
millions of people), there are a few key stakeholders with whom you will plan to spend most of your
time: your sponsor and the managers in the company who evaluate candidates.

247 As the project team is designing and building the new website to satisfy stakeholder
requirements, you will want to receive frequent feedback from your key stakeholders about how the
design meets their expectations.

248 You might also identify a few newly hired employees who could help the team understand
problems with the existing application process. Your stakeholder engagement plan might include
formal review meetings where you discuss progress and get feedback on the progress of the website
development.

249 Your experience on other projects and historical records of similar projects can help you
anticipate and plan to meet stakeholder needs on the project.

250 However, you should make use of the expertise of others as well. I f you'll be working with a
stakeholder for the first time, talk to another project manager or team member who knows this
person. Meet with professional organizations, consultants, and subject matter experts to hear
valuable insight on working with various stakeholders and stakeholder groups.

251 Ask questions about how best to work with the stakeholders, and then meet with them as
soon as possible to initiate these important relationships. Make sure the stakeholders themselves
understand how important it is for you to meet their needs, and encourage them to communicate
frequently as the planning and project work proceed.

252 These preliminary meetings and conversations are critical for you to get an impression of
how best to work with each stakeholder.

253 Not every stakeholder will be as engaged in the project as you might like, and some might be
more engaged than you would wish. Stakeholder engagement can range from unaware of or
resistant to the project to neutral to supportive or even interested in taking a leading role on the
project.

254 Think about each stakeholder's attitude and interest in the project as this will help you
determine the level of engagement required to make the project successful.

255 You should also consider how much engagement you require from stakeholders during each
phase of the project.

256 You may require some stakeholders to be more involved during planning, for example, while
others will take on a more prominent role during executing.

257 Identify and analyze variances between the current and desired level of engagement, and
work with the team to identify ways to achieve the right engagement level.

258 The project manager will need to choose tools and techniques to plan stakeholder
engagement that

259 are appropriate for the project.

260

261 Stakeholder Engagement Assessment Matrix.

262 A stakeholder engagement assessment matrix is a data representation tool used to compare
stakeholders' current and desired level of engagement (see figure 13.7). The stakeholder
engagement plan documents how adjustments to stakeholders' level of engagement will be
achieved. This matrix is revisited as the project progresses, to evaluate ongoing stakeholder
engagement. Analysis of updates to this matrix may indicate the need to further plan or alter the
stakeholder engagement strategy.

263

264 Assumption and Constraint Analysis and Root Cause Analysis Evaluating assumptions about
stakeholders' attitudes toward the project enables the team to determine actions necessary to
adjust stakeholders’ levels of engagement to benefit the project. Analysis of project constraint can
provide insight into determining strategies to adjust stakeholders' levels of engagement.

265

266 Root cause analysis is a way for the project manager and team to analyze the cause of the
current level of stakeholder support and engagement. Doing so will help them determine how best
to facilitate a change to bring the stakeholders' engagement level to what is desired.

267

268 13.1 Exercise

269 If you've never planned stakeholder involvement on a project before, it can be difficult to
imagine how you would go about. Doing this on an individual level. Think about the various
stakeholders involved on a large project. The following table lists a stakeholder description. In
your .Exercise Notebook, write down how you would plan to manage the involvement of the
stakeholders listed here.

270 Stakeholder Description

271 1.      High interest in the project, low influence, high knowledgeable expert on high-risk
areas

272 2.      Low interest, the source of major requirements on the project (high influence), not
easy to work with

273 3.      High interest, high influence, not a supporter of the project

274 4.      High interest, high influence, a supporter of the project

275 5.      Moderate interest, high influence, completing many activities on the project, a
supporter of the project

276 6.      Moderate interest, high influence because the stakeholder has identified a large
number of potential risks for the project, a supporter of the project

277 7.      Moderate interest, nervous about completing assigned activities

278

279 Answer

280 Listed here are some suggestions for how you might plan to manage the involvement of
these stakeholders according to the descriptions in the previous table. Check these against what you
came up with in your Exercise Notebook. These are generalized descriptions and answers, but if you
do not work on large projects in your real world, reviewing the following information will help you
better understand the work that needs to be done for large projects.

281

282 Options for Managing Stakeholder Involvement

283 1.      Invite the stakeholder to participate in analyzing the risks on the project.

284 2.      a. Determine why the interest is low. Ask the stakeholder about their engagement
preferences and how they would like to be involved with the project. b. Identify ways to elicit
requirements as efficiently as possible. c. Make sure requirements are clearly captured and
approved by the stakeholder as accurate. d. Send reports.

285 3.      Ask why the stakeholder is not a supporter. Use your understanding to base your plan
for engaging this stakeholder on dealing with those reasons.

286 4.      Ask the stakeholder what is most important to them, involve the stakeholder in team
meetings, report project performance to this person, and include information as the stakeholder
requests.
287 6.      Invite the stakeholder to officially join the project management team. Identify the
stakeholder's preferred level of involvement; use this information to continue to get their support
throughout the life of the project.

288 7.      Plan to meet with the stakeholder periodically throughout the project to potentially
identify any other risks. Keep the stakeholder informed about the effectiveness of risk efforts, and
involve the stakeholder in risk reviews and audits.

289 8.      Plan to find and forward relevant literature to help the stakeholder, and arrange for
training if necessary.

290

291

292 Project Elevator Statement.

293 Elevator statements are short descriptions of the project goals, benefits, and decision
attributes that quickly explain the project or product. Stakeholder involvement may include the
development of a project elevator statement as a way to help them analyze and understand the
project. The following is a popular format for elevator statements;

294

295 Stakeholder Engagement Plan The result, or output, of planning stakeholder engagement is
a stakeholder engagement plan.

