Stakeholder Management: How to Know Which Ones Matter

Project Stakeholder Management

Project stakeholders–individuals, groups, and organizations– may be impacted by or may have an impact on your projects. It’s critical to understand how people inside and outside your organization may affect your projects. Let’s explore stakeholder management power tools that can help you quickly identify which stakeholders matter.

group of stake holders around computer

Why Analyze Project Stakeholders

Some project managers say they don’t have enough time to analyze the stakeholders. So, why is it important? The short answer is to determine how to spend the limited time project managers do have.

Stakeholders are not the same. Their power, interest, influence, expectations, and impact differ greatly. Consequently, it’s important to identify the most influential stakeholders.

How to Develop a Stakeholder Register

Project Stakeholder Management

Last week, we looked at 15 awesome ways to manage your project stakeholders. Today, let’s explore the development and use of the stakeholder register.

Stakeholder Register Benefits

Projects are dynamic and stakeholders make things interesting. At any given time, an individual may exert their influence and cause disruption to your project. Or perhaps a group may be struggling in terms of their attitude towards the project. And let’s not forget outside organizations who may be impacted by our project.

How do we keep up with all these moving parts? The stakeholder register. A little time spent identifying, evaluating, and capturing stakeholder interest and concerns can pay big dividends. The register is particularly helpful when managing large projects and projects that are moving at a fast pace.

There is something about putting our pen to paper or fingers to the keyboard. As we see all the stakeholders in once place, we can determine how to best use our limited time. How and when should we use our interpersonal skills to engage and influence stakeholders?

15 Awesome Ways to Manage Your Project Stakeholders

Practical Tips for Identifying, Analyzing, and Influencing Your Stakeholders

Projects can be engaging and even enjoyable, or it can be a source of aggravation and stress. If you put some care and time into identifying, analyzing, and managing your project stakeholders, you’ll have a better project experience and improve your chance of success.

picture of team working together

Remember what Charles Schulz said through the character of Linus: “I love mankind…it’s people I can’t stand!!” Schulz is saying that he loves mankind. But the problem is that individuals have flaws that can make life difficult.

One of the most critical elements of project management is developing relationships with key stakeholders—individuals, groups, and organizations. It is through these relationships that we can better define and control scope, understand requirements, mitigate risks, and improve project processes. One of the top reasons that projects succeed is stakeholder involvement.

How to Develop a Successful Buyer-Seller Relationship

Project Procurement Management

For most of my career, I have served in financial service organizations. As a project and program manager and PMO director, I’ve had the responsibility of procuring the necessary products and services from sellers. In other words, I was a buyer.

picture of handshaking

I recently left the corporate world to develop my LLC where I provide consulting services and teach courses to help project managers prepare for their PMP and PMI-RMP exams. Now, I am a seller.

Whether you are or a buyer or seller, good communication and doing what you say is critical to success. What can we do to get everyone on the same page and for the buyer and seller has a mutually beneficial relationship? Allow me to offer three recommendations.

1. Define the Buyer/Seller Relationship

First, healthy buyer/seller relationships require clarity in the roles and responsibilities. Think about a project that requires third-party professional services. Perhaps you need an outside team to develop a new software application.

Preventing Kickbacks to Those with the Power to Purchase

Some vendors exploit the weaknesses of your employees

This is a guest post by my twin brother Charles. He is a CPA and a Certified Fraud Examiner. He is a partner in the firm McNair, McLemore, and Middlebrooks & Co. Charles lives in Macon, Georgia, with his wife Kelley. He is the author of The Little Book of Local Government Fraud Prevention and Preparation of Financial Statements & Compilation Engagements. He blogs at cpa-scribo.com.

A bribe is seen as a charm by the one who gives it; they think success will come at every turn. Proverbs 17:8

Last week, Harry and I were running, and he told me about his procurement risk blog series. Since I am a fraud prevention guy, we began discussing the risk of vendor kickbacks to those with the power to purchase.

I have seen vendors provide free liquor, women, trips, cars, boats, and cash–all to guarantee their bid acceptance. One such case provided “hundreds of competitively-bid contracts to favored vendors in exchange for gratuities” including “hot tub parties with strippers.”

If vendors know your employees’ weaknesses, they can exploit them. And if they do, significant harm lies before you. The Association of Certified Fraud Examiners’ fraud survey showed that 35% of the cases were corruption-related with a median loss of $200,000.

