Chapter 2
IN THIS CHAPTER
Compiling your project’s diverse stakeholders into a stakeholder register
Identifying your drivers, supporters, and observers
Using an effective format for your stakeholder register
Determining who has authority in your project
Prioritizing your stakeholders by their levels of power and interest
Often a project is like an iceberg: Nine-tenths of it lurks below the surface. You receive an assignment and think you know what it entails and who needs to be involved. Then, as the project unfolds, new people emerge who may affect your goals, your approach, and your chances for project success.
You risk compromising your project in the following ways when you don’t involve key people or groups in your project in a timely manner:
As soon as you begin to think about a new project, start to identify people who may play a role directly and indirectly. This chapter shows you how to identify these candidates; how to decide whether, when, and how to involve them; and how to determine who has the authority, power, and interest to make critical decisions.
You may hear other terms used in the business world to describe project stakeholders, but these terms address only some of the people from your complete project stakeholder register. Here are some examples:
As you identify the different stakeholders for your project, record them in a stakeholder register. Check out the following sections for information on how to develop this register.
A project stakeholder register is a living document, which should be updated regularly throughout the project. You need to start developing your register as soon as you begin thinking about your project.
Begin your project’s stakeholder register by considering the initial version of the register that’s generated upon completion of the development of the project charter. (This charter authorizes the existence of a project and provides the project manager with the authority to use organizational resources to support the performance of project activities.)
Next, write down any other names that occur to you. When you discuss your project with other people, ask them who they think may be affected by or interested in your project. Then select a small group of the stakeholders you identify and conduct a formal brainstorming session. Continue to add and subtract names to your stakeholder register until you can’t think of anyone else.
The following sections explain how to refine your stakeholder register by dividing it into specific categories and recognizing important potential stakeholders. You also find a sample to show you how to put your own register together.
To increase your chances of identifying all appropriate people, develop your stakeholder register in categories. You’re less likely to overlook people when you consider them department by department or group by group instead of trying to identify everyone from the organization individually at the same time.
As you develop your stakeholder register, be sure not to overlook the following potential stakeholders:
End users of your project’s products: End users are people or groups who will use the goods and services your project produces. Involving end users at the beginning of and throughout your project helps ensure that the goods and services produced are as easy as possible to implement and use, and are most responsive to their true needs. It also confirms that you appreciate the fact that the people who will use a product may have important insights into what it should look like and do, which increases the chances that they’ll work to implement the products successfully.
In some cases, you may omit end users on your stakeholder register because you don’t know who they are. In other situations, you may think you have taken them into account through liaisons — people who represent the interests of the end users.
Suppose you’re asked to coordinate your organization’s annual blood drive. Figure 2-1 illustrates some of the groups and people you may include in your project’s stakeholder register as you prepare for your new project.
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FIGURE 2-1: The beginning of a sample stakeholder register for an annual blood drive.
Many different groups of people may influence the success of or have an interest in your project. Knowing who these people are allows you to plan to involve them at the appropriate times during your project. Therefore, identifying all project stakeholders as soon as possible and reflecting any changes in those stakeholders as soon as you find out about them are important steps to take as you manage your project.
A stakeholder register template is a predesigned stakeholder register that contains typical categories and stakeholders for a particular type of project. You may develop and maintain your own stakeholder register templates for tasks you perform, functional groups may develop and maintain stakeholder register templates for tasks they typically conduct, or your organization’s project management office may develop and maintain templates for the entire organization.
Regardless of who maintains the template, it reflects people’s cumulative experiences. As the organization continues to perform projects of this type, stakeholders that were overlooked in earlier efforts may be added and stakeholders that proved unnecessary removed. Using these templates can save you time and improve your accuracy.
Suppose you prepare the budget for your department each quarter. After doing a number of these budgets, you know most of the people who give you the necessary information, who draft and print the document, and who have to approve the final budget. Each time you finish another budget, you revise your stakeholder register template to include new information from that project. The next time you prepare your quarterly budget, you begin your stakeholder register with your template. You then add and subtract names as appropriate for that particular budget preparation.
After you identify every one of your stakeholders, you need to determine which group those people fall into: drivers, supporters, or observers. Then you can decide whether to involve them and, if so, how and when. The following sections help you identify when you need to involve drivers, supporters, and observers, and how to keep them involved.
