{"id":21859,"date":"2017-03-19T07:44:59","date_gmt":"2017-03-19T02:14:59","guid":{"rendered":"https:\/\/www.whizlabs.com\/?p=21859"},"modified":"2024-05-17T10:02:37","modified_gmt":"2024-05-17T04:32:37","slug":"pmp-project-stakeholders","status":"publish","type":"post","link":"https:\/\/www.whizlabs.com\/blog\/pmp-project-stakeholders\/","title":{"rendered":"PMP : How to Identify the Project Stakeholders?"},"content":{"rendered":"<p dir=\"ltr\"><span>We are publishing series of articles on PMP topics to help the <a href=\"https:\/\/www.whizlabs.com\/blog\/pmp-certification\/\">PMP exam preparation<\/a>. In this article we are going to explain you how to identify the project stakeholders.<\/span><\/p>\n<ul>\n<li><a href=\"https:\/\/www.whizlabs.com\/project-management-professional-pmp\/pmp-free-test\/\"><span>TRY NOW : 50 PMP Practice Questions\u00a0<\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.whizlabs.com\/project-management-professional-pmp\/pmp-online-course\/\"><span>Access our 487 mins Self-Study Training (Get 35 contact hours certificate)\u00a0<\/span><\/a><\/li>\n<\/ul>\n<p dir=\"ltr\"><span style=\"font-weight: 400\">So, here we are trying to initiate our project and we have received the formal authority in the form of Project Charter. But a project cannot begin unless we have identified who our stakeholders are. Identifying the Stakeholders in the beginning of the project is so important to the success of a project that PMP has a process named \u2018Identifying Stakeholders\u2019 right in the beginning, as a part of its \u2018Initiating process group\u2019 (one of the 5 process groups of PMP) .<\/span><\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400\">If we believe we are doing everything right and yet our stakeholders seem unhappy, we cannot call the project a success. \u00a0A true quality of a leader is to consider every Stakeholder as an integral part of the project and therefore, should not shy away from any opportunity to influence anyone. But to achieve that we must first know, who our Stakeholders are? Or who really are called Stakeholders for that matter?<\/span><\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400\">To define in terms of PMBOK 5<\/span><span style=\"font-weight: 400\">th<\/span><span style=\"font-weight: 400\"> Edition, <\/span><b>Stakeholder<\/b><span style=\"font-weight: 400\"> is an individual, a group, or an organization who may affect, be affected by, or perceive it-self to be affected by a decision, an activity or an outcome of a project (Std. Def).<\/span><\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400\">So, clearly Stakeholder includes everyone, i.e., people who are affected by our project, or who can influence our project, or have expectations from our project. So by the definition, a Stakeholder is not necessarily the sponsor or board member only, it can also be a team member or the project manager himself. When a project begins, it starts impacting each and everyone associated with the project, be it higher on the hierarchy or lower. Everyone associated becomes a Stakeholder.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_76 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ea7e02;color:#ea7e02\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ea7e02;color:#ea7e02\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.whizlabs.com\/blog\/pmp-project-stakeholders\/#How_to_identify_the_Stakeholders\" >How to identify the Stakeholders?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.whizlabs.com\/blog\/pmp-project-stakeholders\/#Inputs\" >Inputs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.whizlabs.com\/blog\/pmp-project-stakeholders\/#Tools_and_Techniques\" >Tools and Techniques<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.whizlabs.com\/blog\/pmp-project-stakeholders\/#Output\" >Output<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.whizlabs.com\/blog\/pmp-project-stakeholders\/#Practice_Questions\" >Practice Questions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.whizlabs.com\/blog\/pmp-project-stakeholders\/#Summary\" >Summary<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"How_to_identify_the_Stakeholders\"><\/span>How to identify the Stakeholders?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\"><span style=\"font-weight: 400\">So how do we go about identifying the Stakeholders, and if everyone is a Stakeholder do we need to treat them all on same scale? This is what the process of identifying the Stakeholders, addresses:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">How to source the information on stakeholders?<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">How to act on the information on stakeholders?<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">How to document the information on Stakeholders?<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Inputs\"><\/span><b>Inputs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\"><strong>Project Charter<\/strong> \u2013 Project Charter not only documents the formal authority for the Project Manager, it also lists the Key Stakeholders that comprises of the Sponsor, Senior Management, or consulting management. The charter also becomes the source to Procurement and Contract related stakeholder information, if the project needs to outsource work, services or product.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\"><strong>Procurement Documents<\/strong> &#8211; \u00a0In addition to the Charter, the other procurement documents also act as a great source to third party stakeholders, who may not be key stakeholders but do fall lower in the hierarchy.