EPO e-Book 2012 Gord Gibben, PMP Version 12.

0
http://www.members.shaw.ca/epo/





STAKEHOLDER
IDENTIFICATION AND
ANALYSIS


An Electronic Project Office (EPO) e-Book









Terms of Use:

1. The Electronic Project Office (EPO) and its contents (templates, e-Books,
flowcharts and training modules) are intended to provide a basis for
preparation of project deliverables. Use of the EPO or any of its contents
does not carry an implied or expressed guarantee of project success.
2. Reproduction, distribution, re-branding or re-sale of the EPO or any of its
contents without the express written permission of the author, Gord Gibben,
PMP, are prohibited by international copyright law.
Stakeholder Identification and Analysis
EPO e-Book 2012 Gord Gibben, PMP Version 12.0
http://www.members.shaw.ca/epo/ Page 2 of 26

Table of Contents

1. Introduction ...................................................................................................... 4
2. Project Stakeholders........................................................................................ 5
2.1 Stakeholder Definition .............................................................................. 5
2.2 Stakeholder Categories ............................................................................ 5
2.2.1 Output Delivery Stakeholders ............................................................ 5
2.2.2 Product Usage Stakeholders ............................................................. 6
2.2.3 Product Support Stakeholders .......................................................... 6
2.2.4 Funding Authority Stakeholders ........................................................ 6
2.2.5 Contributor Stakeholders ................................................................... 7
2.2.6 Review/Audit Stakeholders ................................................................ 8
2.2.7 Outcome Affected Stakeholders ........................................................ 9
2.2.8 Related Project Stakeholders .......................................................... 10
2.3 Stakeholder Identification ....................................................................... 11
3. Stakeholder Analysis ..................................................................................... 14
3.1 Stakeholders Priorities ............................................................................ 15
3.2 Stakeholder SWOT ................................................................................ 16
3.3 Stakeholder Support ............................................................................... 17
3.4 Stakeholder Power and Influence ........................................................... 19
3.5 Predicted Behavior ................................................................................. 19
3.6 Stakeholder Communication Strategy .................................................... 20
4. Review ........................................................................................................... 22
5. Bibliography ................................................................................................... 25
5.1 Links ....................................................................................................... 26

Stakeholder Identification and Analysis
EPO e-Book 2012 Gord Gibben, PMP Version 12.0
http://www.members.shaw.ca/epo/ Page 3 of 26

List of Figures

Figure 1 - Stakeholder Identification and Analysis Techniques & Templates ......... 4
Figure 2 - Project, Program, and Portfolio Management ...................................... 11
Figure 3 - Stakeholder Communications Planning Steps ..................................... 11
Figure 4 - Stakeholder Analysis Process .............................................................. 14
Figure 5 - Stakeholder Support ............................................................................. 17
Figure 6 - Communication Styles .......................................................................... 20
Figure 7 - Stakeholder Communications Planning Steps and Templates ............. 23
Figure 8 - Electronic Project Office Version 12.0 e-Books .................................... 24

List of Tables

Table 1 - Stakeholder Identification Sources ........................................................ 12
Table 2 - Stakeholder Identification sheet ............................................................ 12
Table 3 - Stakeholder Commitment Required ....................................................... 13
Table 4 - Stakeholder SWOT Analysis ................................................................. 16
Table 5 - Stakeholder Support .............................................................................. 18
Table 6 - Stakeholder Influence ............................................................................ 19
Table 7 - Stakeholder Categories ......................................................................... 22
Stakeholder Identification and Analysis
EPO e-Book 2012 Gord Gibben, PMP Version 12.0
http://www.members.shaw.ca/epo/ Page 4 of 26

1. Introduction

The EPO Stakeholder Identification and Analysis e-Book contains the following
topics:

Definition of project stakeholders and description of stakeholder categories,
Identification of project stakeholders using the Stakeholder Identification sheet
(in the Project Communications Plan Excel template),
Analysis of project stakeholder support and influence using the Stakeholder
Analysis Word template,
Preparation of a project stakeholder communication strategy.

