Project Stakeholder Management- A quick Guide

Project 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 stakeholders require more effort to engage when the gap between the current and desired level is larger. The target is to minimize that gap to zero.
6. Each stakeholder manages the project according to the plan once it is ready.

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

Project Stakeholder Management knowledge area of PMBOK 6th edition:

Identify Stakeholders Process:

The Identify Stakeholders process sets the wheels in motion for effective stakeholder management, marking the inaugural step in any project. In this vital process, the project manager takes the lead in identifying all individuals, groups, or organizations that may wield influence over the project’s outcome – whether it’s a positive or negative impact. By using different communication methods and gathering data, the project manager uncovers how stakeholders interact, setting the foundation for successful collaboration. This first step guides the project towards teamwork, smart decisions, and successful project completion. Throughout this process, the project manager encourages all stakeholders to participate and contribute, creating a united and motivated team. With proactive stakeholder management, the team becomes more adaptable and determined to overcome challenges. 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 list of all identified stakeholders and their attributes.
• 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.

Plan Stakeholder Engagement Process:

In the captivating realm of project management, the Plan Stakeholder Engagement process takes center stage, empowering project managers to develop winning strategies for effective stakeholder management. This pivotal process demands the project manager to don the hat of a master strategist, crafting a comprehensive engagement plan that unveils a roadmap for interacting with each stakeholder throughout the project’s journey.

With keen foresight and astute analysis, the project manager delves into the intricate web of stakeholder relationships, carefully considering the unique needs, expectations, and communication preferences of every individual, group, or organization involved. Armed with this wealth of insights, the project manager artfully maps out communication channels, frequency of engagements, and preferred modes of interaction for each stakeholder.

Like a conductor orchestrating a symphony, the project manager harmonizes the interests of stakeholders with the project’s objectives, ensuring alignment and mutual understanding. By skillfully crafting the engagement plan, the project manager sets the stage for productive collaborations, proactive issue resolution, and a supportive project ecosystem.

In this dynamic interplay between project management prowess and stakeholder engagement finesse, the Plan Stakeholder Engagement process acts as a guiding star, illuminating the path to effective communication, stakeholder satisfaction, and ultimately, project success. With each stakeholder engagement carefully planned and executed, the project blossoms into a captivating tale of teamwork and triumph, leaving a lasting impact on all involved.

The main inputs, tools, techniques, and outputs of this process are:

Inputs:

• Stakeholder Register: The stakeholder register is the primary input to this process. It provides information about stakeholders and their interests, needs, and expectations.
• Project Management Plan: This document tells us how to execute, monitor, and control the project.
• 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.

Manage Stakeholder Engagement Process:

In the Manage Stakeholder Engagement process, the project manager actively executes the stakeholder engagement plan and closely monitors stakeholder interactions. This crucial process demands that the project manager ensures appropriate stakeholder engagement and promptly addresses their needs and concerns. By proactively engaging with stakeholders, the project manager fosters a collaborative and supportive environment, nurturing strong relationships that fuel project success. Regularly assessing stakeholder engagement levels empowers the project manager to make timely adjustments, ensuring that stakeholders remain involved and satisfied throughout the project journey. Embracing this dynamic process, the project manager takes on the role of a communication champion, building bridges and harmonizing perspectives to achieve project objectives with efficiency and enthusiasm. 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.

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 primary input to this process is the stakeholder engagement plan, 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: Project managers can choose communication methods based on the type of stakeholder and the information they need to convey.
• Performance Reviews: Project managers can use performance reviews to evaluate stakeholder engagement and make necessary changes.
• Meetings: Project managers can use meetings 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.