PM Notebook - Chapter 13 - Stakeholder Management

PM Notebook
Summarizing Project Management Concepts for the PMP
Exam
Mohammad Elsheimy Road to PMP

PM NOTEBOOK CHAPTER 13 – STAKEHOLDER MANAGEMENT | KEY TERMS
DISCLAIMER: THE MATERIAL INCLUDED IN THIS DOCUMENT IS BASED ON DATA / INFORMATION
GATHERED FROM VARIOUS RELIABLE SOURCES. NONE OF THIS DATA / INFORMATION IS A PROPERTY
OF THE AUTHOR.
1
DISCLAIMER: THE MATERIAL INCLUDED IN THIS DOCUMENT IS
BASED ON DATA/INFORMATION GATHERED FROM VARIOUS
RELIABLE SOURCES. NONE OF THIS DATA/INFORMATION IS A
PROPERTY OF THE AUTHOR. NONE IS INTENDED TO MAKE A
PROFIT IN ANY WAY. THIS IS FOR PERSONAL USE ONLY.

OF THE AUTHOR.
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No great man ever complains of want of opportunity.
Ralph Waldo Emerson

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Table of Contents
Chapter 13 – Stakeholder Management............................................................................................................ 4
Key Terms ............................................................................................................................................................... 4
Processes................................................................................................................................................................ 4
1 – Identify Stakeholders (Initiating) .............................................................................................................. 4
2 – Planning Stakeholder Engagement (Planning).................................................................................... 5
3 – Manage Stakeholder Engagement (Executing).................................................................................. 6
4 – Monitor Stakeholder Engagement (Monitoring & Controlling) ......................................................... 7
Stakeholder Analysis ............................................................................................................................................ 8
Stakeholder Stakes........................................................................................................................................... 8
Stakeholder Influence ..................................................................................................................................... 8
Stakeholder Classifications ............................................................................................................................. 8
Stakeholder Engagement Grid...................................................................................................................... 8
Salience Model................................................................................................................................................. 9
Stakeholder Cube .......................................................................................................................................... 11
Stakeholder Influence Mapping.................................................................................................................. 11
Stakeholder Engagement/Assessment Matrix.......................................................................................... 12
Requirements vs. Expectations........................................................................................................................ 12
Additional Terms ................................................................................................................................................. 12

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Key Terms
A stakeholder is anyone who is affected either positively or negatively by the cost, time, scope,
resources, quality, or risks of your project, or anyone who can influence your project. Some kinds of
stakeholders are –
 Sponsor
 Consumers/Users
 Seller, suppliers, and vendors
 Organizational Groups – Your project might have effect on groups outside the project for
example, sales team and internal support team.
 Business Partner – You might have a contract with a company providing material that affect
your project.
 Functional Manager
Processes
1 – Identify Stakeholders (Initiating)
 Identifying people, groups, and organizations.
 Defining how the stakeholders could affect the project.
 Should be regularly updated especially when a stakeholder is no longer impacted by the
project.
 Identifies the appropriate focus for each stakeholder or a groups of stakeholders.
Inputs
1. Project Charter
2. Business Documents
 Business Case
 Benefits Management Plan
3. Project Management Plan
 Communication Management Plan
 Stakeholder Engagement Plan
4. Procurement Documents
 Parties of the contract are key stakeholders
5. Project Documents
6. Agreements
7. OPAs
 Lessons learned database
 Historical information
 Templates
8. EEFs

