project initiation

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• WHO IS A STAKEHOLDER?
• A stakeholder is a person,group or an organization
that is actively involved in the project or is positively
or negatively impacted by it.They have an interest in
the success of the project,and can be within or
outside the organization that is sponsoring the
project,and are involved right from inception to
successful completion of the project.
Stakeholder management

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• As per PMI, the term project stakeholder refers to an
“Individual, group or organization, who may affect, be
affected, or perceive itself to be affected by a
decision, activity or outcome of a project (Project
Management institute, 2013).
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• Project Stakeholders-in general can be individuals or
entire organizations who are affected by the
execution or outcome of a project.It does not matter
whether the project affects them postively or
negatively.If they are affected they are stakeholder.For
example customers,suppliers,vendors,sub-
contractors,consultants,banks,financial
institutions,government agencies, or even society at
large are stakeholders.s
Stakeholder management

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• Key Project Stakeholders-are those stakeholders who
can influence and have the authority to dictate
whether the project is success or not.These are the
people and groups whose objectives must be
satisfied.They make or break the project. Even if the
project deadlines are met and all the project
deliverables are delivered,if they are not happy,it is
considered as a failure from project manager’s point
of view.Typical key stakeholders are customers,project
team members,project sponsor,senior
management,functional managers,consultants.
Stakeholder management

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• STAKEHOLDER MANAGEMENT PROCESS
• Managing stakeholders is not difficult, but it does take
time and efforts.Stakeholder management is the
systematic identification,analysis,planning and
implementation process designed to engage with the
stakeholders.It is of utmost importance for the project
manger to identify the people,groups,or orgaizations
that could impact or be impacted by the project.This
is because any project is termed as successful if it
meets its objectives, and fulfills the expectations of its
project stakeholders.s
Stakeholder management

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• Considering the power stakeholders wield in the
entire life cycle of the project,especially the key
stakeholders,project managers must learn to identify
,understand and work with them,even the difficult
ones..This role of the project manager is critical to
establish agreements on the goals and constraints of
the project,construct the strategies and
schedules,and approve the budget.
Stakeholder management

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• The project manager has to wear the hat of a project
leader to make sure all the stakeholders see the same
picture of the outcome going forward. As the project
progresses, the project team monitors stakeholders
and seeks to identify new ones and their roles.
Stakeholder management

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• Efffective stakeholder management begins from the
very moment a project is born and continues till the
project is closed out.A step by step approach in this
regard is presented below:
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• Step1- Identification of Stakeholders
• The identification process isused to identify all project
stakeholders.Identifying stakeholders is an iterative
process,and needs to be continued throughout the
project life cycle.One needs to be careful while
identifying stakeholders to ensure that important
stakeholders are not missed out. In case if this
happens,there is every likelihood that project may
face difficulty during execution.To identify all the
stakeholders in a project,one should ask following
questions:
Stakeholder management

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• What functions or people might be affected by the
project’s deliverables or outcomes?
• Who contributes resources in terms of
manpower,space,time,tools and machinery,and
money to the project?
Stakeholder management

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• Who ultimately will use and benefit from the output
of your project?
• By doing this exercise,project manager can also
identify potential opponents and create strategies to
interact with them and thereby reduce stress.
Stakeholder management

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• Step 2- Priorotizing Stakeholders
• Once stakeholders are identified,the next step is to
use power,impact,interest and influence to prioritize
stakeholders.One of the tool found useful in such
situation is the power/interest grid as shown in
Diagram 2.10.This grid is created by estimating the
power and interest of each project stakeholder.This
grid illustrates the power/interest relative to other
stakeholders as well.
Stakeholder management

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Stakeholder management
Keep Satisfied Manage Closely
Monitor Keep Informed
Low
Low
High
High
Level of Power
Level of Interest
Diagram 2.10-Power/Interest Grid

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• Before the grid for stakeholder prioritization is
used,the project manager needs to have complete list
of stakeholders and have ther interest
documented,work with them to spell out exactly what
success on the project means for them.This can be
done by having a formal interview with each one of
them preferably.As stakeholders interests vary,their
definition of success or desired results are likely to
differ.Stakeholder interview template is shown in
Diagram 2.11.
Stakeholder management
Diagram 2.10-Power/Interest Grid

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• The feedback received from the stakeholders helps
the project manager to identify key stakeholders,
improve communication and involve the right people
at the right time.
• The communication with the stakeholders varies with
the project and project situation.The key here for the
project manager is that he should know that
stakeholders that are in:
Stakeholder management
Diagram 2.10-Power/Interest Grid

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• High Power,High Interest quadrant need to be fully
engaged.These are stakeholders project manager
must spend the time and effort in managing
• High Power, Low Interst quadrant must not be bored
with over communication.It is better to leave the
micro details out.
Stakeholder management
Diagram 2.10-Power/Interest Grid

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• In case the stakeholders change in the middle or
during the execution of the project,the project
manager needs to be prepared to respond to the
new stakeholder expectations positively.This will
ensure that the objectives agreed upon before with
other stakeholders remains intact.It is difficult task
but not impossible. The more systematic the project
manager is in his attempts to identify and engage
stakeholders, the greater the value his project will
deliver.
Stakeholder management
Diagram 2.10-Power/Interest Grid

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• STAKEHOLDER INTERVIEW DOCUMENT
• Interviewee:
Date:
• Interviewer:
• PROJECT PURPOSE (key reason[s] for the project)
• DESCRIPTION (the how, what, and when of key
deliverables)
• DESIRED RESULTS (a prioritized list of specific,
measurable, and attainable deliverables)
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• EXCLUSIONS (items outside the scope of contract)
•
•
• COMMUNICATION NEEDS (who, how and how often)
• Interviewee:
How often:
•
•
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• ACCEPTANCE CRITERIA (Basis for accepting the
proposal, by whom and when.
•
•
• CONSTRAINTS (a prioritized list of restrictions or
limitations)
• 1.
4.
• 2.
5.
• 3.
6.
Stakeholder management
Diagram 2.11 Stakeholder Interview Template

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• The Stakeholders InterviewTemplate shown in
Diagram 2.9 is used as a tool to get clarity on various
project matters such as:
• Project Purpose-Why we are doing the project
• Description- Answers how,the what and the when of
the project in clear terms
• Project Success/Desired Results-This statement
defines specific objectives and goals to be achieved
• Exclusions- Deliverables which are not in the scope of
the project
• s
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• Communication needs-This is seek clarity from
stakeholders the specific information they want to
know and how-by mail,text, teleconference or by
skype
• Acceptance Criteria-Use this tool to decide who are
the key decision makers are and get their signatures
• Constraints-These are limitations on the project which
can fall in six areas identified by the PMI,which are
described in Figure 2.12s
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Stakeholder management
Diagram 2.12- Areas of Possible Constraints in Projects

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• To get more precise information from key project
managers can use a tool called “ Question Funnel” as
shown in Figure 2.13.
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Stakeholder management
Diagram 2.13- Question Funnel