Chapter 10 Stakeholder Management

Chapter 10 Stakeholder Management
It is not an overstatement to say that stakeholders can make or break the project. Stakeholders are classified as positive and negative. Positive stakeholders are those that benefit from the project or its outcome. Negative stakeholders are those that are affected negatively in some way by the project or its outcome. The purpose of Stakeholder Management is to ensure that the project team plan, manages, monitors, and controls stakeholder requirements, needs, and expectations in the best way possible. PMBOK 5’s definition of stakeholders is as follows: “Project stakeholders are individuals, groups, or organizations who may affect, be affected by, or perceive themselves to be affected by a decision, activity, or outcome of a project. They are comprised of persons and organizations such as customers, sponsors, the performing organization, and the public who are actively involved in the project, or whose interests may be positively or negatively affected by the execution or completion of the project.” PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-1

Stakeholder Management Learning Objectives
By the end of this chapter, you should be able to: Explain the importance of Stakeholder Management Name the Stakeholder Management processes Explain the activities performed in each Stakeholder Management process By the end of this chapter, you should be able to: Explain the importance of Stakeholder Management Name the Stakeholder Management processes Describe the activities performed in each Stakeholder Management process These objectives are given to make you aware of the knowledge you must gain from the material being presented in the chapter in order to do well on the exam. There will be questions interspersed between different topics, as well as a set of questions at the end of the chapter. The purpose of these questions is to help you strengthen your grasp of key concepts. You are strongly encouraged to answer these questions seriously so that you may assess any gaps you might have in your knowledge and understanding. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-2

Inov8Solutions Inc – Quality Educational Services For Professionals
Contents Stakeholder Management Overview Stakeholder Management processes Identify Stakeholders Plan Stakeholder Management Manage Stakeholder Engagement Control Stakeholder Engagement In this chapter we will cover the following topics: Provide an overview of Stakeholder Engagement Discuss the 4 Stakeholder Management processes. They are: Identify Stakeholders Plan Stakeholder Management Manage Stakeholder Engagement Control Stakeholder Engagement PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-3

Stakeholder Management Processes
Note to Kamran: Can we animate this slide so that each row is highlighted as it’s being mentioned in the narration? Process Process Group Identify Stakeholders Initiating Plan Stakeholder Management Planning Manage Stakeholder Engagement Executing Control Stakeholder Engagement Monitoring and Controlling The Stakeholder Management processes are: Identify Stakeholders – which is part of the Initiating process group Plan Stakeholder Management – which is part of the Planning process group Manage Stakeholder Engagement – which is part of the Executing process group Control Stakeholder Engagement – which is part of the Monitoring and Controlling process group PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-4

Review Quiz Which one of the following is not one of the Stakeholder Management processes? A. Manage Stakeholder Engagement B. Manage Stakeholder Expectations C. Plan Stakeholder Engagement D. Identify Stakeholders The correct answer is B. Manage Stakeholder Expectations is not one of the Stakeholder Management processes. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-5

Identify Stakeholders Inputs and Outputs
Class Group Activity – 15 Minutes Divide Class into 3 groups (3 to 4 students in each group) Discuss and brainstorm the inputs/outputs Present your inputs/outputs to the rest of the teams Check and compare your inputs/outputs with PMBOK® Guide 5th edition PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-6

Identify Stakeholders
Part of the Initiating process group Project Charter as input Stakeholder register as output Stakeholder analysis The identification of stakeholders occurs in the Identify Stakeholders process. This involves identifying all parties that may be affected by the existence or the outcome of the project, analyzing their requirements and expectations, and documenting how their requirements and expectations will be managed. Stakeholder analysis is performed in this process. This is a technique used to determine the extent of influence and power of stakeholders on the project and how this information can be used to gain support for the project. The main output of this process is the Stakeholder Register. This document contains all the stakeholders identified, including their requirements, level of influence, level of interest, expectations, classification such as internal/external, etc. The Stakeholder Register becomes and input to other processes in other knowledge areas, such as Quality Management and Communications management. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-7

