This document discusses stakeholder analysis for project management. It begins by defining stakeholders as individuals and organizations actively involved in or affected by a project. There are three key steps to stakeholder analysis: 1) identify stakeholders and relevant information, 2) assess the impact or influence each stakeholder could have by classifying them, and 3) evaluate likely stakeholder reactions and risks. Common project stakeholders include the project manager, customer, team members, and sponsor. Tools like power/interest grids can classify stakeholders by power, interest, and influence to determine appropriate management strategies. The outputs of stakeholder identification are a stakeholder register and analysis matrix to help manage stakeholder engagement.

1. Project Management for the
Professional Professional
Part 4 - Stakeholder Analysis
Michael Bevis, JD
CPPO, CPSM, PMP

3. Topic 3 – Common Project Stakeholders
• Who are Stakeholders and what is
stakeholder management?
– Identifying your stakeholders
– Assessing stakeholder knowledge & skills
– Analyzing the project to ensure their requirements will be
met
– Involving stakeholders in the project by:
• assigning them work
• using them as experts
• reporting to them
• involving them in changes & lessons learned
– Getting their approval & acceptance during closure

4. Project Stakeholders
• Project Stakeholders
“ individuals and organizations that are actively
involved in the project, or whose interests may
be affected as a result of project execution or
project completion.”

5. Stakeholder Management
• Step 1: Identify all potential stakeholders and relevant
information.
• Step 2: Identify the impact or influence each stakeholder
could generate, and classify them.
• Step 3: Assess likely stakeholder reactions and identify
potential risks or constraints. (which will be discussed in
later modules)

6. Identify Stakeholders (Step 1)
• Who are Project Stakeholders?
– Who gets the output from the project?
– Who provides project input?
– Who has oversight?
– Who has additional project responsibilities?
– Who benefits from the project?
– Who may be adversely impacted by project outcome?

7. Who are Stakeholders
• Project Stakeholders include:
Project Manager - individual responsible for managing the project.
Customer/User - individual or organization that will use the product (or service)
from the project.
Performing Organizations - organizations whose individuals are doing work on
the project
Team Members – individuals that will be completing project work tasks
Project Team – The team members directly involved in project activities
Portfolio Review Board – Reviews projects at governance level for ROI and value
to the organization.
Sponsor - individual or group who provides the funding (financial resources) for
the project.
Influencers – those who can positively or negatively influence project outcomes
PMO – The PMO has direct or indirect responsibility for project components

8. Assessing Stakeholder Impact
(step 2)
• Impact – Ability to effect changes
• Influence – Active Involvement
• Interest – Level of concern
• Legitimacy - Involvement is appropriate
• Power – Level of authority
• Urgency – Need for immediate attention

9. Stakeholder Impact Classifications:
There are several tools and techniques available to analyze stakeholder input.
Several of them take the form of a Grid. The PMBOK describes the
Power/Interest grid and shows a example of this grid in diagram form. other
grids mentioned below take this same form.
Stakeholder Impact Classifications
Power/Influence Grid:
Level of Authority (power)
Active Involvement
(influence)
Power/Interest Grid
Level of Authority (power)
Level of Concern (interest)
Influence/Impact Grid:
Active Involvement
(influence)
Ability to effect changes
(impact)
Salience Model
Ability to impose their will (power)
Need for immediate attention
(urgency)
Involvement is appropriate
(legitimacy)

10. Power/interest grid:
• High power / high interest - require close monitoring.
Example: End-users
• Low interest / high power - has the ability to influence the project
overall. Example: Project Sponsors
• High interest / low power - interested in the project outcomes; should
be communicated with regularly. Example: Team members
• Low power / low interest - appear to require low maintenance; may
actually become demotivating for project team members and could
influence the project by impacting project deliverables. Example:
Functional managers or other project managers

11. Power/influence grid:
• High power / high influence - key decision makers for the project. In a
leadership role within an organization. Example: Directors, Executive
leadership, Business owners
• Low influence / high power - may effectively slow project through a lack
of support for key team members. People who have other initiatives or
may feel the purpose of the project is unjustified. Example: Executive
leadership, functional managers, review board
• High influence / low power - actively involved in seeing the project
objectives met. Often work long hours and are dedicated to the purpose of
the project. Example: Customers, end-users, team members,
community
• Low power / low influence - can impact the project in a negative way. Not
interested in seeing that project objectives are met and do not see their
involvement as useful. They may believe that the outcomes of the project
are out of their control and therefore will not be motivated to perform the
work. Example: Team members, customers

12. Influence/impact grid:
• High influence / high impact - key stakeholders who are directly affected by project
outcomes; actively involved in project deliverables. They closely monitor the
project scope to ensure changes are addressed quickly and directly. Example:
Department managers, business owners, end-users
• Low impact / high influence - people who are actively involved in the project even
though the outcomes may not impact them directly; believe the purpose of the
project will be for the good of the whole may not have the ability to influence
change, but will continue to perform the work necessary to meet project objectives.
Example: Volunteers, team members, working staff
• High impact / low influence - impacted by project outcomes and changes to
constraints such as scope, schedule or budget; actively involved in the changes that
occur on the project, even if they are not always actively involved in the day-to-day
work. Example: Managers, customers, end-users, team members, community
• Low influence / low impact - not actively involved in the project and have a low
vested interest. Project managers should keep them informed of project status and
changes that may change their status. Example: Secondary stakeholders, people
affected by risks if they occur or if project outcomes are not managed properly

13. Salience model:
• Focuses on the level of stakeholders influence and their vested
interest in the project.
• The phrase “the squeaky wheel gets the oil” is an example where
the stakeholder is managed based upon their ability to exercise their
will or from their need for immediate results.
• The project manager should take caution to ensure their
involvement is legitimate and that their needs are closely monitored
to ensure compliance to agreed upon project objectives.

14. Outputs from Identifying Stakeholders
1. Stakeholder Register
– Details that identify the stakeholder’s name, classification, contact
information, role, communication requirements, abilities and expertise.
2. Stakeholder Analysis Matrix:
– Like the risk register, may contain a numbering system that quantifies the
level of influence the person has on the project.
– Helps to define the strategy used in managing various project
stakeholders.
– May be tied to the risk register or communications plan so that the project
manager can leverage support and positive influence on other
stakeholders and project outcomes.

15. Another powerful tool for managing Human Resources in Project Management is the Responsibility
Assignment Matrix (RAM) it is a grid that shows the connections between work packages (which we will
discuss in the next Module) and project team members. Equally importantly it identifies the relationship
between team members and each other. The following is an example of a RAM from the PMBOK:
RACI Key - R= Responsible; A=Accountable; C=Consult; I=Inform There are other keys such as
PARIS - Perform, Accountable, Review, Inform, Sign-Off
RACI Chart Person
Activity Ann Ben Carlos Dina ED
Create Charter A R I I I
Collect
Requirements
I A R C C
Submit Change
Request
I A R R C
Develop Test
Plan
A C I I R
RACI Chart Person
Activity Ann Ben Carlos Dina ED
Define Scope of
Work
A R I I I
Create
Solicitation
Document
I A R C C
Answer Vendor
Questions
I A R R C
Develop Final
Contract
A C I I R

16. Project Management for the
Professional Professional
Part 3 - Risk Management
Michael Bevis, JD
CPPO, CPSM, PMP