BSBPMG507A Apply Communication Management Techniques

10.1 Identify Stakeholders

• The process of identifying all people and organisations involved in or impacted by the project

• Stakeholder information is gathered including their interests, involvement and potential impact on project success

• Includes diverse groups such as customers, sponsors, impacted management, impacted staff, external organisations and sometimes even the public or press

• Stakeholders can positively or negatively impact the project

• Occurs during Planning Initiation Planning Execution Close

Monitor

Control

Adapted from PMBOK 4th Edition

BSBPMG507A Apply Communication Management Techniques

Definition of Project Stakeholders

• Stakeholders are persons or organisations who are actively involved in the project or whose interests may be positively or negatively affected by the performance or completion of the project.

• Stakeholders may also exert influence over the project, its deliverables and the project team members.

• The project management team must identify both internal and external stakeholders in order to determine the project requirements and expectations of all parties involved.

• The Project Manager must manage the influence and expectations of the various stakeholders to ensure a successful project outcome.

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Stakeholders and the Project

OperationsManager

Other Stakeholders

Portfolio Manager

Program Manager

Project Sponsor

Project Management

Team Project Manager

Project Team

FunctionalManagers

Business Partners

CustomersProject

ManagementOffice

Project Stakeholders

Project Team

The Project

PMBoK Guide – Fourth Edition, figure 2.6

BSBPMG507A Apply Communication Management Techniques

Stakeholder Identification

• Identifying stakeholders and understanding their relative influence on a project is critical.

• It can be difficult• Stakeholders can change over time and new ones can

be identified during the project• Stakeholder expectations and power can also change

during the project

BSBPMG507A Apply Communication Management Techniques

Internal and External Stakeholders

The Project

Internal Stakeholders

External Stakeholders

OperationsManager

Other Stakeholders

Portfolio Manager

Program Manager

FunctionalManagers

Business Partners

Customers

Project Management

Office

Public

GovernmentSub

Contractors

OtherStakeholders

Competitors

Suppliers

BSBPMG507A Apply Communication Management Techniques

10.1 Identify Stakeholders

• Inputs to Identify Stakeholders -Project CharterProcurement Documents and ContractsEnterprise Environmental Factors

– Organisation culture and structure– Government regulations and– Industry standards

Organisational Process Assets– Stakeholder register templates– Lesson learned from previous projects– Stakeholder Registers from previous projects

• Tools and techniques to Identify Stakeholders –

Adapted from PMBOK 4th Edition

StakeholderAnalysis

ExpertJudgement

BSBPMG507A Apply Communication Management Techniques

10.1 Identify Stakeholders

Stakeholder Analysis

• The process of systematically gathering and analysing information to determine whose interests should be taken into account throughout the project

• It identifies the interests, expectations and influence of the stakeholders

• Looks at stakeholders with positive and negative feelings towards the project

Step 1 - Identify all potential project stakeholders

Step 2 – Identify Power and Impact of each stakeholder

Step 3 – Assess likely stakeholder reactions and plan to get support

Adapted from PMBOK 4th Edition

BSBPMG507A Apply Communication Management Techniques

Steps in Stakeholder Analysis

1. Identify all potential stakeholders and information about them

Understand their role and authority levels

Identify their interest and expectations

Key stakeholders are easily identified as they appear in the project governance and structure chart

Key stakeholders include anyone in a decision-making or management role that will be impacted by the project

Interview key stakeholders to identify more stakeholders

Positive stakeholders can be leveraged to enhance project success

Negative stakeholders need to be encouraged to support the project, or at least be neutral

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Steps in Stakeholder Analysis

2. Identify Stakeholder Power and Interest

Classify stakeholders

Plan approach to stakeholder management depending on their power and interest

Identify stakeholder communication requirements

Complete the Stakeholder Power & Interest Grid

It is critical to understand their roles or positions, interests, expertise, expectations and levels of influence

BSBPMG507A Apply Communication Management Techniques

Steps in Stakeholder Analysis

3. Assess likely stakeholder reactions

Identify stakeholder related risks

Monitor and control stakeholder related risks

Develop risk management plans and mitigation strategies to reduce negative impacts

Complete the Stakeholder Register and determine management strategy

Positive stakeholders can be leveraged to enhance project success

Negative stakeholders need to be encouraged to support the project, or at least be neutral

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Stakeholder Power & Interest Grid

KeepSatisfied

Monitor(minimum effort)

Keep Informed

ManageClosely

Interest

Po

wer

Low

Low High

Hig

h

PMBoK Guide – Fourth Edition

BSBPMG507A Apply Communication Management Techniques

Expert Judgement

• Stakeholders are normally uncovered through discussions with the key stakeholders and the list should be expanded until all potential stakeholders are identified – e.g staff or customers impacted by the project, third party suppliers, finance and legal departments

• It can be difficult to identify all the stakeholders• Different experts who should be consulted include -

SeniorManagement

IndustryGroups

PMO

SubjectMatter

Experts

OtherProject

Managers

KeyStakeholders

ConsultantsProfessionalAssociations

BSBPMG507A Apply Communication Management Techniques

10.1 Identify Stakeholders

• Outputs of this process include –Stakeholder Register

– Identification information– Assessment information– Stakeholder Classification

Stakeholder Management Strategy

– Defined approaches to increase support or decrease negative impacts

Stakeholder Analysis Matrix– Takes the results of the above and the Power and Interest assessment– Summarises and organises into a register or table– Includes potential strategies to gain support or reduce negative impacts

Adapted from PMBOK 4th Edition

BSBPMG507A Apply Communication Management Techniques

Stakeholder Register or Stakeholder Analysis Matrix

• First step in communication planning• Includes expectations (interests) and management

approach (strategies)• Content can be very sensitive • Discretion is required regarding access to the document

and distribution lists

Adapted from PMBOK 4th Edition

Stakeholder Stakeholder Interests in the Project

Assessment of Impact and Authority

Potential strategies for gaining support and reducing objections

Stakeholder name and position title Areas of interest –

functional, operational, specific project outcome or key knowledge area

Using the Power and Interest Grid to determine level of authority and also level and type of impact (positive or negative)

Specific actions planned to gain support and reduce objections, leverage supporters and neutralise detractors