296

297 The plan documents the existing and desired levels of engagement for all stakeholders,
including plans to achieve the desired levels.

298

299 It also provides details about ways in which stakeholders will be involved in the project, and
it includes guidelines and metrics for monitoring and evaluating how well the plan is meeting the
needs of stakeholders and the project.

300

301 Stakeholder engagement plans generally have a component that address how
communication will be used on the project to help manage stakeholder engagement and
expectation.

302

303 This mean that the stakeholder engagement plan and the communication management plan
can be repositories of some similar information about stakeholder communication requirements and
who needs to receive what information on a project. But the two plans each have a different focus.

304

305 The communications management plan emphasizes the details about the technology,
methods, and models of communication-the what, when, and how of communication.

306
307 The stakeholder engagement plan, on the other hand, explains the why of communications-
why stakeholders need to receive certain information, and how the sharing of that information will
help in managing stakeholder engagement and expectations.

308

309 As you might expect, portions of these two plans are often created together. Keep in mind
that the stakeholder engagement plan will likely require adjustment throughout the project.

310

311 We've already discussed how you'll need to reevaluate your list of stakeholders during the
project. The discovery of new stakeholder may require changes to the plan, and there may be
changes on the project that require less or more involvement from various stakeholders.

312

313 Be careful with information about stakeholders! Think carefully before you share the
stakeholder engagement plan, your stakeholder register, or other verbal and written communication
about stakeholders.

314

315 Consider all the potentially sensitive information you might be documenting about
stakeholders' attitudes and personalities, or obstacles or challenges related to working with a
stakeholder.

316

317 Given how important it is to maintain good relationships with stakeholders, consider how
damaging it would be to your project for someone to 1ind a list of stakeholder along with negative
comments about some (particularly If the person looking at the list is on that list).

318

319 As the project manager, you always want to maintain a positive attitude toward your
stakeholders, even those who are resistant or difficult to work with. A good leader is encouraging
and supportive of everyone involved with the project.

320

321 This means that when you discover an obstacle or challenge associated with a stakeholder,
you may decide not to share it with others and not to write it down: so, Small portions of your
stakeholder engagement plan may reside only in your mind.

322

323 Implement Stakeholder Strategy PAGE 523

324

325 To meet stakeholder needs, resolve their issues, and make sure they remain interested and
active in the project, it's essential to encourage stakeholder engagement and manage their
expectations. Although this is an executing process, managing stakeholder engagement is ongoing
throughout the life of the project.
326

327 When was the last time you did something like the following scenario?

328

329 A project manager knows a particular stakeholder is dissatisfied because one of his requests
was not included in the scope of the project. The rest of the stakeholders agreed upon the scope,
but the project manager anticipates this person will continue pressing to add his request. The
project manager schedules a meeting with the stakeholder to talk about why this request was not a
high priority for the other stakeholders and to suggest this stakeholder build a business case for it
being included in another project.

330

331 How about this situation?

332

333 During requirements gathering, a stakeholder expressed concern about how much the
project would impact her department's other work. The project manager contacts her to say, "I have
kept your concern in mind while planning the project. You know there is little probability we could
do this project without impacting your department, but because of your concerns, I have put
together a report telling you when we will impact your department's regular work." As the project
moves forward, the project manager continues to check in with the stakeholder to discuss any
unforeseen impacts.

334

335 Or this one?

336

337 A project manager notices that a stakeholder who used to provide helpful input regularly has
become less involved in the project lately. The project manager touches base with the stakeholder
to say, "I've really missed getting your feedback on the status reports. I've always appreciated your
comments. Is there a reason you've been holding back lately? Is there anything I can do to get you
more involved again?"

338

339 Why bother doing such work? Such actions are proactive, and let the stakeholders know that
their input is important and that their needs and concerns are being considered, even if they are not
agreed to.

340

341 These efforts are much more likely to encourage stakeholder support of the project, and also
serve the valuable role of keeping open communication channels with the stakeholders so they can
inform the project manager of potential changes, newly discovered risks, and other information.

342
343 Do you think you don't have time in your real world to do these things? As with many other
areas of project management, such efforts can actually help you be more efficient by reducing the
amount of time you are forced to spend dealing with problems.

344

345 When taking the exam, assume, unless stated otherwise, that the project manager has
followed the best practices of project management.

346 Therefore, the project manager has time to continuously encourage stakeholder
engagement and manage expectations.

347

348 The project manager reviews the stakeholder engagement plan, other management plans,
and project documents, such as the stakeholder register, issue log, and change log, to find and
address any issues that could be impacting stakeholder engagement.

349 This review may identify sources of confusion or misunderstanding. For example, a deferred
or rejected change request could decrease the engagement level of stakeholders who supported the
change.

350

351 Given how important good communication is to stakeholder management, it's also critical to
follow the communications management plan.

352 How can you keep people involved and informed if you're not communicating with them?
Managing stakeholder engagement also requires attention to stakeholders' needs while work is
being done.

353 And it's essential for the project manager to maintain trust, help resolve conflicts, prevent
problems, foster agreement among stakeholders to meet the needs of the project, and generally
encourage stakeholder support of the project and the outcome of the project.

354 This requires the use of interpersonal and team skills such as political and cultural
awareness, negotiating, and conflict management.

355

356 It's important to note a key difference between predictive and adaptive approaches as it
relates to problem solving, conflict management, and stakeholder engagement.

357 Traditional project management tends to rely on the project manager for problem solving
and correction, while agile project management treats this as a whole-team activity.

358 When attempting to resolve threats and issues, organizations often overlook a great source
of potential solutions-the project team.

359

360 Involving the team in solving problems has many benefits. One of the most important
advantages is that you gain the team's buy-in from the start; you don't have to sell your solution to
the team.