The Stakeholder Identification and Analysis e-Book expands on the framework
provided in the PMBOK and PMI Program Management processes shown in
Figure 1.

EPO Templates Used

Project Communications
Plan (Stakeholder
Identification sheet)
Stakeholder Analysis

PMBOK Processes
Supported

10.1 Identify
Stakeholders
Program Management
Processes Supported

14.1 Plan Program
Stakeholder
Management

14.2 Identify Program
Stakeholders
Stakeholder Identification
and Analysis
Stakeholder Categories
Commitment / Support

Power and Influence
Stakeholder Strategy

Inputs from Repository
Project Charter
Scope Statement
Business Case
Outputs to Repository
Stakeholder Identification
Stakeholder Analysis

Stakeholder
Management Strategy



Figure 1 - Stakeholder Identification and Analysis Techniques & Templates
Stakeholder Identification and Analysis
EPO e-Book 2012 Gord Gibben, PMP Version 12.0
http://www.members.shaw.ca/epo/ Page 5 of 26

2. Project Stakeholders

2.1 Stakeholder Definition

According to the PMI PMBOK (section 2.3), project stakeholders are:

Individuals and organizations that are actively involved in the project, or
whose interests may be positively or negatively affected as a result of
project execution or project completion; they may also exert influence over
the project and its results.

Using the above definition project stakeholders include:

Specific individuals, groups of people or organizations,
Internal individuals or groups (within the organization) or external individuals
or groups (outside the organization),
Contributors to the project they may provide products or services that
contribute to project objectives,
Recipients of products or services provided by the project,
Individuals or groups that are interested in, or can influence the outcome of
the project.

2.2 Stakeholder Categories

Project stakeholders fall into one of eight categories:
2.2.1 Output Delivery Stakeholders

Output delivery stakeholders are individuals, groups, or organizations responsible
for the delivery of the projects outputs. This includes project team members and,
in some cases, contractors.

Project Team - The project team is closest to the action and will provide much of
the information that goes into project reports. They also have a need to know
project progress and status. Project teams have unique communications
requirements for more on project team communication, refer to the EPO Team
Management e-Book.

Contractors Contractors (and subcontractors) may be project participants directly
involved in the achievement of project objectives. They may be a member of the
project team responsible for a specific deliverable or be accountable for the entire
project or work package.
Stakeholder Identification and Analysis
EPO e-Book 2012 Gord Gibben, PMP Version 12.0
http://www.members.shaw.ca/epo/ Page 6 of 26

2.2.2 Product Usage Stakeholders

Product usage stakeholders will directly or indirectly use the project products; they
are ultimately responsible for the achievement of business objectives using the
project deliverables. Product usage stakeholders include business users and
customers of the organization.

Business Users - Business users are primarily concerned with the usability and
quality of the project end deliverables. They are typically heavily involved in
activities like requirement definition, package solution selection, application
prototyping, software testing and application training. They may need more
detailed reporting on these activities and less information on more technical tasks.

Customers The organizations customers may use the project product directly
(through websites) or indirectly (through interaction with the business user).
Customers are rarely directly involved in the product development but they may
need to be kept informed on project progress.
2.2.3 Product Support Stakeholders

Product support stakeholders are responsible for ensuring that the project product
is available for use by the product usage group. Support stakeholders include
application and technical support groups.

Application Support Application support stakeholders provide operational
support and enhancements to functionality over the life of the application. They
often originate as members of the project team.

Support/Technical Groups This stakeholder group includes the service (or help)
desk, production operations, infrastructure (workstation, server, network, etc)
support, and the data base administration group. They are primarily interested in
the application scalability and stability as well as the deployment plans. Activities
such as performance testing, data conversion and implementation are their main
concern.
2.2.4 Funding Authority Stakeholders

Funding authority stakeholders are accountable for the outcome of the project and
grant approval for release of funding and provision of resources. They are the
corporate owners of the project and support the achievement of project objectives.
Funding authority stakeholders include executives, project sponsors, business
management, creditors and investors, and shareholders.

