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Stakeholder Management

Stakeholder Management consists of the following processes. See also Knowledge Areas - Stakeholders.

Process	Project Phase
Identify stakeholders	Initiating
Plan stakeholder management	Planning
Manage stakeholder engagement	Executing
Control stakeholder engagement	Monitoring & Controlling

Identify Stakeholders

Without effective stakeholder engagement and management, projects will fail.

During the Initiating phase, you should identify all stakeholders, complete a stakeholder analysis, and create a stakeholder register.

Stakeholders: Per the PMBOK, project stakeholders are individuals and organizations that are actively involved in the project, or whose interests may be positively or negatively affected as a result of project execution or project completion; they may exert influence over the project and its results.

Stakeholder Analysis, according to Rita Mulcahey, is the process used to "make sure the stakeholder's needs, wants and expectations are turned into requirements.”

Stakeholder identification involves the following:

• Identify all the people, groups or organizations that could impact or be impacted by a decision, activity, or outcome of the project.
• Analyze stakeholder expectations and their interest and potential impacts on the project.
• Assess how each stakeholder is likely to respond to various situations and events.

Stakeholder Matrix: Stakeholder matrix is a tool used for stakeholder analysis. Project managers position stakeholders on a grid according to their level of influence and impact to the project. An effective stakeholder analysis matrix should consider the three "I's" of stakeholders:

• Interest
• Influence
• Importance

Thus the stakeholder analysis matrix should list each person (or group’s) interest in the change, identify where interests intersect, acknowledge the level of influence, and determine who will have input in new developments or changes.

Stakeholder Identification Challenges

Many project managers fail to identify all the potential stakeholders and consequently are blindsided and unprepared to handle issues that arise.

In today's virtual environment, all stakeholders may not be visibly present in the office, making them all the more difficult to identify and engage. Some may in fact be working remotely, either at another office or even out of the comfort of their home. Thus, don't forget stakeholders that are not immediately or easily spotted. And regardless of where they are working or how they are dressed, invisible stakeholders can potentially influence the outcome of your project.

Plan Stakeholder Management

Plan Stakeholder Management involves developing appropriate management strategies for effectively engaging stakeholders in project decisions and execution. It also involves devising strategies to manage their expectations and deal with any resistance issues that may arise.

Manage Stakeholder Engagement

Manage Stakeholder Engagement involves fostering appropriate engagement in project decisions and activities, engaging in continuous dialogue with stakeholders to meet their needs and expectations, and addressing stakeholder needs as they arise.

If stakeholders are not properly managed, then a variety of issues can arise which will threaten the objectives and/or ultimate success of the project, if not dealt with swiftly and adeptly.

Control Stakeholder Engagement

Control Stakeholder Engagement involves monitoring overall project stakeholder relationships and adjusting strategies and plans for engaging stakeholders throughout the life cycle of the project.