11/7/2023

Project Management
N G U Y E N H O A N G L A N P H D. P M P
D E PA R T M E N T O F I N D U S T R I A L E C O N O M I C S
SCHOOL OF ECONOMICS AND MANAGEMENT
ROOM 206 – C9
E M A I L : L A N . N G U Y E N H O A N G @ H U S T. E D U .V N
0905169617

Chapter 2: Project Stakeholder Managment

• Who are stakeholders?

1
 11/7/2023

Who are Stakeholders?

• Any individual, group, or organization who:
– may affect
– be affected by
– or perceive itself to be affected by a decision, activity, or
outcome of a project.

Why we need to manage stakeholders?

• Correctly identify and engage all stakeholders in an
appropriate way can mean the difference between project
success and failure
• Active and proper stakeholder management ->Lower the
risks in your project
• Stakeholder satisfaction is considered as important project
objective

2
 11/7/2023

Processes
Initiating Planning Executing Monitoring& Closing
Controlling
Identify Plan Manage Monitor
stakeholders stakeholder Stakeholder Stakeholder
engagement Engagement Engagement

2.1 Identify Stakeholders

• Identifying project stakeholders regularly and analyzing and
documenting relevant information regarding their interests,
involvement, interdependencies, influence, and potential
impact on project success.
• 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.

3
 11/7/2023

Identify Stakeholders

Identify Stakeholders – Tools and Techniques

• Stakeholder analysis
1. Identify potential project stakeholders
2. Analyze Stakeholder
3. Classify Stakeholders
4. Define Management Strategy

4
 11/7/2023

Stakeholder Analysis
• 1. Identify potential project
stakeholders
• Identify all stakeholders, not
just a limited set
• Directions of influence
(Upward, downward, outward,
sideward)
• Stakeholder wheel: Customer,
Suppliers, Managers, Project
Team …

Stakeholder Analysis
• 2. Analyze Stakeholder
• Determine all of their major requirements,
expectations, interests, level of influence, knowledge,
role, etc.
• Key stakeholders: decision-makers

10

5
 11/7/2023

Stakeholder Analysis
• 3. Classify Stakeholders
• Prioritize the key stakeholders to ensure the efficient
use of effort to communicate and manage their
expectations.
• There are multiple classification models
4. Define Management Strategy
• How you will communicate with them

11

Data representation
• Stakeholder classification
models
◦ Power/Interest Models
◦ Power: to influence the project
deliverables or the organization
◦ Interest: level of concern about the
project’s outcomes

12

6
 11/7/2023

Data representation
◦ Stakeholder classification
models
◦ Stakeholder Cube
◦ Power: to influence to project
deliverables/outcomes
◦ Interest: level of concern about the
project’s outcomes
◦ Attitude: supportive or not

13

Expert Judgment
• Ask the Experts
• Experts:
◦ Senior management,
◦ Project managers who have worked on projects in the same area
(directly
or through lessons learned),
◦ Subject matter experts (SMEs) in business or project area, etc..

14

7
 11/7/2023

Meetings
• Profile analysis meeting: to exchange and analyze
information about roles, interests, knowledge, and the overall
position of each stakeholder facing the project.

15

Data gathering
• Questionnaire and Survey
◦ Questionnaires and surveys can include one-on-one reviews, focus group
sessions, or other mass information collection techniques.

16

8
 11/7/2023

Data gathering
• Brainstorming
◦ Gathering a list of ideas contributed by its members.
◦ Rules for brainstorming :
◦ Go for quantity
◦ Withhold criticism
◦ Welcome wild ideas
◦ Combine and improve ideas

• Brain writing: When to use?