Stakeholder Identification and Analysis
EPO e-Book 2012 Gord Gibben, PMP Version 12.0
http://www.members.shaw.ca/epo/ Page 7 of 26
Executive - The Executive need the answers to four questions at the outset of the
project:

1. What business requirement does the project address?
2. What is the project justification (benefits, urgency)?
3. How much will the project cost?
4. How long will the project take?

Once approval for the project has been obtained, the Executive need to be kept
informed if any of these answers change over the project. (For more on the
project approval process, refer to the EPO Project Prioritization and Approval e-
Book.)

Project Sponsor The project sponsor is the individual who requests the project,
provides the budget and funding, and ensures that project resources are available.
The project sponsor ensures that other management stakeholders understand the
strategic impact of the project. Project sponsors and project managers must form
a close alliance to effectively manage project risks, issues and changes. (For more
on Project Sponsors, refer to the EPO Stakeholder Management e-Book.)

Business Management - Business management has a stake in the project cost
and schedule and will want reports on expenditures and progress towards
schedule milestones. In addition, business management participates in risk
management, resource allocation, issue escalation and change approval.
Business management stakeholders, together with the project sponsor, may form
a Project Steering Committee. (For more information on using a Project Steering
Committee to help manage the project, refer to the EPO Stakeholder
Management e-Book.)

Creditors and Investors Creditors and investors provide the project funding and
are interested in the return on their investment. On large projects, currency
fluctuations and interest rate changes may also be a concern. Creditors and
investors are interested in the status of target dates and project expenditures.

Shareholders Shareholders are external stakeholders and include corporate
stockholders and the Board of Directors. They are interested in the project Return
on Investment (ROI) and the same four questions as the executives (see above).
2.2.5 Contributor Stakeholders

Contributor stakeholders are individuals or groups who provide inputs and services
to the project. Contributors include service groups, suppliers and, in some cases,
contractors. The main difference between contributors and output delivery
stakeholders is commitment level. Output delivery stakeholders are committed to
the success of the project. Contributors are involved in the project; their main
concern is meeting their specific product or service obligation.
Stakeholder Identification and Analysis
EPO e-Book 2012 Gord Gibben, PMP Version 12.0
http://www.members.shaw.ca/epo/ Page 8 of 26

Service Groups These may include Legal, Procurement, Human Resources,
Finance, and Training. Service groups supply resources and specialized services
to the project and will need to know target dates and service requirements.

Suppliers and Contractors Suppliers and contractors provide products
(hardware, software, and infrastructure) or specialized services (training, product
installation, or technical expertise) to the project. They are primarily interested in
meeting their contractual obligations. Reporting requirements for contractors will
change from the pre- to post-award stages of procurement. (For more on
managing contractors, refer to the EPO Procurement Planning and Contract
Administration e-Books.)
2.2.6 Review/Audit Stakeholders

Review/audit stakeholders are groups or organizations who need to review or audit
the project and its deliverables to ensure that proper processes are followed and
the quality of deliverables meets appropriate standards. Review/audit
stakeholders include Architecture (or Technical) Review groups, Project
Management Office (PMO), Quality Review groups, Internal or external auditors,
consumer groups, regulatory agencies, and environmental agencies. Review/audit
stakeholders often have the authority to stop a project until their concern is
addressed. Review/audit stakeholders may also perform independent project
reviews (as outlined in the EPO Independent Project Reviews e-Book).

Architecture (or Technical) Review groups Architecture or technical review
groups are concerned with the consistency, reliability and scalability of the
technology being used to produce project deliverables. Deviations from a
standard set of technical or architecture constraints may have to be justified to this
group of stakeholders.

Project Management Office (PMO) The PMO will often provide project
management guidelines and templates to projects. They may also be responsible
for project audits and post project reviews. (For more on the role of a PMO, refer
to the EPO Project Management Office e-Book.)

Quality Review groups Quality review groups will perform quality audits of project
processes or deliverables with the intent of improving the effectiveness and
efficiency of the project team. These stakeholders are interested in the project
status and progress of deliverables to be audited.

