62- Stakeholder Performance Domain

Introduction to the Stakeholder Performance Domain

• The stakeholder performance domain is crucial for the success of any project as it focuses on managing relationships with stakeholders who are impacted by the project.

Definition of Stakeholders

• Stakeholders: Individuals or groups affected by the project, including:

  • Positively impacted stakeholders (e.g., customers who benefit from a project)

  • Negatively impacted stakeholders (e.g., employees whose roles may be eliminated due to project optimization)

Importance of Stakeholder Management

• Effective stakeholder management is necessary to ensure support and satisfaction of stakeholders.

• Performance domains outline the necessary activities to deliver the project's products or services.

• Stakeholders' alignment with the project is essential for its success.

Key Aspects of the Stakeholder Performance Domain

• Building Productive Relationships: Develop and maintain positive working relationships with stakeholders throughout the project's life cycle.

• Managing Expectations: Clarify project objectives and expected outcomes through stakeholder agreements.

• Stakeholder Identification and Engagement:

  • Identify stakeholders at the start and continuously throughout the project.

  • Understand their needs, emotions, and how they are affected by the project.

Stakeholder Agreement and Objectives

• Establish a mutual agreement with stakeholders on:

  • Project objectives

  • Deliverables expected from the project

• Positive attitudes of project beneficiaries are critical; satisfied stakeholders are less likely to impede the project.

Dealing with Opposing Stakeholders

• Anticipate and manage stakeholders who may have conflicts of interest or oppose project outcomes.

• Example: An accountant opposed to a project that automates their job due to potential job loss.

• Aim to minimize the negative influence of opposing stakeholders on project outcomes.

Continuous Identification of Stakeholders

• Stakeholders should be identified and re-evaluated regularly:

  • Situations change; new stakeholders may arise, and old ones may leave (e.g., personnel changes).

Understanding and Analyzing Stakeholders

• Project teams must analyze stakeholders to grasp their values, beliefs, and emotions:

  • This helps determine how to communicate and engage effectively with them.

Prioritizing Stakeholders

• Focus on stakeholders with the highest power and interest:

  • Example: If a CEO and end-users have conflicting priorities, the CEO’s input may take precedence due to their higher authority.

  • Government regulators often have significant power over safety or compliance issues.

Stakeholder Engagement

• Consistently engage stakeholders to:

  • Ensure their participation in project decisions.

  • Build collaborating relationships to resolve issues and manage expectations.

Monitoring Stakeholder Engagement

• Track changes in stakeholder engagement continuously:

  • Periodic re-evaluation as stakeholders may change due to various circumstances.

  • Regular monitoring helps identify when stakeholder support is wavering.

Measuring Outcomes of Stakeholder Management

• Key outcomes to aim for in the stakeholder performance domain include:

  • Productive Relationships: Regular observation and feedback from stakeholders to ensure satisfaction.

  • Agreement on Objectives: A clear mutual understanding of project goals and requirements.

  • Supportive Stakeholders: Using surveys, interviews, and focus groups to gauge stakeholder support and involve them in the project.

  • Regularly review issue logs to identify negative stakeholders and challenges they present.

Conclusion of the Stakeholder Performance Domain

• The importance of engagement re-emphasizes throughout the project lifecycle, no matter the approach (traditional, agile, or hybrid).

• Stakeholder management is an ongoing process that requires attention and adaptation to ensure project success.