PM NOTEBOOK CHAPTER 13 – STAKEHOLDER MANAGEMENT | PROCESSES
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Tools
1. Data Gathering Techniques
 Questionnaires and Surveys
 Brainstorming
2. Data Analysis Techniques
 Stakeholder Analysis – Interviewing stakeholders to find out the value the project has for
them.
 Document Analysis
3. Data Representation Techniques
 Stakeholder Mapping/Representation
4. Expert Judgment
5. Meetings
6. Profile Analysis Meeting – to develop a deeper understanding of major project stakeholders.
The meeting can be used to exchange and analyze information about roles, interests,
knowledge, and the overall position of each stakeholder about the project.
Outputs
1. Stakeholder Register – Lists stakeholders and their groups, roles, responsibilities, requirements
(i.e. goals and expectations), concerns, classifications, contact information, geographic
location, and other relevant information. Shared with others at the discretion of the PM.
2. Change Requests
3. Project Management Plan Updates
4. Project Document Updates
2 – Planning Stakeholder Engagement (Planning)
 Provide a clear plan that is actionable to interact with stakeholders to support the project’s
interests.
 Developing management strategies.
 Analysis of stakeholder needs.
 How stakeholders are prioritized within the project.
 How and why various project information will be distributed to stakeholders.
 Includes identified interrelationships and potential overlap between stakeholders.
 Should be done in the following cases –
o Start of a new phase.
o Changes to the organization or the industry.
o New stakeholders or current stakeholders leave.
o Process outputs that trigger review of stakeholder engagement strategies.
 Stakeholder influence is highest during the initial stages, and gets progressively lower as the
project progresses.
Inputs
1. Project Charter

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 Resource Management Plan
4. Agreements
5. EEFs
6. OPAs
Tools
1. Data Gathering Techniques
3. Decision-Making Analysis
 Prioritization / Ranking
 Stakeholder Engagement Matrices – Main goal is to identify communication gaps.
5. Meetings
6. Expert Judgment
Outputs
1. Stakeholder Engagement Plan
3 – Manage Stakeholder Engagement (Executing)
 Obtain, confirm, and maintain stakeholder commitment.
 Addressing stakeholder needs and keeping communication lines open.
 Address potential concerns and risk.
 Clarifying and resolving issues.
 Increase the likelihood of stakeholders’ acceptance of project goals.
 Is the responsibility of project manager.
 Differences between or among stakeholders should be resolved in favor of the customer.
Inputs
 Change Management Plan
 Stakeholder Register
 Change Log
3. EEFs
4. OPAs
 Historical Information
Tools
5. Data Analysis Techniques – Figures how engaged your stakeholders are today, and how
engaged you want them to be.
6. Communication Skills

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7. Interpersonal/Team Skills
 Resolving Conflicts
 Building Trust
 Active Listening
 Overcoming Resistance to Change
8. Ground Rules
9. Expert Judgment
10. Meetings
Outputs
1. Issue Log
2. Change Requests
4 – Monitor Stakeholder Engagement (Monitoring & Controlling)
 Reviewing if stakeholder needs are being addressed and if changes need to be made.
Inputs
 Resource Management Plan
2. Work Performance Data
 Issue Log
 Stakeholder Register
4. EEFs
5. OPAs
Tools
 Stakeholder Analysis
 Root Cause Analysis (RCA)
 Alternatives Analysis
2. Decision-Making Techniques
 Table Reporting
 Spreadsheets
 Stakeholder Engagement Assessment Matrix
4. Communication Skills
 Presentations
5. Interpersonal/Team Skills
6. Information Management System – Stored reports on project performance.
7. Expert Judgment

PM NOTEBOOK CHAPTER 13 – STAKEHOLDER MANAGEMENT | STAKEHOLDER ANALYSIS
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8. Meetings
Outputs
1. Work Performance Information
2. Change Requests
5. OPA Updates
 Lessons Learned
Stakeholder Analysis
1. Identification of stakeholders and their interest, influence, project contributions, contact
information, and expectations.
2. Prioritizations of stakeholders based on their power, influence, and impact.
3. Anticipation and planning how stakeholders will respond in different project scenarios.
Stakeholder Stakes
 Interest Level – how they affected by your project.
 Rights – whether they have legal or moral rights.
 Ownership – whether they own an asset that is going to be affected by your project.
 Knowledge – they are considered SMEs specially when collecting the requirements.
 Contribution – how they contribute to the project. Do they provide funds, resources, or
support to the project?
Stakeholder Influence
Things to consider when analyzing how stakeholders influence the project and project team and
how the project manager influence the stakeholders –
1. Upward – Senior management, customers, and steering committee.
2. Downward – Project team, SMEs, and consultants.
3. Outward – Suppliers, vendors, government agencies, customers, or public.
4. Sideward – Other PMs, and middle management.
5. Prioritization – Some stakeholders have greater priority than others.
Stakeholder Classifications
1. Internal / External
2. Unaware / Resistant / Neutral / Supportive / Leading
Stakeholder Engagement Grid
Plotting stakeholders on a grid based on two parameters –
 Power / Influence – authority (power) / active involvement (influence).

