THE STAKEHOLDER
THE STAKEHOLDER. Who or what is this person? Is he/she really important to my project? Why?
Let’s answer the first question. Who or what is a Stakeholder?
No! This is NOT a Stakeholder. It’s also the wrong spelling!
This is also NOT a Stakeholder!
Some of you may feel that you are the guy in the coffin above and that the Stakeholder is more like this guy on the left!
So that brings us back to the question who or what IS a Stakeholder?
The simple answer is that a Stakeholder is someone who Holds a “Stake” in our project.
Yeah! I know right?
But that IS the simple answer!
So what “Stakes” do he/she Hold? There are many.
For instance,
- He could be giving you resources for your project, (willingly or otherwise!)— whether in the form of people, materials, money, information or whatever, or
- He could be a Project Sponsor, ie this may be a project he initiated, and so has a vested interest in seeing it through to completion, or
- He could be the beneficiary of the product of the project, e.g. a Customer, whether internal or external, or
- The success of the project may result in his promotion! or
- The success of the project may result in his having to move out of his comfort zone and so change the way he works and/or learn something new, or
- The success of the project may result in him LOSING his power, status, or worse, his JOB!
As you can see, some Stakeholders are going to Support your project and others might Oppose it. The degree of their support or opposition is determined by the degree to which they are affected or impacted. The greater the impact on them, the greater the Support or Opposition.
Some of these Stakeholders wield a lot of power and influence in the organization and maybe on your project as well.
Remember! Just because a person is very powerful in the organization, does not automatically imply that he has power over your project! It may SEEM that way, but it doesn’t HAVE to be.
But if they do have influence on your project, that influence can be helpful or detrimental to your project. How helpful or detrimental is dependent on the degree of the Stakeholder’s influence!
So, let’s give a clear definition of Stakeholder.
“A Stakeholder is a Person, Group or Entity, that can either impact your project, or is impacted by your project, either positively or negatively.”
Clearly then, identifying your Stakeholders well is extremely critical to the success of your project. Don’t rush this! Don’t do a superficial job of it! You don’t want to miss out on identifying what we refer to as your Key Stakeholders.
No! No! No! That’s NOT a Key Stakeholder!
A Key Stakeholder is one who can DIRECTLY IMPACT your project or is DIRECTLY IMPACTED by your project.
For example, let’s assume that Unilever embarks on the development of a new Clothes Detergent. The CEO of Unilever is NOT going to be directly involved in this project, so he’s NOT a Key Stakeholder. The Product Head of the Detergent Group will most likely be a Key Stakeholder as his input will directly be needed. The Marketing Team will probably be a Key Stakeholder Group. The public, who may use the product, will be Stakeholders but not Key as they have no direct impact on this project. Their interests may be taken into account but that’s it.
Above is a Stakeholder Map, which is used to represent the Level of Support and Degree of Influence each Stakeholder or Stakeholder Group has on the project. This is one of the most important tools a Project Team has in its arsenal.
Of course, once you’ve identified them, it’s important that you get their inputs regarding the projects. Whether they are for it or against it, they will still have an input.
How to do THIS is a completely different discussion topic!
Hope you enjoyed reading this article and found this information useful for your projects!
Please check our website www.prowiz.biz and sign up for our upcoming Virtual Workshop called The Stakeholder Jungle and You Are Tarzan, which goes in-depth into this topic and provides you with the tools and techniques you will need to manage your Stakeholders and their expectations.
You will also find other workshops and services we offer.
If you have any questions or you wish to share an opinion or thought, you are most welcome to contact us!
V Ravindran, PMP
Prowiz Asia Pte Ltd
Website: www.prowiz.biz