◦ When a group has a limited time to discuss problems/issues
◦ When there are several shy/reserved/ introspective people in a group

◦ When ideas need to flow freely without any censorship

17

Identify Stakeholders: Outputs

• The stakeholder register.
◦ Identification information: Name, organizational position, location and
contact details, and role on the project.
◦ Assessment information: Major requirements, expectations, potential
for influencing project outcomes, and the phase of the project life cycle
where the stakeholder has the most influence or impact.
◦ Stakeholder classification.
Internal/external, impact/influence/power/interest,
upward/downward/outward/sideward, or any other classification model
chosen by the project manager

18

9
 11/7/2023

Identify Stakeholders: Outputs

• Change requests
◦ During the first iteration of identifying stakeholders, there will not be
any change requests.
◦ As stakeholder identification continues throughout the project, new
stakeholders, or new information about stakeholders, may result in a
change request to the product, project management plan, or project
documents.

19

Identify Stakeholders: Outputs

• The project management plan updates:
◦ Stakeholder engagement plan: Agreed-upon communications strategies
for identified stakeholders
◦ Communications management plan: Stakeholder communication
requirements and communications strategies
◦ Requirements management plan: Newly identified stakeholders can
impact how requirements activities will be planned, tracked, and
reported.
◦ Risk management plan: Stakeholder communication requirements and
communications strategies affect the approach to managing risk on the
project

20

10
 11/7/2023

Identify Stakeholders: Outputs

• Project documents updates:
◦ Assumption log:
◦ New or updated assumption related to the information about the relative power, interest, and
engagement of stakeholders.
◦ Any constraints associated with interacting with specific stakeholders
◦ Issue log: New issues raised as a result of this process are recorded in
the issue log.
◦ Risk register: New risks identified during this process are recorded in
the risk register and managed using the risk management processes.

21

Identify Stakeholders: Inputs

• Project charter
• Business documents
◦ Business case: the project objectives and identifies an initial list of
stakeholders affected by the project.
◦ Benefits management plan: the individuals and groups that will benefit from
the delivery of the outcomes of the project
• Project management plan: not available when initially
identifying stakeholders; however, once it has been developed,
project management plan components include but are not limited
to:
◦ Communications management plan.
◦ Stakeholder engagement plan.

22

11
 11/7/2023

Identify Stakeholders: Inputs

• Project documents will be an input for the initial stakeholder
identification
◦ Change log
◦ Issue log
◦ Requirements documentation.
• The agreements can contain references to additional
stakeholders
• Enterprise environmental factors
• Organizational process assets

23

2.2 Plan Stakeholder Engagement

24

12
 11/7/2023

2.2 Plan Stakeholder Engagement

• What? Plan Stakeholder Engagement is the process of developing
approaches to involve project stakeholders based on their needs,
expectations, interests, and potential impact on the project.
• Why? Provides an actionable plan to interact effectively with
stakeholders. Stakeholder engagement is critical to project success
The levels of engagement of each stakeholder are different at each
stage of the project

• When? This process is performed periodically throughout the

project as needed.

25

Plan Stakeholder Engagement –Tools and Techniques

• Stakeholder engagement assessment matrix

◦ Supports comparison between the current engagement levels of
stakeholders and the desired engagement levels required for successful
project delivery
◦ Engagement levels:
◦ Unaware. Unaware of the project and potential impacts.
◦ Resistant. Aware of the project and potential impacts but resistant to any changes that may occur as
a result of the work or outcomes of the project. These stakeholders will be unsupportive of the
work or outcomes of the project.
◦ Neutral. Aware of the project, but neither supportive nor unsupportive.
◦ Supportive. Aware of the project and potential impacts and supportive of the work and its
outcomes.
◦ Leading. Aware of the project and potential impacts and actively engaged in ensuring that the
project is a success.

