6.1.1 Project Stakeholders

In Module 1 we defined a project stakeholder as:

“an individual, group, or organisation, who may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of the project”.

Projects deliver change. The ability of stakeholders to adopt that change will determine the success or failure of your project. Key stakeholders such as the project customer or executive sponsor can be strong advocates for the project, or they could be distant and “hands-off”. When the project needs executive-level direction the visibility and level of engagement of sponsors and leaders can make a huge difference to the adoption of the proposed changes.

In some situations there is a legal requirement to engage stakeholders. For example, when a project proposes changes to organisational structure or roles covered by Employment Agreements, these changes must to be fully consulted and agreed to by union stakeholders before they can go ahead. Major infrastructure changes such as building a new cruise ship terminal require stakeholder consultation before they can proceed.

Poorly consulted project changes can be blocked or rolled back, lead to industrial action and work stoppages or civil disrest.

In Module 2 we explained that project stakeholders need to be engaged. We then went straight to the subject of project status reporting as a primary communication tool for keeping project stakeholders engaged. In this module, we focus on understanding the different types of stakeholders, their interests, how to manage and consistently satisfy their engagement needs throughout the life of the project.

6.1.2 Stakeholder Analysis

Given how critical stakeholders can be to the success or failure of your project, a Stakeholder Management and Communications plan needs to be put in place to manage this critical element. First, we undertake stakeholder analysis where stakeholders are identified, prioritised and analysed. Next, we develop a Stakeholder Engagement Plan

Identify stakeholders

In Module 2 we identified some key stakeholder groups for the purpose of project reporting. Here, our focus is on individuals, each with different interests, motivations. fears, priorities and reasons for supporting or resisting your project. They may or may not work inside your project team organisation

Source: Listful PM

 Brainstorming with your project team is a powerful way of identifying and creating a broad list of stakeholders for further analysis. This can be done by asking the following questions:

•  Who is the most important stakeholder on the project?
•  Who could have an impact on the project baselines including its scope, schedule or budget?
• Who could be impacted by the changes introduced by the project?
• Who else needs to be informed about this project?

Prioritise Stakeholders

Once you have a solid list of stakeholders, your team can classify each stakeholder in terms of their influence and their interest in the project. This provides guidance for managing the stakeholders.

Stakeholders are classified on the Influence-Interest (II) Grid as follows:

• High-influence, highly interested stakeholders are the highest priority. These powerful stakeholders can make or break the project. Those who are supportive can open doors and make things happen. Typically your project sponsor and business representative will sit in this part of the grid. Your project needs their strong support especially if there are other powerful, interested stakeholders who are less favourable towards the project. This group is also referred to as the “Players”.
• High influence, less interested stakeholders are the next priority. These are often senior executives of the organisation whose objectives may not be directly impacted by the project. Because of their level of influence they need to be carefully cultivated and kept abreast of progress at an appropriate level and frequency. This group is known as the “Context Setters”.
• Low influence, highly interested stakeholders can be helpful to the project team on a day to day level even if they do not have the level of influence required to move major obstacles. These stakeholders are known as “Subjects”.
• Low influence, less interested people may or may not want to be engaged on the project. However, your team may still want to keep them informed at a high level. These groups are simply known as the “Crowd”.