Four Practical Ways to Improve Project Procurements

Discover the Power of Project Procurement Management

As we initiate our projects, we may find that our organization lacks the skills and knowledge to create the project deliverables and meet the project objectives. In other cases, we may need products outside of our organization. Project managers use procurement management to secure these needed products and services.

picture of someone signing an agreement

The Project Management Body of Knowledge (PMBOK) says that Project Procurement Management “includes the processes necessary to purchase or acquire products, services, or results needed from outside the project team.” Our ability to find and procure the right resources at the right time will enhance our chance for success. 

Project Procurement Management

1. Develop a Procurement Management Plan

So, how can we improve our project procurements? Start by developing a Procurement Management Plan. The plan describes your approach to acquiring the necessary products and services from outside organizations. This plan may include things such as:

  • Types of contracts
  • Procurement process and documents
  • How you will identify sellers
  • How you will evaluate and select the sellers
  • Who will be involved in the evaluation process
  • Who will execute the agreements
  • Constraints and assumptions
  • How you will handle decisions such as make or buy

Are You Tired of Missing Big Project Risks? 3 Ways to Stop It

I have had the privilege of managing two PMOs, both composed of several project managers. It was always interesting to watch—the best project managers were the ones who had a habit of identifying risks, both threats and opportunities. And these individuals did not perform the risk identification just once at the beginning of their projects. Rather, they had a habit of reevaluating their projects with an eye toward new risks.

picture of frustrated man

Wise project managers know that there are unknown risks lurking in every corner. Each new phase of a project brings uncertainty, some significant, some not. Furthermore, as new stakeholders enter the scene, new interests and concerns can cause our projects to get off track.

If you’ve been burned by risks recently, let’s talk about what you can do to improve your chance for future success.

The 10 Risk Management Commandments You’re Breaking Every Day

Do you live in fear of not getting results in your projects? Risk management is such an effective vehicle for climbing the tallest mountain or swimming the deepest sea. However, the risk management pitfalls are many, rendering us completely ineffective in our attempt to fulfill our dreams.

Photo of calculator and pie chart

I fear that many project managers live by the letter of the law and may fail to gain the true benefits of risk management. These individuals are too concerned with checking boxes and making the risk management processes overly complex. Let’s look at some common mistakes and how to overcome them.

1. Thou shalt not make risk management complicated.

Every project is different. Wise project managers tailor their risk management plan to each project. Pick only the necessary inputs and tools and techniques. And speak in a manner that your sponsor, project team, and stakeholders understand. If you wish to introduce new terms (e.g., risk attitude, risk tolerance, Monte Carlo), be sure to define them.

6 Tools and Techniques for Controlling Risks

Changes in project risks are inevitable. As a project progresses, the probability and impact of current risks change, new risks emerge, and residual risks may increase or decrease. How can project managers optimize their risk responses and get the results they are looking for?

Tool box with tools

Allow me to introduce you to two project managers—Tom and Susan. Tom started his project with a risk identification exercise with several stakeholders resulting in a list of 77 risks. He entered these risks into an Excel spreadsheet and stored the file in his project repository (and never looked at it again).

Susan, on the other hand, facilitated an early risk identification workshop. She periodically met with her team to review current risks and used additional techniques to identify new risks. In these risk review sessions, the team discussed the effectiveness of the risk responses and the risk management processes.

Which team do you think had the greatest chance of meeting their project objectives? Yes, Susan’s team wins the day, hands down.

Let’s look at six tools and techniques recommended in the Project Management Body of Knowledge (PMBOK) for controlling risks.

Risk Response Lessons from the Beach

Learn threat response strategies

Project managers may make risk decisions without much thought. How is this possible? Well, after managing projects for years, you know the drill. You simply know how to respond to the most common risks.

Every year, my family takes a trip to the beach for fun and relaxation. I’ve gone to the same beach my entire life. We do a lot of the same things each year—walk on the beach, swim, grill out, crab, and fish.

Picture of ocean

With each of these activities, I do things to manage risks and frankly, I rarely think about it (because I’ve done it for so long). Allow me to share a few examples.

Threat Response Strategies

1. Accept risks

Sometimes I fish from the shore. Actually, I wade out into the water about waist deep. More than once, I’ve caught a shark. I’ve had crabs bite my toes. And I’ve been stung by jellyfish. But every year, I wade into the water and fish again. That is to say, I accept the risks.