361 Engaging the team in problem solving also accesses a broader knowledge base.
362 Team members are often closer to the details of the project and may bring additional
insights unknown to the project manager. Of course, it's important to only involve the team when
necessary to solve critical problems.

363 Otherwise, you risk getting in the way of project work.

364

365 Managing stakeholder engagement can result in requested changes to the project or
product scope as well as updates to the stakeholder engagement plan and communications
management plan.

366 It can also lead to updates to project documents, such as the change log and stakeholder
register. The issue log may need to be updated to document stakeholders' concerns and their final
resolution.

367 Lastly, lessons learned may be documented to reflect the results of efforts to engage
stakeholders.

368

369 Monitor Stakeholder Engagement PAGE s30

370

371 Maintaining stakeholder relationships and monitoring stakeholder engagement are ongoing
responsibilities of the project manager. Monitoring stakeholder engagement will help you
understand stakeholder perceptions of project progress.

372 This will allow you to make minor adjustments to ensure continuous stakeholder
engagement and support. In addition to evaluating stakeholder engagement and improving and
refining strategies for engagement, this process also involves reassessing the stakeholder register,
updating stakeholder information, adding stakeholders as appropriate, and noting when a particular
stakeholder's involvement is no longer necessary.

373 Components of the project management plan that are inputs to this process .include the
resource management plan (remember that all team members are also stakeholder), the
communications management plan, and the stakeholder engagement plan.

374

375 In addition to these plans, the issue log tracks any concerns, disagreements, confusion, or
unresolved questions that arise during the project.

376 This log can provide direct or indirect information about stakeholder engagement. Other
project documents include the lessons learned register and the risk register. Note the inclusion of
the risk register as an input here.

377 It is important to realize that a lack of stakeholder engagement adds risk to the successful
completion of the project. Such risks must be identified and managed.

378

379 Utilizing Data

380 It is important to know that monitoring stakeholder engagement requires you to collect and
analyze data. For example, work performance data from the Direct and Manage project Work
process includes measurements of project performance and the engagement levels of specific
stakeholders.

381 That data is then used to compare actual engagement efforts against the project
management plan to look for variances. Any variances may indicate a potential problem with
stakeholder engagement.

382 The stakeholder engagement plan specifies how this work of analysis and evaluation will be
accomplished, who should be involved, how the results should be documented and presented, and
how changes will be handled.

383 How do you analyze the work performance data related to relationships? You should have
established in your stakeholder engagement plan some measurable performance metrics regarding
stakeholder engagement.

384 You might, for example, use a data analysis technique, such as root cause or alternatives
analysis, to assess stakeholder engagement.

385 You could also use the stakeholder engagement assessment matrix to further analyze
stakeholder engagement levels. These types of tools will help you figure out if adjustments or
changes need to be made to maintain stakeholder engagement.

386 Work performance data and metrics are useful for analyzing the quality of relationships, but
keep in mind that some of your assessment will also be subjective.

387 For example, if an activity is behind schedule because a stakeholder hasn't provided needed
data the percent complete data will reflect the delay.

388 This might point to a lack of stakeholder engagement or a problem with a relationship on
the project.

389 These indicators require the project manager to clarify and analyze the problem, and then
work to correct or improve the situation.

390 If the stakeholder in this example is not returning phone calls, the project manager will want
to find out why.

391 If the stakeholder is engaged, but having difficulty providing the information or getting the
work done, the project manager may need to revise the strategy for engaging this stakeholder and
reevaluate the work assignment or the time estimate.

392 This type of assessment can be immensely helpful in monitoring stakeholder engagement.

393

394 Communication plays a large part in helping you discover and correct relationship problems.

395 To maintain strong relationships, you need to spend time talking with the stakeholders and
develop ways to listen and gather information on their ongoing (and evolving) feelings about the
project and other stakeholders.
396 To get feedback, you can of course ask direct questions like, "How do you think things are
going?" But assessing success and the strength of relationships often requires a more complex and
subtle form of communication.

397 This is when interpersonal skills can really make a difference.

398 To further understand how stakeholders feel, use techniques such as active listening,
perception of body language, leadership, facilitation, and emotional intelligence. These skills will
help identify issues or concerns that need your attention.

399

400 To experience this for yourself, spend a day or two really paying attention to the responses
you get to the question, "How are you?" Ask the cashier at your local coffee shop, a virtual team
member, the person sitting next to you at work, your sponsor, and people on your project team.

401 Most of the time, people will probably give you a positive response: "I'm doing fine, thanks:'
"then try asking follow-up questions such as, "How are sales this week?" or are you keeping busy?"
You may hear a less positive, but more honest answer: "Well, things are a little tough this week," or
"I am so overwhelmed with work I don't think I'll ever get a day off:' To get a more detailed (and,
often, more accurate) answer, you'll need to spend more time, ask a series of questions, and pay
attention to nonverbal cues where possible.

402 "This is where all the effort you have put into building stakeholder relationships will come
into play: the better your relationship, the more likely the person will tell you the truth.

403 Even so, you may have to probe to get honest status updates and learn what people really
think about the project. Sometimes people are reluctant to share bad or difficult news, especially if it
is bad news about the project you are managing. It will help if you make it clear to everyone on the
project that you want them to come to you with their concerns.

404

405 As you learn about problems or issues from individual stakeholders, consolidate the
information, look for patterns, and make adjustments as necessary. Your conversations may also
reveal the need for a change request. These changes could be recommendations for solving a
problem, risk mitigation suggestions to prevent future potential problems, or ways to improve
engagement of various stakeholders.

