Stakeholder Management

Stakeholders are the most important aspect of any project. According to studies, most conflicts in projects are due to stakeholders. So, the project manager needs to manage the stakeholders efficiently to meet their needs and expectations. A project stakeholder management includes the following steps:

1. Engaging stakeholders through effective communication is the most important part while managing them.
2. The project manager must communicate with all stakeholders based on their needs and expectations and manage their influence on the project.
3. Initially, project teams identify all the project’s stakeholders and then analyze their needs, expectations, power, influence, authority, interest, experience, knowledge, and other traits to effectively manage them.
4. An important tool to analyze the stakeholders is the stakeholder engagement assessment matrix.
5. This tool provides a visual representation of the current and desired engagement levels of stakeholders. The larger the gap between the current and desired level, the more effort is required to engage those stakeholders. The target is to minimize that gap to zero.
6. Once the plan is ready, the project is executed, and each stakeholder will manage the project according to the plan.

The project manager must monitor the engagement and satisfaction level of all stakeholders and make necessary changes to the plan if stakeholders are not completely satisfied.

Project Stakeholder Management knowledge area of PMBOK 6th edition:

1. Identify Stakeholders Process:

The Identify Stakeholders process is the first step in managing stakeholders in a project. In this process, the project manager identifies all individuals, groups, or organizations that may impact the project, either positively or negatively. The main inputs, tools, techniques, and outputs of this process are:

Inputs:

• Project Charter: This document outlines the project’s purpose, scope, objectives, and stakeholders’ initial information.
• Stakeholder register: A document that lists all stakeholders who have been identified previously, if any.
• Enterprise environmental factors: Information about the external environment that may affect the project.
• Organizational process assets: Standard operating procedures, knowledge base, templates, and other resources the organization can leverage for stakeholder management.

Tools and Techniques:

• Stakeholder Analysis: This tool helps identify stakeholders and understand their needs, interests, and level of involvement in the project.
• Expert judgment: Experts provide opinions, knowledge, and recommendations that can help identify stakeholders.
• Meetings: Meetings can help gather information about stakeholders and identify their interests and concerns.

Outputs:

• Stakeholder Register: This document lists all stakeholders and their relevant information, such as their interests, involvement, and influence on the project.
• Stakeholder Management Strategy: A document outlining the project’s approach to managing stakeholders.

2. Plan Stakeholder Engagement Process:

The Plan Stakeholder Engagement process involves developing strategies to manage stakeholders effectively. This process requires the project manager to create an engagement plan that outlines how they will interact with each stakeholder throughout the project. The main inputs, tools, techniques, and outputs of this process are:

Inputs:

• Stakeholder Register: The stakeholder register is the primary input to this process as it provides information about stakeholders and their interests, needs, and expectations.
• Project Management Plan: This document outlines how the project will be executed, monitored, and controlled.
• Enterprise environmental factors: Factors outside the project that may affect stakeholder engagement.
• Organizational process assets: Standard operating procedures, knowledge base, templates, and other resources the organization can leverage for stakeholder management.

Tools and Techniques:

• Expert judgment: Experts provide opinions, knowledge, and recommendations to help develop the stakeholder engagement plan.
• Meetings: Meetings can help gather information about stakeholders and discuss strategies for stakeholder engagement.
• Communication methods: Methods of communication can be chosen based on the type of stakeholder and the information to be conveyed.

Outputs:

• Stakeholder Engagement Plan: A document that outlines the strategies for managing stakeholder engagement throughout the project.
• Project Management Plan Updates: Updates to the project management plan that include information about the stakeholder engagement plan.

3. Manage Stakeholder Engagement Process:

The Manage Stakeholder Engagement process involves executing the stakeholder engagement plan and monitoring stakeholder interactions. This process requires the project manager to ensure that stakeholders are engaged appropriately, and that their needs and concerns are addressed. The main inputs, tools, techniques, and outputs of this process are:

Inputs:

• Stakeholder Engagement Plan: The stakeholder engagement plan is the primary input to this process as it provides strategies for managing stakeholders throughout the project.
• Project Management Plan: This document outlines how the project will be executed, monitored, and controlled.
• Issue Log: A document that lists issues identified during the project.
• Organizational process assets: Standard operating procedures, knowledge base, templates, and other resources the organization can leverage for stakeholder management.

Tools and Techniques:

• Communication methods: Communication methods can be chosen based on the type of stakeholder and the information to be conveyed.
• Interpersonal Skills: Effective interpersonal skills are required to interact with stakeholders positively.
• Change Control Process: The change control process manages changes that may affect stakeholders.

Outputs:

• Issue Log Updates: Updates to the issue log to reflect any issues that have been resolved.
• Change Requests: Requests for project scope, schedule, or cost changes that may impact stakeholders.
• Project Management Plan Updates: Updates to the project management plan that include information about stakeholder engagement.

4. Monitor Stakeholder Engagement Process:

The Monitor Stakeholder Engagement process involves monitoring and controlling stakeholder engagement throughout the project. This process requires the project manager to track stakeholder engagement, evaluate its effectiveness, and make necessary changes. The main inputs, tools, techniques, and outputs of this process are:

Inputs:

• Stakeholder Engagement Plan: The stakeholder engagement plan is the primary input to this process as it provides strategies for managing stakeholders throughout the project.
• Work Performance Data: Information about the project’s performance in terms of cost, schedule, and scope.
• Change Requests: Requests for project scope, schedule, or cost changes that may impact stakeholders.
• Organizational process assets: Standard operating procedures, knowledge base, templates, and other resources the organization can leverage for stakeholder management.

Tools and Techniques:

• Communication methods: Communication methods can be chosen based on the type of stakeholder and the information to be conveyed.
• Performance Reviews: Performance reviews can be used to evaluate stakeholder engagement and make necessary changes.
• Meetings: Meetings can be used to discuss stakeholder engagement and make necessary changes.

Outputs:

• Work Performance Reports: Reports that provide information about the project’s cost, schedule, and scope performance.
• Change Requests: Requests for project scope, schedule, or cost changes that may impact stakeholders.
• Project Management Plan Updates: Updates to the project management plan that include information about stakeholder engagement.