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\"><strong>Enterprise Environmental factors (EEF)<\/strong> \u2013 We all know that EEF indicates how the regulations, standards and compliance, market status, human resource capabilities and organizational structure, etc. affects the project. The <\/span><b>organizational structure<\/b><span style=\"font-weight: 400\"> becomes a key input from EEF, to Identifying key stakeholders on the hierarchical basis. It gives us an insight to who has the most power to influence the project. <\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\"><strong>Organizational Process Assets (OPA)<\/strong> \u2013 OPA is the repository that keeps project documentations from past projects, Lessons learned from past projects, templates of forms\/reports and other documentation, intranet sites information, procedures, policies and standards all in one place as a reference for every other project being carried out in the organization. We could use Stake holder register template as well as Stakeh<\/span><span style=\"font-weight: 400\">older analysis data <\/span><span style=\"font-weight: 400\">from past projects to ensure we are on the right track.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Tools_and_Techniques\"><\/span><b>Tools and Techniques<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400\"><b>Stakeholder Analysis <\/b><span style=\"font-weight: 400\">\u2013 As it sounds literally, analyzing all the information gathered from the inputs of Identifying Stakeholder will help us in understanding which stakeholder can positively influence the project and which one can negatively influence it. \u00a0So we must start recording the role of each individual, their area of interests, their level of influence and their expectations, against the list of all stakeholders. \u00a0We could use the interviewing technique to identify expectations and interests of all listed stakeholders in detail. This could also reveal more stakeholders. Also, we could handle on our stakeholders\u2019 concerns and start making plans to addressing them. That\u2019s how we turn a negative stakeholder into a positive one.<\/span><\/li>\n<\/ul>\n<p dir=\"ltr\"><span style=\"font-weight: 400\">Once we have the details in hand we could use the recorded details to classify stakeholders into various categories depending on their support, influence, interests, and power. It\u2019s useful to group stakeholders together, because stakeholders in a particular group are likely to have similar needs and interests.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400\">One of the best and most popular way to do it is come up with consolidated representation of our stakeholders is a 2 variable Grid view. These grids are generally termed as Power\/Interest Grid or Power Influence Grid or Power\/Support Grid, any or all of them depending on the size and volume of the project, team and stakeholders.<\/span><\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400\">When we are analyzing for Support, we could use Resistor, Neutral and Advocate as the groups to categorize stakeholders:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\"><strong>Resistor<\/strong> \u2013 A negative stakeholder who is actively and vocally not supporting the project<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\"><strong>Neutral<\/strong> \u2013 A stakeholder who does not support, yet do not actively oppose to the project. \u00a0A project manager will always try to convert their interests and turn them positive.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\"><strong>Advocate<\/strong> \u2013 A stakeholder who openly and aggressively supports the project and is vocal about it. Provides ideas to improvise all circumstances.<\/span><\/li>\n<\/ul>\n<p dir=\"ltr\"><span style=\"font-weight: 400\">The PMBOK 5<\/span><span style=\"font-weight: 400\">th<\/span><span style=\"font-weight: 400\"> Edition guide classifies the analysis in 4 models:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Power\/Influence Grid <\/span><i><span style=\"font-weight: 400\">(Discussed above)<\/span><\/i><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Power\/Interest Grid <\/span><i><span style=\"font-weight: 400\">(Discussed above)<\/span><\/i><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Influence\/Impact Grid <\/span><i><span style=\"font-weight: 400\">(Discussed above)<\/span><\/i><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Salience Model \u2013 The Salience model indicates the level for the need of attention by the stakeholders. \u00a0It uses 3 variables unlike the other 2 variable grids. The 3 variables it uses are Power\/Urgency\/Legitimacy.<\/span><\/li>\n<\/ul>\n<p><b id=\"docs-internal-guid-9bdc2c94-e44b-4e56-3a40-85b9ba532dec\"><span style=\"font-weight: 400\"> A simple sample of what a 2X2 Power\/Influence grid would look like is given below in diagram 1.0. \u00a0In a real list, the grid will be larger with more data and stakeholder information within each cell. Every cell could have more than one stakeholder details, based on their power to influence.<\/span><\/b><\/p>\n<p><b id=\"docs-internal-guid-9bdc2c94-e44b-4e56-3a40-85b9ba532dec\"><span style=\"font-weight: 400\"><a href=\"https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/05\/pmp-stakeholders.png\"><img decoding=\"async\" src=\"https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/05\/pmp-stakeholders.png\" alt=\"PMP Stakeholder in a Project\" width=\"303\" height=\"256\" class=\"aligncenter size-full wp-image-21860\" \/><\/a><\/span><\/b><\/p>\n<p>&nbsp;<\/p>\n<p dir=\"ltr\"><span style=\"font-weight: 400\">The next diagram is a 4X4 grid showing a sample of Power\/Interest Grid.<\/span><\/p>\n<p dir=\"ltr\"><a href=\"https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/05\/pmp-power.png\"><img decoding=\"async\" src=\"https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/05\/pmp-power.png\" alt=\"PMP Power\/Interest Grid for Project\" width=\"288\" height=\"257\" class=\"aligncenter size-full wp-image-21861\" \/><\/a><\/p>\n<ul>\n<li style=\"font-weight: 400\"><b>Expert judgment<\/b><span style=\"font-weight: 400\"> &#8211; Expert Judgment is based upon the inputs from expertise of certain individuals, which could be from specialized education, knowledge &amp; research, skill, experience, or training. \u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400\"><b>Meetings<\/b><span style=\"font-weight: 400\"> \u2013 Meetings help us facilitate gathering and comparing information from different stakeholders. It also becomes a good platform for brainstorming ideas, interviewing stakeholders and identifying threats to a project. In addition, this uncovers who is vouching for your project and who is being unsupportive; in other words it\u2019s also way to figure out the positive and the negative stakeholders.