406

407 Monitoring stakeholder engagement results in work performance information (an analysis of
the work performance and validating data gathered through your stakeholder engagement efforts)
and possibly updates to the project management plan and project documents, such as the issue log
and the stakeholder, risk, and lessons learned registers.

408

409 This brings us to the end of the Stakeholders chapter. For the exam, keep in mind that
stakeholders are important throughout the life of the project. You need to identify all of them as
early as possible, and periodically reevaluate the stakeho1der list. You also need to plan how to
manage their expectations, engagement, and influence, and then follow that plan and adapt it
throughout the life of the project.
410 END OF RITA MULCAHYI

411 5. Stakeholder Management

412

413 Reference: https://opentextbc.ca/projectmanagement/chapter/chapter-5-project-

stakeholders-project-management/

414

415 A project is successful when it achieves its objectives and meets or exceeds the expectations
of the stakeholders. But who are the stakeholders? Stakeholders are individuals who either care
about or have a vested interest in your project. They are the people who are actively involved with
the work of the project or have something to either gain or lose as a result of the project. When you
manage a project to add lanes to a highway, motorists are stakeholders who are positively affected.
However, you negatively affect residents who live near the highway during your project (with
construction noise) and after your project with far-reaching implications (increased traffic noise and
pollution).

416

417 NOTE: Key stakeholders can make or break the success of a project. Even if all the
deliverables are met and the objectives are satisfied, if your key stakeholders aren’t happy, nobody’s
happy.

418

419 The project sponsor, generally an executive in the organization with the authority to assign
resources and enforce decisions regarding the project, is a stakeholder. The customer,
subcontractors, suppliers, and sometimes even the government are stakeholders. The project
manager, project team members, and the managers from other departments in the organization are
stakeholders as well. It’s important to identify all the stakeholders in your project upfront. Leaving
out important stakeholders or their department’s function and not discovering the error until well
into the project could be a project killer.

420

421 Figure 5.1 shows a sample of the project environment featuring the different kinds of
stakeholders involved on a typical project. A study of this diagram confronts us with a couple of
interesting facts.

423 First, the number of stakeholders that project managers must deal with ensures that they
will have a complex job guiding their project through the lifecycle. Problems with any of these
members can derail the project.

425 Second, the diagram shows that project managers have to deal with people external to the
organization as well as the internal environment, certainly more complex than what a manager in an
internal environment faces. For example, suppliers who are late in delivering crucial parts may blow
the project schedule. To compound the problem, project managers generally have little or no direct
control over any of these individuals.

426
427 Figure 5.1: Project stakeholders. In a project, there are both internal and external
stakeholders. Internal stakeholders may include top management, project team members, your
manager, peers, resource manager, and internal customers. External stakeholders may include
external customers, government, contractors and subcontractors, and suppliers.

428

429 Let’s take a look at these stakeholders and their relationships to the project manager.

430

431 Project Stakeholders

432 Top Management

433

434 Top management may include the president of the company, vice-presidents, directors,
division managers, the corporate operating committee, and others. These people direct the strategy
and development of the organization.

435

436 On the plus side, you are likely to have top management support, which means it will be
easier to recruit the best staff to carry out the project, and acquire needed material and resources;
also visibility can enhance a project manager’s professional standing in the company.

437

438 On the minus side, failure can be quite dramatic and visible to all, and if the project is large
and expensive (most are), the cost of failure will be more substantial than for a smaller, less visible
project.

439

440 Some suggestions in dealing with top management are:

441

442 Develop in-depth plans and major milestones that must be approved by top management
during the planning and design phases of the project.

443 Ask top management associated with your project for their information reporting needs and
frequency.

444 Develop a status reporting methodology to be distributed on a scheduled basis.

445 Keep them informed of project risks and potential impacts at all times.

446 The Project Team

447

448 The project team is made up of those people dedicated to the project or borrowed on a
part-time basis. As project manager, you need to provide leadership, direction, and above all, the
support to team members as they go about accomplishing their tasks. Working closely with the team
to solve problems can help you learn from the team and build rapport. Showing your support for the
project team and for each member will help you get their support and cooperation.

449

450 Here are some difficulties you may encounter in dealing with project team members:

451

452 Because project team members are borrowed and they don’t report to you, their priorities
may be elsewhere.

453 They may be juggling many projects as well as their full-time job and have difficulty meeting
deadlines.

454 Personality conflicts may arise. These may be caused by differences in social style or values
or they may be the result of some bad experience when people worked together in the past.

455 You may find out about missed deadlines when it is too late to recover.

456

457 Managing project team members requires interpersonal skills. Here are some suggestions
that can help:

458

459 Involve team members in project planning.

460 Arrange to meet privately and informally with each team member at several points in the
project, perhaps for lunch or coffee.

461 Be available to hear team members’ concerns at any time.

462 Encourage team members to pitch in and help others when needed.

463 Complete a project performance review for team members.

464 Your Manager

465

466 Typically the boss decides what the assignment is and who can work with the project
manager on projects. Keeping your manager informed will help ensure that you get the necessary
resources to complete your project.

467

468 If things go wrong on a project, it is nice to have an understanding and supportive boss to go
to bat for you if necessary. By supporting your manager, you will find your manager will support you
more often.

469

470 Find out exactly how your performance will be measured.

471 When unclear about directions, ask for clarification.

472 Develop a reporting schedule that is acceptable to your boss.

473 Communicate frequently.

474 Peers

475

476 Peers are people who are at the same level in the organization as you and may or may not
be on the project team. These people will also have a vested interest in the product. However, they
will have neither the leadership responsibilities nor the accountability for the success or failure of
the project that you have.

