Stakeholder Management

Stakeholders are people affected by a project. Project stakeholder management involves identifying them, analyzing their expectations and influence, developing ways to work with them, and putting those strategies into practice. Communicate frequently to understand their needs and expectations. Most stakeholder issues arise from a lack of communication, so address problems as they come up. Manage competing interests and involve stakeholders in key project decisions and activities.

The project manager needs to understand stakeholders’ needs and influence and manage them effectively.

Identify Stakeholders

Identify Stakeholders is the process of finding out who is affected by the project and determining the appropriate focus for each stakeholder. Stakeholders can include customers, sponsors, employees, management, government, and society. They can influence project deliverables positively or negatively.

Identify stakeholder needs early so their requirements and views are considered. Group stakeholders by interest in the project, influence on its outcome, and level of involvement. Build cordial relationships focused on project success.

Inputs for Identify Stakeholders

• Project Charter. Identify internal and external parties connected to the project.
• Procurement documents. Parties to a procurement contract are key project stakeholders.

Stakeholder Analysis

Use qualitative and quantitative analysis throughout the project to identify stakeholder interests, expectations, and influence. The analysis also reveals relationships that can help build partnerships and increase the likelihood of project success.

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To analyze stakeholders, follow these steps.

1. Identify potential stakeholders and record their roles, departments, interests, knowledge, expectations, and levels of influence.
2. Identify and assess the potential impact of each stakeholder.
3. Classify stakeholders into groups based on their potential impact.
4. Consider how stakeholders are likely to respond in different situations.
5. Plan how to strengthen positive support and reduce negative influence.

Common classification models include the following.

• Power/Interest grid. Groups stakeholders by authority and concern about project outcomes.
• Power/Influence grid. Groups stakeholders by authority and involvement in the project.
• Power/Impact grid. Groups stakeholders by authority and ability to affect changes to project activities.
• Salience model. Groups stakeholders by power, urgency, and legitimacy.

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Brainstorming

Use brainstorming to identify potential stakeholders from senior management, other departments, and regulatory bodies. Draw on lessons learned and consult project managers who have worked on similar projects, subject matter experts, and consultants.

Outputs of Identify Stakeholders

Update the stakeholder register regularly as you learn more. It records the following information.

• Stakeholder information. Name, organizational position, location, project role, business phone number, and email address.
• Stakeholder requirements. Key expectations, major requirements, and involvement in the project.
• Stakeholder classification. Whether someone is internal or external and whether they support the project, resist it, or remain neutral.

Plan Stakeholder Management

Plan how to manage stakeholder expectations and influence throughout the project life cycle. The plan guides stakeholder interactions in support of the project. Use it to shape stakeholder contributions, manage expectations, and achieve project objectives.

Inputs for Plan Stakeholder Management

• Project Management Plan. Review the processes for each project stage, how the work will be executed, how human resources will be planned and used, the change management procedure, and the Communications Management Plan.
• Stakeholder Register. Review each stakeholder’s interests, involvement, and authority.
• Enterprise environmental factors. Consider the organization’s culture, structure, and political climate.
• Organizational process assets. Use lessons from earlier projects and historical information to understand stakeholder behavior and plan how to respond.

Analytical Techniques

Use expert judgment to decide what level of engagement is needed from each stakeholder at each stage. Meetings and discussions can help establish those levels. Classify stakeholder engagement as follows.

• Unaware. The stakeholder may be unaware of the project’s potential or impact.
• Resistant. The stakeholder resists changes to the project.
• Neutral. The stakeholder lets things proceed without supporting or resisting the project.
• Supportive. The stakeholder supports change and understands the project’s potential.
• Leading. The stakeholder supports the project and takes the lead where needed to help it succeed.

A Stakeholder Engagement Assessment Matrix shows the current and desired levels of engagement. In the matrix, C indicates the current level and D indicates the desired level.

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Outputs of Plan Stakeholder Management

The Stakeholder Management Plan is part of the Project Management Plan. It describes strategies for engaging stakeholders. The degree of formality required for procurement does not apply here. The project’s needs determine whether this plan is formal or informal, and detailed or high-level.

When updating the Stakeholder Management Plan, review its underlying assumptions for accuracy and relevance. Other outputs include updates to the project schedule and stakeholder register.

Manage Stakeholder Engagement

Communicate and work with stakeholders throughout the project life cycle to meet their needs and expectations, address issues as they arise, and involve them appropriately in project activities. The aim is to build stronger support for project success.

• Maintain stakeholder commitment at every stage.
• Use negotiation and communication to meet stakeholder expectations.
• Anticipate problems and address potential concerns throughout the project.

Stakeholder influence is greatest at the start of a project and diminishes as the work progresses. Seek the sponsor’s help when needed.

Inputs for Manage Stakeholder Engagement

Inputs include the Stakeholder Management Plan, Communications Management Plan, change log, and organizational process assets. The Communications Management Plan records stakeholder communication needs. Because stakeholders use information for different purposes, adjust the format, level of detail, content, and language as needed.

Tools and Techniques

Use communication methods such as email, meetings, process updates on the intranet, and war rooms. Practice active listening, build trust, resolve conflict, and help stakeholders overcome resistance to change.

Use management skills to facilitate consensus on project objectives, influence people to support the project, negotiate agreements that meet project needs, and help the organization change its behavior to accept project outcomes.

Outputs of Manage Stakeholder Engagement

Common outputs include issue logs, change requests, project management plan updates, and project document updates. Update organizational process assets with the following information.

• Stakeholder notifications. Share project updates and let stakeholders know when issues are closed.
• Project reports. Include status dashboards, lessons learned, and issue logs.
• Project presentations. Include formal and informal presentations.
• Project records. Include correspondence, memos, and meeting minutes.
• Stakeholder feedback. Record feedback from stakeholders.
• Lessons learned. Document lessons from the project.

Control Stakeholder Engagement

Monitor relationships with project stakeholders and adjust engagement strategies and plans as needed. Continue monitoring engagement throughout the project.