What is a Stakeholder, stakeholder types and engagement strategies?

The project manager should manage the various influences of a stakeholder in relation to the project requirements, through prudent engagement strategies to ensure a successful outcome.

What is a Stakeholder?

Anyone who affects or get affected in any way by an organization like organizational decisions, its products/services or its deliverables is considered as a stakeholder. It can be an internal stakeholder or outside the organization.

Internal vs External Stakeholders
  1. Sponsor (External/Internal)
  2. Project Team (Internal)
  3. Customers and Users (External/Internal)
  4. Sellers (External)
  5. Business Partners (External)
  6. Organizational Groups (Internal)
  7. Functional Managers (Internal)
  8. Others, e.g.:
  • Procurement entities (External)
  • Financial Institutions (External)
  • Government Regulators (External)
  • Subject Matter Experts (External/Internal)
  • Consultants (External)
A Typical Stakeholder Classification Method
  • Many Classification Models in use; Power-Interest (or Authority-Interest) Grid is one of them
  • Engagement Strategy for a Stakeholder dependent on his Classification
What is a Stakeholder, stakeholder types and engagement strategies?
What is a Stakeholder, stakeholder types and engagement strategies?
Stakeholder Assessment

An Assessment Matrix is used to assess the Current (C) and Desired (D) level of Assessment.  For effective management, any Gap between C & D should be removed by reviewing Engagement Strategy

What is a Stakeholder, stakeholder types and engagement strategies?
What is a Stakeholder, stakeholder types and engagement strategies?
Some Stakeholder Engagement Strategies

Depending on the nature/status of the Stakeholders, and the given situation, one of more of the following strategies could be considered:

  • Good communication with the Stakeholders
  • Sharing Project Information or Status Reports with them
  • Taking them on Project Visits
  • Meetings with them
  • Inviting them to Milestone Parties
  • Giving importance to their Advice
  • Responding to their Queries, promptly & correctly
  • Addressing their Concerns
  • Inviting them to Review Meetings
  • Presenting Project Accounts
  • Resolving Conflicts
  • Reviewing Engagement Strategy with time and changed situation

Staying Engaged; never burning bridges; remaining mentally ready to face negative comments or difficult situations; and devising suitable response

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