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Lecture 4 Stakeholder Management PDF

The document discusses stakeholder management in project management. It defines stakeholders as individuals or groups that can influence or be impacted by a project. It also discusses identifying stakeholders, analyzing their needs and influence, developing engagement strategies, and managing stakeholder expectations throughout the project lifecycle. The goal is to gain stakeholder support and mitigate any risks posed by different stakeholder perspectives.

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Moniika Dhanotra
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66 views25 pages

Lecture 4 Stakeholder Management PDF

The document discusses stakeholder management in project management. It defines stakeholders as individuals or groups that can influence or be impacted by a project. It also discusses identifying stakeholders, analyzing their needs and influence, developing engagement strategies, and managing stakeholder expectations throughout the project lifecycle. The goal is to gain stakeholder support and mitigate any risks posed by different stakeholder perspectives.

Uploaded by

Moniika Dhanotra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Project Management

Lecture 4 – Stakeholder Management


Dr. Andre Samuel
Previous Lecture
• Project Methodology:
– Project Management Institute (PMI) PMBoK
– Prince 2
– Agile
In this Lecture
• Stakeholder Management:
– Identifying stakeholders
– Stakeholder Analysis
– Managing Expectations
Objective of Stakeholder Mgt
• To curtail stakeholder
activities that might
adversely affect the
project
• To integrate stakeholder
perspective into the
project’s formulation
process
• To facilitate the project
team’s ability to take
advantage of
opportunities
• To encourage
stakeholder support for
project purposes
Stakeholder Management Process

1. Identification of Stakeholders
2. Stakeholder Analysis:
• Determine their requirements and influence
• Predict their behaviour (gaze into a crystal ball)
3. Develop appropriate Strategies
4. Manage and influence those requirements
and perspectives by implementing the
strategy
Stakeholder Defined
• A Stakeholder is any individual, group or
organization :
– that shares a stake in the project
– that can influence or be influenced by the project.
– who have an interest in the project process or
outcome
– whose interest may be positively or negatively
affected as a result of the execution and outcome
– who are actively involved in the project
Source of information for Identifying
Stakeholders
• Project Charter:
– project sponsor(s), customers, team members,
groups and departments participating in the
project
• Procurement Documents:
– the parties in that contract are key project
stakeholders.
– Other relevant parties, such as suppliers, should
also be considered as part of the project
stakeholder list
• Governmental or industry bodies or regulators
Categorization of Stakeholders
• Internal Stakeholders • External Stakeholders
– Usually play a supportive – May not be supportive
role but rather adverse
– Project Manager has – Not usually subject to
some degree of the legal authority of the
authority and influence project manager
– Should be kept well – Information should be
informed about project’s provided on a
status “need-to-know’” basis
– But keep communication
channels open
Relationship between Stakeholders
and the Project
• These stakeholders require the project manager’s
attention throughout the project’s life cycle, as
well as planning to address any issues they may
raise.
• The project manager should manage the
influences of these various stakeholders in
relation to the project requirements to ensure a
successful outcome
• An important part of a project manager’s
responsibility is to manage stakeholder
expectations, which can be difficult because
stakeholders often have very different or
conflicting objectives.
Team Discussion
• Using the Library Project Handout:

• Discuss and identify the key stakeholders of


the project
Stakeholder Register
• The main output of the Identify Stakeholders process is the stakeholder
register.
• This contains all details related to the identified stakeholders including,
but not limited to:
– Identification information: Name, organizational position, location,
role in the project, contact information;
– Assessment information: Major requirements, main expectations,
potential influence in the project, phase in the life cycle with the most
interest; and
– Stakeholder classification: Internal/external,
Supporter/neutral/resistor, etc.
• The stakeholder register should be consulted and updated on a regular
basis, as stakeholders may change—or new ones identified—throughout
the life cycle of the project.
• PMI (2013, pg. 398)
Example Stakeholder Register

Turner (1999)
Alternative Stakeholder Register
Template
Stakeholder Management
• S M assumes that success depends on taking
into account the potential impact of project
decisions on all stakeholders during the
entire life of the project
• Project managers must consider how the
achievements of the project’s goals and
objectives will affect or be affected by
stakeholders
Therein lies the challenge
The Owner/Contractor Model
Turner (1999, pg.50)
Stakeholder Analysis
• Identify all potential project stakeholders and
relevant information, such as their roles,
departments, interests, knowledge, expectations,
and influence levels.
• Analyze the potential impact or support each
stakeholder could generate, and classify them so
as to define an approach strategy.
• Assess how key stakeholders are likely to react or
respond in various situations, in order to plan
how to influence them to enhance their support
and mitigate potential negative impacts.
Classification models used for
stakeholders analysis
• Power/interest grid, grouping the stakeholders based on their level
of authority (“power”) and their level or concern (“interest”) regarding
the project outcomes;

• Power/influence grid, grouping the stakeholders based on their level


of authority (“power”) and their active involvement (“influence”) in
the project;

• Influence/impact grid, grouping the stakeholders based on their


active involvement (“influence”) in the project and their ability to
effect changes to the project’s planning or execution (“impact”); and

• Salience model, describing classes of stakeholders based on their


power (ability to impose their will), urgency (need for immediate
attention), and legitimacy (their involvement is appropriate).
The Position/Importance Matrix
Nutt and Backoff (1992) and Bryson (1995)
Least Importance Most

Oppose
Problematic Antagonistic

Position

Support Low Priority Supporter


Power : Interest Stakeholder Matrix
Maylor (2010,pg. 83)
Power/Interest Matrix with
Stakeholders
A-H representing the placement of generic
stakeholders

PMI (2013)
Engaging Stakeholders
• The process of developing appropriate
management strategies to effectively engage
stakeholders throughout the project life cycle
• The key benefit of this process is that it
provides a clear, actionable plan to interact
with project stakeholders to support the
project’s interests
Engagement level of the stakeholders
Can be classified as follows:
• Unaware- Unaware of project and potential impacts.
• Resistant- Aware of project and potential impacts and
resistant to change.
• Neutral- Aware of project yet neither supportive nor
resistant.
• Supportive- Aware of project and potential impacts and
supportive to change.
• Leading- Aware of project and potential impacts and
actively engaged in ensuring the project is a success.
Stakeholders Engagement Assessment
Matrix
• C- indicates the current engagement
• D- indicates the desired engagement
Bottom Line
• Failing to recognize or cooperate with
stakeholders whether supportive or adverse
may well hinder a successful project outcome
• Stakeholder Mgt is thus a necessity, allowing
the project manager to maintain better
control

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