BPM 212: PROJECT SELECTION CRITERIA AND STAKEHOLDER

PARTICIPATION
PROJECT STAKEHOLDER MANAGEMENT
• Project Stakeholder Management includes:
• the processes required to identify the people, groups, or organizations that could impact
or be impacted by the project,
• to analyze stakeholder expectations and their impact on the project,
• and to develop appropriate management strategies for effectively engaging stakeholders
in project decisions and execution.
• The processes support the work of the project team to
 analyze stakeholder expectations,
 assess the degree to which they impact or are impacted by the project
 and develop strategies to effectively engage stakeholders in support of project decisions
and the planning and execution of the work of the project.
The Project Stakeholder Management processes
• 1. Identify Stakeholders—The process of identifying project stakeholders regularly and
analyzing and documenting relevant information regarding their interests, involvement,
interdependencies, influence, and potential impact on project success.
• 2. Plan Stakeholder Engagement—The process of developing approaches to involve
project stakeholders based on their needs, expectation, interests, and potential impact on
the project.
• 3. Manage Stakeholder Engagement—The process of communicating and working
with stakeholders to meet their needs and expectations, address issues, and foster
appropriate stakeholder engagement involvement.
• 4. Monitor Stakeholder Engagement—The process of monitoring project stakeholder
relationships and tailoring strategies for engaging stakeholders through the modification
of engagement strategies and plans.
KEY CONCEPTS FOR PROJECT STAKEHOLDER MANAGEMENT
• Every project has stakeholders who are impacted by or can impact the project in a
positive or negative way.
• Some stakeholders may have a limited ability to influence the project’s work or
outcomes; others may have significant influence on the project and its expected
outcomes.
 • Academic research and analyses of high-profile project disasters highlight the importance
of a structured approach to the identification, prioritization, and engagement of all
stakeholders.
• The ability of the project manager and team to correctly identify and engage all
stakeholders in an appropriate way can mean the difference between project success and
failure.
• To increase the chances of success, the process of stakeholder identification and
engagement should commence as soon as possible after the project charter has been
approved, the project manager has been assigned and the team begins to form
Stakeholder Management
• Stakeholder satisfaction should be identified and managed as a project objective.
• The key to effective stakeholder engagement is a focus on continuous communication
with all stakeholders, including team members,
 to understand their needs and expectations,
 address issues as they occur,
 manage conflicting interests, and
 foster appropriate stakeholder engagement in project decisions and activities.
• The process of identifying and engaging stakeholders for the benefit of the project is
iterative.
Although the processes in Project Stakeholder Management are described only once, the
activities of identification, prioritization, and engagement should be reviewed and updated
routinely, and at least at the following times when:
 The project moves through different phases in its life cycle,
 Current stakeholders are no longer involved in the work of the project
 or new stakeholders become members of the project’s stakeholder community,
 or There are significant changes in the organization or the wider stakeholder community

