Project Stakeholders’ Role for its Success or Failure

Riyadh, Sept., 01, 2015

Mohamed El Agroudy, CCT, PMP, RMP, TRC, ACIArb, M.ASCE

Project stakeholder management

Project stakeholder management

• Project Stakeholder Management includes the processes required to

identify the people, groups, or organizations that could impact or beimpacted by the project, to analyze stakeholder expectations andtheir impact on the project, and to develop appropriatemanagement strategies for effectively engaging stakeholders inproject decisions and execution.

• Stakeholder management also focuses on continuous

communication with stakeholders to understand their needs andexpectations, addressing issues as they occur, managing conflictinginterests and fostering appropriate stakeholder engagement inproject decisions and activities. Stakeholder satisfaction should bemanaged as a key project objective.

Project stakeholder management(According to PMBOK 5th Edition)

• It includes four processes:

• Identify Stakeholders

• Plan Stakeholder Management

• Manage Stakeholder Engagement

• Control Stakeholder Engagement

1. Identify Stakeholders

• The process of identifying the people, groups, or

organizations that could impact or be impacted by adecision, activity, or outcome of the project; andanalyzing and documenting relevant informationregarding their interests, involvement,interdependencies, influence, and potential impacton project success.

Do not exclude any concerned parties!!!

stakeholders• Project stakeholders are persons or organizations such as customers, sponsors,

the performing organization, and the public that are actively involved in theproject, or whose interests may be positively or negatively affected by theexecution or completion of the project.

• Stakeholder analysis

- identify all potential project stakeholders

- identify the potential impact or support each stakeholder could generate

- assess haw key stakeholders are likely to respond in various situations.

• Stakeholder register

- identification information

- assessment information

- stakeholder classification

Stakeholders

Classification

• Classify to PRIORITIZE

key stakeholders and

utilize efforts. Example

of classification

models ITEMS:

1. Power = authority

2. Interest = concern

3. Influence =

involvement

4. Impact = ability to

affect planning or

execution

Se we could use,

power/interest,

power/influence,

influence/impact,

Or salience model:

power + urgency +

legitimacy

Stakeholder Analysis

Salience Model, describing classes of

stakeholder based on their:

• Power (ability to impose their will),

• Urgency (need for immediate attention), and

• Legitimacy (their involvement is appropriate).

Stakeholders

Classification

Salience model

Stakeholder Register

Details of theName Amgad Omar identifiedRole (in project) Management Partner Investor stakeholders.Org Performing org N/A Such as:

Country manager SponsorTitle 1. IdentificationContact Info amgad@perf.org 010-9876543 infoCountry Saudi Egypt

2. ClassificationNative Language Arabic Arabic

3. AssessmentOther Languages English English

informationMarketing reports Dividends InfoRequirements

Expectations Weekly, Email, Brief Pers. notification

Potential Influence High Extremely High

Phase(s) Interested in Execution & Closure Execution

Classification Internal, Supporter Internal, neutral

2.Plan Stakeholder Management

• The process of developing appropriate

management strategies to effectively engagestakeholders throughout the project life cycle,based on the analysis of their needs, interests, andpotential impact on project success.

Analytical Techniques• The current engagement level of all stakeholders needs to be

compared to the planned engagement levels required for successfulproject completion. Stakeholder engagement throughout the lifecycle of the project is critical to project success.

• The engagement level of the stakeholders can be classified as follows:

– Unaware. Unaware of project and potential impacts.

– Resistant. Aware of project and potential impacts and resistant to

change.

– Neutral. Aware of project yet neither supportive nor resistant.

– Supportive. Aware of project and potential impacts and

supportive to change.

– Leading. Aware of project and potential impacts and actively

engaged in ensuring the project is a success.

Analytical Techniques

– C: Current engagement.

– D: Desired engagement.

3.Manage Stakeholder Engagement

• The process of communicating and working with

stakeholders to meet their needs/expectations,address issues as they occur, and foster appropriatestakeholder engagement in project activitiesthroughout the project life cycle.

Change Log

• A change log is used to document changes that occur

during a project.

• These changes—and their impact on the project in

terms of time, cost, and risk—are communicated tothe appropriate stakeholders.

Communication methods

• Interactive communications

• Push communications

• Pull communications

(the project manager decides what, how, and when communication methods are

to be used in the project)

Interpersonal Skills

• The project manager applies interpersonal

skills to manage stakeholders’ expectations.For example:– Building trust,

– Resolving conflict,

– Active listening, and

– Overcoming resistance to change.

Management Skills• The project manager applies management

skills to coordinate and harmonize the grouptoward accomplishing the project objectives.For example:– Facilitate consensus toward project objectives,

– Influence people to support the project,

– Negotiate agreements to satisfy the project needs,

and

– Modify organizational behavior to accept the

project outcomes.

Issue Log

• Issue log or action-item log can be used to document and

monitor the resolution of issues.

• An issue is clarified and stated in a way that it can be resolved.

• An owner is assigned and a target date is usually established

for closure.

• Unresolved issues can be a major source of conflict and

project delays.

Integrate/Unify perspective

4.Control Stakeholder Engagement

• The process of monitoring overall project

stakeholder relationships and adjusting strategiesand plans for engaging stakeholders.

Information Management Systems

• An information management system provides a standard

tool for the project manager to capture, store, anddistribute information to stakeholders about the projectcost, schedule progress, and performance.

• It also allows the project manager to consolidate reports

from several systems and facilitate report distribution tothe project stakeholders. Examples of distribution formatsmay include table reporting, spreadsheet analysis, andpresentations.

• Graphical capabilities can be used to create visual

representations of project performance information.