Auditors Internal or external auditors will be concerned with the project
expenditures and the awarding of contracts. Internal auditors may be involved in
the procurement process and may be members of the Project Steering Committee.

Stakeholder Identification and Analysis
EPO e-Book 2012 Gord Gibben, PMP Version 12.0
http://www.members.shaw.ca/epo/ Page 9 of 26
Consumer Groups consumer (or special interest) groups may be related to:

The product or service delivered by the project,
The process to be followed on the project,
The membership of the project team.

Consumer and special interest groups must be kept informed of project progress
and decisions that are related to their special interest.

Regulatory Agencies Regulatory agencies are usually government agencies that
will clarify regulations and ensure that the project stays within the applicable
regulations and bylaws. Regulatory agencies can often make or break a project
and may require significant lead times for requests.

Environmental Agencies Environmental agencies monitor the impact of the
project on the environment and provide clearances based on environmental
impact assessments. Like regulatory agencies, environmental agencies can make
or break as project and may require sufficient lead times in the project schedule.
2.2.7 Outcome Affected Stakeholders

Stakeholders affected by the outcome of the project include the
public/press/media, unions or bargaining units, and competitors of the
organization.

Public/Press/Media The public, press and media may be recipients of long-term
benefits of the project. High profile projects may require public relations activities
to manage the expectations of the general public or the press/media.

Unions/Bargaining Units Unions or bargaining units may represent employees on
the project team, business departments who will use the project products, or
suppliers of products or services. Unions or bargaining units will negotiate new
bargaining agreements with management on behalf of their membership. These
bargaining agreements may provide parameters for project work including hours of
work, overtime rates, or even resource selection.

Competitors Competitors of the organization performing the project and/or
receiving the project products will be interested in the outcome of the project and
how it affects competition. This may necessitate non-disclosure agreements and
secure handling of project information.
Stakeholder Identification and Analysis
EPO e-Book 2012 Gord Gibben, PMP Version 12.0
http://www.members.shaw.ca/epo/ Page 10 of 26

2.2.8 Related Project Stakeholders

Related projects (both internal and external) may impact the project teams ability
to meet their objectives.

Other Project Managers and Teams Other project teams may provide inputs to
or receive outputs from the project. These inter-project dependencies will require
communication. (For more on cross-project dependencies, refer to the EPO
Program Management e-Book.)

Project Programs A Program is defined by PMI (in the OPM3 Standard) as:

A group of related projects managed in a coordinated way to obtain benefits
and control not available from managing them individually

Projects are grouped into programs because they share a common theme such as
a strategic goal or corporate initiative. Program management is the coordinated
management of the program to achieve strategic objectives and benefits. Projects
that are part of a program may require coordinated status reporting. (For more on
programs, refer to the EPO Program Management and Program Governance e-
Books.)

Project Portfolios A Portfolio is defined by the PMI OPM3 Standard as:

A collection of projects and/or programs and other work grouped together to
facilitate effective management of that work to meet strategic business
objectives.

Stated simplistically, project management is doing projects right while portfolio
management is doing the right projects. Projects that are part of a portfolio may
have the need for consolidated status reporting. (For more on project portfolios,
refer to the EPO Portfolio Management e-Book.)

Stakeholder Identification and Analysis
EPO e-Book 2012 Gord Gibben, PMP Version 12.0
http://www.members.shaw.ca/epo/ Page 11 of 26
The relationship between Project, Program and Portfolio Management is shown in
figure 2.

