Managing Project Stakeholders E-Book

Tres Roeder

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 310

Veröffentlichungsjahr: 2013

Beschreibung

The keys to project management success delivered by one of the world's most respected experts in the field Why do some project managers achieve their project goals while others fail? Drawing on his years of experience as a recognized global expert on project management and organizational change, author Tres Roeder answers that question, and lays out a proven path to project success. Focusing on the major differences between project management and other types of management--not least of them being the temporary nature of projects versus the repetitive nature of most managerial tasks--Roeder describes best practices in all key areas of managing project stakeholders. * A recognized global expert on project management provides the foundational elements required for project management success * Contributes toward the fulfillment of the continuing education required every three years to maintain PMP® accreditation * Uses real-world scenarios and relevant case studies to present project management concepts to beginning and intermediate PMP®s * Contains chapters on Leadership, Buy In, and Negotiation for more advanced project managers (PMP and Project Management Professional are registered marks of the Project Management Institute, Inc.)

Leseprobe

Contents

Foreword

Preface

Acknowledgments

Section One: Stakeholder Management Overview

Chapter One: What Is a Stakeholder?

Project Managers Must Be Nimble

The Balanced Approach

The Project Management Institute

Stakeholder Defined

Stakeholder Management Is Universal

Summary

Chapter Two: Categorizing Stakeholders

Benefits of Categorizing

Dimensions of Categorization

Stakeholder Engagement Assessment Matrix

Stakeholder Management Plan

Summary

Chapter Three: Prioritizing Stakeholders

Power and Interest

Power and Influence

Power and Knowledge

Custom Matrices

Stakeholder Register

Summary

Section Two: Stakeholder Groups

Chapter Four: Project Team Members

Who They Are

Tips for Managing Project Team Stakeholders

The Extended Project Management Team

Watch-Outs

Summary

Chapter Five: Executive Stakeholders

Who They Are

Tips for Managing Executive Stakeholders

Watch-Outs

Summary

Chapter Six: Other Stakeholders

External Stakeholders

Stakeholders Subject to the Change

Phantom Stakeholders

Summary

Section Three: Stakeholder Communication and Conflict

Chapter Seven: Stakeholder Communication

Stakeholder Communication Plan

Stakeholder Communication Channels

Holistic Approach to Communication

Summary

Chapter Eight: Managing Stakeholders in a Virtual World

The Continuum of Robustness

Risks of Virtual Teams

Opportunities When Working Virtually

Summary

Chapter Nine: Managing Difficult Stakeholders

Projects Create Tough Issues

Categorizing Difficult Stakeholders

Proceeding without the Executive Sponsor

Positive Attitude

Summary

Section Four: General Stakeholder Management Skills

Chapter Ten: Leadership

A Sixth Sense for Project Management®

Project Managers Are Leaders

Situational Leadership Model

Summary

Chapter Eleven: Buy-In

The Circle of Support Overview

Include Stakeholders

Observe Stakeholders

Respond to Stakeholders

Summary

Chapter Twelve: Negotiation

Negotiation Is a Two-Way Street

Ten Tips for Negotiations in Projects

Summary

References

About the Author

Index

Cover image: People Interacting © mediaphotos/iStockphoto

Cover design: C. Wallace

Copyright © 2013 by Tres Roeder. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

Material from PMBOK® Guide, 5th ed., has been adapted and reproduced with the permission of PMI. Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide)–Fifth Edition, Project Management Institute, Inc., 2012.

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Library of Congress Cataloging-in-Publication Data:

Roeder, Tres, 1968-

Managing Project Stakeholders/Tres Roeder, MBA, PMP.

pages cm

Includes bibliographical references and index.

