13.2 Stakeholder Management 502

Running head: CAPSTONE EPORTFOLIO 1
Capstone ePortfolio
Ty Powell
Embry-Riddle Aeronautical University
PMGT 690
March 2016

CAPSTONE EPORTFOLIO 2
Stakeholder Management
Ty Powell
Embry-Riddle Aeronautical University
PMGT 502 –Effective Communications for Managing Projects
February 29, 2015

Table of Contents
Introduction..................................................................................................................................... 4
Identify Stakeholders Process Overview ........................................................................................ 4
Importance of the Stakeholder Register.......................................................................................... 5
Plan Stakeholder Management Process Overview ......................................................................... 6
Importance of the Stakeholder Management Plan.......................................................................... 7
Manage Stakeholder Engagement Process Overview..................................................................... 9
Importance of Managing Stakeholder Engagement...................................................................... 10
Control Stakeholder Engagement Process Overview ................................................................... 10
Importance of Controlling Stakeholder Engagement ................................................................... 11
Conclusion .................................................................................................................................... 11
References..................................................................................................................................... 13

Introduction
Project Stakeholder Management is one of the knowledge areas contained in the Project
Management Body of Knowledge (PMBOK) that is crucial to the success of any project.
The importance of having project stakeholders function “from the same page” as the
project manager and the project leadership team, cannot be over stressed. Deliberate
stakeholder management, based on a written strategy and a project team-wide approach,
will bring stakeholders directly into the project success equation and is absolutely a key
project success criterion. Fully engaging all project stakeholders, using broad-spectrum
communications techniques and tools, based on a strategy and plan, represents a key
behavior attribute of successful project managers (Forman & Discenza, 2012).
Identify Stakeholders, Plan Stakeholder Management, Manage Stakeholder Engagement, and
Control Stakeholder Engagement (PMI, 2013) are the four processes that form Project
Stakeholder Management. This paper will provide an overview of each of these processes and
why each of these processes are important.
Identify Stakeholders Process Overview
Prior to discussing the process of Identify Stakeholders, it is important to know how the
Project Management Institute (PMI) defines this process. PMI (2013) defines this process as:
The process of identifying the people, groups, or organizations that could impact or be
impacted by a decision, activity, or outcome of the project; and analyzing and
documenting relevant information regarding their interests, involvement,
interdependencies, influence, and potential impact on project success (p.391).
A few examples of stakeholders are: The project manager, the program manager, the client,
investors, local community, workers, unions, suppliers, etc. The Identify Stakeholders process

begins with Inputs from the Project Charter, Procurement Documents, Enterprise Environmental
Factors, and Organizational Process Assets (PMI, 2013). With this information, different tools
are used to create a Stakeholder Register, see Figure 1. The Stakeholder Register “contains all
details related to the identified stakeholders” (PMI, 2013 p. 398).
Figure 1. Identify Stakeholders: Inputs, Tools & Techniques, and Outputs (PMI, 2013 p.393).
Importance of the Stakeholder Register
The first time that the owner gets to meet and interact with the project team and other
stakeholders is during the project kick-off meeting (Dow & Taylor, 2008). It is at this meeting
that the project team members and other stakeholders have an opportunity to ask questions.
Without identifying all of the stakeholders and creating a Stakeholder Register, it is possible that
information, critical to the success of the project, does not get communicated by the appropriate
person at the ideal time. The project kick-off meeting may be the only time that the stakeholders
and project team members meet (Dow & Taylor, 2008).
It is critical for the Project Manager to know the identity of each stakeholder and their
role as it relates to the project. Without knowing each stakeholder’s level of authority and
influence within the project, the Project Manager could waste valuable time by not focusing on
the relationships that are required for the successful completion of the project (PMI, 2013).
Project success is dependent on the cooperation of different stakeholders, however, some of

