Why is project stakeholder management important, and what are its four processes?
Definition + Process GroupsWhy it matters: Stakeholder management is a critical factor in overall project success. Its core purpose is to identify all the people and/or organizations affected by the project, analyze their expectations, and effectively manage them throughout the project life cycle.
The four processes:
- Identify Stakeholders — identify all individuals and organizations involved in or affected by the project, and determine the best way to manage each one.
- Plan Stakeholder Management — analyze stakeholder requirements and strategize on how to engage stakeholders effectively.
- Manage Stakeholder Engagement — communicate and work with stakeholders to satisfy their expectations.
- Control Stakeholder Engagement — monitor stakeholder relationships and adjust strategies to keep engagement effective.
What are the two types of project stakeholders? Give examples of each.
Classify + Example- Internal stakeholders — people or groups working directly inside the organization/project, e.g. the project sponsor and the project team.
- External stakeholders — people or groups outside the organization who are affected by the project, e.g. customers.
When identifying stakeholders, the project team should focus on those with the most direct ties to the project, rather than trying to give equal weight to every remotely-interested party.
What is a stakeholder register, and how does the power/interest grid help manage it?
Definition + ToolStakeholder register: a document that includes basic information about identified stakeholders, made up of three parts:
- Identification information — name, position, location, role, and contact details.
- Assessment information — main expectations, potential influence, and the phase(s) of the project life cycle the stakeholder is most interested in.
- Stakeholder classification — internal/external, supportive/neutral/resistant, and so on; this classification determines the approach used to manage the relationship.
Power/Interest grid: a useful tool for grouping stakeholders based on their level of authority (power) and their level of concern (interest) for the project's outcomes. Plotting stakeholders on this grid helps the project manager decide how much attention and what kind of engagement each stakeholder needs.
List the five stakeholder engagement levels and explain what a stakeholder management plan contains.
List + ContentsFive engagement levels (from least to most engaged):
| Level | Meaning |
|---|---|
| Unaware | Unaware of the project and its potential impacts. |
| Resistant | Aware of the project, but resistant to change. |
| Neutral | Aware of the project, but neither supportive nor resistant. |
| Supportive | Aware of the project and supportive of its work and outcomes. |
| Leading | Aware of the project and actively engaged in ensuring its success. |
Stakeholder management plan — developed after stakeholders are identified, it may include (not limited to):
- Current and desired level of engagement for each stakeholder.
- Interrelationships between stakeholders.
- Communication requirements for the current project phase.
- Possible management strategies for each stakeholder.
How is stakeholder engagement measured and controlled? Are the following statements True or False?
Concept + True/FalseManaging engagement: Project success is often measured in terms of the satisfaction of each stakeholder involved. Ranking systems and matrices, such as expectation management matrices, are used to manage stakeholder engagement.
Controlling engagement: a project manager cannot directly control stakeholders — only their level of engagement. Good practice includes:
- Setting the proper tone at the very start of the project.
- Inviting stakeholders to actively participate in the kick-off meeting rather than simply attend it.
- Building stakeholder-related activities (surveys, reviews, demonstrations, sign-offs) directly into the project schedule.
True/False practice (from past papers):
| Statement | Answer |
|---|---|
| There are three types of stakeholders: internal, external, and hybrid. | False |
| When identifying stakeholders, all stakeholders — however remote their interest — need to be equally focused on. | False |
| The success of a project is not determined and measured in terms of the satisfaction of each stakeholder involved. | False |
| The power/interest grid is a useful tool for grouping stakeholders based on authority and concern. | True |