ISBN 978-1-118-50427-7 (cloth); ISBN 978-1-118-50428-4 (ePDF);

ISBN 978-1-118-50426-0 (ePub); ISBN 978-1-118-50425-3 (Mobi)

1. Project management. I. Title.

HD69.P75.R64 2013

658.4′04—dc23

2013001466

To Elizabeth, Parker, Garrett, and man’s best friend, Batman

The dogmas of the quiet past are inadequate to the stormy present. The occasion is piled high with difficulty, and we must rise with the occasion. As our case is new, so we must think anew and act anew.

—Abraham Lincoln

Foreword

Projects are done by people (the team) and for people (the stakeholders). While tools, techniques, and technologies are certainly important, the people’s participation and perception about the project and its deliverables is really what makes or breaks a project. As such, the project’s success is ultimately defined by stakeholders, and in particular by the beneficiaries of the project’s outcome(s); they can consider a project successful if the deliverables truly meet their needs, even if the project’s execution may not perfectly fit within the traditional triple constraint of “full scope, in time, within budget.”

As this concept is embraced more and more by the project management community it has resulted in increased focus on stakeholder management as a critical component of project management, beyond the traditional Communications Management knowledge area. This trend was recently recognized in arguably the most widespread standard in the area, A Guide to Project Management Body of Knowledge (PMBOK® Guide), 5th ed., published by Project Management Institute (PMI), by introducing a new knowledge area dedicated to project stakeholder management.

In terms of full disclosure, the author of this Foreword was part of the core team for the PMBOK® Guide – 5th ed., and coordinated the teams working in the “soft skills” areas of the standard—the knowledge areas for human resources, communication, and the newly introduced stakeholder management. Introducing the new knowledge area was confirmation that this is indeed a best practice “for most project managers, in most projects, most of the time.”

In the above capacity, I had the opportunity to interact with a group of dedicated, top-level professionals that participated in the editing teams, and discuss their experiences around the world in stakeholder management, as well as the results of various studies and research in the area. It demonstrated beyond any doubt the importance and extent of actively managing stakeholder participation in projects not only for a successful project execution, but also for the ultimate use of project’s deliverables to meet the organizational needs that triggered the project in the first place.

Tres Roeder, the author of this book, is a long-time champion of the stakeholder management domain and a public advocate of its importance for project managers. He is a globally recognized project management expert, invited to share his expertise not only as a consultant for many top-level organizations, but also as an applauded speaker at international conferences and other public events. Through his articles, seminars, webinars, courses, workshops, and blogs Mr. Roeder combines hands-on experience corralling high performing stakeholder teams with the latest research in the area to promote formal, sustained, and efficient stakeholder management as one of the main enablers of achieving project success.

In his first book, A Sixth Sense for Project Management, Mr. Roeder detailed how to achieve project success by deploying a balanced approach with a particular emphasis on people. His interest in the domain continues with the present book focused on stakeholder management. With a particular insight gained by acting as a reviewer of the draft project stakeholder management knowledge area introduced in PMBOK® Guide – 5th ed., Tres Roeder brings in his extensive expertise in the area to complement, detail, and explain various components of this evolving domain.

Unlike other works in the area, this book brings a new perspective by incorporating “technical project management skills” (formulas, frameworks, tools, etc.) into a “soft skills” area such as stakeholders’ management to add consistency, repeatability, and predictability to a domain that is variable, unique, and volatile by definition. It provides the reader with the necessary knowledge and practical examples to be able to understand, classify, and manage basically any stakeholders that may be encountered in real-life projects.

The book is structured in four sections, each including three chapters, which progressively build up the reader’s understanding of stakeholders’ management.

Section One discusses fundamental concepts for successful project stakeholder management. The introductory chapter defines project stakeholders as people who are subject to, part of, or have decision-making over a project, followed by two chapters dedicated to techniques to categorize project stakeholders and creating a prioritization strategy for project stakeholders.

Section Two discusses five stakeholder groups: project team stakeholders, executive stakeholders, external stakeholders, stakeholders subject to the changes, and phantom stakeholders. The chapters included in Section Two provide a detailed discussion of Project Team Stakeholders and Executive Stakeholders, and considerations about the remaining groups in the chapter Other Stakeholders.