Identify Stakeholders
This graph is an example of a Power/Interest Grid. It allows the categorization of stakeholders according to their level of interest and power. For example, if a stakeholder has low interest in the project and has little power, he/she is not a big concern for the project team. However, if a stakeholder has high interest and possesses power and authority, then he/she is extremely important and needs to be managed closely. This type of analysis should take place in the Identify Stakeholders process. PMBOK 5, p. 397 PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-8

Stakeholder Register This is an example of a Stakeholder Register.
The form and layout of the Stakeholder Register used on your project might look different, but would contain similar information. This Stakeholder Register identifies the stakeholder’s name, title, department, role on the project, classification, type of communication needed, expectations, and influence on the project. Source: PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-9

Plan Stakeholder Management Inputs and Outputs

Plan Stakeholder Management
Develop strategies to interact with and manage stakeholders Stakeholder Engagement Assessment Matrix Stakeholder Management Plan is output Plan Stakeholder Management is the process of documenting how the needs, requirements, and expectations of the stakeholders identified in the Identify Stakeholders process will be managed, monitored, and controlled . This information or documentation is contained in the Stakeholder Management Plan, which is an output of the Plan Stakeholder Management process. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-11

Plan Stakeholder Management Analytical Techniques
Stakeholder engagement level: Unaware Resistant Neutral Supportive Leading Various techniques can be employed to assess and plan stakeholder management and engagement. The technique highlighted here looks at the engagement level of each stakeholder to determine any gaps between the current level of engagement and the desired level of engagement. The current and desired levels of engagement are plotted on a grid called Stakeholders Engagement Assessment Matrix, as shown above, and any gaps between the current and desired level of engagement are determined. The ideal level of engagement is where the current level of engagement is the same as the desired level. This identification will help formulate a strategy for bringing stakeholders to the desired level of engagement. The definitions of each level of engagement is as follows: Unaware – unaware of the project Resistant – aware of and resistant to the project and change Neutral – aware of project, but neither resistant nor supportive Supportive – aware of project and supportive Leading – aware of project and actively involved in ensuring the project’s success PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-12

Review Quiz Stakeholder engagement can be classified all of the following except: A. Unaware B. Involved C. Supportive D. Resistant The correct answer is B. Involved is not one of the classifications for stakeholder engagement. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-13

Review Quiz One stakeholder has shown opposition to your project from the beginning and continues to show hostility towards the project and its objectives. This stakeholder’s engagement would be classified as: A. Hostile B. Belligerent C. Resistant D. Neutral The correct answer is C. This stakeholder’s engagement would be classified as resistant. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-14

Manage Stakeholder Engagement
Part of Executing process group Engaging stakeholders, managing expectations, addressing concerns, resolving issues Manage Stakeholder Engagement is the process in which the project manager and team communicate and work with stakeholders to ensure their needs are met and expectations are fulfilled. The Stakeholder Management Plan developed in the Plan Stakeholder Management process is an input to this process. The Communications Management Plan is another input to this process. Keep in mind that the ability of stakeholders to influence the project is highest at the beginning and gets progressively lower as the project moves forward. Therefore, it is critical that due focus and attention is given to engaging stakeholders and working with them to resolve any issues or concerns. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-15

Manage Stakeholder Engagement Inputs and Outputs

Control Stakeholder Engagement
Part of Monitoring and Controlling Monitor stakeholder relationships and interactions Look for issues/problems/concerns with regard to stakeholder engagement Change requests Control Stakeholder Engagement involves monitoring the communication and interaction with stakeholders and looking for One output of this process is change requests. These might relate to making changes to the Stakeholder Management Plan according to the changing landscape and realities of the project and associated stakeholders. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-17

