Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
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Outline of This Course Module
Stakeholders and Their Relevance for Projects
Typology of Project Stakeholders
The Project Stakeholder Management Process
Role of Communication in Project Management
Factors Influencing Communication in Projects
Types and Mediums of Communication in Projects
The Project Communication Plan
Strategies for Improving Communication in Projects
Communication in Project Teams
Project Meetings
The Project Management Information System
Project Communication and Collaboration Softwares
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
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The Project Stakeholders
There are many definitions of project stakeholders.
Basically, project stakeholders are primarily individuals,
groups or communities of individuals and/or
organizational entities who, broadly speaking, have – or
who believe they have – a „stake“ (interest) in the
project or projects which are being undertaken, or which
may be undertaken at a future point in time.
The PMI defines stakeholders as „individuals and
organizations that are actively involved in the project, or
whose interests may be affected as a result of project
execution or project completion“.
[Project Management Body of Knowledge, 2004, p.24]
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
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The Project Stakeholders
Stakeholders must be „managed“ throughout a project so that
their ideas and concerns are taken into consideration, they can
contribute to the project, they understand the project decisions
taken and accept them more readily and they will be project
supporters instead of project adversaries
Depending on the nature of the project, the stakeholders can,
at one extreme, be very small in number and easily
identifiable, or they can be numerous, highly dispersed, and
difficult to identify on the other.
Terms commonly used in the project management literature to
denote and differentiate stakeholders on a project are
„Primary Stakeholders“ and „Secondary Stakeholders“,
„Internal and External Stakeholders“ and „Key Stakeholders“
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
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The Project Stakeholders
All stakeholders must be properly and professionally
„managed“ throughout the project‘s life-cycle by the
project manager and project team in order to increase
the chances of the project suceeding.
IMPROPER STAKEHOLDER MANAGEMENT IS ONE OF THE
PRINCIPAL CAUSES OF PROJECT FAILURE!
NEVER IGNORE THE PROJECT STAKEHOLDERS!
Project Managers who “mismanage” the project
stakeholders can expect potentially serious
consequences for their projects!
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
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Project Stakeholders
Project Primary & Secondary Stakeholders
Primary Stakeholders
Secondary Stakeholders
According to Cleland/Ireland [Strategic Design and
Implementation, 2002]: „Project primary stakeholders are those individuals or organizational
entities who or which have a contractual or legal
obligation to the project team and have the
responsibility and authority to manage and commit
resources according to schedule, cost and technical performance objectives.“
Using Cleland/Ireland‘s definition of primary stakeholders as a reference, project secondary stakeholders are those individuals, groups of individuals and
organizational entities [and, as we shall see, communities and even countries] who or which have no
formal contractual relationship to the project in
question, but who/which believe they have a stake in
it because it can affect them in some way or other.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
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The Project Primary Stakeholders
According to Cleland & Ireland, project primary stakeholders have direct and operational roles through their
participation in the design, engineering, development and
production, and after-sales logistical support of the
project output / outcomes. Cleland & Ireland are looking
at project stakeholders primarily from a corporate and
business perspective.
Project primary stakeholders typically include the project
sponsor, the project manager and project team, the
organization‘s senior management, functional managers,
project suppliers and contractors, project customers and
users, and various state entities.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
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Project Primary & Secondary Stakeholders:
An Alternative Definition
Development Financing and Implementing Institutions have a different perception as to who
constitutes a project’s primary and secondary
stakeholders.
Example: According to the African Development Bank’s
Handbook on Stakeholder Consultation and Participation in
ADB Operations, Stakeholders are people/communities who
may - directly or indirectly, positively or negatively – affect or
be affected by the outcomes of projects or programmes,
whereby:
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
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Project Primary & Secondary Stakeholders:
An Alternative Definition
Primary Stakeholders are the beneficiaries of a development
intervention or those directly affected (positively or negatively)
by it. They include local populations (individuals and
community based organizations) in the project/program area,
in particular, poor and marginalized groups who have
traditionally been excluded from participating in development
efforts, and …
Secondary Stakeholders are those who influence a development intervention or are indirectly affected by it. They include
the borrowing government, line ministry and project staff, implementing agencies, local governments, civil society organizations, private sector firms, the Bank and its shareholders and
other development agencies.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
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Project Primary Stakeholders: Examples
Primary Stakeholders
Primary Stakeholders can be
internal or external to the
Project-implementing
organization
Managing all these stakeholders is challenging but
routine for the project
manager and project team
Corporate Shareholders
Project Team
Senior Management
Project Partners
Project Sponsor
Project Customers
& Users
Project Steering
Committee
Project Input Suppliers
& Vendors (ext.)
Project Management
Office
Project Contractors /
Subcontractors
Chief Project Officer /
Programme Manager
Project Consultants
Functional /
Resource Managers
Project Financers (ext.)
Project Manager
Local, State and Federal
Government Entities
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
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Project Secondary Stakeholders: Examples
Secondary Stakeholders
Secondary Stakeholders are
external to the
project organization
Managing secondary
stakeholders can be especially
challenging for the project
manager and project team
Competitors
Intervenor Groups
Consumer Interest
Groups
Environmentalists
Civic and Professional
Organizations
Local Communities
Political Organizations
Private Individuals
Local, State and Federal
Government Entities
Tourists
Media
The General Population
Academia & Researchers
Countries, Regions,
World Community
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
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The Project Stakeholders –
(Primary Stakeholders (2))
Project Primary Stakeholders are typically entrusted with:
-
Providing leadership to the project team
Allocating resources to be used in the design, development and
production of project results
-
Building and maintaining relationships with all stakeholders
-
Motivating the project team members
-
Managing the decision context in the design and execution of
strategies to commit project resources
Assessing the project‘s progress and initiate corrective measures,
if and when necessary
Periodically assessing the project team‘s effectiveness and
efficiency
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
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Primary Stakeholders: Senior Management
Without the interest, encouragement and active
support of senior management, projects cannot
contribute their full potential to the organization.