Section Three focuses on managing stakeholder communication with special consideration being given to projects that take place in a virtual environment. The section concludes with practical advice on handling project conflicts that could occur with difficult stakeholders.

Section Four complements the specific project management skills with general management competencies that the project manager can deploy in all kinds of situations. The capabilities treated in the last section of the book are leadership, obtaining buy in, and negotiation.

This book contains not only a formal treatment of essential topics for successful stakeholder management, but also many high-impact tips project managers should know and be able to apply in order to effectively engage stakeholders in project execution, and secure their support to ensure a project’s success. It is an indispensable reading for every project manager that aspires to get beyond the technicalities of “percent complete” and move into leading projects that all stakeholders will consider successful.

George Jucan, MSc PMP

Preface

Managing Project Stakeholders is intended for anyone who works with people to accomplish project results. Historically, project management literature has focused on the technical skills required to document, track, and quantify projects. Although important, these technical skills correlate less to project success than the real world interpersonal skills addressed in this book. The successful project manager must know how to work with different types of people.

This book can be read from beginning to end for an advanced understanding of working with project stakeholders. Alternatively, the busy professional can jump directly into the section or chapter most relevant to them. Each chapter is written as a free-standing module. Where there are connections to previous or subsequent chapters it will be noted in the text.

Section One creates the foundation for successful project stakeholder management. The section is divided into three chapters: What Is a Stakeholder, Categorizing Stakeholders, and Prioritizing Stakeholders.

In Chapter 1, What Is a Stakeholder?, we define project stakeholders as people who are subject to, are part of, or have decision making over a project. We discuss how project stakeholder management is most successful when it fits into a holistic and balanced approach to managing projects and managing change that includes technical project management skills, business acumen, and interpersonal skills.

In Chapter 2, Categorizing Stakeholders, we share techniques to categorize project stakeholders. We develop a common language to use when describing stakeholders. As a profession, a common language helps us work more efficiently and more seamlessly across organizations and industries.

In Chapter 3, Prioritizing Stakeholders, we use the categorization techniques from Chapter 2 to create a prioritization strategy for project stakeholders. Project managers must carefully deploy their time. Using thoughtful two-by-two matrices, Chapter 3 instructs us how to identify the most important stakeholders without losing focus on the other stakeholders.

Section Two discusses five stakeholder groups: project team stakeholders, executive stakeholders, external stakeholders, stakeholders subject to the change, and phantom stakeholders. Stakeholders in each group may have much in common with one another. Section Two is divided into three chapters: Project Team Members, Executive Stakeholders, and Other Stakeholders.

Chapter 4, Project Team Members, discusses techniques to manage the project team. Project managers are likely to spend most of their time working with project team stakeholders. Chapter 4 discusses how to kick off the project team, build relationships within the team, and create an environment that is poised for success.

Chapter 5, Executive Stakeholders, focuses on working collaboratively with the executives directing the project. In many cases the executive stakeholders are the single most powerful stakeholder group. In this chapter the project manager will learn techniques to harness the power of executive stakeholders to the benefit of the project team.

Chapter 6, Other Stakeholders, explains three additional stakeholder groups: external stakeholders, stakeholders subject to the change, and phantom stakeholders. The project manager will learn how to work with each of these groups to increase the probability of project success.

Section Three focuses on project communication and conflict. The section is divided into three chapters: Stakeholder Communication, Managing Stakeholders in a Virtual World, and Managing Difficult Stakeholders.

In Chapter 7, Stakeholder Communication, we focus on different paths to communication success. The successful project manager communicates messages that are clear, consistent, and frequently repeated through multiple communication channels.

In Chapter 8, Managing Stakeholders in a Virtual World, we discuss an area of growing importance, how to work with remotely located stakeholders. Stakeholder management in virtual environments has similarities to and important differences from the in-person environment.

