Project Management for the Professional Professional Part 4 - Stakeholder Analysis Michael Bevis, JD CPPO, CPSM, PMP
Topic 3 Common Project Stakeholders Who are Stakeholders and what is stakeholder management? Identifying your stakeholders Assessing stakeholder knowledge & skills Analyzing the project to ensure their requirements will be met Involving stakeholders in the project by: assigning them work using them as experts reporting to them involving them in changes & lessons learned Getting their approval & acceptance during closure
Project Stakeholders Project Stakeholders individuals and organizations that are actively involved in the project, or whose interests may be affected as a result of project execution or project completion.
Stakeholder Management Step 1: Identify all potential stakeholders and relevant information. Step 2: Identify the impact or influence each stakeholder could generate, and classify them. Step 3: Assess likely stakeholder reactions and identify potential risks or constraints. (which will be discussed in later modules)
Identify Stakeholders (Step 1) Who are Project Stakeholders? Who gets the output from the project? Who provides project input? Who has oversight? Who has additional project responsibilities? Who benefits from the project? Who may be adversely impacted by project outcome?
Who are Stakeholders Project Stakeholders include: Project Manager - individual responsible for managing the project. Customer/User - individual or organization that will use the product (or service) from the project. Performing Organizations - organizations whose individuals are doing work on the project Team Members individuals that will be completing project work tasks Project Team The team members directly involved in project activities Portfolio Review Board Reviews projects at governance level for ROI and value to the organization. Sponsor - individual or group who provides the funding (financial resources) for the project. Influencers those who can positively or negatively influence project outcomes PMO The PMO has direct or indirect responsibility for project components
Assessing Stakeholder Impact (step 2) Impact Influence Interest Legitimacy Power Urgency Ability to effect changes Active Involvement Level of concern - Involvement is appropriate Level of authority Need for immediate attention
Stakeholder Impact Classifications: There are several tools and techniques available to analyze stakeholder input. Several of them take the form of a Grid. The PMBOK describes the Power/Interest grid and shows a example of this grid in diagram form. other grids mentioned below take this same form. Stakeholder Impact Classifications Power/Influence Grid: Level of Authority (power) Active Involvement (influence) Influence/Impact Grid: Active Involvement (influence) Ability to effect changes (impact) Power/Interest Grid Level of Authority (power) Level of Concern (interest) Salience Model Ability to impose their will (power) Need for immediate attention (urgency) Involvement is appropriate (legitimacy)
Power/interest grid: High power / high interest - require close monitoring. Example: End-users Low interest / high power - has the ability to influence the project overall. Example: Project Sponsors High interest / low power - interested in the project outcomes; should be communicated with regularly. Example: Team members Low power / low interest - appear to require low maintenance; may actually become demotivating for project team members and could influence the project by impacting project deliverables. Example: Functional managers or other project managers
Power/influence grid: High power / high influence - key decision makers for the project. In a leadership role within an organization. Example: Directors, Executive leadership, Business owners Low influence / high power - may effectively slow project through a lack of support for key team members. People who have other initiatives or may feel the purpose of the project is unjustified. Example: Executive leadership, functional managers, review board High influence / low power - actively involved in seeing the project objectives met. Often work long hours and are dedicated to the purpose of the project. Example: Customers, end-users, team members, community Low power / low influence - can impact the project in a negative way. Not interested in seeing that project objectives are met and do not see their involvement as useful. They may believe that the outcomes of the project are out of their control and therefore will not be motivated to perform the work. Example: Team members, customers
Influence/impact grid: High influence / high impact - key stakeholders who are directly affected by project outcomes; actively involved in project deliverables. They closely monitor the project scope to ensure changes are addressed quickly and directly. Example: Department managers, business owners, end-users Low impact / high influence - people who are actively involved in the project even though the outcomes may not impact them directly; believe the purpose of the project will be for the good of the whole may not have the ability to influence change, but will continue to perform the work necessary to meet project objectives. Example: Volunteers, team members, working staff High impact / low influence - impacted by project outcomes and changes to constraints such as scope, schedule or budget; actively involved in the changes that occur on the project, even if they are not always actively involved in the day-to-day work. Example: Managers, customers, end-users, team members, community Low influence / low impact - not actively involved in the project and have a low vested interest. Project managers should keep them informed of project status and changes that may change their status. Example: Secondary stakeholders, people affected by risks if they occur or if project outcomes are not managed properly
Salience model: Focuses on the level of stakeholders influence and their vested interest in the project. The phrase the squeaky wheel gets the oil is an example where the stakeholder is managed based upon their ability to exercise their will or from their need for immediate results. The project manager should take caution to ensure their involvement is legitimate and that their needs are closely monitored to ensure compliance to agreed upon project objectives.
Outputs from Identifying Stakeholders 1. Stakeholder Register Details that identify the stakeholder s name, classification, contact information, role, communication requirements, abilities and expertise. 2. Stakeholder Analysis Matrix: Like the risk register, may contain a numbering system that quantifies the level of influence the person has on the project. Helps to define the strategy used in managing various project stakeholders. May be tied to the risk register or communications plan so that the project manager can leverage support and positive influence on other stakeholders and project outcomes.
Another powerful tool for managing Human Resources in Project Management is the Responsibility Assignment Matrix (RAM) it is a grid that shows the connections between work packages (which we will discuss in the next Module) and project team members. Equally importantly it identifies the relationship between team members and each other. The following is an example of a RAM from the PMBOK: RACI Chart Person Activity Ann Ben Carlos Dina ED Define Scope of Create Charter A R I I I Work Collect Create Requirements Solicitation Document Submit Change Answer Vendor Request Questions Develop Test Develop Final Plan Contract I A R C C I A R R C A C I I R RACI Key - R= Responsible; A=Accountable; C=Consult; I=Inform There are other keys such as PARIS - Perform, Accountable, Review, Inform, Sign-Off
Project Management for the Professional Professional Part 3 - Risk Management Michael Bevis, JD CPPO, CPSM, PMP