Stakeholder Management

Week 2
Agenda
1. Review
2. Business case example
3. Stakeholder management
a. EEFs
b. OPAs
Business Case
1. The business case is an important document that explains how the project’s goals align with
the company’s long-term plans. This document explains why should the company spend its
technical, financial, and human resources on the specific project.

2. An ideal business case does not talk about any technical details of the project and focuses
solely on the business aspects. It is made to convince the upper-management to approve the
project and answers their concerns related to possible financial and business-related risks.
Project Charter
The project charter is perhaps the most comprehensive and important part of the project initiation
process. It answers the 3 Ws to identify the scope/objective, team members, and the possible
timeframe of the project.

The charter is, in some ways, the first document of the project that identifies the necessary details
like the goals and the constraints of the project. It also identifies the project scope and lists the
required resources for the completion of the project.
Project Charter
The project charter is perhaps the most comprehensive and important part of the project initiation
process. It answers the 3 Ws to identify the scope/objective, team members, and the possible
timeframe of the project.

The charter is, in some ways, the first document of the project that identifies the necessary details
like the goals and the constraints of the project. It also identifies the project scope and lists the
required resources for the completion of the project.
 Course Project
Scenario:

Small Company with only 7 employees is going through an expansion. In order to cope with the growth, the
CEO decided to hire 3 new team members. However, the current office can only hold 7 people, creating the
need to find new office that could accommodate all 10 employees. The budget allocated is 10000$, and the
timeline is 6 months. You are the project manager.

***The objective of the project is to find a new office for our company.***
Stakeholder Management
Stakeholders: A stakeholder is a party that has an interest in a company and can either affect or be
affected by the business. The primary stakeholders in a typical corporation are its investors, employees,
customers, and suppliers. However, with the increasing attention on corporate social responsibility, the concept
has been extended to include communities, governments, and trade associations. (Investopedia.com).

Project Stakeholder Management: includes the processes required to identify the people, groups,
or organizations that could impact or be impacted by the project, to analyze stakeholder expectations and their
impact on the project, and to develop appropriate management strategies for effectively engaging stakeholders in
project decisions and execution.
Influences
Projects exist and operate in environments that may have an influence on them.
These influences can have a favorable or unfavorable impact on the project.
Two major categories of influences are

● enterprise environmental factors (EEFs)

● organizational process assets (OPAs).
Enterprise Environmental Factors (EEFs)
EEFs originate from the environment outside of the project and often outside of
the enterprise. EEFs may have an impact at the organizational, portfolio, program,
or project level.

1. Internal EEFs
2. External EEFs
Internal EEFs
The following EEFs are internal to the organization:

1. Organizational culture, structure, and governance. Examples include vision, mission, values,
beliefs, cultural norms, leadership style, hierarchy and authority relationships, organizational style,
ethics, and code of conduct.
2. Geographic distribution of facilities and resources. Examples include factory locations, virtual
teams, shared systems, and cloud computing.
3. Infrastructure. Examples include existing facilities, equipment, organizational telecommunications
channels, information technology hardware, availability, and capacity.
4. Information technology software. Examples include scheduling software tools, configuration
management systems, web interfaces to other online automated systems, and work authorization
systems.
5. Resource availability. Examples include contracting and purchasing constraints, approved
providers and subcontractors, and collaboration agreements.
6. Employee capability. Examples include existing human resources expertise, skills, competencies,
and specialized knowledge.
External EEFs
The following EEFs are external to the organization.

1. Marketplace conditions. Examples include competitors, market share brand recognition, and
trademarks.
2. Social and cultural influences and issues. Examples include political climate, codes of conduct,
ethics, and perceptions.
3. Legal restrictions. Examples include country or local laws and regulations related to security, data
protection, business conduct, employment, and procurement.
4. Commercial databases. Examples include benchmarking results, standardized cost estimating
data, industry risk study information, and risk databases.
5. Academic research. Examples include industry studies, publications, and benchmarking results.
6. Government or industry standards. Examples include regulatory agency regulations and
standards related to products, production, environment, quality, and workmanship.
7. Financial considerations. Examples include currency exchange rates, interest rates, inflation rates,
tariffs, and geographic location.
8. Physical environmental elements. Examples include working conditions, weather, and constraints.
ORGANIZATIONAL PROCESS ASSETS (OPAs)
Organizational process assets (OPAs) are the plans, processes, policies,
procedures, and knowledge bases specific to and used by the performing
organization. These assets influence the management of the project.

