Project Management : Stakeholder Management Strategy : PMP
1. Introduction
This section of the Stakeholder Management Strategy should introduce and discuss the goals and objectives of the Stakeholder Management Strategy for the project. Effectively managing stakeholders is a key component of successful project management and should never be ignored. Proper stakeholder management can be used to gain support for a project and anticipate resistance, conflict, or competing objectives among the project’s stakeholders.
2. Identify Stakeholders
This section of the Stakeholder Management Strategy should discuss the methodology the project team will use to identify stakeholders and how stakeholders are defined. It is imperative that all stakeholders are identified regardless of how major or minor they are. This is because they will be categorized after they’re identified. If stakeholders are omitted there is a likelihood that they may become evident at some point during the project’s lifecycle and introduce delays or other obstacles to the project’s success. Great care and effort should be dedicated to this step of the Stakeholder Management Strategy.
The following criteria will be used to determine if an individual will be included as a stakeholder:
1. Will the person or their organization be directly or indirectly affected by this project?
2. Does the person or their organization hold a position from which they can influence the project?
3. Does the person have an impact on the project’s resources (material, personnel, funding)?
4. Does the person or their organization have any special skills or capabilities the project will require?
5. Does the person potentially benefit from the project or are they in a position to resist this change?
Any individual who meets one or more of the above criteria will be identified as a stakeholder.
Stakeholders from the same organization will be grouped in order to simplify communication and stakeholder management.
3. Key Stakeholders
This part of the Stakeholder Management Strategy identifies the sub-set of stakeholders who have been identified as key stakeholders and the reasoning for determining that they are key stakeholders. Key stakeholders are often those who potentially have the most influence over a project or those who may be most affected by the project. They may also be stakeholders who are resistant to the change represented by the project. These key stakeholders may require more communication and management throughout the project’s lifecycle and it is important to identify them to seek their feedback on their desired level of participation and communication.
As a follow on to Identify Stakeholders, the project team will identify key stakeholders who have the most influence on the project or who may be impacted the most by it. These key stakeholders are those who also require the most communication and management which will be determined as stakeholders are analyzed. Once identified, the Project Manager will develop a plan to obtain their feedback on the level of participation they desire, frequency and type of communication, and any concerns or conflicting interests they have.
Based on the feedback gathered by the project manager, the determination may be made to involve key stakeholders on steering committees, focus groups, gate reviews, or other project meetings or milestones. Thorough communication with key stakeholders is necessary to ensure all concerns are identified and addressed and that resources for the project remain available.
4. Stakeholder Analysis
Here, the Stakeholder Management Strategy describes how the project team will analyze its list of identified stakeholders. This discussion should include how stakeholders will be categorized or grouped as well as the level of impact they may have based on their power, influence, and involvement in the project. There are several tools and techniques that can be used to help quantify stakeholders. A description of these tools and techniques should also be included in this section.
The project team will categorize stakeholders based on their organization or department. Once all stakeholders have been categorized, the project team will utilize a power/interest matrix to illustrate the potential impact each stakeholder may have on the project. Based on this analysis the project team will also complete a stakeholder analysis matrix which illustrates the concerns, level of involvement, and management strategy for each stakeholder.
The chart below will be used to establish stakeholders and their levels of power and interest for use on the power/interest chart as part of the stakeholder analysis.
This section of the Stakeholder Management Strategy should introduce and discuss the goals and objectives of the Stakeholder Management Strategy for the project. Effectively managing stakeholders is a key component of successful project management and should never be ignored. Proper stakeholder management can be used to gain support for a project and anticipate resistance, conflict, or competing objectives among the project’s stakeholders.
2. Identify Stakeholders
This section of the Stakeholder Management Strategy should discuss the methodology the project team will use to identify stakeholders and how stakeholders are defined. It is imperative that all stakeholders are identified regardless of how major or minor they are. This is because they will be categorized after they’re identified. If stakeholders are omitted there is a likelihood that they may become evident at some point during the project’s lifecycle and introduce delays or other obstacles to the project’s success. Great care and effort should be dedicated to this step of the Stakeholder Management Strategy.
The following criteria will be used to determine if an individual will be included as a stakeholder:
1. Will the person or their organization be directly or indirectly affected by this project?
2. Does the person or their organization hold a position from which they can influence the project?
3. Does the person have an impact on the project’s resources (material, personnel, funding)?
4. Does the person or their organization have any special skills or capabilities the project will require?
5. Does the person potentially benefit from the project or are they in a position to resist this change?
Any individual who meets one or more of the above criteria will be identified as a stakeholder.