these stakeholders may not report to the Project Manager (Larson & Gray, 2014). An example of
this situation can be found in the text, Project Management: The Managerial Process:
Instead of working with my people to complete the project, I found myself being
constantly pulled and tugged by demands of different groups of people who were not
directly involved in the project but had a vested interest in the outcome (Larson & Gray,
2014 p.341).
This situation is an example of stakeholders who were not initially identified as stakeholders.
Assuming that the person being pulled away from the project is the Project Manager, this
situation is obviously not in the best interest of the project.
Plan Stakeholder Management Process Overview
Prior to discussing the process of Plan Stakeholder Management, it is important to know
that PMI (2013) defines this process as “The process of developing appropriate management
strategies to effectively engage stakeholders throughout the project life cycle, based on the
analysis of their needs, interests, and potential impact on project success” (p.391). The
Stakeholder Management Plan is one component of the Project Management Plan (PMI, 2013
p.403). This plan deturmines how and what will be communicated to the stakeholders. PMI
(2013) identifies the Inputs, Tools & Techniques, and Outputs, one of the outputs being the
Stakeholder Management Plan. Figure 2 illistrates this process.

Figure 2. Plan Stakeholder Management: Inputs, Tools & Techniques, and Outputs (PMI, 2013
p.399).
Importance of the Stakeholder Management Plan
“If stakeholder management is not adequately addressed in the project, this can mean unexpected
problems and uncertainty to the project caused by stakeholders” (Karlsen, 2002). As project
managers we must know ahead of time how we plan to communicate, what we plan to
communicate, and when we will communicate. We must know to whom we are communicating
this information and what their needs are. Larson and Gray (2014) goes on to say “The sheer
breadth and complexity of stakeholder relationships distinguish project management from
regular management” (p.341). When we look at Stakeholder Management, it must be understood
that not all stakeholders are part of the project. In fact, some stakeholders may be opposed to the
project’s success. PMI (2013) gives a few examples of classification models used to identify the
level of influence a stakeholder has:
Power/interest grid, grouping the stakeholders based on their level of authority (“power”)
and their level of concern (“interest”) reguarding the project outcomes;
Power/influence grid, grouping the stakeholders based on their level of authority
(“power”) and their active involvement (“influence”) in the project;

Influence/impact grid, grouping the stakeholders based on their active involvement
(“influence”) in the project and their ability to effect changes to the project’s planning or
execution (“impact”) and
Salience model, describing classes of stakeholders based on their power (ability to
impose their will), urgency (need for immediate action), and legitimacy (their
involvement is appropriate).
Figure 3 is an example grid from the PMBOK showing the power interest grid with generic
stakeholders.
Figure 3. Example Power/Interest Grid with Stakeholders (PMI, 2013 p.396).
Thus, when we identify the stakeholders, we must closely plan how to manage them.
“Importantly, it is recognized that each stakeholder has a different viewpoint and that these
perspectives lead to conflict and so generate a need for stakeholder and relationship
management” (Rowlinson & Yan Ki Fiona, 2008).

Manage Stakeholder Engagement Process Overview
Prior to discussing the process of Plan Stakeholder Management, it is important to know
that PMI (2013) defines this process as “The process of communicating and working with
stakeholders to meet their needs/expectations, address issues as they ccur, and foster appropriate
stakeholder engagement in project activities throughtout the project life cycle” (p.391).
The goal of Manage Stakeholder Engagement is simple: Communicate. As the project
progresses, the project manager must engage stakeholders at the appropriate time to ensure
continued support and commitment, while at the same time addressing concerns or potential
issues (PMI, 2013). The project manager must not only meet the stakeholder’s information
needs, he must also anticipate them. During this process, communication methods, interpersonal
skills, and management skills are required skills that the project manager must continuously
develop and improve. PMI (2013) identifies the Inputs, Tools & Techniques, and Outputs of the
Manage Stakeholder Engagement process. Figure 4 illistrates this process.
Figure 4. Manage Stakeholder Engagement: Inputs, Tools & Techniques, and Outputs (PMI,
2013 p.404).
As you can see in Figure 4, three of the outputs are updates to existing outputs, while two of
them are new, the Issue Log and Change Requests. The Issue Log will be one of the inputs for
the next process.

