Managing Stakeholders

Question 1

Who is a Stakeholder?

Answer 1

Anyone with an interest in the project or its outcome, or is affected by it.

Question 2

What is Stakeholder Management?

Answer 2

The process of identifying stakeholders, analysing their interest and formulating plans to control or influence them.

• Attitudes and actions can have significant effect on performance and outcome of project
• Must be proactively managed
• Influence must be considered at the very start when preparing BC so expectations can be managed from an early stage

Question 3

List 5 Examples of Typical Stakeholders

Answer 3

1. Project resources
2. People and orgs affected by project
3. People and orgs not directly affected but who may have strong opinions (+ve or -ve)
4. Statutory and regulatory bodies
5. Potential end users - important - requirements must be captured early on when considering requirements

Question 4

What is the Stakeholder Management Process?

Answer 4

1. Identify - usually by brainstorming and producing Stakholder Map to show relationships
2. Analyse - power & influence grid / power & interest grid
3. Plan - develop communication plans - each stakeholder examined to understand attitude, motivation and power. Action plan developed for engaging with them
4. Influence & Engage - Enact plans and make sure they are working throughout the project. Reassess where necessary

Question 5

Stakeholder Analysis - Power/Interest Grid

Answer 5

• Simple model, inferior to Power/Influence as no differentiation between +ve and -ve stakeholders
• High Power / Interested - fully engage and manage closely. Champions can help greatly, Blockers can harm
• High Power / Less Interested - enough work to keep satisfied, careful not to antagonise Blockers
• Low Power / Interested - adequately informed, monitor to ensure any detractors not becoming organised - can harm if acquire more power
• Low Power / Less Interested - minimum possible energy monitoring and communicating

Question 6

Stakeholder Analysis - Power / Influence Grid

Answer 6

• Will they benefit from success?
• Will they openly supportive?
• Do they have reasons for wanting project to fail?
• If views -ve can they be persuaded to change?
• What is their level of power and influence?
• Detractors & Supporters can organise into focus groups and become Blockers or Champions

Question 7

What are the Benefits of Stakeholder Management?

Answer 7

1. Helps identify project risks & opportunities
2. Facilitates pro-active mode of operation
3. Facilitates managing stakeholder relationships
4. Increases confidence of Stakeholders in PM
5. Increases likelihood of project success