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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 be
impacted by the project, to analyze stakeholder expectations and
their impact on the project, and to develop appropriate
management strategies for effectively engaging stakeholders in
project decisions and execution.
• Stakeholder management also focuses on continuous
communication with stakeholders to understand their needs and
expectations, addressing issues as they occur, managing conflicting
interests and fostering appropriate stakeholder engagement in
project decisions and activities. Stakeholder satisfaction should be
managed 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 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.
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 the
project, or whose interests may be positively or negatively affected by the
execution 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 the
Name Amgad Omar identified
Role (in project) Management Partner Investor stakeholders.
Org Performing org N/A Such as:
Country manager SponsorTitle
1. Identification
Contact Info amgad@perf.org 010-9876543
info
Country Saudi Egypt
2. Classification
Native 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 engage
stakeholders throughout the project life cycle,
based on the analysis of their needs, interests, and
potential impact on project success.
Analytical Techniques
• The current engagement level of all stakeholders needs to be
compared to the planned engagement levels required for successful
project completion. Stakeholder engagement throughout the life
cycle 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 appropriate
stakeholder engagement in project activities
throughout 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 to
the 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 group
toward 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 strategies
and plans for engaging stakeholders.
Information Management Systems
• An information management system provides a standard
tool for the project manager to capture, store, and
distribute information to stakeholders about the project
cost, schedule progress, and performance.
• It also allows the project manager to consolidate reports
from several systems and facilitate report distribution to
the project stakeholders. Examples of distribution formats
may include table reporting, spreadsheet analysis, and
presentations.
• Graphical capabilities can be used to create visual
representations of project performance information.
Project Success Depends on Stakeholder Role
Project Success Depends on Stakeholder Role

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Project Success Depends on Stakeholder Role

  • 1. Project Stakeholders’ Role for its Success or Failure Riyadh, Sept., 01, 2015 Mohamed El Agroudy, CCT, PMP, RMP, TRC, ACIArb, M.ASCE
  • 3. Project stakeholder management • Project Stakeholder Management includes the processes required to identify the people, groups, or organizations that could impact or be impacted by the project, to analyze stakeholder expectations and their impact on the project, and to develop appropriate management strategies for effectively engaging stakeholders in project decisions and execution. • Stakeholder management also focuses on continuous communication with stakeholders to understand their needs and expectations, addressing issues as they occur, managing conflicting interests and fostering appropriate stakeholder engagement in project decisions and activities. Stakeholder satisfaction should be managed as a key project objective.
  • 4. Project stakeholder management (According to PMBOK 5th Edition) • It includes four processes: • Identify Stakeholders • Plan Stakeholder Management • Manage Stakeholder Engagement • Control Stakeholder Engagement
  • 5. 1. Identify Stakeholders • The 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.
  • 6. Do not exclude any concerned parties!!!
  • 7.
  • 8.
  • 9. stakeholders • Project stakeholders are persons or organizations such as customers, sponsors, the performing organization, and the public that are actively involved in the project, or whose interests may be positively or negatively affected by the execution 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
  • 10. 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
  • 11.
  • 12. 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).
  • 14. Stakeholder Register Details of the Name Amgad Omar identified Role (in project) Management Partner Investor stakeholders. Org Performing org N/A Such as: Country manager SponsorTitle 1. Identification Contact Info amgad@perf.org 010-9876543 info Country Saudi Egypt 2. Classification Native 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
  • 15. 2.Plan Stakeholder Management • The 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.
  • 16. Analytical Techniques • The current engagement level of all stakeholders needs to be compared to the planned engagement levels required for successful project completion. Stakeholder engagement throughout the life cycle 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.
  • 17. Analytical Techniques – C: Current engagement. – D: Desired engagement.
  • 18. 3.Manage Stakeholder Engagement • The 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.
  • 19. 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 to the appropriate stakeholders.
  • 20. 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)
  • 21. 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.
  • 22. Management Skills • The project manager applies management skills to coordinate and harmonize the group toward 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.
  • 23. 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.
  • 25. 4.Control Stakeholder Engagement • The process of monitoring overall project stakeholder relationships and adjusting strategies and plans for engaging stakeholders.
  • 26.
  • 27. Information Management Systems • An information management system provides a standard tool for the project manager to capture, store, and distribute information to stakeholders about the project cost, schedule progress, and performance. • It also allows the project manager to consolidate reports from several systems and facilitate report distribution to the project stakeholders. Examples of distribution formats may include table reporting, spreadsheet analysis, and presentations. • Graphical capabilities can be used to create visual representations of project performance information.