NUST COLLEGE OF ELECTRICAL AND MECHANICAL ENGINEERING Engineering Project Management LECTURE 3 SABA FAROOQ Assessment Criteria End Semester Exam : 50% Mid Exams: 30% Assignment: 10% Quizzes: 10% ◦ Identifying Stakeholders in a project ◦ Stakeholder Analysis ◦ Project Stakeholder Processes ◦ Stakeholder map for Engineering projects Stakeholder A stakeholder is anybody who has any interest at all in your project. ◦ Stakeholders are: ◦ or perceive themselves to be affected by a: ◦ Individuals ◦ Decision ◦ Groups ◦ Activity ◦ Organizations ◦ Outcome of a: ◦ who may affect ◦ Project ◦ be affected by ◦ Program ◦ Portfolio What are Stakeholders What is Stakeholder Management? Stakeholder management is the process of: ◦ Organizing ◦ Monitoring ◦ Improving interactions with stakeholders What is Stakeholder Management? ◦ Helps you identify your stakeholders ◦ Keeps them engaged ◦ Ensure stakeholder satisfaction What is Stakeholder Management? Processes required to: ◦ Identify the people, groups, or organizations that could ◦ Impact or be impacted by the project, ◦ To analyze stakeholder expectations in: ◦ Project Decisions ◦ Project Execution What is Stakeholder Management? ◦ When working on a project, there are many people or organizations that are dependent on and/or are affected by the final product or output. ◦ These people are the stakeholders of a project. ◦ Taking into consideration: ◦ Different interests and values stakeholders have ◦ Addressing them during the duration of the project ◦ To ensure all stakeholders are happy at the end. Change and Organizational Impact ◦ Projects often cause changes in organizations ◦ Some people may lose their jobs when a project is completed. ◦ Project managers must learn: ◦ To identify ◦ To understand ◦ Work with a variety of stakeholders Examples of Stakeholder Impacts from cases Stakeholder Analysis ◦ Stakeholder analysis helps you identify and understand the stakeholder in your project. ◦ Doing this before your project begins will help you be successful! How to Conduct a Stakeholder Analysis Identify • Stakeholders? • Internal / External • Brainstorm Prioritize • Assess interests • Assess Influence • Level of participation • Matrix Understand • How to communicate • Build profile for each stkhldr • Motivation if stkhldr • How Project align with priorities? • How to change negative views Mendelow’s Matrix helps you categories your stakeholders into four boxes, consisting of those with: Stakeholder Analysis HIGH INTEREST AND HIGH POWER Manage closely ◦ Key players that could consist of upper management, directors, or major investors. ◦ Monitor this group closely and ensure they’re fully engaged. ◦ Very involved with decision making ◦ Have the power to stop or pause a project they’re not happy with. Stakeholder Analysis HIGH INTEREST AND LOW POWER Keep informed ◦ Low influence so they don’t really have a say on business decisions, but they do have a keen interest in them. ◦ Could include staff members. ◦ Keep them well-informed of changes ◦ Be sure to hear out their opinions and suggestions for improvements. Stakeholder Analysis LOW INTEREST AND HIGH POWER Keep satisfied ◦ Include local governments as they may have the power to change laws and legislation ◦ Likely have minimal interest in your organisation. ◦ Aim to keep them satisfied as you never know when they could move to: ◦ High interest ◦ High power category. Stakeholder Analysis LOW INTEREST AND LOW POWER Low priority ◦ Don’t have the influence to impact your business ◦ Not interested in doing so. ◦ No need to engage or inform this group, but you should monitor them in case their status changes. Stakeholder Engagement Levels ◦ Unaware: Unaware of the project and its potential impacts on them ◦ Resistant: Aware of the project yet resistant to change ◦ Neutral: Aware of the project yet neither supportive nor resistant ◦ Supportive: Aware of the project and supportive of change ◦ Leading: Aware of the project Information Project Stakeholder Management Process Identifying Stakeholders Planning Stakeholder Management Managing Stakeholder Engagement Controlling Stakeholder Engagement Project Stakeholder Management Process Project Stakeholder Management Process ◦ Identifying stakeholders: ◦ Identifying everyone: ◦ Involved in the project ◦ Affected by it ◦ Determining the best ways to manage relationships with them. ◦ Planning stakeholder management: ◦ Determining strategies to effectively engage stakeholders Project Stakeholder Management Process ◦ Managing stakeholder engagement: ◦ Communicating and working with project stakeholders ◦ To satisfy their needs and expectations ◦ Resolving issues ◦ Fostering engagement in project decisions and activities ◦ Controlling stakeholder engagement: ◦ Monitoring stakeholder relationships ◦ Adjusting plans and strategies for engaging stakeholders as needed Identifying Stakeholders ◦ Internal project stakeholders ◦ External project stakeholders ◦ Additional Stakeholders: ◦ Program Director ◦ Potential Customers Identifying Stakeholders ◦ Crucial first step in project management ◦ Stakeholders are individuals, groups, or organizations that have an interest in the project's outcome and can influence or be influenced by it. ◦ Stakeholders can be: ◦ Internal, such as employees, project teams, managers, and boards of directors ◦ External, such as suppliers, sponsors, and public groups ◦ Identifying stakeholders early on ensures that their needs and expectations are considered throughout the project lifecycle Identifying Stakeholders ◦ Asking key questions can help in identifying stakeholders: ◦ Who cares about this project? ◦ Who will this project impact? ◦ Who can influence this project? ◦ Who can approve or reject this project? Project Stakeholder Management Process Identifying Stakeholders Planning Stakeholder Management Managing Stakeholder Engagement Controlling Stakeholder Engagement Plan Stakeholder Management After identifying and analyzing stakeholders, project teams should develop a plan for management to: ◦ Limit Availability ◦ Restrict who prepares it ◦ Don’t write everything down Plan Stakeholder Management ◦ Process in this knowledge area which comes under planning process group ◦ For developing appropriate management strategies to effectively engage stakeholders throughout the project lifecycle. ◦ Provide clear, actionable plan to interact with project stakeholders to support the project’s interests. Project Stakeholder Management Process Identifying Stakeholders Planning Stakeholder Management Managing Stakeholder Engagement Controlling Stakeholder Engagement Manage Stakeholder Engagement ◦ Increases chances for project success ◦ Helps stakeholders understand the benefits and risks associated with the project, thus securing their involvement and support ◦ Minimize resistance from stakeholders ◦ Keeps the project on track by resolving stakeholder issues ◦ Project Manager is responsible for stakeholder management Project Stakeholder Management Process Identifying Stakeholders Planning Stakeholder Management Managing Stakeholder Engagement Controlling Stakeholder Engagement Controlling Stakeholder Management Process : Control Stakeholder Engagement ◦ Maintain or increase the efficiency and effectiveness of stakeholder engagement activities: ◦ as the project evolves and its environment changes. ◦ Stakeholder engagement should be continuously controlled. Controlling Stakeholder Management Outputs ◦ Work Performance Information ◦ Change Requests ◦ Project Documents Updates ◦ Stakeholder register ◦ Issue log Controlling Stakeholder Management You cannot control stakeholders But can control their level of engagement Engagement involves a dialogue in which people seek understanding and solutions to issues of mutual concern Many teachers are familiar with various techniques for engaging students It is important to set the proper tone at the start of a class or project Information Stakeholder Management Summary Stakeholders are people, groups or organizations that could impact or be impacted by the project Managing stakeholders is a key success factor for projects Analyze stakeholder interests and level of influence Build coalitions Communicate with Stakeholders
