Module 3: Working with stakeholders

Who are project stakeholders?

Like a cast of characters:they're the investors, the end users, the managers, and everyone else with a part to play in your project’s journey. Stakeholders typically include clients, sponsors, team members, and users among others, whose involvement and satisfaction are crucial for project success

Internal vs External Stakeholders

Internal stakeholders would be stakeholders within your organization. For example, project sponsor and the project team, while external stakeholders would be people or groups outside of your organization, example, clients, suppliers, subcontractors.

Ensure stakeholder involvement and engagement

Identifying stakeholders enables you to proactively engage with key individuals or groups throughout the project life cycle. By involving stakeholders early on, you can leverage their expertise, insights, and support to ensure project objectives are met, and expectations are aligned.

Effective communication and collaboration

Identifying stakeholders lay the foundation for clear, transparent, and meaningful communication channels. By knowing who stakeholders are and what they care about, you can tailor your communcation strategies and messages to resonate with different audiences, promote collaboration, and buy-in.

Drives stakeholders satisfaction and support

By identifying stakeholders early and involving them in the project planning and decision-making process, you can build trust, credibility, and goodwill, leading to greater stakeholders satisfaction and support for the project.

Mitigates risks and uncertainties

By understanding who the stakeholders are and what they need, you can anticipate potential challenges, conflicts, and risks that may arise during the project. By addressing these concerns and expectations up front, you can mitigate risks and uncertainties and ensure smoother project execution and better outcome.

Stakeholder mapping

is a structured process that involves, identifying, analyzing, categorizing, and positioning the stakeholders according to the level of interest and influence they may have on the project.

Direct stakeholders

Typically have vested interest in the project's outcome, actively participating in its planning, execution, and/or utilization of its results. Direct stakeholders may include: Project sponsors, team members, clients, and end-users.

Indirect stakeholders

May not have a direct involvement in the day-to-day operations but are still affected by the project's outcomes. Indirect stakeholders may include: Regulatory bodies, Government agencies, community groups, and competitors.

Stakeholder Wheel

Adds structure to the process of identifying the stakeholders.

Stakeholder Register

A stakeholder name or a stakeholder group e.g. John Murphy or the name of a regulatory body, like the Road Safety Authority

Their role on the project

Their motivation/drivers(why are they interested in the project)

Their anticipated involvement in the project

Their current predisposition e.g. resistant, ambivalent, neutral, supportive, commited

Anticipated issues (known or potential)

Stakeholder positioning and classification

Once the business analyst understands the stakeholders interest and influence and updates the Stakeholder Register, the next step in the process is to position the stakeholders on a two-dimensional grid based on each stakeholder level of interest and influence over the project.

Stakeholder Organization

the process of organizing stakeholders into groups or categories based on their level of influence, interest, involvement, or other relevant criteria.

Employees - Internal Stakeholders

Employees are internal stakeholders who work directly within the organization and are part of your project team. They may include executives, managers, frontline staff and other personnel involved in day-to-day operations, project managers, business analysts, developers.

Board of Directors -Internal Stakeholders

The board of directors represents shareholders’ interest and provides organization oversight and governance. Board members typically have responsibilities such as managing assets, resources, or decisions on behalf of the organization and play a crucial role in defining strategy, monitoring performance, and ensuring the organization complies with legal and ethical standards.

Shareholders/Owners - Internal Stakeholders

Shareholders, or owners, hold equity in the organization and have a financial stake in its success. Their primary role is to invest capital, recieve returns on investment, and participate in decision-making process through voting rights and shareholder meetings.

Customer/Clients - External Stakeholders

Customer or clients are individuals or organizations that purchase products or services from the organization. Their role is essential in driving revenue and sustaining business. Customer feedback and satisfaction influence product development, marketing strategies, and overall business sucess.

Suppliers/Partners - External stakeholders

Suppliers provide goods or services necessary for the organization's operations. They ensure the availability and quality of inputs required for production or service delivery. Partnerships with suppliers can lead to collaboration, innovation, and cost efficiencies.

Regulators/Government Agencies - External Stakeholders

Regulators and government agencies establish and enforce laws, regulations, and policies that govern the organization's operations. They ensure compliance with legal requriments, protect public interests, and promote fair competition within the industry.