Advanced Diploma in Project Management

Project ManagementStakeholder: Theory and PracticeProject Management TechniquesStakeholders PMBOK 5th Ed (2.2 p 30)2A stakeholder is 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.Stakeholders may be actively involved in the project or have interests that may be positively or negatively affected by the performance or completion of the project. Different stakeholders may have competing expectations that might create conflicts within the project. Stakeholders may also exert influence over the project, its deliverables, and the project team in order to achieve a set of outcomes that satisfy strategic business objectives or other needs.Stakeholders include all members of the project team as well as all interested entities that are internal or external to the organization.The project team identifies internal and external, positive and negative, and performing and advising stakeholders in order to determine the project requirements and the expectations of all parties involved.The project manager should manage the influences of these various stakeholders in relation to the project requirements to ensure a successful outcome.Project Management TechniquesStakeholders PMBOK 5th Ed (2.2.1 pg 31)3Stakeholders have varying levels of responsibility and authority when participating on a project.This level can change over the course of the projects life cycle.Their involvement may range from occasional contributions in surveys and focus groups to full project sponsorship which includes providing financial, political, or other support.Some stakeholders may also detract from the success of the project, either passively or actively.These stakeholders require the project managers attention throughout the projects life cycle, as well as planning to address any issues they may raise.Project Management Techniques Stakeholders general categories4

Stakeholders are groups / individuals that are affected by and/or have an interest in the operations and objectives of the business

Most businesses have a variety of stakeholder groups which can be broadly categorised as follows:Project Management TechniquesStakeholder Identification5Most projects will have a large number of stakeholders.

As the project managers time is limited and must be used as efficiently as possible, these stakeholders should be classified according to their interest, influence, and involvement in the project.

This enables the project manager to focus on the relationships necessary to ensure the success of the project.Project Management TechniquesStakeholder Management 6A process and control that must be planned and guided by underlying Principles.Stakeholder management, within business or projects, prepares a strategy utilising information (or intelligence) gathered during the following common processes:Stakeholder identification - Interested parties either internal or external to organisation/project. A stakeholder map is helpful for identifying the stakeholders.Stakeholder analysis - Recognise and acknowledge stakeholder's needs, concerns, wants, authority, common relationships, interfaces and align this information within the Stakeholder Matrix.

Project Management TechniquesStakeholder Management7The importance of stakeholder management is to support an organization in achieving its strategic objectives by interpreting and influencing both the external and internal environments and by creating positive relationships with stakeholders through the appropriate management of their expectations and agreed objectives.Project Management TechniquesStakeholder Engagement8Different to Stakeholder Management in that the engagement does not seek to develop the project/business requirements, solution or problem creation, or establishing roles and responsibilities.It is primarily focused at getting to know and understand each other, at the Executive level.Engagement is the opportunity to discuss and agree expectations of communication and, primarily, agree a set of Values and Principles that all stakeholders will abide by.

Project Management Techniques Stakeholders Communicating Information9Expectations are established and agreed for the manner in which communications are managed between stakeholders - who receives communications, when, how and to what level of detail. Protocols may be established including security and confidentiality classifications.Stakeholder agreements is a collection of agreed decisions between stakeholders. This may be the lexicon of an organisation or project, or the Values of an initiative, the objectives, or the model of the organisation, etc. These should be signed by key stakeholder representatives.Contemporary or modern business and project practice favours transparent, honest and open stakeholder management processes.Project Management TechniquesExample of a Stakeholder Map10

http://blog.prince2.com/2011/09/how-to-identify-stakeholders/Project Management TechniquesProject stakeholders may include:11Beneficiaries of project interventions.Partner organizations, both governmental and non-governmentalDonor or funding organizations and individuals that contribute with funds, goods or servicesProject staff and volunteersRegulatory bodies, national and internationalLocal authorities, national and local governmentThe media and the general publicSocial, political and religious entitiesProject Management TechniquesAnd12

Project Management TechniquesWhy Moor Frogs?13International Journal of Managing Projects in Business Vol. 6 No. 1, 2013 pp. 69-87Project temporalities: how frogs can become stakeholders:One Sunday afternoon in October 2004 work at a construction site near the city was brought to a halt by the local police. When the police arrived, construction workers were working at the site. Two representatives from the society for nature conservation (SNC) had observed this activity and alarmed the police, claiming that the workers were in the midst of destroying the habitat of a protected species, the moor frog. This episode can be seen as the culmination of an ongoing conflict between, on the one hand, the developer responsible for the building project and, on the other hand, local SNC activists and several local politicians. The conflict had been going on for more than a year when this incident took place.

