You are a new project manager who has never managed a project before.

It
would be best in this situation to rely on stakeholder analysis during planning
in order to improve your chance of success.
A project is any sort of planned undertaking or it’s a temporal endeavour
undertaken to create a unique product, services or result. The temporary nature
of projects indicates a definite start and an end. The end is reached when the
projects objectives have been met or when the project is terminated because its
set objectives will not or cannot be me or when the need for the project no
longer exists. However, a project may also be defined as a means of moving
from a problem to a solution via a series of planned activities. The
characteristics of a project are: they are temporary in nature, they have a
definite start and end dates, they produce a unique product, service or results
that did not exist. Thus a project is being managed by a project manager.
Project managers are organised, goal oriented professionals who use passion,
creativity, and collaboration to design projects that are destined for success.
They are innovators behind some of the most brilliant products, services and
processes that exist today.

Project managers have diverse skill sets that allows them to approach each
assignment in a unique and strategic way. Most importantly, they understand
how to leverage their project management skills to foster an organization’s
ability to learn, succeed and evolve with a project. Some of the skills a project
manager possesses include; leadership and effective communication,
organization and time management, creative problem solving and adaptability,
motivation and team management etc. Project managers have core
responsibilities like;

- Identify project goals, needs and scope

- Planning monitoring, and documenting tasks throughout a project

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 - Ensuring all tasks, deliverables, and project materials are delivered
promptly
- Managing all resources necessary for project execution
- Fostering effective communication with stakeholders concerning project
status
- Foreseeing and strategically eliminating blockers and potential risks
- Documenting each step of the process using various project management
tools
- Ensuring top quality results and success for a project
These core responsibilities are pillars of project management. They empower
project managers to supervise an assignment adequately. More so, they allow
the project manager to create timelines, delegate tasks and shape a project
perfectly to the needs of everyone who stands to benefit from its completion.

It should be noted that as a project manager, stakeholder analysis is needed as

one of the project management tool in order to plan for a successfully project.

A stakeholder is either an individual, group or organization that’s impacted by

the outcome of a project or a business venture. Stakeholders have an interest in
the success of the project and can be within or outside the organization that’s
sponsoring the project. Before getting into the analysis, one must first know
who the stakeholders are. There are a few questions that have to be posed, such
as figuring out who the most influential stakeholders are in terms of the project.
These are going to be clients or customers, the people for whom the project was
created.

Then you want to know any additional stakeholders that are affected by the
project. This could include those who would be environmentally impacted by
the project, for example.

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Ask yourself which stakeholders have control of the project resources. These
stakeholders are going to be part of the influential group. Don’t forget to collect
what the stakeholders’ motivations and interests are, as this will help you
to manage them and their expectations.

Finally, there will be people who are important to the project that will not be
identified as stakeholders or at least not the key stakeholders of the project. You
still need to keep them informed to some extent without making them feel
neglected or left out of the loop. Not all stakeholders should be treated equally:
there would be no way to proceed with the project.

Stakeholders are important because they can have a positive or negative

influence on the project with their decisions. There are also critical or key
stakeholders, whose support is needed for the project to exist. A stakeholder is a
person, like any other member of the project, and some are easier to manage
than others.

All stakeholders can be broken into two groups: internal stakeholders and
external stakeholders. Let’s take a look at both.

1. Internal Stakeholders

Internal stakeholders are within the organization. The project directly impacts
them as they serve and are employed by the organization managing it. Internal
stakeholders can include employees, owners, the board of directors, project
managers, investors and more.

2. External Stakeholders

External stakeholders are outside of the organization and are indirectly impacted
by the project. They’re influenced by the organization’s work but are not

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employees of the organization. These people can be suppliers, customers,
creditors, clients, intermediaries, competitors, society, government and more.

There are many types of stakeholders, many of which fall under the internal or
external stakeholder categories. Let’s take a look at some of the more common
stakeholder examples.

