Identify Stakeholders on Your Project - Why Bother?

Stakeholder identification, a new PMBOK® Guide- Internal customers - Normally these are people for
project management process, is most important forwhom you're doing the work and have a particular
establishing an early foundation toward subsequentneed that your project can address. Often, the internal
planning, executing and monitoring and control of yourcustomer pays for the project and therefore receives
project communication information and achievingthe business impact from the project deliverables.
project success. This process should be done early in- Project sponsor - Normally, this is not ordinarily a
in the initiation phase of your project so that keyspecific organizational position, rather it is a role played
outputs of a stakeholder register and stakeholderon project. The role of the project sponsor is typically
strategy will be used associatively in the associateda representative of upper management who has a
project management process, also within the Projecthigh stake in the project outcome. This role can be
Communications Management, which is Manageinvaluable for you when you face problems or issues
Stakeholder Expectations.that lie beyond your sphere of influence. The sponsor
First, let's review some basic facts to understandingcan facilitate decisions and assist with resource
stakeholder management:assignments. If a sponsor is formally identified on your
- Stakeholders are those parties who may beproject and it is large or complex, go and get one!
positively or negatively impacted by the completion ofSeek out a member of management who has a stake
the projectin the success or failure of the project. Describe to
- Stakeholders stand to gain or lose through thethem their role and your expectations. After all, your
success or failure of the projectorganizational management should be quite willing to
- Stakeholders may possess different authority levelshelp you succeed!
which will affect how they exert their influence over- Core project team - Core team member roles often
the project and its deliverablestie closely to the work to be done. In most cases, the
- Stakeholders are affected by the outcome of thecore team is a relatively small group of people
projectcomposed from the various departments of work
It is imperative to identify all people and organizationsneeded to complete the project.
impacted by the project and subsequently- Functional resource providers - Securing your
documenting relevant information regarding theirresources can be dependent upon the functional,
interests, involvements and impacts on projectmatrix or projectized type of organizational structure
success. PMBOK® suggests using two inputs earlybase of your project. In matrix organizations, you
in the project for stakeholder identification:'borrow' resources from other departments by your
- The first one available is the output from Developrequest to the appropriate functional manager.
Project Charter, the only other process within the- Project Manager's Supervisor - Your boss is a
initiation process group. It is the project charter. Thestakeholder has a big stake in you and your project
project charter may list customers, sponsors,success. Keep your boss informed at all times and
executives, the project team, or public entities that areprotect him or her from being blindsided.
external to the performing organization participating in- Various support groups - These groups exist within
the project. It is recommended to hold a separateyour organization such as legal, accounting, data
meeting with those identified in the charter and askprocessing and human resources. Their role to your
them if they knew of others who should be listed withproject is more supportive than active depending on
stakeholder responsibilities.the specific needs of your project. Remember to
- If the project is the result of procurement activity orconsider if any of these groups should have a
based on an established contract, use therepresentative on your regular core team meetings.
procurement documents to identify all parties within theWhen Y2K projects were implemented, a legal
contract that may be key project stakeholders.representative should have been considered to attend
Suppliers, participating in the contract, could also becore team member meetings.
considered for the identification of projectExternal stakeholders - This stakeholder group has
stakeholders. Using a contract make the process atheir project stake more focused inwardly, although
little easier as the various contract interfaces should bethey are not a part of your organization.
listed.- External customers - External customers are
These project charter or procurement documentstypically characterized by contracts.
stakeholders' indications may only yield a normal set of- User groups - Consider user groups if your project is
stakeholders. So, let's further define other stakeholderdeveloping or producing a product that will be
possibilities and what you need to know about thesemarketed and sold to consumers. You can ask this
stakeholders. PMBOK® suggests using aexternal stakeholder about likes, dislikes, preferences
stakeholder analysis tool and technique for gatheringand choices, of consumers that perhaps their
information to determine whose interests should bemarketing strategy have isolated for future or a
considered throughout the project. Stakeholdersimilarly produced product.
analysis helps to place definitions to stakeholders and- Suppliers - Your project may require materials that
their roles. The stakeholder analysis power grid is amust be obtained from outside vendor companies.
classification model tool that helps you identify and plotUtilize a preferred supplier list, if your company
the impact or support of each stakeholder couldmaintains one.
generate and then is used to classify them to define- Contractors and consultants - There is only
information to the stakeholder management strategydifference from the supplier role and that is that you
which is one of the outputs of this process.use contractor and consultant stakeholder resources
What do you need to know about stakeholders?for labor and services, instead of materials. Utilize
You need to know various levels of data about yourperformance-based criteria and a verifiable track
identified stakeholders so you can properly managerecord when selecting these stakeholders.
your relationship with them and set yourOnce you have performed your stakeholder analysis
communications planning. Here are key things toand created a power/interest grid, you need to
gather:complete a stakeholder register that will contain all
- Who is the stakeholder by name? Don't identify anydetails related to the newly identified stakeholders.
stakeholder as a class of people, such as functionalRemember, at a minimum, to provide name, contact
manager or senior executive. Gather their name,information, organizational position, role in the project,
contact information and organizational position.their main expectation, main requirement, and potential
- What is the nature of their stake in the project? Is itinfluence in the project, or phase in the life cycle. Last,
personal or professional? Identify what will they gaininclude the stakeholder classification as either internal
with success or lose with failure, by clearly stating howor external.
much and in what way. Capture their majorThe remaining output is the stakeholder management
requirement, main expectation and potential influence instrategy which defines the approach that should help
the project or phase within the life cycle.gather support and minimize negative impacts of the
- What does the stakeholder expect from you? Theidentified stakeholders. A common way of
best way to determine this is by having face-to-facerepresenting the data is within a stakeholder strategy
meetings with the key stakeholders, such as clients oranalysis matrix so that elements such as listing key
project sponsors. This can work out any differencesstakeholders who can significantly impact the project,
between what they expect and what you believethe level of participation desired for each identified key
they should reasonable expect.stakeholder and potential strategy for gaining support
- What to expect from the stakeholder? This is the flipor reducing obstacles. Since your stakeholder
side of the previous question. It is definitely needed tomanagement strategy can contain some data that is
set expectations and realize that this is not telling thesubjective and could be considered sensitive, be sure
stakeholder what to do or how to act. If donethat you use discretion when doing your
correctly, you are providing the stakeholder with acommunications or sharing the data on the documents
description of the support you need.with read access or included in a shared document.
- What are the stakeholder's watchdog priorities? ThisThe stakeholder register and the stakeholder
means which of the major elements of success andmanagement strategy will be key inputs to the Plan
control the stakeholder most wants to monitor:Communications and Manage Stakeholder
schedule, cost, performance and/or quality.Expectations project management processes.
Next, perform stakeholder classification on internal andOne last tip! Beware of other less-human project
external groups, and their roles within a project.interfaces that can't be called stakeholders but can
Internal stakeholders -affect your project at least as much as any human
Most of the key stakeholders are internal people withininterface. These include organizational policies,
your organization:procedures, culture and politics! Good luck!