26

13
 11/7/2023

Plan Stakeholder Engagement –Tools and Techniques

• Stakeholder engagement assessment matrix
◦ C: current engagement level
◦ D: desired engagement level
• Solution
◦ Understanding the reasons for the gap between C and D
◦ Develop appropriate communication strategies to erase the gap

27

Plan Stakeholder Engagement –Tools and Techniques

• Benchmarking:
◦ The results of stakeholder analysis are compared with information from other
organizations or other projects that are considered to be standards.
• Assumption and constraint analysis: in order to tailor
appropriate engagement strategies.
• Root cause analysis. identify underlying reasons for the level of
support of project stakeholders in order to select the appropriate
strategy to improve their level of engagement. (5 Whys?)
• Mind mapping: to visually organize information about
stakeholders and their relationship to each other and the
organization

28

14
 11/7/2023

Plan Stakeholder Engagement –Tools and Techniques

• Decision-making: prioritization/ranking.
◦ Stakeholder requirements need to be prioritized and ranked, as do the
stakeholders themselves.
◦ Stakeholders with the most interest and the highest influence are often
prioritized at the top of the list

29

Plan Stakeholder Engagement –Output

• The stakeholder engagement plan:

◦ Component of the project management plan
◦ Identify the strategies and actions required to promote productive
involvement of stakeholders in decision making and execution.
◦ Formal or Informal
◦ Highly detailed or broadly framed based on the needs of the project and
the expectations of stakeholders

30

15
 11/7/2023

Plan Stakeholder Engagement – Input

• Project charter
• Project management plan:
◦ Resource management plan
◦ Communications management plan.
◦ Risk management plan.
• Project documents will be an input for the initial stakeholder identification
◦ Stakeholder register
◦ Project schedule
◦ Risk register
◦ Change log
◦ Issue log
◦ Assumption log
• The agreements: contractor, suppliers
• Enterprise environmental factors
• Organizational process assets

31

2.3 Manage stakeholder engagement

• What? communicating and working with stakeholders to
meet their needs and expectations, address issues, and foster
appropriate stakeholder involvement.
• Why? it allows the project manager to increase support and
minimize resistance from stakeholders.
• When? This process is performed throughout the project.

32

16
 11/7/2023

Manage stakeholder engagement

33

Manage stakeholder engagement – Tools and Techniques

• Ground rules
◦ A set of expected behaviors that the team agrees to use them, as well as other
stakeholders, with regarding to stakeholder engagement.
◦ Ground rules help to reduce conflicts
• Communication skills
◦ The project management team uses feedback to assist in understanding stakeholder
reaction to the various project management activities and key decisions.
◦ Feedback may be collected through
◦ Conversations; both formal and informal,
◦ Issue identification and discussion,
◦ Meetings,
◦ Progress reporting, and
◦ Surveys

34

17
 11/7/2023

Manage stakeholder engagement – Tools and Techniques

• Interpersonal and team skills:

◦ Conflict management: ensure that conflicts are resolved in a timely
manner.
◦ Cultural awareness: communicate effectively by considering cultural
differences and the requirements of stakeholders.
◦ Negotiation: achieve support or agreement that supports the work of the
project or its outcomes and to resolve conflicts within the team or with
other stakeholders.
◦ Observation/conversation: stay in touch with the work and attitudes of
project team members and other stakeholders.
◦ Political awareness: is achieved through understanding the power
relationships within and around the project.

35

Manage stakeholder engagement – Tools and Techniques

• Conflict Management
◦ Seven sources of conflict:
1. Schedules
2. Project Priorities
3. Resources
4. Technical Opinions
5. Administrative Procedure
6. Cost
7. Personality

36

18
 11/7/2023

Manage stakeholder engagement – Tools and Techniques

• Five general techniques for resolving conflict:
◦ Withdraw/avoid. Retreating from an actual or potential conflict situation;
postponing the issue to be better prepared or to be resolved by others.
◦ Smooth/accommodate: Emphasizing areas of agreement rather than areas of
difference; conceding one’s position to the needs of others to maintain harmony and
relationships.
◦ Compromise/reconcile: Searching for solutions that bring some degree of
satisfaction to all parties in order to temporarily or partially resolve the conflict.
-> a lose-lose situation.
◦ Force/direct: Pushing one’s viewpoint at the expense of others; offering only win-
lose solutions, usually enforced through a power position to resolve an emergency.
-> a win-lose situation.
◦ Collaborate/problem solve: Incorporating multiple viewpoints and insights from
differing perspectives; requires a cooperative attitude and open dialogue that
typically leads to consensus and commitment.
-> win-win situation.