477

478 Your relationship with peers can be impeded by:

479

480 Inadequate control over peers

481 Political maneuvering or sabotage

482 Personality conflicts or technical conflicts

483 Envy because your peer may have wanted to lead the project

484 Conflicting instructions from your manager and your peer’s manager

485

486 Peer support is essential. Because most of us serve our self-interest first, use some
investigating, selling, influencing, and politicking skills here. To ensure you have cooperation and
support from your peers:

487

488 Get the support of your project sponsor or top management to empower you as the project
manager with as much authority as possible. It’s important that the sponsor makes it clear to the
other team members that their cooperation on project activities is expected.

489 Confront your peer if you notice a behaviour that seems dysfunctional, such as bad-
mouthing the project.

490 Be explicit in asking for full support from your peers. Arrange for frequent review meetings.

491 Establish goals and standards of performance for all team members.

492 Resource Managers

493

494 Because project managers are in the position of borrowing resources, other managers
control their resources. So their relationships with people are especially important. If their
relationship is good, they may be able to consistently acquire the best staff and the best equipment
for their projects. If relationships aren’t good, they may find themselves not able to get good people
or equipment needed on the project.
495

496 Internal Customers

497

498 Internal customers are individuals within the organization who are customers for projects
that meet the needs of internal demands. The customer holds the power to accept or reject your
work. Early in the relationship, the project manager will need to negotiate, clarify, and document
project specifications and deliverables. After the project begins, the project manager must stay
tuned in to the customer’s concerns and issues and keep the customer informed.

499

500 Common stumbling blocks when dealing with internal customers include:

501

502 A lack of clarity about precisely what the customer wants

503 A lack of documentation for what is wanted

504 A lack of knowledge of the customer’s organization and operating characteristics

505 Unrealistic deadlines, budgets, or specifications requested by the customer

506 Hesitancy of the customer to sign off on the project or accept responsibility for decisions

507 Changes in project scope

508

509 To meet the needs of the customer, client, or owner, be sure to do the following:

510

511 Learn the client organization’s buzzwords, culture, and business.

512 Clarify all project requirements and specifications in a written agreement.

513 Specify a change procedure.

514 Establish the project manager as the focal point of communications in the project
organization.

515 External customer

516

517 External customers are the customers when projects could be marketed to outside
customers. In the case of Ford Motor Company, for example, the external customers would be the
buyers of the automobiles. Also if you are managing a project at your company for Ford Motor
Company, they will be your external customer.

518

519 Government

520
521 Project managers working in certain heavily regulated environments (e.g., pharmaceutical,
banking, or military industries) will have to deal with government regulators and departments. These
can include all or some levels of government from municipal, provincial, federal, to international.

522

523 Contractors, subcontractors, and suppliers

524

525 There are times when organizations don’t have the expertise or resources available in-
house, and work is farmed out to contractors or subcontractors. This can be a construction
management foreman, network consultant, electrician, carpenter, architect, or anyone who is not an
employee. Managing contractors or suppliers requires many of the skills needed to manage full-time
project team members.

526

527 Any number of problems can arise with contractors or subcontractors:

528

529 Quality of the work

530 Cost overruns

531 Schedule slippage

532

533 Many projects depend on goods provided by outside suppliers. This is true for example of
construction projects where lumber, nails, bricks, and mortar come from outside suppliers. If the
supplied goods are delivered late or are in short supply or of poor quality or if the price is greater
than originally quoted, the project may suffer.

534

535 Depending on the project, managing contractor and supplier relationships can consume
more than half of the project manager’s time. It is not purely intuitive; it involves a sophisticated skill
set that includes managing conflicts, negotiating, and other interpersonal skills.

536

537 Politics of Projects

538

539 Many times, project stakeholders have conflicting interests. It’s the project manager’s
responsibility to understand these conflicts and try to resolve them. It’s also the project manger’s
responsibility to manage stakeholder expectations. Be certain to identify and meet with all key
stakeholders early in the project to understand all their needs and constraints.

540

541 Project managers are somewhat like politicians. Typically, they are not inherently powerful
or capable of imposing their will directly on coworkers, subcontractors, and suppliers. Like
politicians, if they are to get their way, they have to exercise influence effectively over others. On
projects, project managers have direct control over very few things; therefore their ability to
influence others – to be a good politician – may be very important

542

543 Here are a few steps a good project politician should follow. However, a good rule is that
when in doubt, stakeholder conflicts should always be resolved in favour of the customer.

544

545 Assess the environment

546

547 Identify all the relevant stakeholders. Because any of these stakeholders could derail the
project, you need to consider their particular interest in the project.

548

549 Once all relevant stakeholders are identified, try to determine where the power lies.

550 In the vast cast of characters, who counts most?

551 Whose actions will have the greatest impact?

552 Identify goals

553

554 After determining who the stakeholders are, identify their goals.

555

556 What is it that drives them?

557 What is each after?

558 Are there any hidden agendas or goals that are not openly articulated?

559 What are the goals of the stakeholders who hold the power? These deserve special
attention.

560 Define the problem

561

562 The facts that constitute the problem should be isolated and closely examined.

563 The question “What is the real situation?” should be raised over and over.

564 Culture of Stakeholders

565

566 When project stakeholders do not share a common culture, project management must
adapt its organizations and work processes to cope with cultural differences. The following are three
major aspects of cultural difference that can affect a project:

567
568 1. Communications

569 2. Negotiations

570 3. Decision making

571

572 Communication is perhaps the most visible manifestation of culture. Project managers
encounter cultural differences in communication in language, context, and candor.

573

574 Language is clearly the greatest barrier to communication. When project stakeholders do

not share the same language, communication slows down and is often filtered to share only
information that is deemed critical.

575

576 The barrier to communication can influence project execution where quick and accurate
exchange of ideas and information is critical.