Importance of Managing Stakeholder Engagement
In order to achieve success, communication must be given the highest priority. Trust can
be gained, or quickly lost, due to the timing and thoroughness of communications. As everyone
knows, bad news doesn’t get better with time. Managing stakeholder’s expectations is one of the
project manager’s key responsibilities. This becomes difficult when the stakeholder has
unreasonable expectations. According to Griffin (2014), “Rather than the project team and key
stakeholders having an adversarial relationship (even if it is a silent battle or war), it would be
best for there to be full and meaningful engagement, appropriate to a given stakeholder.” So
what is the bottom line when it comes to the importance of Managing Stakeholder Engagement?
Communication.
Control Stakeholder Engagement Process Overview
Prior to discussing the process of Control Stakeholder Engagement, it is important to
know that PMI (2013) defines this process as “The process of monitoring overall project
stakeholder relationships and adjusting strategies and plans for engaging stakeholders” (p.391).
Basically, as the project progresses, the project manager must maintain and refine engagements
with the stakeholders. PMI (2013) identifies the Inputs, Tools & Techniques, and Outputs of this
process. Figure 5 illustrates this process.

Figure 5. Control Stakeholder Engagement: Inputs, Tools & Techniques, and Outputs (PMI,
2013 p.410).
Importance of Controlling Stakeholder Engagement
As a project progresses it is possible that new stakeholders will emerge and that existing
stakeholders will need to be re-evaluated. This is where the project manager should seek expert
judgment (PMI, 2013). As the project evolves, so must the project documents. The project
manager must take the inputs, apply the tools and techniques, and then update the various project
documents so that the status updates and other forms of communication media are meeting the
stakeholder’s information needs. Without controlling stakeholder engagement, or evolving
stakeholder engagement as the project evolves, it is possible that the stakeholder’s information
needs will not be met.
Conclusion
Many times in my career I have attended meetings and left the meeting without a clear
understanding of the stakeholders’ roles. On more than one occasion I began collaborating with
an individual that I believed had more authority than they actually had. This miscommunication
ultimately led to lost time and to the delay of the project. Had all the stakeholders’ roles and
levels of authority been established prior to this meeting, this collaboration would have occurred

with the stakeholder that had the appropriate level of authority, and would have saved time and
prevented the project from being delayed. The Stakeholder Management Plan is critical to the
success of a project. Identifying Stakeholders must be done in order to develop the Stakeholder
Register, which is one of the inputs to the Plan Stakeholder Management process. Planning the
communication required by the stakeholders; what will be communicated, when it will be
communicated, and how it will be communicated, will help the project manager be successful in
the execution of the project. According to James B. Forman, MBA, PMP, Project Recovery
Manager, Microsoft Corporation,
The stakeholder management plan defines and documents the approach and actions that
will increase support and minimize the negative impacts of stakeholders throughout the
life of the project. It should identify the key stakeholders along with the level of power
and influence they have on the project. It also documents the strategies that will be used
to manage the stakeholders according to their power, interest, and influence in the project
(2012).
Managing Stakeholder Engagements and Controlling Stakeholder Engagements are the final two
processes that complete Project Stakeholder Management. This is where all the communication
comes together. “…project managers should develop a strategy and communicate it to their
team, as the basis for a stakeholder management plan” (Forman & Discenza, 2012)
Based on my experiences, I absolutely agree with the PMI’s decision to add this process
to the PMBOK. Had I used the tools identified in the PMBOK in the past, I could have
prevented confusion that resulted in projects not only being delayed, but projects getting
cancelled.

References
Dow, W., & Taylor, B. (2008). Project Management Communications Bible. Indianapolis: Wiley
Publishing, Inc.
Forman, J. B., & Discenza, R. (2012). Got Stake? PMI Publication. Retrieved March 1, 2015,
from http://www.pmi.org/learning/stakeholder-management-plan-6090
Griffin, J. A. (2014). It Takes a Village. PMI Publication. Retrieved March 1, 2015, from
http://www.pmi.org/learning/2014/It-takes-a-village-9214?id=9214
Karlsen, J. T. (2002). Project Stakeholder Management. Engineering Management Journal,
14(4), 19.
Larson, E. W., & Gray, C. F. (2014). Project Management The Managerial Process. New York:
McGraw-Hill Education.
PMI. (2013). A Guide to the Project Management Body of Knowledge. Newtown Square: Project
Management Institute, Inc.
Rowlinson, S., & Yan Ki Fiona, C. (2008). Stakeholder management through empowerment:
modelling project success. Construction management and economics, 26(6), 611-623.

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