37

Manage stakeholder engagement - Outputs

• Change requests
• Project management plan updates
◦ Communications management plan
◦ Stakeholder engagement plan
• Project document updates
◦ Stakeholder register
◦ Change log
◦ Issue log
◦ Help project manager to document issues, define the impact, priority and urgency
of the issues, assign ownership of those issues, and established due dates for
resolution
◦ Lessons learned register

38

19
 11/7/2023

Manage stakeholder engagement– Input

• Project management plan:
◦ Stakeholder engagement plan
◦ Communications management plan.
◦ Risk management plan.
◦ Change management plan
• Project documents
◦ Stakeholder register
◦ Change log
◦ Issue log
◦ Lessons learned register
• Enterprise environmental factors
◦ Culture
◦ Political environment
• Organizational process assets

39

2.4 Monitor Stakeholder Engagement

• What? monitoring project stakeholder relationships and
tailoring strategies for engaging stakeholders through
modification of engagement strategies and plans.
• Why? maintains or increases the efficiency and effectiveness
of stakeholder engagement activities as the project evolves
and its environment changes.
• When? This process is performed throughout the project

40

20
 11/7/2023

2.4 Monitor Stakeholder Engagement

How?
• Compare the results of current stakeholders engagement activities
with the activities outlined in Stakeholder Engagement Plan
• Identify and quantify any variances
• Propose options to respond to variances: Maintain, increase or
decrease the efficiency and effectiveness of stakeholder
engagement
• Prioritise options and select the best response for a variance in
stakeholder engagement.

41

42

21
 11/7/2023

Monitor Stakeholder Engagement- Tools and Techniques

• Stakeholder analysis:
◦ Determine the level of engagement of stakeholder groups and
individuals at any time of the project
• Stakeholder engagement assessment matrix
• Root cause analysis
• Alternative analysis
• Decision making

43

Monitor Stakeholder Engagement- Tools and Techniques

• Alternative analysis
◦ used to evaluate options to respond to variances in the desired results of
stakeholder engagement

44

22
 11/7/2023

Monitor Stakeholder Engagement- Tools and Techniques

• Decision making
◦ Multicriteria decision analysis: Criteria for successful stakeholder
engagement are prioritized and weighted to identify the most
appropriate choice.
◦ Prioritization matrix can be used to identify the key issues and suitable
alternatives to be prioritized as a set of decisions for implementation.
◦ Criteria are prioritized and weighted before being applied to all available
alternatives to obtain a mathematical score for each alternative.
◦ The alternatives are then ranked by score.

45

Monitor Stakeholder Engagement- Tools and Techniques

◦Voting.
◦ Unanimity: A decision that is
reached whereby everyone
agrees on a single course of
action.

46

23
 11/7/2023

Monitor Stakeholder Engagement- Tools and Techniques

◦Voting.
◦ Majority. A decision that is
reached with support obtained
from more than 50% of the
members of the group.

47

Monitor Stakeholder Engagement- Tools and Techniques

◦Voting.
◦ Plurality. A decision that is
reached whereby the largest
block in a group decides, even
if a majority is not achieved.

48

24
 11/7/2023

Monitor Stakeholder Engagement- Outputs

• Project management plan updates:
◦ Resource management plan
◦ Stakeholder engagement plan
◦ Communications management plan.
• Project documents updates
◦ Stakeholder register
◦ Change log
◦ Issue log
◦ Risk register
◦ Lessons learned register
• Work performance information: the status of stakeholder engagement
• Change requests

49

Monitor Stakeholder Engagement- Inputs

• Project management plan:
◦ Resource management plan
◦ Stakeholder engagement plan
◦ Communications management plan.
• Project documents
◦ Stakeholder register
◦ Change log
◦ Issue log
◦ Risk register
◦ Lessons learned register
◦ Project communication
• Work performance data: data on project status such as which stakeholders are supportive of the
project, and their level and type of engagement.
• Enterprise environmental factors: Culture, Political environment
• Organizational process assets: guideline, templates

50

25