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=='''Project Sponsor, Stakeholders and Governance'''==
[[File:Sponsor7.png|thumb|400px|'''Figure 6''' - The Relationship between the Stakeholders and the Project, inspired by PMBOK® Guide, Fifth Edition.<ref name="multiple">''A Guide to the Project Management Body of Knowledge PMBOK® Guide, Fifth Edition, 2.2 Project Stakeholders and Governance''</ref>]]
A stakeholder is an individual, group, or organization who may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project. Stakeholders may be actively involved in the project or have interests that may be positively or negatively affected by the performance or completion of the project. <ref name="multiple">''A Guide to the Project Management Body of Knowledge PMBOK® Guide, Fifth Edition, 2.2 Project Stakeholders and Governance''</ref>
Project governance—the alignment of the project with stakeholders' needs or objectives—is critical to the successful management of stakeholder engagement and the achievement of organizational objectives. Project governance enables organizations to consistently manage projects and maximize the value of project outcomes and align the projects with business strategy <ref name="multiple">''A Guide to the Project Management Body of Knowledge PMBOK® Guide, Fifth Edition, 2.2 Project Stakeholders and Governance''</ref>. These two provide the structure that a Project Manager and Sponsor need to address to satisfy all the requirement’s form the stakeholder.

==='''Project Stakeholders'''===

Stakeholders include all members of the project team as well as all interested entities that are internal or external to the organization. The project team identifies internal and external, positive and negative, and performing and advising stakeholders in order to determine the project requirements and the expectations of all parties involved. The project manager should manage the influences of these various stakeholders in relation to the project requirements to ensure a successful outcome<ref name="ref3">''A Guide to the Project Management Body of Knowledge PMBOK® Guide, Fifth Edition, 2.2.1 Project Stakeholders''</ref>. '''Figure 6''' illustrates the relationship between the project, the project team, and various stakeholders.

Stakeholders have different levels of responsibility and authority when contributing to a project and this change affects the course of the project's lifecycle. Identifying stakeholders, understanding their grade of impact on a project, and balancing their demands, requirements, and expectations are critical to the success of the project and failure to do so can lead to delays, cost increases, unexpected issues, and other harmful consequences including project annulment. 

Just as stakeholders can positively or adversely impact a project's objectives, a project can be perceived by the stakeholders as having positive or negative results. For example, business leaders from a community who will benefit from an industrial expansion project will see positive economic benefits to the community in the form of additional jobs, supporting infrastructure, and taxes. In the case of stakeholders with positive expectations for the project, their interests are best served by making the project successful. In contrast, the interests of negatively affected stakeholders, such as nearby homeowners or small business owners who may lose property, be forced to relocate, or accept unwanted changes in the local environment, are served by impeding the project's progress. Overlooking negative stakeholder interests can result in an increased likelihood of failures, delays, or other negative consequences of the project.<ref name="ref3">''A Guide to the Project Management Body of Knowledge PMBOK® Guide, Fifth Edition, 2.2.1 Project Stakeholders''</ref>

Accordingly, to the  PMBOK® Guide, the following are some examples of project stakeholders:
* '''Sponsor:''' The sponsor leads the project through the initiating processes until formally authorized, and plays a significant role in the development of the initial scope and charter.
* '''Customers and users:''' Customers are the persons or organizations who will approve and manage the project's product, service, or result. Users are the persons or organizations who will use the project's product, service, or result. Customers and users may be internal or external to the performing organization
* '''Sellers:''' vendors, suppliers, or contractors, are external companies that enter into a contractual agreement to provide components or services necessary for the project
* '''Business partners:''' Business partners are external organizations that have a special relationship with the enterprise, sometimes attained through a certification process. Business partners provide specialized expertise or fill a specified role such as installation, customization, training, or support.
* '''Organizational groups:''' Organizational groups are internal stakeholders who are affected by the activities of the project team. Examples of various business elements of an organization that may be affected by the project include marketing and sales, human resources, legal, finance, operations, manufacturing, and customer service.
* '''Functional managers:''' Functional managers are key individuals who play a management role within an administrative or functional area of the business, such as human resources, finance, accounting, or procurement.
* '''Other stakeholders:''' Additional stakeholders, such as procurement entities, financial institutions, government regulators, subject matter experts, consultants, and others, may have a financial interest in the project, contribute inputs to the project, or have an interest in the outcome of the project.