Stakeholder Management
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== Abstract == | == Abstract == | ||
| − | In all | + | In any case it is important to identify all the key stakeholders and define which interest they have in the project and how important they are for the completion of the project. |
| + | A plan for handling and communication with the different stakeholders can then be created, when the stakeholder analysis has been performed. | ||
| + | In managing stakeholders, both internal and external, it is important to always find solutions that are mutually beneficial. | ||
| + | The growing focus on stakeholder analysis is a clear reflection of the general tendency to recognise how stakeholders can influence decision-making processes. | ||
This article will attempt to create an overview of the different tools associated with managing different types of stakeholders and look into the differences in stakeholder management across different project types. | This article will attempt to create an overview of the different tools associated with managing different types of stakeholders and look into the differences in stakeholder management across different project types. | ||
Furthermore, the article will look into the limitations of existing methods for stakeholder analysis and management. Here it will look into the areas in need of further development such as stakeholder involvement. | Furthermore, the article will look into the limitations of existing methods for stakeholder analysis and management. Here it will look into the areas in need of further development such as stakeholder involvement. | ||
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=== Introduction === | === Introduction === | ||
| + | The purpose of identifying and classifying stakeholders is to make the identification of stakeholder concerns easier and consequently making issue solving a smoother task. | ||
| + | The prioritisation of the stakeholders is a key outcome of a stakeholder analysis, as it will allow the project manager to acquire the knowledge necessary to get the maximum advantage of the stakeholders’ contribution to the project. | ||
| + | Stakeholder management was first observed in Scandinavian management [Ref (1)] and they started differentiating between shareholder theory and stakeholder theory. | ||
*Definition of a stakeholder | *Definition of a stakeholder | ||
*Why are they so important to projects? | *Why are they so important to projects? | ||
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**Legitimate versus derivative | **Legitimate versus derivative | ||
**Strategic and environmental stakeholders | **Strategic and environmental stakeholders | ||
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| + | Stakeholders can be categorised into three overall categories: | ||
| + | |||
| + | ;Downward stakeholders | ||
| + | :Here you find the project group itself – they hold a critical role in the completion of the project and their effort is crucial. In order to manage the project group it is important to clarify what the members wish to obtain or accomplish by participating in the project. Moreover it is important for each member to state what his/her contribution will be depending on the set of skills each member possesses. | ||
| + | |||
| + | ;Upward stakeholders | ||
| + | :Here you find the stakeholder financing the project, amongst them you will also find the project owner. In order to manage the expectations of the project owner, it is important that these be discussed at the beginning of the project in order for the expectations to be in compliance with the reality. | ||
| + | :The role of the project owner is to give visible support to the project and to use his formal power to help the project move along. | ||
| + | |||
| + | ;Outward stakeholders | ||
| + | :These stakeholders can both be internal and external to the organisation where the project is taking place. | ||
| + | :The external outward stakeholders could be the clients, suppliers, authorities and competitors amongst others. | ||
| + | :The internal outward stakeholders could be the other project managers for projects run in parallel, other employees not directly involved in the project at hand, line managers, etc.… | ||
| + | :Furthermore, the client/end-user of the project outcome is also and important stakeholder, because the outcome of the project can become an utter failure if the accept of the client/end-user is taken for granted. Which is why it is crucial to maintain a continuous dialogue with the client to constantly manage expectations. | ||
| + | |||
===Stakeholders in different projects=== | ===Stakeholders in different projects=== | ||
Revision as of 14:54, 16 November 2014
Contents |
Abstract
In any case it is important to identify all the key stakeholders and define which interest they have in the project and how important they are for the completion of the project. A plan for handling and communication with the different stakeholders can then be created, when the stakeholder analysis has been performed. In managing stakeholders, both internal and external, it is important to always find solutions that are mutually beneficial. The growing focus on stakeholder analysis is a clear reflection of the general tendency to recognise how stakeholders can influence decision-making processes. This article will attempt to create an overview of the different tools associated with managing different types of stakeholders and look into the differences in stakeholder management across different project types. Furthermore, the article will look into the limitations of existing methods for stakeholder analysis and management. Here it will look into the areas in need of further development such as stakeholder involvement. Lastly it will summarise the discussion and make a conclusion on the current state of the existing tools for managing stakeholders.
The article will consist of the following headlines and the overall content has been listed in the following paragraphs.
Introduction
The purpose of identifying and classifying stakeholders is to make the identification of stakeholder concerns easier and consequently making issue solving a smoother task. The prioritisation of the stakeholders is a key outcome of a stakeholder analysis, as it will allow the project manager to acquire the knowledge necessary to get the maximum advantage of the stakeholders’ contribution to the project. Stakeholder management was first observed in Scandinavian management [Ref (1)] and they started differentiating between shareholder theory and stakeholder theory.
- Definition of a stakeholder
- Why are they so important to projects?
Stakeholder identification
- What kind of tools can be used for identifying and classifying stakeholders?
- Primary versus secondary
- Direct or indirect
- Generic versus specific
- Legitimate versus derivative
- Strategic and environmental stakeholders
Stakeholders can be categorised into three overall categories:
- Downward stakeholders
- Here you find the project group itself – they hold a critical role in the completion of the project and their effort is crucial. In order to manage the project group it is important to clarify what the members wish to obtain or accomplish by participating in the project. Moreover it is important for each member to state what his/her contribution will be depending on the set of skills each member possesses.
- Upward stakeholders
- Here you find the stakeholder financing the project, amongst them you will also find the project owner. In order to manage the expectations of the project owner, it is important that these be discussed at the beginning of the project in order for the expectations to be in compliance with the reality.
- The role of the project owner is to give visible support to the project and to use his formal power to help the project move along.
- Outward stakeholders
- These stakeholders can both be internal and external to the organisation where the project is taking place.
- The external outward stakeholders could be the clients, suppliers, authorities and competitors amongst others.
- The internal outward stakeholders could be the other project managers for projects run in parallel, other employees not directly involved in the project at hand, line managers, etc.…
- Furthermore, the client/end-user of the project outcome is also and important stakeholder, because the outcome of the project can become an utter failure if the accept of the client/end-user is taken for granted. Which is why it is crucial to maintain a continuous dialogue with the client to constantly manage expectations.
Stakeholders in different projects
- In construction project management
- In R&D project management
- In sustainability management
Stakeholder theories
- The different approaches to stakeholder analysis
- Categorisation of stakeholders
- The power/interest grid
- Stakeholder-influence network
- Stakeholder management web
Discussion of the tools
- Pros and cons
- What is missing?