In Chapter 9, Managing Difficult Stakeholders, we discuss techniques for working with stakeholders who present challenges to the project team. Despite the project manager’s best efforts, there may still be certain stakeholders who have a different perspective on the project. Chapter 9 presents real-world solutions to dealing with these individuals.

Section Four provides a portfolio of general management skills the project manager can deploy in all types of situations. The section is divided into three chapters: Leadership, Buy-In, and Negotiation.

Chapter 10, Leadership, begins with the premise that all project managers are leaders. Project stakeholders look to the project manager to provide guidance and direction. Chapter 10 provides a situational leadership framework based on A Sixth Sense for Project Management®.

Chapter 11, Buy-In, offers a three-step process for use to gain support. Project stakeholders have a variety of perspectives, attitudes, and beliefs. The Buy-In chapter contains a powerful framework that can be adapted to earn the support of each project stakeholder.

Chapter 12, Negotiation, provides 10 high-impact tips the project manager can deploy to succeed in project negotiations. Projects are a constant negotiation, whether about resources for the project, the time line, or the scope. In this chapter project managers will learn how to get what they need for project success.

Acknowledgments

I offer deep gratitude to my family for providing ongoing encouragement and support for this project. To my wife Elizabeth for her love and behind-the-scenes support; to my son Parker, who showed a keen interest for every step in the writing process; to my son Garrett for the late-night chats; and to our dog Batman, who spent many (not so) tough days lying at my side chewing on a bone while I typed.

Thanks to George Jucan, PMP®, for his leadership overseeing the team that wrote Chapter 13 on project stakeholder management in the PMBOK® Guide, 5th ed., and to all those on the team who wrote this important work. I am honored and thankful to have George’s insight captured in the Foreword to this book.

I owe much to the dedicated team at Roeder Consulting who kept the lights on while I focused on writing. In particular, thanks to Keith Jenkins, Jim Kups, and Sarah Nicol.

Thanks to Rob Mansfield, firefighter with Squad 2 in the Chicago Fire Department, and Lt. Anthony Carusso, Pepper Pike Fire Department, for fact-checking the fire crew examples in Chapter 10 on Leadership. Putting out a fire literally is a project that has many lessons for the figurative fires the rest of us put out every day.

I would like to thank Kelley Management Consulting for mentoring me and teaching me much about aligning people around a common goal in the fast-paced environment of organizational change. In particular, thanks to Patrick Kelley, Jim Schumann, and Erich Weber.

I am thankful for the world-class team at John Wiley & Sons for supporting and executing this project. Thanks to Debra Englander for believing in the concept, Jennifer MacDonald and Donna Martone for overseeing editing and document creation, and Tula Batanchiev for expert marketing.

As always, thanks to all of you who attend Roeder Consulting’s courses, trust us with a consulting or training project, or are otherwise connected to the Roeder Consulting family. I learn from you every day and treasure your friendship and support.

T.R.

Section One

Stakeholder Management Overview

Section One creates the foundation for successful project stakeholder management. The section is divided into three chapters: What Is a Stakeholder?, Categorizing Stakeholders, and Prioritizing Stakeholders.

In Chapter 1, What Is a Stakeholder?, we define project stakeholders as people who are subject to, are part of, or have decision making over a project. We discuss how project stakeholder management is most successful when it fits into a holistic and balanced approach to managing projects and managing change that includes technical project management skills, business acumen, and interpersonal skills.

In Chapter 2, Categorizing Stakeholders, we share techniques to categorize project stakeholders. We develop a common language to use when describing stakeholders. As a profession, a common language helps us work more efficiently and more seamlessly across organizations and industries.

In Chapter 3, Prioritizing Stakeholders, we use the categorization techniques from Chapter 2 to create a prioritization strategy for project stakeholders. Project managers must carefully deploy their time. Using simple two-by-two matrices, Chapter 3 instructs us how to identify the most important stakeholders without losing focus on the other stakeholders.

