This document discusses best practices for managing stakeholder expectations on projects. It defines stakeholders as any person, group, or organization that can be affected by or affect an organization's actions and policies. Common stakeholder types include customers, board members, creditors, employees, government agencies, owners, suppliers, unions, and the surrounding community. The document notes that stakeholders each have their own agendas and want to see the project succeed according to their interests. It recommends identifying stakeholder issues early, communicating regularly according to a documented plan, gathering information about stakeholders, understanding their motivations, and engaging them throughout the project to manage expectations.

1. BEST PRACTICE
SOLUTIONS
Managing Stakeholder Expectations

2. Who are stakeholders?

3. Stakeholders are…
A person, group or organization which an has
interest or concern in an organization.
Can affect or be affected by an organization's
actions, objectives and policies.

4. Types of stakeholders
Customers
Board of Directors
Creditors
Employees
Government (and its agencies)
Business owners (shareholders)
Suppliers
Unions
Surrounding community
Competitors

5. What do stakeholders want?
Bottom-line:
Every stakeholder has an agenda that dictates
their actions on a project.
Win!
Credit for proposing project.
Credit for a job well-done.
Recognition and/or financial reward.
Influence over the project to meet their interests
and needs.

6. Stakeholder theory
The stakeholder theory is a conceptual framework
outlining how organizational leadership can satisfy
the interests of stakeholders – morally and
ethically.
The concept was first proposed in Strategic
Management: A Stakeholder Approach by R.
Edward Freeman
Goal: Creating value for stakeholders, connecting
business and capitalism from an ethical approach.

7. Stakeholder value approach
 Prioritizes the interests of its all stakeholders -
customers, employees, shareholders, and the local
community.
 Objective is to maximize value by following policies
that:
- Minimize cost/waste and improve product quality.
- Enhance the skills and satisfaction of its employees.
- Contribute to growth of community from which it draws
resources and sustenance.

8. What do stakeholders want?

9. First things first…
Simple - Ensure the project's deliverables will
meet the requirements of the project.
Failure to do so will likely lead to an unsuccessful
project.
Take the time to ask the right people the right
questions – after all, they expect the completed
project to work.

10. Key skills required
• Interpersonal skills.
• Communication skills and use of various
methods.
• Management skills.

11. Your responsibility as the PM
Identify stakeholder issues, concerns or risks in a
timely manner.
Resolve the issues, concerns or risks swiftly and
in a proactive manner.

12. Key inputs
• Stakeholder register - list of all of the relevant stakeholders on
the project.
• Stakeholder management strategy – document of how to
manage stakeholders and their interests.
• Project management plan (communications management plan
is essential):
• Who should receive project communications?
• What communications should they receive?
• Who should send the communications?
• How will the communications be sent?
• How often will communications be updated?
• Definition of common communication terms.

13. Stakeholder analysis – register

14. Stakeholder analysis – influence v. impact

15. Stakeholder analysis – influence rating chart

16. It’s always about relationships
 Gather and learn as much as possible about the
stakeholder; meet outside work and ask questions; invest
time and effort to understand their needs.
• Determine what motivates stakeholders. What are their
objectives for the project? Are they a first or second level
stakeholder? (May depend on organizational structure).
• Understand why a stakeholder is supporting or rejecting a
decision related to the project.

17. …relationships – project-specific
 Review, document, and continually affirm stakeholder
project environment requirements, needs and desires.
 Engage stakeholders in the formation, planning and
execution of the project – from the start!
 Provide knowledge of project evaluation criteria
(measures) and issue and risk identification.
 Offer open, receptive and continuous communication
throughout the entire project.
 Engage stakeholders in project evaluation and closure
process – forges ownership and project buy-in.

18. Questions?
Patricia J. Williams, PMP
patriciajwilliams@dataedsolutions.com
202-422-2020