Intro to Project Management: Project Selection and Initiation Project Stakeholders Identifying Analyzing Engaging

What This Is

Identifying, analyzing, and engaging project stakeholders is crucial for successful project delivery. A stakeholder is anyone who can impact or be impacted by the project. Think of building a new highway – the project manager must engage with the construction company, local residents, government officials, and environmental groups to ensure the project meets their needs and expectations.

Key Terms & Formulas

• Stakeholder: An individual, group, or organization with a vested interest in the project.
• Stakeholder Register: A list of identified stakeholders, their roles, and interests.
• Stakeholder Analysis: Evaluating the level of influence and interest stakeholders have in the project.
• Power/Interest Matrix: A grid to categorize stakeholders based on their power and interest levels.
• High-Low Matrix: A grid to categorize stakeholders based on their level of influence and impact.
• Stakeholder Engagement: The process of communicating and collaborating with stakeholders to meet their needs and expectations.
• Communication Plan: A document outlining how and when stakeholders will be informed and involved in the project.
• Stakeholder Management Plan: A document outlining how stakeholders will be identified, analyzed, and engaged throughout the project.
• EV = % complete × BAC (Earned Value = percent complete times Budget at Completion).
• CPI = EV ÷ AC (Cost Performance Index = Earned Value ÷ Actual Cost).
• SPI = EV ÷ PV (Schedule Performance Index = Earned Value ÷ Planned Value).

Step-by-Step / Process Flow

1. Identify stakeholders: Gather information about stakeholders through surveys, meetings, and research.
2. Analyze stakeholders: Use tools like the Power/Interest Matrix or High-Low Matrix to categorize stakeholders based on their level of influence and interest.
3. Develop a stakeholder engagement plan: Outline how and when stakeholders will be informed and involved in the project.
4. Communicate with stakeholders: Regularly update stakeholders on project progress and involve them in decision-making processes.
5. Monitor and control stakeholder engagement: Continuously assess the effectiveness of stakeholder engagement and make adjustments as needed.

Common Mistakes

• Mistake: Assuming all stakeholders have the same level of influence and interest.
• Correction: Use stakeholder analysis tools to categorize stakeholders based on their level of influence and interest.
• Mistake: Failing to communicate with stakeholders regularly.
• Correction: Develop a communication plan and stick to it to ensure stakeholders are informed and involved.
• Mistake: Not involving stakeholders in decision-making processes.
• Correction: Engage stakeholders in decision-making processes to ensure their needs and expectations are met.

Exam Tips

• Distinguish between stakeholders and project team members: Stakeholders are external to the project, while project team members are internal.
• Understand the difference between Power/Interest Matrix and High-Low Matrix: Power/Interest Matrix categorizes stakeholders based on their level of influence and interest, while High-Low Matrix categorizes stakeholders based on their level of influence and impact.
• Be aware of the importance of stakeholder engagement: Stakeholder engagement is crucial for successful project delivery.

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 earning 80% of its budgeted value, which means it is under budget.
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 earning 120% of its planned value, which means it is ahead of schedule.
3. If a stakeholder has high power and low interest, how should they be managed? Answer: Monitor and control. Explanation: Stakeholders with high power and low interest require close monitoring and control to ensure they do not negatively impact the project.

Last-Minute Cram Sheet

• Stakeholder: An individual, group, or organization with a vested interest in the project.
• Stakeholder Register: A list of identified stakeholders, their roles, and interests.
• ⚠️ Power/Interest Matrix and High-Low Matrix are used for stakeholder analysis.
• Stakeholder Engagement: The process of communicating and collaborating with stakeholders to meet their needs and expectations.
• Communication Plan: A document outlining how and when stakeholders will be informed and involved in the project.
• CPI = EV ÷ AC (Cost Performance Index = Earned Value ÷ Actual Cost).
• SPI = EV ÷ PV (Schedule Performance Index = Earned Value ÷ Planned Value).
• ⚠️ Earned Value (EV) is calculated as % complete × BAC.
• Stakeholder Management Plan: A document outlining how stakeholders will be identified, analyzed, and engaged throughout the project.
• Monitor and control stakeholder engagement to ensure stakeholders are informed and involved.