Stakeholder Management Process

Stakeholder management is a renewed area of focus for project managers; yet, many project teams fall short in this critical area.
This paper will focus on how to set and manage expectations (SAME) of the stakeholders through a structured step-by-step
approach. You will be presented with tools and techniques designed to walk you through the processes of stakeholder identification,
stakeholder classification, and stakeholder management strategy development. The output of these processes will lead directly to
the development of an effective communication management plan, our plan to keep project stakeholders informed regarding project
status, progress, and forecasts.
Introduction
Successful projects depend upon a variety of people, and it is the wise project manager who actively determines who they are and
what areas of the project they influence. A forgotten stakeholder often rears his or her head at the most inopportune time, wreaking
all sorts of havoc in the project. But many project teams do a poor job of identifying project stakeholders and gaining their
commitment to the project objectives. In a survey conducted by Moorhouse Consulting (2012), it was determined that “Half (50%) of
respondents are leading business critical projects and yet only a third (36%) feel that they have got stakeholders and key staff
‘bought in’ very well to the projects aims and benefits of the change; this is despite the fact that ‘lack of ownership’ from stakeholders
is seen as the most important threat to a successful outcome” (p. 1). It is critical then, that the project team does a good job of
stakeholder analysis, so they can create the stakeholder management strategy, which in turn, forms the foundation for the project’s
communication management plan.
A Guide to the Project Management Body of Knowledge (PMBOK Guide) outlines the “what’s” and “why’s” of project management,
and even does a good job listing some effective tools and techniques for performing some project tasks. But it leaves the “soft skill”
parts to the individual project manager and team. How do they do this demanding job? This paper will introduce some thoughts on
the topic of stakeholder management and provide process flow and tools for doing a stakeholder analysis and creating the strategy
to manage the expectations of the stakeholders.
People – Process – Technology Balance
It has always been my contention that things work when there is a balance between an organization’s processes, the technology it
uses to support these processes, and the people who execute the processes. Where there are welldefined processes in place, tools
and technology that support these processes, and people who have been trained in the process and the technology, things seem to
work. Many organizations have experienced some improvements in project results simply by establishing standard processes and
tool usage. But the people side is often the most overlooked one, and of course, stakeholders are people (Exhibit 1).
Exhibit 1: People-Process-Technology Balance.
Problems can occur when we don’t take care of the people side. Problems often happen when one or more of the sides are out of
balance. For example, we may have poorly defined processes, processes that produce errors, or undesirable outcomes. Rather than
fix the broken process, we often invest in a new technology or toolset, one that ends up producing the errors faster! Another
illustration of this concept would be when we have established processes, but the tool doesn’t support the process, so the people
become the glue between the technology and the process. And, finally, improved processes and technology will not fix people
problems! People problems require people solutions and that leads directly to stakeholder management.
Definitions of Stakeholder
There are various definitions for a stakeholder:
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One that has a stake in an enterprise.
One who is involved in or affected by a course of action.
Merriam-Webster Online Dictionary (Stakeholder, n.d.)
Someone with an interest in the outcome of a project, either because they have funded it, will use it, or will be affected by it.
The Scrum Primer (Deemer, Benefield, Larman, & Vodde, 2010)
A group or person who has interests that may be affected by an initiative or have influence over it.
A Guide to the Business Analysis Body of Knowledge (BABOK Guide) (International Institute of Business Analysis, 2009, p. 232)
These definitions are drawn from the general business environment and generally refer to what most people agree upon—a
stakeholder is an individual or entity that can affect, or is affected by some outcome. What about the project management
community? Here are a few from this group:
Project Stakeholders
Any individual, group or organization that can affect, be affected by, or perceive itself to be affected by, an initiative (programme,
project, activity, risk)
PRINCE2 2009 Glossary of Terms (Office of Government Commerce, 2009, p.313)
The interesting perspective added here is that if someone or group believes themselves to be a stakeholder, then they are, in fact, a
stakeholder! The PMBOK Guide seems to agree:
Stakeholders are persons or organizations (e.g., customers, sponsors, the performing organization, or the public) 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.
PMBOK Guide—Fourth Edition (Project Management Institute, 2008, p. 23)
Without a doubt, the most detailed definition belongs to the PMBOK Guide, but the message is clear—stakeholders hold a lot of
influence within a project and managing their expectations is a very important job.
Definitions of Expectation
Given these ways of looking at stakeholders, what would best describe an expectation?
the act or state of expecting : anticipation
something expected
the state of being expected
Merriam-Webster Online Dictionary (Expectation, n.d.)
Definitions for expect complete this discussion:
Definition of Expect
to consider probable or certain
to consider reasonable, due, or necessary
to consider bound in duty or obligated
Merriam-Webster Online Dictionary (Expect, n.d.)
The last one listed looks more intense than the others, but it gives insight into a very important idea about one’s expectations for
anything.
Expectations ARE Requirements!
When looking at how to set and manage stakeholder expectations, we have to realize that from the perspective of the stakeholder
involved, what they are expecting as a project outcome, they consider a project requirement. Even the PMBOK Guide suggests this
idea:
Requirements include the quantified and documented needs and expectations of the sponsor customer and other stakeholders.
Collecting requirements is defining and managing customer expectations.
PMBOK Guide—Fourth Edition (Project Management Institute, 2008a, p. 105)
The thing to remember about requirements is that any project contains two types of requirements: product requirements (things that
define the features and function of the project’s end product) and process requirements (how we’ll keep stakeholders informed about
project progress, any problems, or constraints, etc.). And although the project may have succeeded on the product side, (that is, it
delivered what was promised), many fail on the process side by not keeping stakeholders informed about what was going on within