Intro to Project Management: Project Stakeholder Management - Stakeholder Management Processes, Identify Plan Manage Monitor

What This Is

Stakeholder Management is a critical process in project management that involves identifying, analyzing, and engaging stakeholders to ensure their needs and expectations are met. Effective stakeholder management is essential for successful project delivery, as it helps to build trust, manage expectations, and mitigate risks. For example, consider a project to launch a new software product. The project manager must identify and engage with stakeholders such as customers, investors, and developers to ensure that their needs are met and that the project is delivered on time and within budget.

Key Terms & Formulas

• Stakeholder: An individual, group, or organization that may be affected by or have an interest in the project.
• Stakeholder Analysis: A process to identify, analyze, and prioritize stakeholders based on their level of interest and influence.
• Stakeholder Engagement: The process of communicating and interacting with stakeholders to build trust and manage expectations.
• Stakeholder Register: A document that lists all stakeholders, their interests, and their level of influence.
• % Complete = (EV / BAC) × 100 (Percent Complete = Earned Value / Budget at Completion × 100)
• CPI = EV / AC (Cost Performance Index = Earned Value / Actual Cost)
• SPI = EV / PV (Schedule Performance Index = Earned Value / Planned Value)
• Earned Value (EV) = % complete × BAC (Earned Value = percent complete times Budget at Completion)
• Budget at Completion (BAC) = Total Budget (Budget at Completion = Total Budget)
• Planned Value (PV) = Budgeted Cost of Work Scheduled (BCWS) (Planned Value = Budgeted Cost of Work Scheduled)
• Actual Cost (AC) = Actual Cost of Work Performed (ACWP) (Actual Cost = Actual Cost of Work Performed)

Step-by-Step / Process Flow

1. Identify Stakeholders: Gather information about stakeholders through surveys, interviews, and meetings. Create a stakeholder register to document their interests and level of influence.
2. Analyze Stakeholders: Assess the level of interest and influence of each stakeholder. Prioritize stakeholders based on their level of interest and influence.
3. Develop Stakeholder Engagement Plan: Create a plan to communicate and interact with stakeholders. Identify the communication channels, frequency, and content.
4. Implement Stakeholder Engagement Plan: Execute the stakeholder engagement plan. Monitor and adjust the plan as needed.
5. Monitor Stakeholder Engagement: Continuously monitor stakeholder engagement and adjust the plan as needed.

Common Mistakes

• Mistake: Failing to identify all stakeholders.
• Correction: Conduct thorough stakeholder analysis and create a comprehensive stakeholder register.
• Mistake: Not prioritizing stakeholders based on their level of interest and influence.
• Correction: Assess the level of interest and influence of each stakeholder and prioritize them accordingly.
• Mistake: Not communicating with stakeholders regularly.
• Correction: Develop a stakeholder engagement plan and communicate with stakeholders regularly to build trust and manage expectations.

Exam Tips

• Tip: Be able to identify and analyze stakeholders based on their level of interest and influence.
• Tip: Understand the difference between stakeholder engagement and stakeholder management.
• Tip: Be able to develop and implement a stakeholder engagement plan.

Quick Practice Questions

1. If the CPI is 0.8, is the project under or over budget? Answer: Under budget. Explanation: A CPI of 0.8 indicates that the project is performing better than expected, resulting in a lower actual cost.
2. If the SPI is 1.2, is the project ahead or behind schedule? Answer: Ahead of schedule. Explanation: An SPI of 1.2 indicates that the project is performing better than expected, resulting in a shorter actual duration.
3. If the EV is $100,000 and the BAC is $200,000, what is the % complete? Answer: 50%. Explanation: Using the formula % Complete = (EV / BAC) × 100, we can calculate the % complete as 50%.

Last-Minute Cram Sheet

• Stakeholder: An individual, group, or organization that may be affected by or have an interest in the project.
• Stakeholder Analysis: A process to identify, analyze, and prioritize stakeholders based on their level of interest and influence.
• Stakeholder Engagement: The process of communicating and interacting with stakeholders to build trust and manage expectations.
• Stakeholder Register: A document that lists all stakeholders, their interests, and their level of influence.
• % Complete = (EV / BAC) × 100 (Percent Complete = Earned Value / Budget at Completion × 100)
• CPI = EV / AC (Cost Performance Index = Earned Value / Actual Cost)
• SPI = EV / PV (Schedule Performance Index = Earned Value / Planned Value)
• Earned Value (EV) = % complete × BAC (Earned Value = percent complete times Budget at Completion)
• Budget at Completion (BAC) = Total Budget (Budget at Completion = Total Budget)
• Planned Value (PV) = Budgeted Cost of Work Scheduled (BCWS) (Planned Value = Budgeted Cost of Work Scheduled)
• Actual Cost (AC) = Actual Cost of Work Performed (ACWP) (Actual Cost = Actual Cost of Work Performed)
• Stakeholder Management is not the same as Stakeholder Engagement.