Control Stakeholder Engagement Inputs and Outputs

Chapter Summary Project Stakeholder Management overview Stakeholder Management processes Identify Stakeholders Plan Stakeholder Management Manage Stakeholder Engagement Control Stakeholder Engagement Power/Interest grid Stakeholder Register Here is a summary of the contents of this chapter: Stakeholders can make or break a project. Many projects fails because the requirements, needs, and expectations of the stakeholders were not managed properly. Stakeholders can be classified as positive or negative. Positive stakeholders are those that will benefit from the project or its outcomes. Negative stakeholders are ones that will be potentially harmed by the project or its outcomes. It is essential for the success of the project that all stakeholders are identified and their needs and expectations be understood and managed. The Stakeholder Management processes are: Identify Stakeholders Plan Stakeholder Management Manage Stakeholder Expectations Control Stakeholder Engagement The stakeholder register is an output of the Identify Stakeholders process. The stakeholder register identifies all the stakeholders and their requirements, communication preferences, level of power and influence, etc. The stakeholder register becomes an input to other processes in other knowledge areas such as Communication Management and Quality Management. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-19

Chapter Summary 4. Plan Stakeholder Management a. Stakeholder Management Plan b. Analytical techniques 5. Manage Stakeholder Engagement 6. Control Stakeholder Engagement The main output of the Plan Stakeholder Management process is the Stakeholder Management Plan. This plan defines how the needs and expectations of all the stakeholders will be managed, monitored, and controlled. Tools such as the power/interest grid can be used to assess the level of power and influence of all stakeholders and their potential impact they can have on the project. Analytical techniques such as assessing the level of engagement using the Stakeholder Engagement Assessment Matrix can be employed. The Manage Stakeholder Engagement process involves putting the plans contained in the Stakeholder Management Plan in action. This involves interacting and working with all stakeholders and making sure their needs and expectations are met according to the Stakeholder Management Plan. Control Stakeholder Engagement involves looking for problems/issues with stakeholder management and recommending changes to account for changing circumstances. Due attention must be given to resolving issues and conflicts with respect to stakeholder management. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-20

End of Chapter Quiz Question 1: The Stakeholder Management Plan is created in which process? A. Identify Stakeholders B. Manage Stakeholders C. Manage Stakeholder Engagement D. Plan Stakeholder Management The correct answer is D. The Stakeholder Management Plan is created in the Plan Stakeholder Management process. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-21

End of Chapter Quiz Question 2: The Stakeholder Register is an output of: A. Control Stakeholders B. Identify Stakeholders C. Manage Stakeholder Expectations D. Plan Stakeholder Management The correct answer is B. The Stakeholder Register is an output of the Identify Stakeholders process. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-22

End of Chapter Quiz Question 3: You and your team are trying to identify and assess the engagement level of each stakeholder. Which document or tool can help with this? A. Stakeholder Register B. Stakeholder Management Plan C. Stakeholder Engagement Assessment Matrix D. Project Charter The correct answer is C. The Stakeholder Engagement Assessment Matrix helps to identify the current and desired level of engagement of each stakeholder. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-23

End of Chapter Quiz Question 4: The CFO has considerable power in the organization and has great interest in the project. She should be: A. Ignored B. Respected C. Overlooked D. Managed closely The correct answer is D. This question pertain to the Power/Influence grid. A stakeholder who wields power and has influence should be managed closely. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-24

End of Chapter Quiz Question 5: During the process of identifying stakeholders, the team is analyzing the needs and expectations of various stakeholders and their degree of power and influence. This is called: A. Stakeholder analysis B. Stakeholder planning C. Stakeholder management D. Developing strategy The correct answer is A. Stakeholder analysis involves identifying the level of power and influence of stakeholders and developing strategies to meet their needs. PMP, CAPM, PgMP, PMI-SP , PMI-RMP, OPM3 and PMBOK are registered marks of Project Management Institute, Inc Inov8Solutions Inc – Quality Educational Services For Professionals 4-25

Chapter 10 Stakeholder Management

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