577

578 The interpretation of information reflects the extent that context and candor influence
cultural expressions of ideas and understanding of information. In some cultures, an affirmative
answer to a question does not always mean yes. The cultural influence can create confusion on a
project where project stakeholders represent more than one culture.

579

580 Example: Culture Affects Communication in Mumbai

581

582 A project management consultant from the United States was asked to evaluate the
effectiveness of a U.S. project management team executing a project in Mumbai, India. The project
team reported that the project was on schedule and within budget. After a project review meeting
where each of the engineering leads reported that the design of the project was on schedule, the
consultant began informal discussions with individual engineers and began to discover that several
critical aspects of the project were behind schedule. Without a mitigating strategy, the project would
miss a critical window in the weather between monsoon seasons. The information on the project
flowed through a cultural expectation to provide positive information. The project was eventually
canceled by the U.S. Corporation when the market and political risks increased.

583

584 Not all cultural differences are related to international projects. Corporate cultures and even
regional differences can create cultural confusion on a project.

585

586 Example: Cultural Differences between American Regions

587
588 On a major project in South America that included project team leaders from seven different
countries, the greatest cultural difference that affected the project communication was between
two project leaders from the United States. Two team members, one from New Orleans and one
from Brooklyn, had more difficulty communicating than team members from Lebanon and Australia.

589

590 Managing Stakeholders

591

592 Often there is more than one major stakeholder in the project. An increase in the number of
stakeholders adds stress to the project and influences the project’s complexity level. The business or
emotional investment of the stakeholder in the project and the ability of the stakeholder to
influence the project outcomes or execution approach will also influence the stakeholder complexity
of the project. In addition to the number of stakeholders and their level of investment, the degree
to which the project stakeholders agree or disagree influences the project’s complexity.

593

594 A small commercial construction project will typically have several stakeholders. All the
building permitting agencies, environmental agencies, and labour and safety agencies have an
interest in the project and can influence the execution plan of the project. The neighbours will have
an interest in the architectural appeal, the noise, and the purpose of the building.

595

596 Example: Tire Plant in India

597

598 A U.S. chemical company chartered a project team to design and build a plant to produce
the raw materials for building truck tires designed for unpaved roads. The plant was to be built in
India a few years after an accident that killed several Indians and involved a different U.S. chemical
company. When the company announced the new project and began to break ground, the
community backlash was so strong that the project was shut down. A highly involved stakeholder
can significantly influence your project.

599

600 Example: Wind Turbine on a College Campus

601

602 A small college in South Carolina won a competitive grant to erect and operate a wind
turbine on campus. The engineering department submitted the grant as a demonstration project for
engineering students to expose students to wind technology. The campus facilities department
found only one location for the wind turbine that would not disrupt the flow of traffic on campus.
The engineering department found that location unacceptable for students who had to maintain the
wind turbine. The county construction permitting department had no policies for permitting a wind
turbine and would not provide a building permit. The college had to go to the county council and get
an exception to county rules. The marketing department wanted the wind turbine placed in a highly
visible location to promote the innovative approach of the college.
603

604 Each of the college’s stakeholders had a legitimate interest in the location of the wind
turbine. The number of stakeholders on the project, multiplied by their passion for the subject and
the lack of agreement on the location, increased the complexity of the project. Significant time and
resources of a project will be dedicated to identifying, understanding, and managing client
expectations.

605

606 Example: Stakeholders and a Bridge Project

607

608 The Department of Highways chartered a project to upgrade a number of bridges that
crossed the interstate in one of the larger cities in South Carolina. The closing of these bridges
severely impacted traffic congestion, including a large shopping mall. The contract included
provisions for minimizing the impact on the traffic and communities near the construction areas.
This provision allowed businesses or interested parties to review the project schedule and make
suggestions that would lessen the impact of the construction. The project leadership invested
significant time and resources in developing alignment among the various political stakeholders on
the project approach and schedule.

609

610 Relationship Building Tips

611

612 Take the time to identify all stakeholders before starting a new project. Include those who
are impacted by the project, as well as groups with the ability to impact the project. Then, begin the
process of building strong relationships with each one using the following method.

613

614 Analyze stakeholders: Conduct a stakeholder analysis, or an assessment of a project’s key

participants, and how the project will affect their problems and needs. Identify their individual
characteristics and interests. Find out what motivates them, as well as what provokes them. Define
roles and level of participation, and determine if there are conflicts of interest among groups of
stakeholders.

615 Assess influence: Measure the degree to which stakeholders can influence the project. The
more influential a stakeholder is, the more a project manager will need their support. Think about
the question, “What’s in it for them?” when considering stakeholders. Knowing what each
stakeholder needs or wants from the project will enable the project manager to gauge his or her
level of support. And remember to balance support against influence. Is it more important to have
strong support from a stakeholder with little influence, or lukewarm support from one with a high
level of influence?

616 Understand their expectations: Nail down stakeholders’ specific expectations. Ask for
clarification when needed to be sure they are completely understood.

617 Define “success”: Every stakeholder may have a different idea of what project success looks
like. Discovering this at the end of the project is a formula for failure. Gather definitions up front and
include them in the objectives to help ensure that all stakeholders will be supportive of the final
outcomes.

618 Keep stakeholders involved: Don’t just report to stakeholders. Ask for their input. Get to
know them better by scheduling time for coffee, lunch, or quick meetings. Measure each
stakeholder’s capacity to participate and honor time constraints.

619 Keep stakeholders informed: Send regular status updates. Daily may be too much; monthly
is not enough. One update per week is usually about right. Hold project meetings as required, but
don’t let too much time pass between meetings. Be sure to answer stakeholders’ questions and
emails promptly. Regular communication is always appreciated – and may even soften the blow
when you have bad news to share.

