This document discusses stakeholder management in project management. It notes that stakeholder recognition has grown from a single page in 1996 to a full chapter in 2013 in PMI standards. Stakeholders can influence all aspects of a project including scope, risks, costs, timelines, and organizational structure. Effective stakeholder identification, engagement, and management is important for project success, while failure to manage stakeholders properly can lead to project cancellation or cost overruns. The document provides frameworks for analyzing stakeholders and engaging with them throughout the project lifecycle.

1. PROJECT MANAGEMENT
–
STAKEHOLDER MANAGEMENT

2. Project Management –
Stakeholder Framework
•Recap on Project management fundamentals
•Stakeholders
•Stakeholder Management
Stakeholder ‘Recognition’
1996 – Sub Section of 1 page and a technique (‘stakeholder analysis’)
2013 – Complete Dedicated Chapter (24 pages)

3. PMI Processes Groups
KNOWLEDGE AREAS INITIATING PLANNING EXECUTION
MONITORING
& CONTROL
CLOSE
OUT
INTEGRATION 1 1 2 2 1
SCOPE 4 2
TIME 6 1
COST 3 1
QUALITY 1 1 1
HUMAN RESOURCES 1 3
COMMUNICATION 1 1 1
RISK 5 1
PROCUREMENT 1 1 1
STAKEHOLDERS 1 1 1 1
2 24 9 11 1
PROCESS GROUP

4. Projects & Project Management
Project:
• A project is a temporary endeavor undertaken to create a unique product,
service, or result.
Project Stakeholder Management
• Processes to identify people, groups or organisations that could impact or be
impacted upon by the Project.
Management – PDCA – need to engage / understand stakeholders to move
forward

5. Triple Constraint – Pick Any Two
Project
Scope
&Risk
Time
CostQuality
• Good & Cheap – Not Fast
• Cheap & Fast – Not Good
• Good & Fast – Not Cheap
…but in who’s opinion?

6. Food For Thought – Scope & Stakeholders
ELEMENTS OF PROJECT MANGEMENT (after PMBOK, 1996)
INTERNAL CONTROL _________________________________________________________________________________________________________ EXTERNAL INFLUENCES
Increasing Risk
Decreasing Control
RISK
HUMAN
RESOURCES
COMMUNICATIONS
PROCUREMENT
SCOPE
STAKEHOLDERS
INTEGRATION

7. Stakeholders- Influence on Project
• WBS / CBS / RBS /OBS / TBS
• Some of the Scope/Quality is determined by
S’holders
• Some of the Risk is on account of S’holders
• Some of the Costs are for S’holders
• Some time constraints are controlled by
S’holders
• Organizational Structure to deliver the Project
also includes some of the Stakeholders
• they approve things!!
Risk Base

8. Stakeholder & Stakeholder Management
•Stakeholder
“an individual, group or organization who may affect, be affected by,
or perceive itself to be affected by a decision, activity or outcome of a
project”
“the projects and organizations, which may influence, or are influenced
by the Project.”
• Origins –
pioneering days when people would mark out their property with
stakes, as in "stake your claim” and the people who helped “‘hold’
those stakes”.

9. PMI – Stakeholder
Management
Process Inputs Tools Outputs
Identify Stakeholders Project Charter,
Procurement
Documents (TOR /
Contracts/Scope).
Organizational
Assets, Enterprise
(External) Factors
Stakeholder
Analysis, Expert
Analysis,
Meetings
Stakeholder
Register
Plan Stakeholder
Management
Project Plan,
Stakeholder
Register,
Enterprise Factors,
Organizational
Assets
Expert Judgment,
Meetings,
Analysis
Stakeholder
Management Plan,
Update documents

10. PMI - Stakeholders
Process Inputs Tools Outputs
Manage
Stakeholder
Engagement
Stakeholder Plan,
Communications
Plan, Change Log,
Organizational
assets.
Communication
Methods,
Interpersonal
skills,
Management
skills
Issues Log, Change
requests, updates
Control
Stakeholder
Engagement
PM Plan, Issues
log, Work
Performance Data,
Project Documents
Information
management
(Project
Controls), Expert
Judgment,
Meetings
Work performance
information, Updates of
plans etc.