Initiation Closure Planning, Execution, Monitoring & Control Conception
Approval
Benefits
Realization
Implementation
Initiation Closure Planning, Execution, Monitoring & Control Conception
Approval
Benefits
Realization.
Implementation
Initiation Closure Planning, Execution, Monitoring & Control Conception
Approval
Benefits
Realization.
Implementation
P
R
O
G
R
A
M

M
A
N
A
G
E
M
E
N
T
PROJECT MANAGEMENT
PORTFOLIO MANAGEMENT
Project Life Cycle
Initiation Closure Planning, Execution, Monitoring & Control Initiation Closure Planning, Execution, Monitoring & Control Conception
Approval
Benefits
Realization
Implementation
Initiation Closure Planning, Execution, Monitoring & Control Initiation Closure Planning, Execution, Monitoring & Control Conception
Approval
Benefits
Realization.
Implementation
Initiation Closure Planning, Execution, Monitoring & Control Initiation Closure Planning, Execution, Monitoring & Control Conception
Approval
Benefits
Realization.
Implementation
P
R
O
G
R
A
M

M
A
N
A
G
E
M
E
N
T
PROJECT MANAGEMENT
PORTFOLIO MANAGEMENT
Project Life Cycle Project Life Cycle


Figure 2 - Project, Program, and Portfolio Management


2.3 Stakeholder Identification

Stakeholder identification is the first step (as shown in figure 3) in planning
communications with project stakeholders.

Stakeholder
Identification
Stakeholder
Analysis
Project
Communication
Planning
Stakeholder
Identification
Stakeholder
Analysis
Project
Communication
Planning


Figure 3 - Stakeholder Communications Planning Steps


Stakeholder Identification and Analysis
EPO e-Book 2012 Gord Gibben, PMP Version 12.0
http://www.members.shaw.ca/epo/ Page 12 of 26
Project stakeholders can often be identified during the preparation of other project
planning deliverables. Potential stakeholder categories identified in project
planning documents are shown in table 1.

Project Planning Document
Stakeholder Category
O
u
t
p
u
t

D
e
l
i
v
e
r
y

P
r
o
d
u
c
t

U
s
a
g
e

P
r
o
d
u
c
t

S
u
p
p
o
r
t

F
u
n
d
i
n
g

A
u
t
h
o
r
i
t
y

C
o
n
t
r
i
b
u
t
o
r

R
e
v
i
e
w
/

A
u
d
i
t

O
u
t
c
o
m
e

A
f
f
e
c
t
e
d

R
e
l
a
t
e
d

P
r
o
j
e
c
t

Potential Project Identification X X X
Project Priority List X X
Project Business Case X X X X
Project Charter X X X X X
Scope Statement X X X X X
Risk Management Plan X X X X X X X X
Quality Management Plan X X X X X
Project Human Resource Plan X X X X X X
Procurement Plan X X X X

Table 1 - Stakeholder Identification Sources

Using the Stakeholder Identification sheet (in the Project Communications Plan
Excel template (summarized in table 2), identify all the project stakeholders
(internal and external, individuals, groups or organizations).


Table 2 - Stakeholder Identification sheet

Stakeholder Category Using the drop-down, select the appropriate stakeholder
category.

Stakeholder Name Enter the name of the individual, group or organization. (If
the stakeholder is a group or organization, provide a contact name if known).

Project Stake - For each stakeholder, identify their stake in the project using the
drop-down. This will take one of three forms:

1. Providing a product or service that contributes to the project objectives.
2. Receiving or using a product or service delivered by the project.
3. Having an interest in the execution or outcome of the project.

Stakeholder
Category Stakeholder Name
Project
Stake
Commitment
Required
Internal/
External
Further
Analysis
Preferred
Medium
Technology
Access Special Information Needs

Stakeholder Identification and Analysis
EPO e-Book 2012 Gord Gibben, PMP Version 12.0
http://www.members.shaw.ca/epo/ Page 13 of 26
Commitment Required - Determine the required stakeholder commitment to the
project based on the drop-down list and descriptions provided in table 3.

Level Commitment required
Action Required Stakeholders should have the highest level of commitment to
the project and action is required on their part for the project to
achieve its objectives.
Belief or Buy-in Stakeholders must fully commit to the project and their
participation is required for the project to be successful.
Understanding Stakeholders require an understanding of the project and need
a positive perception of changes brought about by the project.
Awareness Stakeholders should be aware of the project, but their
commitment or adoption of the changes is not required.
No commitment Stakeholders do not require any level of awareness of, or
commitment to the project.
Table 3 - Stakeholder Commitment Required

Internal/External Stakeholder Indicate using the drop-down whether the
stakeholder is internal to the organization or external. (This may impact choice of
communications medium.)