Chapter One

What Is a Stakeholder?

It is never too late to be what you might have been.

George Eliot

Projects require people. People are needed to conceive the idea for the project, design project plans, approve the plans, execute the plans, and close out the project. People are impacted by the outcome of the project. Whether the project is implementing a new software system, a new business unit, or a new bridge, there will be an impact on people. All of these people are stakeholders.

Project Managers Must Be Nimble

This book discusses how to effectively identify, categorize, prioritize, manage, and lead project stakeholders. Projects are temporary endeavors, so project managers must learn how to launch a team of stakeholders, manage the team for the duration of the project, then thank and disband the team when the project is complete. This stands in contrast to operational management, which is more permanent in nature.

Project management is a discipline focused on delivering results and then moving on to the next project. In contrast to operational management, projects have a defined beginning point and a defined end point. Operational management is focused on the tasks and activities required to manage an organization on an ongoing basis.

The temporary nature of projects leads to transient stakeholders. Project stakeholders come and go as the project works through different phases. When the project ends, the stakeholder group is disbanded. Operational management, in contrast, may focus on the same stakeholders for years. An occasional stakeholder may come or go, but the overall stakeholder base is far less transient in operational management than in project management. As a result, project managers must be nimble, adaptable, and constantly vigilant to understand their stakeholder environment.

The Balanced Approach

Project stakeholder management requires a robust skill set. Effective project managers must have expert knowledge of their project scope and plans. They must know what they are trying to do and the constraints upon them to get it done. And they must be able to work with people. Successful project managers deploy a three-pronged approach to managing their projects: technical project management skills, business acumen, and “sixth sense” people skills. (See Figure 1.1.)

Figure 1.1 The Balanced Approach

Technical Skills

Technical project management skills are the formulas, frameworks, and processes of project management. Technical skills include earned value management, writing a charter, creating a work breakdown structure (WBS), and so on. When we use the term technical skills in this book we are not referring to knowledge of the underlying technologies, products, or services the project is developing. Expertise in the underlying product technology is not necessarily required for successful project managers. What is required, however, is expertise in the technical skills and frameworks used to manage projects. Successful project managers understand these technical skills and know when to deploy them to facilitate project success. They also know when the standard technical skills are not appropriate and adapt accordingly.

Business Acumen

Business acumen is knowledge of the organization’s goals, strategies, and language. Business acumen is understanding how one’s project will help the organization achieve its goals and strategies. Effective project managers understand why the project is important. At any point in the project life cycle effective project managers can describe not only what they’re doing but also why they’re doing it and why it matters to the organization. This is business acumen.

The successful project manager also understands the operational and strategic language of the organization. The project manager should know terms such as return on investment, net present value, and strategic alignment. Each organization has its own unique language to describe strategic goals and the tactics deployed to achieve the goals. It is important for the project manager to understand and use this language.

Importance of Business Acumen

Many organizations deploy a Project Management Office (PMO) to oversee major projects. Interestingly, the number of organizations with PMOs is declining and many of those still having PMOs are reducing the staff in them. Recent research from The Hackett Group shows that there may be good reason for the decline. On average, PMOs increase the cost of an organization’s information technology (IT) function without delivering improvement to the on-time or on-budget performance of projects.

There’s an interesting twist, however. Top performing IT organizations continue to use PMOs and get results from them. Business acumen is one of the key factors correlated to successful PMOs in these top performers. Successful PMOs hold their project teams accountable for business results.

Source: “Most Companies with Project Management Offices See Higher IT Costs, No Performance Improvements,” The Hackett Group, November 1, 2012.

“Sixth Sense” People Skills

Third, and most importantly, effective project managers know how to work with people to achieve results. They are strong communicators, good negotiators, effective leaders, and astute observers of human behavior. Decades of research proves that people skills are the most important driver of effective project management. The project manager’s ability to harness their expertise and intuition to lead people to successful outcomes is called “A Sixth Sense for Project Management®.”

