IT Project Management Individual Assignment
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Lesson13ProjectStakeholderMgmt.pptxIT Project Management
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Diploma in Information Technology
Copyright © 2020 by Singapore Institute of Management Pte Ltd. All rights reserved.
Lesson 13: Project Stakeholder Management
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Learning objectives
Explain the importance of project stakeholder management throughout the life of a project
Discuss the process of identifying stakeholders, how to create a stakeholder register, and how to perform a stakeholder analysis
Describe the contents of a stakeholder engagement plan
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Learning objectives
Describe the process of managing stakeholder engagement
Explain methods for monitoring stakeholder engagement
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13.1 Importance of project stakeholder management
Effective stakeholder management is fundamental to the success of projects.
Communication is one of the main mechanisms used in stakeholder management.
According to the Project Management Institute (PMI, 2013), amongst those organisations considered to be highly effective communicators, 80% of projects meet original goals, 71% deliver projects on time and 76% within budget.
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13.1 Importance of project stakeholder management
PMI calculates that one in five projects fail because of ineffective communication. In the current COVID-19 pandemic economic climate where large group meetings and face-to-face discussions will be limited, it will be more difficult to communicate effectively.
Hence the importance of effective stakeholder management, engagement, and communication.
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13.2 Project Stakeholder Management Processes
Identifying stakeholders: Identifying everyone involved in the project or affected by it and determining the best ways to manage relationships with them.
Planning stakeholder management: Determining strategies to effectively engage the stakeholders
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Managing stakeholder engagement: Communicating and working with project stakeholders to satisfy their needs and expectations, resolving issues, and fostering engagement in project decisions and activities
Controlling stakeholder engagement: Monitoring stakeholder relationships and adjusting plans and strategies for engaging stakeholders as needed
13.2 Project Stakeholder Management Processes
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13.2 Project Stakeholder Management Processes
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13.3 Identifying Stakeholders
Internal project stakeholders generally include the project sponsor, project team, support staff, and internal customers for the project.
Other internal stakeholders include top management, other functional managers, and other project managers because organisations have limited resources
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External project stakeholders include the project’s customers (if they are external to the organisation), competitors, suppliers, and other external groups that are potentially involved in the project or affected by it, such as government officials and concerned citizens
13.3 Identifying Stakeholders
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www.projectstakeholder.com lists other stakeholders including:
Program director
Project manager’s family
Labor unions
Potential customers
It is also necessary to focus on stakeholders with the most direct ties to a project, for example only key suppliers
13.3 Identifying Stakeholders
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13.3.1 Stakeholder Register
A stakeholder register includes basic information on stakeholders:
Identification information: The stakeholders’ names, positions, locations, roles in the project, and contact information
Assessment information: The stakeholders’ major requirements and expectations, potential influences, and phases of the project in which stakeholders have the most interest
Stakeholder classification: Is the stakeholder internal or external to the organization? Is the stakeholder a supporter of the project or resistant to it?
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13.3.1 Stakeholder Register
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13.3.2 Classifying Stakeholders
After identifying key project stakeholders, we can use different classification models to determine an approach for managing stakeholder relationships
A power / interest grid can be used to group stakeholders based on their level of authority (power) and their level of concern (interest) for project outcomes
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Power / Interest Grid
13.3.2 Classifying Stakeholders
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Power / Interest Grid
13.3.2 Classifying Stakeholders
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13.3.3 Stakeholder Analysis
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13.3.3 Stakeholder Analysis
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13.3.3 Stakeholder Analysis
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13.3.4 Stakeholder Engagement Levels
Unaware: Unaware of the project and its potential impacts on them
Resistant: Aware of the project yet
resistant to change
Neutral: Aware of the project yet neither supportive nor resistant
Supportive: Aware of the project and supportive of change
Leading: Aware of the project
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13.4 Planning Stakeholder Management
After identifying and analysing stakeholders, project teams should develop a plan for management them
The stakeholder management plan (SMP) can include:
Current and desired engagement levels
Inter-relationships between stakeholders
Communication requirements
Potential management strategies for each stakeholder
Methods for updating the SMP
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13.4.1 Sensitive Information
Stakeholder management plan (SMP) often includes sensitive information, it should not be part of the official project documents, which are normally available for all stakeholders to review
Often, only project managers and a few other team members should prepare the SMP
Parts of the SMP are not written down, and if they are, distribution is strictly limited
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13.5 Managing Stakeholder Engagement
Project success is often measured in terms of customer/sponsor satisfaction
Project sponsors often rank scope, time, and cost goals in order of importance and provide guidelines on how to balance the triple constraint
This ranking can be shown in an expectations management matrix to help clarify expectations
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13.5 Managing Stakeholder Engagement
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13.5 Managing Stakeholder Engagement
Expectations Management Matrix
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Understanding the stakeholders’ expectations can help in managing issues
Issues should be documented in an issue log, a tool used to document, monitor, and track issues that need resolution
Unresolved issues can be a major source of conflict and result in stakeholder expectations not being met
13.5 Managing Stakeholder Engagement
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13.5 Managing Stakeholder Engagement
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Project managers are often faced with challenges, especially in managing stakeholders
Sometimes they simply cannot meet requests from important stakeholders
13.5 Managing Stakeholder Engagement
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Suggestions for handling these situations include the following:
Be clear from the start
Explain the consequences
Have a contingency plan
Avoid surprises
Take a stand
13.5 Managing Stakeholder Engagement
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13.6 Controlling Stakeholder Engagement
While the stakeholders cannot be controlled, their level of engagement can be controlled.
Engagement involves a dialogue in which people seek understanding and solutions to issues of mutual concern
Many project managers are familiar with various techniques for engaging the stakeholders
It is important to set the proper tone at the start of a project
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Key stakeholders should be invited to actively participate in a kick-off meeting rather than merely attending it
The project manager should emphasise that a dialogue is expected at the meeting, including texts or whatever means of communication the stakeholders prefer.
13.6 Controlling Stakeholder Engagement
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The project manager should also meet with important stakeholders before the kick-off meeting
The project schedule should include activities and deliverables related to stakeholder engagement, such as surveys, reviews, demonstrations, and sign-offs.
13.6 Controlling Stakeholder Engagement
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13.7 Using Software to Assist in Project Stakeholder Management
Productivity software, communications software, and collaboration tools can promote stakeholder engagement
Social media can also help engage stakeholders. For example, LinkedIn has thousands of groups for project management professionals
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Some project management software includes functionality like Facebook to encourage relationship building on projects, like giving high fives for a job well done
13.7 Using Software to Assist in Project Stakeholder Management
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13.8 Social Media for Project Managers
Elizabeth Harrin, author of Social Media for Project Managers provides advice for when to use social media and when not to use it
As the saying goes, “A fool with a tool is still just a fool.” A lot of stakeholder engagement requires old-fashioned techniques like talking to someone!
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13.9 Impact of COVID-19
The COVID-19 pandemic has complicated the challenge of stakeholder management.
Social distancing prevents large meetings, or even interpersonal contact.
Advisable for project managers to put in greater effort to know the key stakeholders through smaller meetings, in person, or multiple online video meetings.
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13.9 Impact of COVID-19
It is critical for initial contact when establishing a relationship with the stakeholders.
Online video meeting allows the seeing of a person’s facial expressions and body language.
Once a sound relationship has been established with the key stakeholders, one can move to using other modes of communications other than in-person meetings, and online meetings.
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Questions?
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