TRENDS AND EMERGING PRACTICES IN PROJECT STAKEHOLDER

ENGAGEMENT
• Broader definitions of stakeholders are being developed that expand the traditional
categories of employees, suppliers, and shareholders to include groups such as;
 regulators,
 lobby groups,
  environmentalists,
 financial organizations,
 the media, and
 those who simply believe they are stakeholders—they perceive that they will be affected
by the work or outcomes of the project.
Trends and emerging practices for Project Stakeholder Management include but are not limited
to:
 Identifying all stakeholders, not just a limited set;
 Ensuring that all team members are involved in stakeholder engagement activities;
 Reviewing the stakeholder community regularly, often in parallel with reviews of
individual project risks;
 Consulting with stakeholders who are most affected by the work or outcomes of the
project through the concept of co-creation. Co-creation places greater emphasis on
including affected stakeholders in the team as partners; and
 Capturing the value of effective stakeholder engagement, both positive and negative.
 Positive value can be based on the consideration of benefits derived from higher levels of
active support from stakeholders, particularly powerful stakeholders.
 Negative value can be derived by measuring the true costs of not engaging stakeholders
effectively, leading to product recalls or loss of organizational or project reputation.
TAILORING CONSIDERATIONS
• Because each project is unique, the project manager may need to tailor the way Project
Stakeholder Management processes are applied.
• Considerations for tailoring include but are not limited to:
 Stakeholder diversity.
 How many stakeholders are there?
 How diverse is the culture within the stakeholder community?
 Complexity of stakeholder relationships.
 How complex are the relationships within the stakeholder community?
 The more networks a stakeholder or stakeholder group participates in, the more complex
the networks of information and misinformation the stakeholder may receive.
 Communication technology.
  What communication technology is available?
 What support mechanisms are in place to ensure that best value is achieved from the
technology?
CONSIDERATIONS FOR AGILE/ADAPTIVE ENVIRONMENTS
• Projects experiencing a high degree of change require active engagement and
participation with project stakeholders.
• To facilitate timely, productive discussion and decision making, adaptive teams engage
with stakeholders directly rather than going through layers of management.
• Often the client, user, and developer exchange information in a dynamic co-creative
process that leads to more stakeholder involvement and higher satisfaction.
• Regular interactions with the stakeholder community throughout the project mitigate
risk, build trust, and support adjustments earlier in the project cycle, thus reducing costs
and increasing the likelihood of success for the project.
• In order to accelerate the sharing of information within and across the organization, agile
methods promote aggressive transparency.
• The intent of inviting any stakeholders to project meetings and reviews or posting project
artifacts in public spaces is to surface as quickly as possible any misalignment,
dependency, or other issue related to the changing project.
IDENTIFY STAKEHOLDERS
• Identify Stakeholders is the process of identifying project stakeholders regularly and
analyzing and documenting relevant information regarding their;
 interests,
 involvement,
 interdependencies,
 influence, and
 potential impact on project success.
• The key benefit of this process is that it enables the project team to identify the
appropriate focus for engagement of each stakeholder or group of stakeholders.
• This process is performed periodically throughout the project as needed.
• The inputs, tools and techniques, and outputs of the process are depicted in the following
Figure
 • This process frequently occurs for the first time in a project either prior to or at the same
time the project charter is developed and approved.
• It is repeated as necessary, but should be performed at the start of each phase and when a
significant change in the project or the organization occurs.
• Each time the identification process is repeated, the project management plan
components and project documents should be consulted to identify relevant project
stakeholders.
IDENTIFY STAKEHOLDERS: INPUTS
i. PROJECT CHARTER.
• The project charter identifies the key stakeholder list.
• It may also contain information about the responsibilities of the stakeholders.
ii. BUSINESS DOCUMENTS
In the first iteration of the Identify Stakeholders process, the business case and the benefits
management plan are sources of information about the project’s stakeholders.
a. Business case.
 • The business case identifies the project objectives and identifies an initial list of
stakeholders affected by the project.
b. Benefits management plan.
• The benefits management plan describes the expected plan for realizing the benefits
claimed in the business case.
• It may identify the individuals and groups that will benefit from the delivery of the
outcomes of the project and are thus considered as stakeholders.
iii. PROJECT MANAGEMENT PLAN
• The project management plan is not available when initially identifying stakeholders;
however, once it has been developed, project management plan components include but
are not limited to:
a. Communications management plan.
• Communications and stakeholder engagement are strongly linked.
• Information included in the communications management plan is a source of knowledge
about the project’s stakeholders.
b. Stakeholder engagement plan.
• The stakeholder engagement plan identifies the management strategies and actions
required to effectively engage stakeholders
iv. PROJECT DOCUMENTS
• It is unlikely that any project documents will be an input for the initial stakeholder
identification.
• However, stakeholder identification occurs throughout the project.
• Once the project is past the startup phase, more documents become available and are used
throughout the project.
• Project documents that can be considered as inputs for this process include but are not
limited to:
a. Change log.
• The change log may introduce a new stakeholder or change the nature of an existing
stakeholder’s relationship to the project.
b. Issue log.
• The issue log records issues that may introduce new stakeholders to the project or change
the type of participation of existing stakeholders.
c. Requirements documentation.
• Requirements can provide information on potential stakeholders.
vi. AGREEMENTS
• The parties of an agreement are project stakeholders.
• The agreement can contain references to additional stakeholders.
vii. ENTERPRISE ENVIRONMENTAL FACTORS
• The enterprise environmental factors that can influence the Identify Stakeholders process
include but are not limited to:
a. Organizational culture, political climate, and governance framework;
• Government or industry standards (regulations, product standards, and codes of conduct);
• Global, regional, or local trends and practices or habits; and
• Geographic distribution of facilities and resources.
vii. ORGANIZATIONAL PROCESS ASSETS
• The organizational process assets that can influence the Identify Stakeholders process
include but are not limited to:
a. Stakeholder register templates and instructions,
b. Stakeholder registers from previous projects, and
c. Lessons learned repository with information about the preferences, actions, and involvement
of stakeholders.