Together, the three core capabilities of technical skills, business acumen, and people skills comprise the Balanced Approach. Alone, each of these skills is not enough. Together, they form a powerful method for change. Successful project stakeholder management requires the Balanced Approach.

A Sixth Sense for Project Management®

The first section in the book A Sixth Sense for Project Management highlights the need for the project management profession to embrace people skills. Section One, comprised of three chapters, documents research showing that people skills are more highly correlated with project success than project management technical skills.

At the conclusion of Section One project managers are asked to come together to broadcast the message that interpersonal skills are critically important. Others in the profession are champions of people skills, too. The message has been heard; the latest version of the PMBOK® Guide includes a chapter devoted to stakeholder management, Chapter 13.

There’s still much work to do. Many project managers and project organizations continue to have an unhealthy overemphasis on the technical side of project and change management. Working together, we must continue to strive toward the more balanced approach that has proven to greatly increase the probability of project success.

The Project Management Institute

The Project Management Institute (PMI) is a not-for-profit global project management association. Founded in 1969, PMI has grown from humble beginnings to a powerhouse with almost a half-million people globally holding its foundational professional designation, the Project Management Professional (PMP®).

The Project Management Body of Knowledge (PMBOK® Guide)

PMI correctly recognized that the profession of project management did not have a common knowledge base. In the past, when a group of project managers got together they did not have common terminology to describe what they were doing. They might take a large part of their meeting figuring out what the others were talking about. Recognizing this gap PMI commissioned a project to create a global standard. The goal was a standard that could be used in almost any project situation. After a number of years of effort the first standard was published in 1987. The standard was named A Guide to the Project Management Body of Knowledge. Today, in its fifth edition, we will call this document the PMBOK® Guide.

PMBOK® Guide, Chapter 13

For the first time, the PMBOK® Guide includes a chapter on project stakeholder management. Chapter 13, Project Stakeholder Management, is one of the 10 knowledge areas. Each of the knowledge areas represents foundational information all project managers must know. Adding project stakeholder management to the knowledge areas is a major and game-changing development.

Increased Emphasis on People Skills

Chapter 13 is game-changing for several reasons. First, it is the most attention authors of the PMBOK® Guide have devoted to project stakeholders. Stakeholders have always been critical to project success. Regrettably, these skills have not been a major part of a project manager’s professional development requirements until recently. Many project managers and organizations incorrectly view project management as a skill mainly focused on technical skills. People and organizations with this misguided understanding are more likely to suffer from failed projects.

People Skills Integrated into Technical Skills

A second reason why Chapter 13 is game-changing is because its addition to the PMBOK® Guide demonstrates that stakeholder management is integrated into the technical skills required to manage projects. For example, one of the key documents in Chapter 13 is the “Stakeholder Register.” The stakeholder register is a form that must be completed to document and categorize project stakeholders. Other knowledge areas of the PMBOK® Guide have tools and techniques that are inputs into the stakeholder register. The stakeholder register itself is an input into knowledge areas such as project risk management and project human resources management. In simple language, this means that project stakeholder management is a technical project management skill in addition to an interpersonal skill. Project stakeholder management is integrated into the technical process of project management.

Researching the Value of Project Management

“Researching the Value of Project Management” is a multiyear, multimillion-dollar project sponsored by the Project Management Institute. The goal is to answer the question “Does project management deliver value?” and if it does, “What are the key drivers of value?” Not surprisingly, the study did indeed find that project management delivers value.

However, the study also found that project management does not always deliver value. In some cases, project management makes things worse. Project managers make things worse when they do not deploy awareness of the situation to adapt their project management approach and techniques. The study tracked a number of variables and determined which variables, if any, are correlated to project success. Many variables that were investigated, including a number of technical project management skills, did not correlate to project success. Leadership, interpersonal skills, and the project manager’s ability to read the project situation and adapt did correlate to project success.