There are a few things we know collaborative networks of immaterial production to facilitate virtuosic improvisation, self-exploitation, flexibilized labour, distributed production, bohemia, urban regeneration, project temporalities. Whether as cultural projects or other post-fordist production, networks of co-work are part and parcel of the neoliberal1 blurring of work and life. We know how to make critiques of these as much as we know how to praise networks via discourses of horizontality and co-production. Yet we understand little about those networks as sites of life: besides intense collaborations being forged, great projects getting done, struggles being organized, what happens in them? Who inhabits them and how?Project Management TechniquesThe Four Groups of Stakeholders14High Power and Interested PeopleThese are the people you must fully engage with and make the greatest efforts to satisfy. For example have face to face communication with these people at least once a week.

High Power and Less Interested PeopleYou must put enough work in with these people to keep them satisfied, but not so much that they become bored with your message. For Example a good way to do this is by sending them monthly reports.

Low Power and Interested People Try to keep these people adequately informed and talk to them to ensure that no major issues are arising. These people can often be very helpful with the detail of your project. Examples on how to keep this group happy is to provide them with constant updates via weekly reports and minutes from meetings.

Low Power and Less Interested PeopleMonitor these people, but do not bore them with excessive communication. One really good way is to send them monthly project newslettersProject Management TechniquesManaging Project Stakeholders15Stakeholder groups vary both in terms of:

their interest in the business activities and

their power to influence business decisions.

Here is a useful summary:

Project Management TechniquesProject Stakeholders Interests, Power and Influence16Stakeholder

Shareholders

Banks & other Lenders

Directors and managers

Employees

Suppliers

Customers

Community

GovernmentMain Interests

Profit growth, Share price growth, dividendsInterest and principal to be repaid, maintain credit ratingSalary ,share options, job satisfaction, statusSalaries & wages, job security, job satisfaction & motivationLong term contracts, prompt payment, growth of purchasingReliable quality, value for money, product availability, customer serviceEnvironment, local jobs, local impactOperate legally, tax receipts, jobs

Power and influence

Election of directorsCan enforce loan covenants, can withdraw banking facilitiesMake decisions, have detailed informationStaff turnover, industrial action, service qualityPricing, quality, product availabilityRevenue / repeat business, word of mouth recommendationIndirect via local planning and opinion leadersRegulation, subsidies, taxation, planning

http://www.tutor2u.net/business/accounts/stakeholder_theory.htmProject Management TechniquesStakeholder power matrixAArms-length powerBComprehensive powerDDisempoweredCOperational powerOperational powerLowHighLowHighCriteria Power(Winstanley et al., 1995)Diana Winstanley, Dick Sorabji, Sandra Dawson (1995) When the pieces don't fit: A stakeholder power matrix to analyse public sector restructuring Public Money & Management Vol. 15, Iss. 2, 1995

1718Positioning stakeholders according to the level of influence, impact or enhancement they may provide to the business or its projects.Stakeholder Power Matrix Project Management TechniquesProject Governance (new in 5th Ed of PMBOK)19Project governancethe alignment of the project with stakeholders needs or objectivesis critical to the successful management of stakeholder engagement and the achievement of organizational objectives.Project governance enables organizations to consistently manage projects and maximize the value of project outcomes and align the projects with business strategy.It provides a framework in which the project manager and sponsors can make decisions that satisfy both stakeholder needs and expectations and organizational strategic objectives or address circumstances where these may not be in alignment.Managing Project Stakeholders20Dont take for grantedCast the net wideList initially as internal and external.Importance according to near/far; influence; powerWinstanleyMap themKeep a log of contacts (use online template if required)

Project Management Techniques