13 Project Stakeholder

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13 Project Stakeholder Management
CAPM Certification Examination Training Material Version 5.0 Copyright 2013 by

PMI Mumbai Chapter. All rights reserved.
CAPM Certification Examination Training Material Version 5.0 Copyright 2013 by PMI Mumbai Chapter. All
rights reserved.
Contents
PMBOK
PMBOK
1. Identify Stakeholders
2. Plan Stakeholder Management
3. Manage Stakeholder Engagement
4. Control Stakeholder Engagement
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Project Stakeholder Management
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391
Introduction
Stakeholder satisfaction is managed as a key project objective using the following processes
Identify StakeholdersThe process of identifying the people, groups, or organizations that
could impact or be impacted by a decision, activity, or outcome of the project: and analyzing and
documenting relevant information regarding their interests, involvement, interdependencies,
influence, and potential impact on project success.
Plan Stakeholder ManagementThe process of developing appropriate management
strategies to effectively engage stakeholders throughout the project life cycle, based on the
analysis of their needs, interests, and potential impact on project success.
Manage Stakeholder EngagementThe process of communicating and working with
stakeholders to meet their needs/expectations, address issues as they occur, and foster
appropriate stakeholder engagement in project activities throughout the project life cycle.
Control Stakeholder EngagementThe process of monitoring overall project stakeholder
relationships and adjusting strategies and plans for engaging stakeholders.
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Project Stakeholder Management
PMBOK
Project Management Process Groups

Initiating
Planning
Identify
Stakeholders
Plan
Stakeholder
Management
Executing
Manage
Stakeholder
Engagement
Monitoring and
Controlling
Closing
Control
Stakeholder
Engagement
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13.1
Identify Stakeholders
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393
Introduction
Identify Stakeholders is a process of identifying the people , groups or

Organizations that could impact or be impacted by a decision, Activity
or outcome of the project, analysing and documenting relevant
information regarding their interests involvement, interdependencies,
influence and potential impact on the Project success.
Identify Stakeholders is the process of identifying all people or
organizations impacted by the project and documenting relevant
information regarding their interests, involvement and impact on project
success.
It is critical for project success to identify the stakeholders early in the
project and analyze their levels of interest, expectations, importance and
influence.
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13.1
Inputs
1. Project Charter
2. Procurement
documents
3. Enterprise
Environmental factors
4. Organizational process
Assets
Tools and Techniques
1. Stakeholder Analysis
2. Expert Judgement
3. Meetings
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Outputs
1. Stakeholder Register
Identifying all people or organizations impacted by the project and their interests
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13.1.1
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Inputs
1. Project Charter Indicates internal and external stakeholders

2. Procurement documents Project buyer, seller, suppliers etc.
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13.1.2
1. Stakeholder Analysis:
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It is a process of systematically gathering and analyzing quantitative

and qualitative information to determine whose interest should be taken
into account throughout the project.
It identifies interests, expectations and influence of the stakeholders
and relates them, to the purpose of the project.
It identifies stakeholder relationships that can be leveraged to build
coalitions and potential partnerships to enhance projects success.
Multiple classification models could be used like:
Power (level of authority) /Interest (concern) grid

Power /Influence (active involvement) grid
Influence /Impact (ability to effect changes) grid
Salience model (power, urgency (need for urgent attention), legitimacy
(involvement is appropriate))
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13.1.2
1. Stakeholder Analysis: Example
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13.1.2
PMBOK
2. Expert Judgment : To ensure comprehensive identification and

listing of shareholders involve through individual consultation / panel
format :
Senior Management
Other units within the organization
Identified stakeholders
Project managers who have worked on the projects in the same area
Subject matter experts (SMEs)
Industry groups and consultants
Professional and technical associations
3. Meetings
Profile Analysis Meetings
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397
13.1.3
PMBOK
Outputs
Identification Information: Name, position, location, role, contact details
Assessment information: main requirements, expectations, potential
influence, phase of project with most interest
Stakeholder Classification: Internal/External, supporter/neutral/resistor etc.
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398
13.2
Plan Stakeholder Management
PMBOK
Introduction
Plan Stakeholder Management is a process of developing appropriate

management strategies to effectively engage stakeholders throughout
the project life cycle, based on the analysis of their needs, interests and
potential impact on project success.
The key benefit of this process is that it provides a clear actionable plan
to interact with project stakeholders to support the project interests.
Plan Stakeholder Management identifies how the project will affect
stakeholders, which then allows the project manager to develop various
ways to effectively engage stakeholders in the project, to manage their
expectations, and to ultimately achieving the project objectives.
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399
13.2

