Dr.

Uma Chatterjee
STAKEHOLDER’S ANALYSIS Saha
WHAT IS A STAKEHOLDER ?
Stakeholders are people or organizations :
With an interest in the project
Who can affect a project
Who may be affected by a project

Stakeholders may be within the organization, or external to

it.
Internal stakeholders may be managers, staff, other dept.
heads, your own team, subject matter experts
External stakeholders may be from anywhere –other
companies, public bodies, legislative bodies, competitors
WHY DO WE
NEED TO —Stakeholders
—If we don’t
IDENTIFY know who is in a
can affect a position to affect
STAKEHOLDERS? project the project, how
because they can we plan to
have an either use or
guard against
interest in it. their influence?
—If we don’t —If we miss a
identify pro-project
Stakeholders Stakeholder, we
and they have miss the
negative opportunity to
attitudes, it can have a helping
lead to hand assist us in
delivering the
problems or
project
failure in the output(s)
project.
 a) Project Managers: They compete for the
WHO ARE available scarce resources and the support
of top management. They also must share
PROJECT resources and exchange information.
STAKEHOLDERSb) Project Team: The project team manages
and completes project work. Most
participants want to do a good job, but they
are also concerned with their other
obligations and how their involvement on the
project will contribute to their personal goals
and aspirations.
c) Administrative Support Group:
Administrative support groups, such as
human resources, information systems,
purchasing agents, and maintenance,
provide valuable support services. At the
same time, they impose constrains and
d) Functional Managers: they may be
responsible for assigning project
personnel, resolving technical
dilemmas, and overseeing the
completion of significant segments of
project work. Even in dedicated project
teams, the technical input from
functional managers may be useful, and
acceptance and completed project work
may be critical to in-house project.
Functional managers want to co-
operate up to a point, but only up to a
certain point. They are also concerned
with preserving their status within the
organization and minimizing the
disruptions the project may have on
their own operations.
e) Top Management: Top management
approves funding of the project and
establishes priorities within the
f) Project sponsors: Project sponsors champion the
project and use their influence to get approval of the
project. Their reputation is tied to the success of the
project, and they need to be kept informed of any major
developments. They defend the project when it comes
under attack and are a key project partner.

g) Sub-contractors: Subcontractors may do all the actual

work, in some cases, the project team merely
coordinating their contributions. While contractors’
reputations rest with doing good work, they must
balance their contributions with their own profit margins
and their commitments to other clients.
h) Government Agencies: Government agencies
place constraints on project work. Permits need
to be secured. Products must meet safety
standards, for example, Occupational Safety and
Health Administration standards.

i) Other Organizations: Other organizations,

depending on the nature of the project may
directly or indirectly affect the project. For
example, suppliers provide necessary resources
for completion of the project work. Delays,
shortages, and poor quality can bring a project to
a standstill. Public interest groups may apply
pressure on government agencies. Customers
often hire consultants and auditors to protect
their interests on the project.

j) Customers: Customers define the scope of the

project, and ultimate project success rests in their
satisfaction. Project managers need to be
MANAGING PROJECT STAKEHOLDERS: 6 STEPS TO SUCCESS
• To successfully manage project shareholders, following 6 steps (called as
INFORM model – source: http://pmtips.net/managing-stakeholders-6-steps-
success) are followed:

a) Identify: Who are the stakeholders on your project? A stakeholder is

anyone who has a vested interest in the project – someone who wants it to
succeed but equally someone who doesn’t. You cannot start managing
stakeholders until you know who they are. Who are the main groups or
departments affected by your project? Stakeholders can also be external to
your organization like the government and third-party providers as well. The
identification exercise should not be done in a vacuum: you will not be able
to complete the list yourself, so get your project team involved too.
b) Nominate: In each groups you have identified, pick someone to
be the key individual. Choose carefully! You may find that key
people nominate themselves, which makes your role easier: it is
better to work with people who want to be involved than those who
you must be dragged into the project compulsorily. Your key,
nominated stakeholders should ideally be people who are directly
affected, with enough authority to make decisions about things that
touch their departments. They are the person who you will use to
channel communication back to their group.

c) Feel: Begin to analyze the attitudes of the people who have been
identified as your key stakeholders: those named individuals who
represent each stakeholder group. Contact them and explain about
the project. Get them onboard and coming to project meetings if
necessary. All this will help you understand how they feel about the
work you are doing. Do they support the project? Or they rather
d) Observe: Having established where your key stakeholders sit in
relation to the project you can start to influence their attitudes.
The aim is to watch people over time and help them move towards
a positive way of thinking: a way that will help you achieve your
aims. Keep a close eye on people as their opinions will swing
between positive and negative over the life of a project.

e) Review: People and job roles change. So do projects. The person

who put themselves forward to represent the marketing team six
months ago may not be the right person today. If you notice that
their influence is slipping away, or they are less inclined to come to
meetings or respond to emails, then ask them if they still want to
be involved. If they say no, they could suggest someone else who
f) Manage: The last step is to monitor and manage your stakeholders
and their expectations as the project progresses – not just at the
outset and when you need something from them. Put a note in your
diary to give your key stakeholder representatives a quick call every
now and then just to keep them up to date. This will help promote
the project and also ensure the stakeholder concerned is mindful of
the work being done. It can also help build your reputation as an
excellent project manager! At the end of the project, thank them and
manage them out of the team. You want a good relationship with
them that could last over many projects
Thank you