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 Power / Interest – authority (power) / level of concern (interest).
 Influence / Impact – active involvement (influence) / ability to effect changes (impact).
Salience Model
A way of analyzing stakeholders based on three parameters –
 Power – Power is the authority or influence of the stakeholder on your project or its objective.
 Legitimacy – is the genuineness of involvement with your project. You do not want to
manage a stakeholder closely who does not have legitimate interest in your project.
 Urgency – the degree to which stakeholder requirements call for immediate attention. It
shows how time sensitive the requirements are from the stakeholder.
Salience model uses Venn diagram (also called Set Diagram / Primary Diagram) to represent logical
groups or stakeholders.

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Advantages
 Useful for large complex communities of stakeholders.
 Useful for determining the relative importance of the identified stakeholders.
Categorization
According to the salience model, stakeholders are categorize into four categories –
Group Power Legitimacy Urgency Details
Latent Stakeholders
Dormant High Needs to be managed prudently. E.g.
a top-management stakeholder who
does not take part in any meetings and
has no interest in your project.
Discretionary High Needs regular communication. E.g.
NGOs and charitable organizations.
Demanding High Needs careful management because
they can affect other stakeholders. E.g.
neighbors.
Expectant Stakeholders Active and expect something.
Dominant High High E.g. local authorities in a construction
project.
Dangerous High High E.g. working in remote area where a
group of terrorists act as a dangerous
stakeholders.
The security of your team members is
paramount to you; therefore, you must
identify these stakeholders and find
ways to mitigate the threats they pose
to your team or your project.
Dependent High High Not managed too closely. E.g. local
residents in a construction project.
Definitive/Core
Stakeholders
High High High

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Non-stakeholders
Stakeholder Cube
Supported mapping stakeholders on 3 axes –
 Interest – active or passive.
 Power – influential or insignificant.
 Attitude – backer or blocker.
Categorization
This approach facilitates the development of eight typologies –
1. Insignificant active backer
2. Insignificant passive backer
3. Insignificant active blocker
4. Insignificant passive blocker
5. Influential active backer
6. Influential passive backer
7. Influential active blocker
8. Influential passive blocker
Stakeholder Influence Mapping
Used when you need to consider three things –
1. Importance of stakeholders – Represented by item size.
2. Relationships among stakeholders – represented by lines/arrows.
3. Amount of Influence stakeholders have over others – represented by the heaviness of colors
of item and the lines.

PM NOTEBOOK
CHAPTER 13 – STAKEHOLDER MANAGEMENT | REQUIREMENTS VS.
EXPECTATIONS
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Stakeholder Engagement/Assessment Matrix
A way of analyzing and portraying the level (Current or C) and direction (Desired or D) of
stakeholder engagement. Recommended classification is as follows –
 Unaware – does not know about the project or its benefits and other impacts.
 Resistant – aware of the project and its impacts, but resistance to the change.
 Neutral – aware of the project, not resistant or supportive.
 Supportive – aware of the project, and supports the change and potential impacts.
 Leading – aware of the project and potential impacts, and actively ensuring its success.
Requirements vs. Expectations
Stakeholder Requirement – is what someone needs to get out of your project. E.g. get a
reputation as a great DJ.
Stakeholder Expectations – are what they think will actually happen. E.g. Venue will have a top-
class sound system.
Additional Terms
Profile Analysis Meeting – To examine and document the roles in the project. The role’s interests,
concerns, influence, project knowledge, and attitude are documented.

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