Inputs
1. Project Management
Plan
3. Enterprise
Environmental factors
4. Organizational process
Assets
1. Expert Judgement
2. Meetings
3. Analytical Techniques
PMBOK
Outputs
1. Stakeholder
Management Plan
2. Project Documents
Updates
Developing Management Strategies to effectively engage stakeholders
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399
13.2
PMBOK
Inputs
1. Project Management Plan Indicates internal and external

stakeholders
2. Stakeholder Register Identification Information, Assessment
information and Stakeholder Classification.
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400
13.2
PMBOK
1. Expert Judgment: In order to create the stakeholder

management plan, judgment and experts should be sought from
groups or individuals within the organization, such as
Senior management
Project team members
Other units or individuals with in the organization
Identified key stakeholders
Project Managers who have worked in the same domain
Subject Matter experts in business or project area
Industry groups and consultants
Professional and technical associations, regulatory bodies, and non
governmental organizations
2. Meetings
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401
13.2

3. Analytical Techniques:
PMBOK
The engagement of the stakeholders can by classified as follows:
Unaware: Unaware of project and potential impact

Resistant: Aware of project and potential impact and resistant to change
Neutral: Aware of Project yet neither supportive not resistant
Supportive: Aware of project and potential impact and supportive to change
Leading: Aware of project and potential impact and actively engaged in ensuring
the project is a success.
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402
13.2

1. Stakeholder Management Plan
PMBOK
Outputs
The Stakeholder Management Plan can be formal or informal, highly

detailed or broadly framed, based on the needs of the project.
In addition to the data gathered in Stakeholder register the stakeholder
management plan can include
Desired and current engagement levels of the key stakeholders
Scope and impact of change to stakeholders
Identified interrelationships and potential overlap between stakeholders
Stakeholder communication requirements for the current project phase.
Information should be distributed to the stakeholders, including language,
format, content and level of details
Reason for the distribution of the information and the expected impact
Time frame and frequency for the distribution of required information.
Method for updating and refining Stakeholder Management Plan as project
progresses and develops
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403
13.3
Manage Stakeholder Engagement
PMBOK
Introduction
Manage Stakeholder Engagement is the process of communicating and

working with stakeholders to:
Influence/manage their expectations:
- to increase the likelihood of project acceptance by negotiating and
influencing their desires to achieve and maintain the project goals
Address concerns:
- which have not become issues
- usually related to the anticipation of future problems
- need to be uncovered and discussed and risks assessed
Clarifying and resolving identified issues which may result in
- change request
- postpone for another project or phase or organizational entity
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404
13.3

Inputs
PMBOK
Outputs
1. Stakeholder
Management Plan
1. Communication
Methods
1. Issue Logs
2. Communication
Management Plan
2. Interpersonal skills
Plan Updates
3. Change Log
4. Organizational
Process Assets
3. Management skills
2. Change Requests
4. Project document
updates
5. Organizational Process
Assets Updates
Communicating and working with stakeholders to meet their needs /expectations
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404
13.3

1. Stakeholder Management Plan
PMBOK
Inputs
2. Communication Management Plan

3. Change Log
Used to document changes during a project
The impact of changes of on project in terms of time, cost and risk must be
communicated to appropriate stakeholders
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404
13.3
PMBOK
1. Communication Methods
2. Interpersonal skills: Building trust, resolving conflict, active listening,
overcoming resistance to change
3. Management skills: Presentation skills, negotiating, writing skills and
public speaking
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404
13.3

1. Issue Logs
PMBOK
Outputs
Used to document and monitor resolution of issues

Issues do not normally rise to become a project or activity
Usually addressed in order to maintain good, constructive working
relationships amongst stakeholders, including team members
Issues are categorized based on (i) urgency and (ii) potential impact
For issues, owners are assigned for resolution with target dates
Unresolved issues can be a major source of conflict and project delays.
2. Change Requests: May also include corrective or preventive actions as

appropriate
3. Project Management Plan Updates
4. Project document updates
5. Organizational Process Assets Updates: May include causes of issues,
reasoning behind corrective actions taken, Lessons Learned form
managing stakeholder
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404
13.4
Control Stakeholder Engagement
PMBOK
Introduction
Control Stakeholder Engagement is the process of

Monitoring overall stakeholder relationships and
Adjusting strategies and plans
To Increase efficiency and effectiveness of stakeholder

engagement activities
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409
13.4

Inputs
Plan
2. Issue Log
3. Work Performance
Data
1. Information
Management Systems
2. Expert Judgement
3. Meetings
PMBOK
Outputs
1. Work Performance
Information
2. Change Requests
Plan Updates
4. Project document
updates
5. Organizational Process
Assets Updates
Increasing efficiency and effectiveness of stakeholder engagement activities
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410
13.4
PMBOK
Inputs
1. Project Management Plan:

Information used but not limited to
What project lifecycle and processes are planned for each phase?
How work will be accomplished?
How human resources, their roles, responsibilities, reporting, staffing is
planned?
How changes will be monitored and controlled?
Need and techniques that will be used for communication among
stakeholders
2. Issue Log:
Updated with closure of issues
Addition of new issues
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411
13.4
PMBOK
Inputs
3. Work Performance Data

Observations and measurement identified during project activities but not
limited to
% of work completed,
Technical performance measures
Start and finish dates of scheduled activities
Number of changes requests, defects,
Actual costs, duration , etc.
Documents include but are not limited to
Project Schedule
Stakeholder register
Issue log, Change log, and
Project Communications
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411
13.4
PMBOK
1. Information Management Systems

To capture, store and distribute information about project costs,
performance and schedule
To consolidate reports from different systems and distribute reports
2. Expert Judgement
To ensure identification and inclusion of all stakeholders reassessment of
current stakeholders can be done
Inputs can be sought from groups or individuals with specialized training or
like subject matter expertise
3. Meetings
To exchange and analyse information on stakeholder engagement.
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412
13.4
PMBOK
Outputs
1. Work Performance Information

Information created through contextual analysis of work performance data
and integration based on its relation with other areas
Correlated and contextual information that can be used for decision making
2. Change Requests
Result of analysis of performance data and interaction with stakeholders
Corrective actions to help bring future project performance in line with project
management plan
Preventive actions to reduce probability of future negative project performance
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13.4
PMBOK
Outputs
3. Project Management Plan Updates

Change in strategy or approach to improve stakeholder engagement may
lead to updates in document included but not limited to
Change management plan
Communications management plan
Cost management plan
Human resources management plan
Procurement management plan
Quality management plan
Requirements management plan
Risk management plan
Schedule management plan
Scope management plan
Stakeholder management plan

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413
13.4
PMBOK
Outputs
4. Project Document Updates
Project documents that may be updates include but not limited to
Stakeholder register
Issue log
5. Organizational Process Assets Updates
Organizational process assets that may be updated include but not limited
to
Stakeholder notifications
Project Reports
Project Presentations
Project Records
Feedback from stakeholders
Lessons learned documentation
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415

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What are the four processes of project stakeholder management?

What are the four processes of project stakeholder management?

What are the inputs and outputs of the Control Stakeholder Engagement process?

What are the inputs and outputs of the Control Stakeholder Engagement process?

Click to insert Chapter

13 Project Stakeholder Management

CAPM Certification Examination Training Material Version 5.0 Copyright 2013 by

Project Stakeholder Management

Project Stakeholder Management

Project Management Process Groups

Identify Stakeholders is a process of identifying the people , groups or

Tools and Techniques

1. Project Charter Indicates internal and external stakeholders

Tools and Techniques

It is a process of systematically gathering and analyzing quantitative

Power (level of authority) /Interest (concern) grid

Tools and Techniques

Tools and Techniques

2. Expert Judgment : To ensure comprehensive identification and

Plan Stakeholder Management

Plan Stakeholder Management is a process of developing appropriate

Plan Stakeholder Management

Tools and Techniques

Developing Management Strategies to effectively engage stakeholders

Plan Stakeholder Management

1. Project Management Plan Indicates internal and external

Plan Stakeholder Management

Tools and Techniques

1. Expert Judgment: In order to create the stakeholder

Plan Stakeholder Management

Tools and Techniques

The engagement of the stakeholders can by classified as follows:

Unaware: Unaware of project and potential impact

Plan Stakeholder Management

The Stakeholder Management Plan can be formal or informal, highly

Manage Stakeholder Engagement

Manage Stakeholder Engagement is the process of communicating and

Manage Stakeholder Engagement

Tools and Techniques

Communicating and working with stakeholders to meet their needs /expectations

Manage Stakeholder Engagement

2. Communication Management Plan

Manage Stakeholder Engagement

Tools and Techniques

Manage Stakeholder Engagement

Used to document and monitor resolution of issues

2. Change Requests: May also include corrective or preventive actions as

Control Stakeholder Engagement

Control Stakeholder Engagement is the process of

To Increase efficiency and effectiveness of stakeholder

Control Stakeholder Engagement

Tools and Techniques

Increasing efficiency and effectiveness of stakeholder engagement activities

Control Stakeholder Engagement

1. Project Management Plan:

Control Stakeholder Engagement

3. Work Performance Data

Technical performance measures

Start and finish dates of scheduled activities

Number of changes requests, defects,