 Investors: These are stakeholders looking for a financial return and can
be shareholders and debtholders. They have invested capital in the
business and want a return on that investment.
 Employees: These stakeholders rely on their employment and job
security. They have a direct stake in the organization as it supports them
and provides them with benefits.
 Customers: These stakeholders want the product or service that the
project delivers and they expect it to be of quality and contain value.
 Suppliers and Vendors: These stakeholders have their revenue tied up
with the project as they sell goods and services to the business managing
the project. Project success means more business for them.
 Communities: These stakeholders don’t want the project to negatively
impact their health, safety or economic development. The organizations
that are housed in their communities or working on projects in their
communities can impact job creation, spending and more.
 Government: These stakeholders get taxes and gross domestic product
from a project. They are major stakeholders as they collect taxes from
both the company on a corporate level and individually from those it
employs.

Stakeholder analysis is one of the project management tool used during

planning in order to improve your chance of success.

Project stakeholder analysis is the process of identifying individuals that have a

vested interest in a project with a stakeholder analysis matrix. The analysis then
collects the key stakeholders by group, which is determined by their level of
participation, interest and power or influence in the project.

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Stakeholder management it’s an important part of project management because
stakeholders are involved in the project and have important roles. Project
stakeholders can be either internal or external. They can have conflicting
interests or interests that change over the course of the project, so you’ll need a
stakeholder communication plan to keep them informed. Some stakeholders are
more important during different phases of the project.

Also, there is need to make use of stakeholder analysis template. This template
also known as power interest grid can help in four key ways;

- Gathering crucial template: often key stake holders can deliver valuable
insights that can help keep your project on track and successful.

- Gaining more resources: if your stake holder has a full understanding of

what it will take to get your project off the ground, they may be able to
help you secure the people, tools and resources you need to make you
successful.

- Building Trust: by consistently engaging and involving stakeholders in

your process, you are building trust that may make them quick to support
upcoming projects.

- Planning ahead: consistent feedback from key stakeholders helps you

anticipate feedback and requirements on future projects and gain buy-in
more quickly.

Part of the stakeholder analysis process is not just defining who they are, but
finding out what their responsibilities are and how to communicate with
them on the progress of the project. Some key stakeholders will need to be
updated more frequently than others. Some want to be contacted by email, text
or phone, while others ask for in-person presentations.

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As your work and project become more important, you will affect more and
more people, there is need to know how to conduct a stakeholder analysis so as
to win support from your key stakeholders.

Step 1: Research

You need to find out how each stakeholder feels about the project. This is where
you can start to work out how to engage them. Informational interview or
sample email works well for this step. You can also ask questions to get better
understanding of your stakeholders. They will provide valuable insights into
how your project is being perceived by them.

Step 2: Define

After you’ve identified the people and teams who will be key players in the
project, it is now important to start defining their roles and responsibilities.
Stakeholders are often put into one of the following four self-explanatory
groups:

 High power and high interest

 High power and low interest

 Low power and high interest

 Low power and high interest

Step 3 Communicate

Plan out how you will communicate with members of each group. Include what
medium you will reach them; such as weekly check-in calls or email updates.
Also make a note of how frequent you will check-in.

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Stage 4: Influence

The goal of this step is to understand what motivates them and how you can win
their approval. If they aren’t likely to be positive, as yourself how you will win
them over. If they do turn out to be negative, make a plan for how you will
manage their objections.

Step 5: Organize

To summarize your supporter’s backing, color-code them. For example, show

supporters in green, blockers in red, and neutrals in orange.

A stakeholder-based approach in project planning gives you the following key

benefits:

Effective Communication

Stakeholder analysis helps you communicate with the stakeholders. It enables

you to learn their perspectives and views on a product. The analysis helps you
to gain an edge over the competitors. Stakeholder analysis on diverse
perspectives ensures you get ample information from different angles on
stakeholder’s interests. Clear communication ensures stakeholders understand
the details and benefits of your project. As a result, you can get their support
whenever required.

