PMBOK 7. Project Performance Domain: Stakeholders
The Stakeholder Performance Domain encompasses tasks and roles related to stakeholders. Successful project outcomes are facilitated by efficient stakeholder interaction. Engaging stakeholders effectively involves deploying strategies and initiatives to encourage their active participation in project decision-making and execution.
Here’s a deeper dive into how stakeholder interactions are pivotal for project success within this domain:
Identification and Analysis
This involves identifying all stakeholders involved in the project and analyzing their needs, expectations, and influence on the project. Stakeholder identification is a critical first step in ensuring that all relevant parties are considered throughout the project lifecycle.
Each of the interested parties has their own needs, requirements and expectations — and accordingly sees the value (benefit) from your project in their own way.
High-level identification of stakeholders occurs before a PM (Project Manager) is appointed. And it is formed by the project team. They may not be formally included in the list of stakeholders; they may be a sponsor, a customer, or a PMO (Project Management Office) that analyzes the project. When a PM appears in a project, he records the list (register) of stakeholders, replenishes, changes and details. The PM maintains this register throughout the project. Because the main stakeholders can be identified immediately at the beginning of the project, such as the Sponsor, the customer, PMO, the Project team, end users, but there are those who are difficult to immediately determine, they are not obvious, because they may seem that they do not influence the project at all and already deep study can be discovered.
Stakeholder Engagement Strategy
Developing a stakeholder engagement strategy is essential to identify stakeholders, understand their needs and expectations, and plan how to effectively engage with them throughout the project. This strategy outlines the approach for communication, involvement, and management of stakeholders to ensure their active participation and support.
The Stakeholder Engagement Strategy yields several outcomes:
- Establishment of productive working relationships with stakeholders across the project duration.
- Consensus among stakeholders regarding the project goals.
- Satisfaction among supporting parties, with opponents having minimal influence on the project’s trajectory.
Communication Management
Clear and transparent communication with stakeholders is crucial for maintaining alignment, managing expectations, and fostering trust. Communication plans outline what information needs to be communicated, to whom, how, and when. Effective communication ensures that stakeholders are informed about project progress, changes, risks, and any other relevant information.
Stakeholder Involvement and Participation
Actively involving stakeholders in key project activities such as requirements gathering, decision-making, and reviews enhances their commitment and ownership of project outcomes. Engaging stakeholders in meaningful ways empowers them to contribute their expertise, perspectives, and insights, ultimately leading to better project outcomes.
Managing Stakeholder Expectations
Managing stakeholder expectations involves ensuring that stakeholders have realistic expectations about project scope, schedule, budget, and outcomes. It requires continuous dialogue, setting clear expectations, and addressing any discrepancies or misunderstandings promptly to prevent dissatisfaction and potential conflicts.
Risk Management
Stakeholders can have a significant impact on project risks, both positively and negatively. Identifying potential stakeholder-related risks, such as resistance to change or conflicting priorities, and developing mitigation strategies help minimize their impact on project success. Proactively involving stakeholders in risk identification and mitigation enhances their understanding and support for risk management efforts.
Feedback and Continuous Improvement
Soliciting feedback from stakeholders on their experiences, satisfaction levels, and suggestions for improvement enables project teams to make timely adjustments and enhancements to stakeholder engagement strategies and project processes. Continuous improvement based on stakeholder feedback fosters stronger relationships and ensures ongoing support for the project.
Stakeholder Matrix
The Stakeholder Matrix is a tool used in project management to categorize stakeholders based on their level of interest in the project and their influence or power over it. It helps project managers understand the dynamics of stakeholders and tailor communication and engagement strategies accordingly.
The matrix typically consists of four quadrants:
- High Power, High Interest: These stakeholders have significant power or influence over the project and are highly interested in its outcomes. They typically include key decision-makers, sponsors, or top-level management. Engaging with them closely and addressing their needs and concerns is crucial for project success.
- High Power, Low Interest: These stakeholders have a high level of power or influence but may not be directly interested in the project’s details. They could include regulatory bodies, government agencies, or other organizations that have authority over the project’s implementation. While they may not be actively engaged, keeping them informed about major developments is important to avoid any potential obstacles.
- Low Power, High Interest: These stakeholders have a strong interest in the project but limited power or influence over its execution. They could include end-users, community groups, or special interest groups. While they may not have the authority to make major decisions, their support and buy-in are essential for the project’s success. Engaging with them effectively and addressing their concerns can help build positive relationships and mitigate risks.
- Low Power, Low Interest: These stakeholders have minimal power or influence over the project and are not particularly interested in its outcomes. They could include peripheral stakeholders or individuals who are only tangentially affected by the project. While they may not require significant attention, keeping them informed about the project’s progress can help prevent any unexpected issues or misunderstandings.
By mapping stakeholders onto this matrix, project managers can prioritize their engagement efforts and tailor communication strategies to effectively address the needs and concerns of each group, ultimately enhancing stakeholder management and contributing to project success.
Creating a stakeholder map in Excel involves organizing stakeholder information in a visual representation, usually a matrix or chart. Here’s a step-by-step guide showing how to do it David McLachlan.
By focusing on effective stakeholder interactions within the Stakeholder Performance Domain, project teams can minimize uncertainty, mitigate risks, and maximize stakeholder support, ultimately leading to successful project outcomes.
Сheck achievement of results by domain
To check the achievement of results by stakeholder domain in a project, you’ll need to assess how well each stakeholder group’s objectives and expectations have been met.
Identify Stakeholder Domains: Begin by identifying the different stakeholder domains or groups involved in the project. Stakeholder domains may include internal stakeholders (e.g., project team members, management, employees) and external stakeholders (e.g., clients, customers, suppliers, regulatory bodies, community groups).
Define Objectives and Expectations: Clearly define the objectives and expectations of each stakeholder domain. What outcomes or results are they expecting from the project? What specific goals do they hope to achieve? Understanding these objectives will help you assess the achievement of results for each stakeholder group.
Establish Key Performance Indicators (KPIs): Determine the key performance indicators (KPIs) that will be used to measure the achievement of results for each stakeholder domain. KPIs should be specific, measurable, achievable, relevant, and time-bound (SMART). For example, KPIs for a stakeholder domain might include customer satisfaction ratings, project milestones achieved, budget adherence, etc.
Collect Data: Collect data related to the defined KPIs for each stakeholder domain. This may involve reviewing project documentation, conducting surveys or interviews, analyzing feedback, and monitoring project progress.
Assess Achievement of Results: Evaluate the collected data to assess the achievement of results for each stakeholder domain. Compare the actual performance against the defined objectives and expectations to determine whether the stakeholders’ goals have been met. Consider factors such as project outcomes, stakeholder satisfaction, adherence to timelines and budgets, and any other relevant criteria.
Monitor and Adjust: Continuously monitor the progress of the action plans and make adjustments as needed to ensure that results continue to improve over time. Regularly revisit the assessment process to track performance against objectives and expectations and make further refinements as necessary.
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