620

621 These are the basics of building strong stakeholder relationships. But as in any relationship,
there are subtleties that every successful project manager understands – such as learning the
differences between and relating well to different types stakeholders.

622

623 How to Relate to Different Types of Stakeholders

624

625 By conducting a stakeholder analysis, project managers can gather enough information on
which to build strong relationships – regardless of the differences between them. For example, the
needs and wants of a director of marketing will be different from those of a chief information officer.
Therefore, the project manager’s engagement with each will need to be different as well.

626

627 Stakeholders with financial concerns will need to know the potential return of the project’s
outcomes. Others will support projects if there is sound evidence of their value to improving
operations, boosting market share, increasing production, or meeting other company objectives.

628

629 Keep each stakeholder’s expectations and needs in mind throughout each conversation,
report or email, no matter how casual or formal the communication may be. Remember that the
company’s interests are more important than any individual’s – yours or a stakeholder’s. When
forced to choose between them, put the company’s needs first.

630

631 No matter what their needs or wants, all stakeholders will respect the project manager who:

632

633 Is always honest, even when telling them something they don’t want to hear

634 Takes ownership of the project

635 Is predictable and reliable

636 Stands by his or her decisions

637 Takes accountability for mistakes

638 Supportive Stakeholders are Essential to Project Success

639

640 Achieving a project’s objectives takes a focused, well-organized project manager who can
engage with a committed team and gain the support of all stakeholders. Building strong, trusting
relationships with interested parties from the start can make the difference between project success
and failure.

641

642 Tools to Help Stakeholder Management

643

644 There are many project decelerators, among them lack of stakeholder support. Whether the
stakeholders support your project or not, if they are important to your project, you must secure
their support. How do you do that?

645

646 First, you must identify who your stakeholders are. Just because they are important in the
organization does not necessarily mean they are important to your project. Just because they think
they are important does not mean they are. Just because they don’t think they need to be involved
does not mean they do not have to be. The typical suspects: your manager, your manager’s
manager, your client, your client’s manager, any SME (subject matter expert) whose involvement
you need, and the board reviewing and approving your project. Note that in some situations there
are people who think they are stakeholders. From your perspective they may not be, but be careful
how you handle them. They could be influential with those who have the power to impact your
project. Do not dismiss them out of hand.

647

648 Second, you need to determine what power they have and what their intentions toward
your project are. Do they have the power to have an impact on your project? Do they support or
oppose you? What strategies do you follow with them?

649

650 Third, what’s the relationship among stakeholders? Can you improve your project’s chances
by working with those who support you to improve the views of those who oppose you? Table 5.1
summarizes the options based on an assessment of your stakeholders’ potential for cooperation and
potential for threat.

651

652 Table 5.1 Stakeholder Analysis (Solera, 2009)

653

654 Low potential for cooperation

655
656

657 High potential for cooperation

658

659

660

661 Now that you have this information, you can complete a stakeholder analysis template
(Table 5.2) that will help you define your strategies to improve their support:

662

663 Table 5.2 Stakeholder Analysis Template (Solera, 2009)

664 Stakeholder Names and Roles

665

666

667

668

669 Finally, a key piece of your stakeholder management efforts is constant communication to
your stakeholders. Using the information developed above, you should develop a communications
plan that secures your stakeholders’ support. The template in Figure 5.2 can be used.

670

671

672 Figure 5.2 Stakeholder Communication Template [Image description]

673 References

674

675 Solera, J. (2009). Project Decelerators – Lack of Stakeholder Support. Silicon Valley Project
Management. Retrieved from https://svprojectmanagement.com/project-decelerators-lack-of-
stakeholder-support.

676

677 Image descriptions

678

679 Figure 5.2 Stakeholder Communication Template

680

681 The stakeholder analysis template has six fields plus a table to be filled out. The lines ask for:
the project scope, key messages, communication goals, communication teams, project team, and
other stakeholders. Then, there is a table with seven columns where you can track the
communication plan. The column headers of this table are: communication date, deliverable,
audience, message, action item or FYI (info?), plans, and status. [Return to Figure 5.2]

682

683 Text Attributions

684

685 This chapter of Project Management is a derivative of the following texts:

686

687 Project Management by Merrie Barron and Andrew Barron. © CC BY (Attribution).

688 Project Decelerators – Lack of Stakeholder Support by Jose Solera. © CC BY (Attribution).

689 How to Build Relationships with Stakeholders by Erin Palmer. © CC BY (Attribution).

690 Project Management From Simple to Complex by Russel Darnall, John Preston, Eastern
Michigan University. © CC BY (Attribution).

691 Media Attributions

692

693 Project Stakeholders © Barron & Barron Project Management for Scientists and Engineers is
licensed under a CC BY (Attribution) license

694

695 What Are Stakeholders?

696 Source: https://asq.org/quality-resources/stakeholders

697

698 Quality Glossary Definition: Stakeholder

699

700 The international standard providing guidance on social responsibility, called ISO 26000,
defines a stakeholder as an "individual or group that has an interest in any decision or activity of an
organization."

701

702 Stakeholders may include suppliers, internal staff, members, customers (including
shareholders, investors, and consumers), regulators, and local and regional
communities. Additionally, stakeholders may include purchasers, clients, owners, and non-
governmental organizations (NGOs).