Effective Decision Making

Learning different perspectives of the stakeholders might change your outlook

on various aspects related to a project and help you make an appropriate
decision. Stakeholder analysis lets you analyze problems in a project from
different angles and find solutions by applying different approaches. It, then,
enables you to take effective decisions to make a project successful. Stakeholder

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analysis assists you to identify requirements and risks associated with your
project.

Identifying the Opponents

Do you want to find people who are not satisfied with your project? The attitude
of stakeholders lays a significant impact on the successful completion of the
project. Stakeholder analysis will help you identify the opponents who are
against the project and who do not want the project to become a success. The
analysis helps to recognize those who are a threat to the project. The opponents
are a risk to the project success who should be identified timely.

Establishing Goals

Stakeholder analysis helps to identify the official goals of your project. It also
helps you to consider the individual objectives of the stakeholders. You will
also be able to work in the interests of the stakeholders through the analysis. It
creates your positive image among the stakeholders and increases the
acceptance of project results externally.

Know Key Organizational Players

Stakeholder analysis will help you to approach company

executives, influencers, and valuable stakeholders to help you in the project.
Enlisting the key players at an early stage of the project will ensure their support
and guidance. You can utilize the practical knowledge of key players to help
you guide in the project. They will also help you address issues related to the
project.

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Building Trust

Isn’t it important to gain the trust of your stakeholders? Stakeholder analysis

helps you reach out to them and make them believe you value their interests and
choices. The approach helps to build trust and goodwill towards you and the
organization. Establishing trust is a long and demanding process but stakeholder
analysis will help you to attain it conveniently.

Recognizing Promoters

Do you agree that you need promoters to successfully implement a project?

Stakeholder analysis helps you know and understand the promoters or
supporters to convince them to participate in the project. Having promoters at
your side will be a great support in taking crucial decisions related to the
project. Identifying promoters through stakeholder analysis will help manage
expenditure. Gaining support from them helps you win more resources such as
money, people, and time. It will remove the obstacles in the way of project
success and make your work easy.

Saving Costs

You would like to save costs associated with the project. Right? Stakeholder
analysis helps you to engage stakeholders that saves time and money. The
analysis enables you to identify potential future risks and roadblocks that can
hinder the project’s success. Engaging stakeholders through analysis increases
the probability of finishing the project on time and within estimated budget
limits.

Final Words

You now know the importance of stakeholder analysis. The analysis is the first
step to understand your stakeholders and project management. If you are not
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able to understand the needs of your stakeholders, you will find it difficult to
attain success in the project.

References
Ackerman, F. and Eden, C.(2011) Strategic Management of Stakeholders:
Theory and Practice. Long Range Planning 44 (2011) 179-196, Elsevier
Anderson, S. R., Bryson, J. M. and Crosby, B. C. (1999). Leadership for the
Common Good Fieldbook, St. Paul, MN: University of Minnesota Extension
Service.
Bryson, J. (1995). Strategic Planning for Public and Nonprofit Organizations
(rev. edn), San Francisco, CA: Jossey-Bass.
Bryson, J. (2004). What to do when Stakeholders matter. Public Management
Review, 6:1, 21-53.
Bryson, J., Cunningham, G. and Lokkesmoe, K. (2002). ‘What to Do When
stakeholders Matter: The Case of Problem Formulation for the African
American Men Project of Hennepin County Minnesota’. Public Administration
Review, 62:5 pp. 568 – 84.
Campbell, H. and Marshall, R. (2002). ‘Utilitarianism’s Bad Breath? A Re-
evaluation of the Public Interest Justification for Planning’. Planning Theory,
1:2 pp. 163 – 87.

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Eden, C. and Ackermann, F. (1998). Making Strategy: The Journey of Strategic
Management, London: Sage Publications.
Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach.
Boston, MA: Pitman

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