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Output\"><\/span><b>Output<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400\"><b>Stakeholder Register<\/b><span style=\"font-weight: 400\"> \u2013 All the information that we gathered through Stakeholder analysis and all the representations that we came up with, helps us in creating Stakeholder Register. A register compiles all the information in a tabular format in general. However, if the project is an extremely large-scale, containing everything in one table is not a mandate.<\/span><\/li>\n<\/ul>\n<p dir=\"ltr\"><b id=\"docs-internal-guid-9bdc2c94-e454-508b-1ef9-3c1d006a0e93\"><span style=\"font-weight: 400\"> A project manager must be sure to identify and list all potential stakeholders in the Stakeholder Register in order to facilitate project success. A Stakeholder Register may be used to record high level information of each stakeholder and their planned\/forecasted role on the project. An example of a potential structure of a stakeholder register is depicted below in table 1.0.<\/span><\/b><\/p>\n<p dir=\"ltr\"><a href=\"https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/05\/pmp-stakeholder-registar.png\"><img decoding=\"async\" src=\"https:\/\/www.whizlabs.com\/blog\/wp-content\/uploads\/2024\/05\/pmp-stakeholder-registar.png\" alt=\"Stakeholder Register in PMP Exam\" width=\"644\" height=\"361\" class=\"aligncenter size-full wp-image-21863\" \/><\/a><\/p>\n<ul>\n<li style=\"font-weight: 400\"><b>Stakeholder Management Strategy<\/b><span style=\"font-weight: 400\"> \u2013 As the name suggests, stakeholder management strategy is documented to plan and strategize the actions and response to be taken towards each stakeholder during the whole course of the project management. It also includes our communication strategy for key stakeholders and otherwise. \u00a0The strategy is a documented approach to minimizing the negative influences on the project.<\/span><\/li>\n<\/ul>\n<p dir=\"ltr\"><span style=\"font-weight: 400\">The stakeholder management strategy document includes the following as per PMBOK 5<\/span><span style=\"font-weight: 400\">th<\/span><span style=\"font-weight: 400\"> edition guide:<\/span><\/p>\n<ul>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Key Stakeholder\u2019s impact on the project<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Stakeholders\u2019 level of participation as per stakeholder analysis<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Groups designated to each stakeholder<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Assessment of Impact<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Potential strategy for gathering Support<\/span><\/li>\n<\/ul>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Practice_Questions\"><\/span>Practice Questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>1. What Process Group does the Identifying Stakeholders fall in?<\/strong><\/p>\n<ol>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Planning Process Group<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Closing Process Group<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Initiating Process Group<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Develop Project Charter<\/span><\/li>\n<\/ol>\n<p dir=\"ltr\"><span style=\"font-weight: 400\">Answer. C.<\/span><\/p>\n<p><strong>2. How many factors\/variables is Salient Model of establishing stakeholder level of power and interests, based on?<\/strong><\/p>\n<ol>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">n variables<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">2 variables<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">3 variables<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">4 variables<\/span><\/li>\n<\/ol>\n<p dir=\"ltr\"><b id=\"docs-internal-guid-9bdc2c94-e455-a268-26b1-0a5ad7c42dec\"><span style=\"font-weight: 400\">Answer. C.<\/span><\/b><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Summary\"><\/span>Summary<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.whizlabs.com\/project-management-professional-pmp\/pmp-free-test\/\"><span>TRY NOW : 50 PMP Practice Questions\u00a0<\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.whizlabs.com\/project-management-professional-pmp\/pmp-online-course\/\"><span>Access our 487 mins Self-Study Training (Get 35 contact hours certificate)\u00a0<\/span><\/a><\/li>\n<\/ul>\n<p>In this article we have explained about how to identify the project stakeholders and the stakeholders register. If you have any questions, please write it in the comments section.<\/p>\n<p><b id=\"docs-internal-guid-9bdc2c94-e44b-4e56-3a40-85b9ba532dec\"><span style=\"font-weight: 400\"><br \/>\n<\/span><\/b><\/p>\n","protected":false},"excerpt":{"rendered":"<p>We are publishing series of articles on PMP topics to help the PMP exam preparation. In this article we are going to explain you how to identify the project stakeholders. TRY NOW : 50 PMP Practice Questions\u00a0 Access our 487 mins Self-Study Training (Get 35 contact hours certificate)\u00a0 So, here we are trying to initiate our project and we have received the formal authority in the form of Project Charter. But a project cannot begin unless we have identified who our stakeholders are. Identifying the Stakeholders in the beginning of the project is so important to the success of a 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Gumaste","author_link":"https:\/\/www.whizlabs.com\/blog\/author\/pavan\/"},"uagb_comment_info":5,"uagb_excerpt":"We are publishing series of articles on PMP topics to help the PMP exam preparation. 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