Source: Mark Mullaly and Janice Thompson, Researching the Value of Project Management (Newtown Square, PA: Project Management Institute, 2008).

See Chapter 3, Prioritizing Stakeholders, for more detail on the stakeholder register.

Holistic Approach to Project Management

A third reason why Chapter 13 is game-changing is that it highlights the concept of a holistic approach to project management. As discussed previously, this is called the Balanced Approach. Chapter 13 merges interpersonal skills, technical skills, and, to a more limited extent, business acumen into the required and standardized language of PMP®s. This is a major step toward improving project success rates. As a profession, we fail more often than we succeed. A primary reason for this failure is an overreliance on only one of the three types of skills required in the Balanced Approach—technical project management skills. The skills project managers most often use as a crutch are the technical skills. We must embrace the Balanced Approach if we are to improve project success rates. Chapter 13 in the PMBOK® Guide is a solid step in the right direction.

Disclosure

The author served as a subject matter expert reviewer of the PMBOK® Guide’s new chapter on project stakeholder management, Chapter 13. One of several individuals selected globally to preview the chapter before final release, the author reviewed a draft version of Chapter 13 and provided feedback in 2011. A number of the author’s recommendations were integrated into the final text for Chapter 13.

PMBOK® Guide, Appendix G

The prior version of the PMBOK Guide (the fourth edition) includes a brief appendix, Appendix G, which mentions interpersonal skills. Appendix G is about six pages long and served the purpose of putting project managers on notice that there is more to their craft than the technical skills they learned in the preceding 400+ pages of the fourth edition. With Appendix G in the fourth edition and Chapter 13 and an appendix on interpersonal skills in the fifth edition, we are seeing the project management establishment move further toward embracing the importance of the human side of project management.

Stakeholder Defined

Project managers did not previously have a common definition for project stakeholders. With the introduction of Chapter 13 in the PMBOK® Guide, we now have a common definition to use. The PMBOK® Guide defines a project stakeholder as follows:

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.

In the following section we discuss this definition in more detail.

A Stakeholder Is an Individual, Group, or Organization

Project stakeholders may represent themselves, a group, or an organization. The project manager’s approach to managing each stakeholder varies according to which of these categories the stakeholder fits into.

Individuals representing themselves do not need to communicate with others in their constituency to develop consensus. They are the constituency. Groups and organizations, however, may have one person who is the main stakeholder representing the group or a combination of stakeholders each of whom must be dealt with individually. The effective project manager understands the level of authority each stakeholder has and reacts accordingly. (See Table 1.1.)

Table 1.1 Individuals, Groups, and Organizations

See Section Two, Stakeholder Groups, for details on each stakeholder group.

A Stakeholder May Affect

Stakeholders have the option to make a difference. Anyone who can or does make a difference in a project is a stakeholder. There are numerous ways a stakeholder can affect a project. A few examples are:

Conceive the idea for the project.

Initiate the project.

Set and/or approve the project budget.

Provide input into project scope.

Plan the project.

Approve the project.

Participate on the project team.

Publicly support or resist the project.

Rally a group to support or resist the project.

This broad definition of project stakeholders is likely to result in a large group of people. Many project managers may be surprised at how large their list of stakeholders becomes when they adopt the definition of stakeholders used in the PMBOK® Guide. One of the implications of a larger list of stakeholders is that project managers will need to improve their ability to strategically deploy their time across stakeholders and stakeholder groups.

See Chapter 3, Prioritizing Stakeholders, for details on how project managers can strategically deploy their time across stakeholders.

A Stakeholder May Be Affected By

Stakeholders in the previous section were either actively involved in the project or had the choice of becoming actively involved. These stakeholders could affect the project. In this next section of the definition we cast the net more broadly to anyone who might be affected by the project. These people may or may not be able to influence the project. Ideally, we want all stakeholders who are going to be affected by a project to have input into the process. Realistically, in many projects this is not feasible.