Suppose an IT group has the job of modifying the layout and content of a monthly sales report for all sales representatives. The vice president of sales requested the project, and the chief information officer (CIO — the boss of the head of the IT group) approved it. As the project manager for this project, consider categorizing your project’s stakeholders as follows:
Projects pass through the following four phases as they progress from an idea to completion (see Chapter 1 in Book 1 for detailed explanations of these phases):
Plan to involve drivers, supporters, and observers in each phase of your project’s life cycle. The following sections tell you how you can do so. See the later section “Assessing Your Stakeholders’ Power and Interest” for information on what to consider when deciding how to involve different stakeholders.
Keeping drivers involved in your project from start to finish is critical because they define what your project should produce, and they evaluate your project’s success when it’s finished. Their desires and your assessment of feasibility can influence whether you should pursue the project. Check out Table 2-1 to see how to involve drivers during the four phases of your project.
TABLE 2-1 Involving Drivers in the Different Project Phases
Phase |
Involvement Level |
How to Involve |
Starting the project |
Heavy |
Identify and speak with as many drivers as possible. If you uncover additional drivers later, explore with them the issues that led to the project; ask them to identify and assess any special expectations they may have. |
Organizing and preparing |
Moderate to heavy |
Consult with drivers to ensure your project plan addresses their needs and expectations. Have them formally approve the plan before you start the actual project work. |
Carrying out the work |
Moderate |
As the project gets underway, introduce the drivers to the project team. Have the drivers talk about their needs and interests to reinforce the importance of the project and help team members form a more accurate picture of project goals. In addition, have the team members talk to the drivers to increase the drivers’ confidence that the team members can successfully complete the project. While performing the project work, keep drivers apprised of project accomplishments and progress to sustain their ongoing interest and enthusiasm. Continually confirm that the results are meeting their needs. |
Closing the project |
Heavy |
Have drivers assess the project’s results and determine whether their needs and expectations were met. Identify their recommendations for improving performance on similar projects in the future. |
Involving supporters from start to finish is important since they perform and support the project work; supporters need to know about changing requirements so they can promptly identify and address problems. Keeping them actively involved also sustains their ongoing motivation and commitment to the project. Check out Table 2-2 to see how to involve supporters during your project’s four phases.
After you choose the observers with whom you want to actively share project information, involve them minimally throughout the project because they neither tell you what should be done nor help you do it. Table 2-3 shows how you may keep observers involved.
TABLE 2-2 Involving Supporters in the Different Project Phases
Phase |
Involvement Level |
How to Involve |
Starting the project |
Moderate |
Wherever possible, have key supporters assess the feasibility of meeting driver expectations. If you identify key supporters later in the project, have them confirm the feasibility of previously set expectations. |
Organizing and preparing |
Heavy |
Supporters are the major contributors to the project plan. Because they facilitate or do all the work, have them determine necessary technical approaches, schedules, and resources. Also have them formally commit to all aspects of the plan. |
Carrying out the work |
Heavy |
Familiarize all supporters with the planned work. Clarify how the supporters will work together to achieve the results. Have supporters decide how they’ll communicate, resolve conflicts, and make decisions during the course of the project. Throughout the project, keep supporters informed of project progress, encourage them to identify performance problems they encounter or anticipate, and work with them to develop and implement solutions to these problems. |
Closing the project |
Heavy |
Have supporters conclude their different tasks. Inform them of project accomplishments and recognize their roles in project achievements. Elicit their suggestions for handling similar projects more effectively in the future. |
TABLE 2-3 Involving Observers in the Different Project Phases
Phase |
Involvement Level |
How to Involve |
Starting the project |
Minimal |
Inform observers of your project’s existence and its main goals. |
Organizing and preparing |
Minimal |
Inform observers about the project’s planned outcomes and time frames. |
Carrying out the work |
Minimal |
Tell observers that the project has started and confirm the dates for planned milestones. Inform observers of key project achievements. |
Closing the project |
Minimal |
When the project is done, inform observers about the project’s products and results. |
Keeping drivers, supporters, and observers informed as you progress in your project is critical to the project’s success. Choosing the right method for involving each stakeholder group can stimulate that group’s continued interest and encourage its members to actively support your work. Consider the following approaches for keeping your project stakeholders involved throughout your project:
To maximize your stakeholders’ involvement and contributions, follow these guidelines throughout your project:
If you’re concerned with the legality of involving a specific stakeholder, check with your legal department or contracts office. Suppose you’re planning to award a competitive contract to buy certain equipment. You want to know whether prospective bidders typically have this equipment on hand and how long it’ll take to receive it after you award the contract. However, you’re concerned that speaking to potential contractors in the planning phase may tip them off about the procurement and lead to charges of favoritism by unsuccessful bidders who didn’t know about the procurement in advance.