703

704 Identifying stakeholders

705 Stakeholder analysis

706 Stakeholder analysis example

707 Stakeholder management 101

708 Stakeholder resources

709 Identifying stakeholders

710

711 In order to identify who a stakeholder might be, ISO 26000 clause 5.3.2 suggests that an
organization should ask the following questions:

712

713 To whom does the organization have legal obligations?

714 Who might be positively or negatively affected by the organization’s decisions or activities?

715 Who is likely to express concerns about the decisions and activities of the organization?

716 Who has been involved in the past when similar concerns needed to be addressed?

717 Who can help the organization address specific impacts?

718 Who can affect the organization’s ability to meet its responsibilities?

719 Who would be disadvantaged if excluded from the engagement?

720 Who in the value chain is affected?

721

722 The answer to any one of these questions may determine if an individual or group is a
stakeholder.

723

724 Stakeholder impact is the primary consideration of social responsibility. All stakeholder
interests should be considered and balanced for an organization to be socially responsible.

725

726 The concept of the stakeholder may be very easy for the quality professional to understand.
The same considerations that are made with customers and suppliers for quality assurance are
expanded to employees, the local community, and other potential stakeholders when approaching
social responsibility.

727

728 Stakeholder Analysis

729

730 Stakeholder analysis is defined as a tool organizations can use to clearly identify key
stakeholders for a project or other activity, understand where stakeholders stand, and develop
cooperation between the stakeholders and the project team. The main objective is to ensure
successful outcomes for the project or the changes to come.

731
732 Types of stakeholders include:

733

734 Primary: Those who are directly affected, either positively or negatively, by an organization’s
actions.

735 Secondary: Those who are indirectly affected by an organization’s actions.

736

737 Stakeholder analysis is frequently used during the preparation phase of a project and is an
excellent way to assess the attitudes of stakeholders towards changes or critical actions. It can be
done once or on a regular basis to track changes in stakeholder attitudes over time.

738

739 The stakeholder analysis is generally considered a highly confidential document because it
often contains sensitive information.

740

741 Benefits of Creating a Stakeholder Analysis

742

743 Provides clear understanding of stakeholders’ interests

744 Offers mechanisms to influence other stakeholders

745 Enables full understanding of potential risks

746 Identifies key people to be informed about the project during the execution phase

747 Provides awareness of negative stakeholders as well as their adverse effects on the project

748 How to Make a Stakeholder Analysis Matrix

749

750 1. Stakeholder identification: Create a stakeholder matrix (Table 1) that will be used to
identify key stakeholders and their positions. List the level of "influence" on the X axis (top row) and
the level of "importance" on the Y axis (first column).

751 2. List all key stakeholders in the appropriate cells (Table 1).

752 3. Stakeholder analysis: Create a second matrix (Table 2). List all key stakeholders in the first
column. List relevant information regarding them in the top row, using as many columns as needed.

753 4. Complete the information in the table by conducting interviews or through discussions
with the project sponsor or another high-level resource.

754 5. Prepare an action plan to engage the stakeholders who could have a negative impact on
the project or could be severely impacted by the actions.

755 Stakeholder Analysis Example

756
757 Table 1 shows a matrix identifying key stakeholders and their levels of importance or
influence. Table 2 shows an example of detailed stakeholder analysis that includes confidential
information.

758

759

760

761 Table 1. Stakeholder Identification

762

763

764

765 Table 2. Stakeholder Analysis Matrix

766

767 Stakeholder Management 101

768 Consider those most affected to create lasting change

769

770 Stakeholder buy-in is essential in any successful project, including lean and Six Sigma efforts.
A leading cause of project failure, however, is not focusing on the stakeholders who have the
greatest influence over implementation and sustainability. Effective management requires three
things throughout the project life cycle:

771

772 1. Identification

773 2. Communication and risk planning

774 3. Active collaboration

775

776 Stakeholder management begins by identifying individuals and groups the project affects. To
identify a comprehensive list of stakeholders, evaluate individuals or groups who contribute to, or
receive value from, the project. Be sure to assess stakeholders for their influence, the extent to
which they are affected, and their attitudes toward the project.

777

778 Tip: Because stakeholders’ perspectives, involvement, and ability to influence the project
may change, the team should identify stakeholders in the project design phase, and also periodically
throughout the project. At each new phase, revisit the original stakeholder analysis, which will help
guide tactical decisions for engaging key stakeholders.

779
780 To assess each stakeholder group, apply numerical ratings or simply rate each as high,
medium, or low for stakeholder influence and involvement. Use these ratings to plot each
stakeholder on a 2×2 matrix for analysis. For attitudes, identify whether the stakeholders are
supporters (+), neutral (0) or detractors (–), or use a green, yellow, and red coding. This will allow for
stakeholder segmentation for communication and risk planning.

781

782 Stakeholder ratings will help form an effective communication plan, which identifies
different information needs for each group. For example, the stakeholders in the upper right-hand
quadrant of each step in Figure 1 will have the most at stake in the project and possess the most
power to influence the project’s outcome. Therefore, the project team should seek to create buy-in
through targeted communication.

784 Stakeholder analysis will help those responsible for project success to identify project
advocates—supporters (positive attitude score) with high influence and stake in the project. Enlist
the help of advocates to influence groups that may be neutral or negative toward the project.
Influential and interested advocates will provide important allies to drive project success. 

786 Stakeholder Resources

788 You can also search articles, case studies, and publications for stakeholder resources.

790 Books

792 Stakeholder-Driven Strategic Planning in Education 

794 Excelling on a Digital Transformation Journey

796 Articles

798 Stakeholder Management 101 (Quality Progress) A leading cause of project failure is
inattention to those stakeholders who have the greatest influence over implementation and
sustainability. Effective management requires proactive and on-going stakeholder engagement—
including identification, communication and risk planning, and active collaboration—throughout the
project life-cycle.

800 Making Stakeholders a Strategic Asset (Quality Progress) Quality models indicate that
managing stakeholders to enhance their value generation capability can be a winning strategy. The
first step toward this aim is to limit the stakeholder role to those who cooperate to achieve
organizational goals.

804 Adapted from "Stakeholder Management 101," (Quality Progress).