Stakeholders May Perceive Themselves to Be Affected By

The next group of stakeholders defined in the PMBOK® Guide are those who perceive themselves to be affected by the project. The concept is that perception is reality. If people think they are stakeholders then they are going to act in ways that they think a stakeholder might act. For example, they might attend project meetings. They might provide feedback on project documents. They might attempt to change the scope of the project. The definition of a stakeholder in the PMBOK® Guide’s Chapter 13 argues that this person, by definition, is a stakeholder.

Indeed, the project manager will need to manage the situation when people think they are stakeholders. Whether it’s by diplomatically asking them not to attend team meetings or by deciding to incorporate them into the project, the project manager will use project stakeholder management tools and techniques to manage the situation.

A Decision, Activity, or Outcome of a Project

Stakeholders sometimes are decision makers. In other cases they do not have any decision-making authority. Stakeholders may have the ability to influence decisions others make. Influence can come in the form of research, data, opinions, a persuasive argument, or other means such as bringing together a group of like-minded individuals and representing their cause.

How Do You Manage Individuals Who Perceive Themselves to Be Stakeholders?

This topic has led to interesting conversation in public classes on advanced project stakeholder management. Some project managers argue that they should not be responsible for people who perceive themselves to be stakeholders but who are not actually stakeholders. These people are an annoyance, the argument goes, and just one more problem the project manager must deal with. Calling them a stakeholder indicates, they say, that anyone can force their way into the project. The project manager loses control.

Other project managers think of stakeholders more broadly. They consider this group who perceives themselves to be stakeholders as an important faction that must be managed.

The answer comes down to how we define stakeholders. If stakeholders are defined as only the people we want to be on the project, then an individual who perceives himself or herself as a stakeholder is not one. However, if we think of stakeholders more broadly, as defined in the PMBOK® Guide, then these people become stakeholders.

Steps the project manager goes through to categorize and manage people who perceive themselves to be stakeholders are likely to be the same as the steps for those who are officially on the list. Therefore, individuals who perceive themselves to be stakeholders should be considered stakeholders for the purposes of tracking, categorizing, and managing them.

See Chapter 6, Other Stakeholders, for details on phantom stakeholders who act as stakeholders but are unrecognized as stakeholders by the project manager or the project team.

Stakeholders might be involved with the entire project or just one aspect of the project. The activities they touch will vary. The savvy project manager understands that the stakeholders are not a single homogeneous group of people with the same interests. Instead, stakeholders are unique individuals with their own sets of interests, fears, and aspirations.

Our Working Definition of a Stakeholder

For purposes of this book, we will simplify the definition of a stakeholder to the following: people who are subject to, are part of, or have decision making over a project.

This definition captures the essence of the PMBOK® Guide definition but is simpler and uses fewer words. In general, anyone involved in the project in any manner is considered a stakeholder.

Stakeholder Management across Methodologies

The PMBOK® Guide focuses on the waterfall method of project management. In the waterfall method the project flows in phases from initiating, to planning, to executing, to monitoring and controlling, and finally to closing. Each phase, in theory, flows into the next. Project managers using the waterfall method will find that the concepts discussed in this book will apply directly to their projects.

The concepts in this book, however, are not exclusive to the waterfall method. The fundamentals of stakeholder management, as discussed in this book, are equally relevant to agile, lean, and other forms of project management.

Further, business analysts will find value in the pages of this book. As a business analyst goes through the work of capturing business requirements and gaining consensus, stakeholder management will be a core skill for success.

See Section Three, Stakeholder Communication and Conflict, and Section Four, General Stakeholder Management Skills, for more detail on the general skills required to manage stakeholders in any situation.

Stakeholder Management Is Universal

Project stakeholder management is about people. People are involved in all projects. This is true regardless of the project management methodology used. There are many different technical project management methodologies, including waterfall, agile, extreme, and lean. The tools and techniques discussed in this book can be applied to any form of project management and change management.