Instead of ignoring this important stakeholder, check with your contracts office or legal department to determine how you can get the information you want and still maintain the integrity of the bidding process.
You’re concerned with two issues when developing the format and content of your stakeholder register:
Figure 2-2 shows a sample stakeholder register format you may use for your stakeholder register. The format includes three major categories of information:
Note: You can add columns on the right for optional information, such as email, phone, and so on.
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FIGURE 2-2: A sample stakeholder register format.
In project terms, authority refers to the overall right to make project decisions that others must follow, including the right to apply project resources, expend funds, or give approvals. Having opinions about how an aspect should be addressed is different from having the authority to decide how it will be addressed. Mistaking a person’s level of authority can lead to frustration as well as wasted time and money.
At the beginning of the carrying-out-the-work phase in your projects, take the following steps to define each stakeholder’s authority:
Clarify each stakeholder’s tasks and decisions.
Define with each person his tasks and his role in those tasks. For example, will he just work on the task, or will he also approve the schedules, resource expenditures, and work approaches?
Ask each stakeholder what his authority is regarding each decision and task.
Ask about individual tasks rather than all issues in a particular area. For example, a person can be more confident about his authority to approve supply purchases up to $5,000 than about his authority to approve all equipment purchases, no matter the type or amount.
Clarify decisions that the stakeholder can make himself. For decisions needing someone else’s approval, find out whose approval he needs. (Ask — never assume!)
Ask each stakeholder how he knows what authority he has.
Does a written policy, procedure, or guideline confirm the authority? Did the person’s boss tell him in conversation? Is the person just assuming? If the person has no specific confirming information, encourage him to get it.
Check out each stakeholder’s history of exercising authority.
Have you or other people worked with this person in the past? Has he been overruled on decisions that he said he was authorized to make? If so, ask him why he believes he won’t be similarly overruled this time.
Verify whether anything has recently changed regarding each stakeholder’s authority.
Do you have any reason to believe that this person’s authority has changed? Is he new to his current group or position? Has he recently started working for a new boss? If any of these situations exists, encourage the person to find specific documentation to confirm his authority for his benefit as well as yours.
A stakeholder’s potential impact on a project depends on the power she can exercise and the interest she has in exercising that power. Assessing the relative levels of each helps you decide with whom you should spend your time and effort to realize the greatest benefits.
Power is a person’s ability to influence the actions of others. This ability can derive either from the direct authority the person has to require people to respond to her requests (ascribed power; refer to the preceding section for more about authority) or the ability she has to induce others to do what she asks because of the respect they have for her professionally or personally (achieved power). In either case, the more power a person has, the better able she is to marshal people and resources to support your project. Typically, drivers and supporters have higher levels of power over your project than observers do.
On the other hand, a person’s interest in something is how much she cares or is curious about it or how much she pays attention to it. The more interested a person is in your project, the more likely she is to want to use her power to help the project succeed.
You can define a stakeholder’s relative levels of power and interest related to your project as being either high or low. You then have four possible combinations for each stakeholder’s relative levels of power and interest. The particular values of a stakeholder’s power and interest ratings suggest the chances that the stakeholder may have a significant impact on your project and, therefore, the relative importance of keeping that stakeholder interested and involved in your project.
Figure 2-3 depicts a Power-Interest Grid, which represents these four possible power-interest combinations as distinct quadrants on a two-dimensional graph. As the project manager, you should spend a minimal amount of time and effort with stakeholders who have low levels of both power and interest (Quadrant I). Spend increasingly greater amounts of time and effort with stakeholders who have a low level of power and a high level of interest (Quadrant II) and a low level of interest and a high level of power (Quadrant III), respectively. You should spend the most time and effort keeping stakeholders with high degrees of both power and interest (Quadrant IV) informed and involved.
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FIGURE 2-3: Involving stakeholders with different levels of power and interest in your project.