Senior managers must create a „culture“ in the
organization which clearly acknowledges the importance of projects as essential building blocks
in the implementation of the organization‘s
strategy.
Senior Management is
ultimately responsible for
their organization’s performance. As projects are
the “building blocks” in an
organizations strategy
towards achieving its
goals, objectives and
mission, Senior Managers
must keep a close eye on
them.
Senior managers are personally responsible for
selecting projects of major significance for the
organization, and for ensuring that the requisite
resources and infrastructure is made available
for the realization of these projects.
Senior managers must periodically monitor the
progress of projects in their organization‘s
project portfolio and, if necessary, in the extreme case order the termination of projects if
they are adding no value to the organization.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
13
Primary Stakeholders: The Project Sponsor
The project sponsor advocates the project to senior
management. His or her contribution includes initiating the project by proposing or selecting a project
manager, ensuring that the project is consistent with
the strategic direction, mission, objectives and goals
of the organization and that its benefits exceed its
costs, providing overall direction to the project, and
ensuring that the project team has the requisite
resources to succesfully complete the project.
Sometimes called
the “Project
Champion”, the
project sponsor
performs a
bridging function
on projects
The project sponsor obtains committment from the
resource and functional managers to support the
project, periodically reviews the project status reports
and project progress with the project manager, helps
eliminate obstacles that cannot be overcome by the
project team or project manager, and coaches and
mentors the project manager.
A bad project can blot the sponsor‘s reputation. Transfer or retirement of the Project Sponsor while the project is on-going can spell trouble for the project.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
14
Primary Stakeholders: Steering Committee
A project steering committee usually comprises 6–10
members (inc. the Project Manager) and is chaired by
the Project Sponsor or another senior official of the
implementing organization(s). Committee members
would be project stakeholders from diverse areas,
some of whom possess considerable relevant specialist
knowledge and expertise.
Steering Committees
are recommended on
projects which are
characterized by a
relatively high degree
of complexity,
visibility, and risk, and
entail high cost and
duration, i.e., as are
usually medium to
large projects.
Typical functions of a steering committee include
assuming responsiblity for the successful achievement
of the project goal and outcomes, ensuring alignment
of the project with the objectives and goals of the implementing and consuming organization(s) or entities,
authorizing significant changes to the project scope,
cost and schedule, periodical project monitoring, providing guidance to the project manager and team and
resolving problems, conflicts and issues beyond their
control, liaising when necessary with stakeholders and
reporting on the project‘s progress to the higher authority. Potential Pitfalls: Bureacratic, tendency to micromanage, and focus on politics instead of the project.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
15
Primary Stakeholders:
Resource & Functional Managers
The functional or resource managers primarily
serve as resource suppliers for the project. Their
typical functions include providing staff and
resources from their respective departments to
work full- or part-time on the project, reviewing
and approving the parts of the project plan which
are relevant for their specific areas, and providing
direction to the project team members representing their respective departments.
Functional / Resource
Managers exert great
influence over projects,
especially in a matrix
environment.
Dealing with them often
requires good negotiation and interpersonal
skills on the Project
Manager’s part.
Functional or resource managers also ensure that
the project team members from the department
are equipped with the requisite skill and expertise
profile and are given time to complete their
segment of the project as laid down in the project
plan.
They are expected to be cooperative and eliminate obstacles for the project team.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
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Primary Stakeholders:
Project Leader / Manager
The project manager is the key person who
provides direction to the project team.
The Project Manager leads the project team
through the creation and implementation of
the project plan, obtains formal approval for
it, monitors and reports on the progress of
the project in relation to the project plan and
initiates action to ensure that the project
stays on track, and responds for requests for
changes to the project plan.
The Project Leader /
Manager is (Usually)
Ultimately Responsible for the Project‘s
Success or Failure!
The project manager faciliates the team
process and team cohesion, removes
obstacles facing the team and manages team
conflict, calls and manages team meetings,
liaises with key project stakeholders, and
issues the final project report.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
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Primary Stakeholders: The Project Team
The project team is right in the front-line of the
project‘s planning and implementation. Project
teams can be of the cross-functional, selfmanaged and virtual type.
Project teams can be
cross-functional,
self-managed and
virtual. Through
team effort and
collaboration, synergy is evolved which
is the driving force
behind the project.
The individual project team members participate in the project planning process and
provide technical expertise, ideas, input and
motivational support that can help the entire
team create quality deliverables within the
allocated budget and according to schedule.
They also ensures that project issues are
communicated timely to the project manager,
interact with the the suppliers of project inputs
for their respective areas of work and with
other project stakeholders, help keep the
project on track and provide updates to the
project manager on the pro-ject status.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
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WEEKLY ASSIGNMENT #01
How does your organization categorize its “project
stakeholders”? Does it have a checklist of project
stakeholders? What are the functions of each type
of project stakeholder?
If your organization does not formally categorize and
classify its stakeholders, develop your own system
based on your experience working on projects. Use
one or two projects you previously worked on, or
are presently working on as examples.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
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