1. Processes, Procedures, and Policies

2. Knowledge Base
Examples
Leadership VS Management
Leadership is a process of social influence, which maximizes the efforts of others, towards the
achievement of a goal.

Management refers to the optimal way to accomplish tasks and achieve goals, using Planning,
Organizing, Staffing, Directing, and Controlling functions or processes.
Management VS Leadership
● Management is a bottom-line focus: How can I best accomplish certain things?
● Leadership deals with the top line: What are the things I want to accomplish?
● In the words of both Peter Drucker and Warren Bennis, “Management is doing things right;
● leadership is doing the right things.”
● Management is efficiency in climbing the ladder of success;
● Leadership determines whether the ladder is leaning against the right wall.

(Stephen Covey)
Leadership Theories
1. ‘Great Person’ Theory
2. Trait Theories
3. Behavioral Theories
4. Contingency and Situational Theories
Leader Theory
This theory evolved from observations of great leaders from history, whether this
be military, spiritual, intellectual or political. In some cases, this theory assumes
that leaders are born, not made. However, there are implications that the ‘great
people’ are great leaders as a result of learning from situations throughout their
lives. In essence, this theory suggests that we can emulate and learn from the
actions of great leaders.
Trait Theories
Trait theories offer an extension to ‘great man theories’, suggesting that there is a
set of traits or inner qualities that can define a leader. If we adopt these traits, then
we too can be a successful leader. Some leaders will be born with effective traits,
others can learn them through exposure or study. This type of theory is
fundamental to many training courses that provide opportunities to investigate
such traits.
Behavioral Theories
Behavioral theories suggest that leadership is embedded in the actions of leaders.
This develops the trait theories from some inherent qualities of leadership into
considering what leaders do.
Contingency and Situational
These theories suggest that the specific leadership style is determined by the
external environment or specific situation. So, if we have a mature, expert project
team, it is more appropriate to adopt a Laissez Faire leadership style, rather than
an Authoritarian style. For more information, please see Section 3 about
Situational Leadership in this chapter.
Action Centered Leadership
● Achievement of task
○ Most frequently, the purpose of a group/team is to complete some work, so the leader needs
to maintain focus on achievement of objectives.
● Maintenance of group
○ A leader must ensure that the group’s collective needs are identified and group cohesion is
maintained.
● Support for the individuals
○ Each member of the group or team will have their own personal needs, and the leader will
need to support individuals to maintain their personal effectiveness and contribution to team
success.
Situational Leadership
1. Directing or ‘Telling’ Leadership style is appropriate for followers who lack competence
but are enthusiastic and committed to the work. They need direction and supervision to get
them started.
2. Coaching or ‘Selling’ Leadership style is for followers who have some competence but
lack commitment to the task. These followers need direction and supervision because they
are relatively inexperienced. They also need support and praise to build their self-esteem,
and involvement in decision making to build their commitment.
3. Supporting Leadership style is for followers who have competence but lack confidence or
motivation. These followers do not need much direction because of their developed skills
but leader support is necessary to bolster their confidence and motivation.
4. Delegating Leadership style is for followers who have both competence and commitment.
These followers have the ability and drive to work on a project by themselves with little
supervision or support from the leader.
Example

● Directing: ‘I want you to put one reef in the main and change the headsail to
the storm jib.’ (not competent, but committed)
● Coaching: ‘The navigator says we are in for a bit of a blow, I think you should
put one reef in the main and set the storm jib.’ (competent, but not committed)
● Supporting: ‘The navigator says we are in for a bit of a blow. How can I help?’

(competent but not confident)

● Delegating: ‘A gale is forecast.’ (Competent, Confident, and committed)

Leadership Styles
● Visionary (or Authoritative).
● Coaching.
● Affiliative.
● Democratic.
● Commanding (or Coercive).
● Pacesetting.
Tell me about your style of leadership