11. Stakeholder Management - ID
• Core Stakeholders – Project Management Team, Upper Management,
Support departments
• Project sponsor, Customer
• End User, Peer Managers
• Opponents, Competitors

12. Stakeholder Categories

13. Alternatively 
• Zealots
• Passives
• Moaners
• Opponents
• Mutineers
• Heretics / Dissidents
• Waverers
“You can fool some of the people all of the time
all of the people some of the time
BUT you can’t fool all of the people all of the time”

14. Analysis - Power Influence Matrix
High
Keep Satisfied Manage Closeley
Low
Monitor Keep Informed
Low High
Interest / Influence
Power

15. Analysis
•Unaware
•Resistant
•Neutral
•Supportive
•Leading
Need to consider how to engage, and if it is necessary based on the
power influence / interest matrix.

16. Stakeholders – Classification
•Principal: Key corporate personnel/departments and external players
(Ministers / Regulatory Authorities)
•Primary: Project specific stakeholders that include key opinion makers,
interested organisations and influential individuals.
•Important (Secondary) :Those directly affected, for example residents
or landowners. Those indirectly affected, for example the wider
community surrounding the construction zone. Those that are affected
at a National level.
•Tertiary – nobody likes to be third – it can make them feel unwanted or
alienated!!!

17. Stakeholder Engagement (Doing)
•Contacting the right people in the right way
•Meetings & Introductions
•Information to be exchanged & sources
•Stakeholder view (+ve / -ve; asset protector/developer)
•Process of interacting
•Escalation Process
Requires interpersonal skills, resolving conflict, handling change,
listening, building trust, negotiating.

18. Food for Thought – Problem
Stakeholders / Enemies

19. Stakeholder Mismanagement ?
•Fantastic project!
•Links east & west coast rail
networks with airport links
•Benefit ; Cost of 2.8
•Creation of Jobs
•Creation of business opportunity
•All environmental aspects
addressed – net +ve
environmental

20. Scottish Railway Project
Extensive Stakeholder Recognition Program
Town / Village / School Meetings
National Rail and Airport Interface Meetings / Reviews
Advertising campaign promoting business / jobs
BUT
Minority Political Party who were anti project had been identified but
ignored
AND
They were elected and cancelled the Project!
AND
GBP 30 million spent!!

21. Positive Stakeholder Management
• Built for large theatrical productions
• Original time/cost: 5 years / $7 million
• Actual 15 years to build (1958 – 1973)
• Actual Cost $102.
• 10 years late / 14X over budget
• BUT
• Stakeholder supported
• Tourists love it!!
• World Heritage Site
• Paid for & profitable

22. Control Stakeholder Engagement
(Check/Action)
•Is appropriate information being obtained?
•Are stakeholder processes visible?
•Are there conflicts (technical, physical, interpersonal)?
•Can Stakeholder views/ideas be incorporated?
•Are issues being raised and closed?
If not then some escalation is required and ‘power’ needs to be used
or requirements accepted with corresponding adjustments/changes
to the project.

23. Stakeholder Management
PDCA Cycle
ANALYSE
STAKEHOLDERS
ENGAGE
STAKEHOLDERS
ISSUES ARISING
MANAGE
STAKEHOLDERS
IDENTIFY
STAKEHOLDERS
DOCUMENT
PROJECT NEEDS
PLAN
ACTION
DO
DO
CHECK PLAN

24. Negotiations – Several Methods
• Collaborative
• Confrontational / Adversarial

25. Conclusions
•Stakeholders can be almost anybody or everbody at an individual or
organisational level
•Stakeholders can have a positive or negative effect on the outcome of
a project (perception)
•Stakeholder requirements are often essential to a Project’s
development (end users)
•Stakeholder engagement is a soft skill and may need to be escalated.
(Influential land owners)
•Stakeholders cannot be ignored and they and their
inputs/requirements need to be actively involved / managed.

26. Remember
• Stakeholders influence all aspects of the project.
• Influence can be +ve or –ve, subjective or
objective.
• It’s not just the big ‘issues’ or big and powerful
organisations or individuals that are
stakeholders…
…one person can change many things (Mandela,
Gandhi, etc).

27. Questions / Discussion