Stakeholders from the same organization will be grouped in order to simplify communication and stakeholder management.
3. Key Stakeholders
This part of the Stakeholder Management Strategy identifies the sub-set of stakeholders who have been identified as key stakeholders and the reasoning for determining that they are key stakeholders. Key stakeholders are often those who potentially have the most influence over a project or those who may be most affected by the project. They may also be stakeholders who are resistant to the change represented by the project. These key stakeholders may require more communication and management throughout the project’s lifecycle and it is important to identify them to seek their feedback on their desired level of participation and communication.
As a follow on to Identify Stakeholders, the project team will identify key stakeholders who have the most influence on the project or who may be impacted the most by it. These key stakeholders are those who also require the most communication and management which will be determined as stakeholders are analyzed. Once identified, the Project Manager will develop a plan to obtain their feedback on the level of participation they desire, frequency and type of communication, and any concerns or conflicting interests they have.
Based on the feedback gathered by the project manager, the determination may be made to involve key stakeholders on steering committees, focus groups, gate reviews, or other project meetings or milestones. Thorough communication with key stakeholders is necessary to ensure all concerns are identified and addressed and that resources for the project remain available.
4. Stakeholder Analysis
Here, the Stakeholder Management Strategy describes how the project team will analyze its list of identified stakeholders. This discussion should include how stakeholders will be categorized or grouped as well as the level of impact they may have based on their power, influence, and involvement in the project. There are several tools and techniques that can be used to help quantify stakeholders. A description of these tools and techniques should also be included in this section.
The project team will categorize stakeholders based on their organization or department. Once all stakeholders have been categorized, the project team will utilize a power/interest matrix to illustrate the potential impact each stakeholder may have on the project. Based on this analysis the project team will also complete a stakeholder analysis matrix which illustrates the concerns, level of involvement, and management strategy for each stakeholder.
The chart below will be used to establish stakeholders and their levels of power and interest for use on the power/interest chart as part of the stakeholder analysis.
| Key | Organization | Name | Power (1-5) | Interest (1-5) |
|---|---|---|---|---|
| A | Operations | A. White | 2 | 2 |
| B | Operations | B. Brown | 4 | 5 |
| C | Supplier | C. Black | 1 | 1 |
| D | Supplier | D. Green | 1 | 2 |
| E | Trial Customer | E. Day | 3 | 5 |
| F | Engineering | F. Knight | 4 | 1 |
| G | Engineering | G. Smith | 2 | 4 |
Below is the power/interest chart for the Project stakeholders. Each letter represents a stakeholder in accordance with the key in the chart above.
Based on the power and interest analysis and chart above, stakeholders A, C, and D will require minimal management effort as they reside in the lower left quadrant of the matrix. Stakeholder F, in the upper left quadrant, must be kept satisfied by ensuring concerns and questions are addressed adequately. Stakeholder G, in the lower right quadrant, must be kept informed through frequent communication on project status and progress. Stakeholders B and E, in the upper right quadrant, are key players and must be involved in all levels of project planning and change management. Additionally, stakeholders B and E should be participatory members in all project status meetings, gate reviews, and ad hoc meetings as required.
The stakeholder analysis matrix will be used to capture stakeholder concerns, level of involvement, and management strategy based on the stakeholder analysis and power/interest matrix above. The stakeholder analysis matrix will be reviewed and updated throughout the project’s duration in order to capture any new concerns or stakeholder management strategy efforts.
| Stakeholder | Concerns | Quadrant | Strategy |
|---|---|---|---|
| A | Ensuring proper handover of project to operations team | Minimal Effort | Communicate project specifications as required |
| B | Resource and scheduling constraints for production once project is transitioned to operations | Key Player | Solicit stakeholder as member of steering committee and obtain feedback on project planning. Frequent communication and addressing concerns are imperative |
| C | Ensuring on time delivery of materials | Minimal Effort | Communicate project schedule and material requirements ahead of time to ensure delivery |
| D | Possible union strike may impact material delivery | Minimal Effort | Solicit frequent updates and develop plan for alternative supply source |
| E | Product performance must meet or exceed current product | Key Player | Communicate test results and performance specifications and obtain feedback on customer requirements or any changes. Provide frequent status reports and updates. |
| F | Concerns regarding resources to assist project team with product design | Keep Satisfied | Communicate resource requirements early and ensure resources are released back to engineering when they’re no longer required |
| G | Questions regarding design of LightWave product | Keep Informed | Allow technical staff to work with stakeholder to answer questions and address concerns and provide test results for validation |
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