Further Analysis Required? Indicate (yes/no) if further analysis of stakeholder
commitment is required (Yes means that a stakeholder analysis as described in
section 3 will be completed.)

Preferred Communication Medium - Indicate any communication medium
preferences that the stakeholder may have. Some stakeholders may prefer
written correspondence to electronic messages. Others may want messages
delivered verbally, followed up with written communication.

Reporting Frequency Identify how often communications with the stakeholder
should occur.

Technology Access Constraints - Indicate any constraints that may inhibit
communications. For example, using a project website to communicate will not be
very effective for a stakeholder without intranet or Internet access. Other
stakeholders may have an assistant screen their correspondence; these
gatekeepers can decide which messages get through.

Special Information Needs - Describe any special information needs of the
stakeholder. For example, lead-time may be required for service or audit
stakeholders. Other stakeholders may have their own standard forms of
communication that must be adhered to.
Stakeholder Identification and Analysis
EPO e-Book 2012 Gord Gibben, PMP Version 12.0
http://www.members.shaw.ca/epo/ Page 14 of 26

3. Stakeholder Analysis

For the majority of project stakeholders, the information contained on the
Stakeholder Identification sheet is sufficient to prepare a project communications
plan. However, some stakeholders will require a more in-depth analysis. For
example:

Funding Authority stakeholders have the power to constrain project
resources or cancel the project altogether,
Review/Audit stakeholders can delay the project until their needs are met,
Product Usage (and some Outcome Affected) stakeholders can resist
change and cause schedule delays,
Output Delivery and Contributor stakeholders need to meet delivery dates
and quality commitments.

For these stakeholders, a Stakeholder Analysis process adapted from Project
Management Strategic Design and Implementation (David Cleland) is shown in
Figure 4.

Stakeholder
Analysis
Identify
Stakeholders
Gather
Information on
Stakeholders
Identify
Stakeholder
Priorities
Determine
Stakeholder Strengths
and Weaknesses
Identify
Stakeholder
Support
Predict
Stakeholder
Behavior
Prepare
Stakeholder
Management
Strategy
Stakeholder
Analysis
Identify
Stakeholders
Gather
Information on
Stakeholders
Identify
Stakeholder
Priorities
Determine
Stakeholder Strengths
and Weaknesses
Identify
Stakeholder
Support
Predict
Stakeholder
Behavior
Prepare
Stakeholder
Management
Strategy

Figure 4 - Stakeholder Analysis Process

Stakeholder Identification and Analysis
EPO e-Book 2012 Gord Gibben, PMP Version 12.0
http://www.members.shaw.ca/epo/ Page 15 of 26
Beginning at the 12 oclock position in figure 4, the first two steps (Identify
Stakeholders and Gather Information) are performed using the Stakeholder
Identification sheet (in the Project Communications Plan Excel template). The
Stakeholder Analysis Word template is used to complete the cycle.

3.1 Stakeholders Priorities

Schedule, Cost and Product Quality - Determine what each stakeholders
schedule, cost and product quality priorities are. This will vary depending on the
project stakeholders. For example, the executive may have a high cost focus, the
business management stake may be focused on schedule, the business user may
be primarily concerned with product quality, and the project sponsor may place a
high priority on both cost and schedule. For each stakeholder, identify which
dimension is:

Inflexible is most critical and must be constrained throughout the
project,
Adaptable is negotiable but should be optimized,
Acceptable concessions can be made as part of a trade-off to meet
constraints of the inflexible dimension or to optimize the adaptable
dimension.

The priorities of the Funding Authority stakeholders MUST align with the scope
management priorities matrix contained in the project Scope Management Plan.
(For more information on the scope management priorities matrix refer to the EPO
Scope Management Planning e-Book.)

For each dimension provide an assessment of the stakeholder priority including
the likelihood that priorities may change during the project.

Interests in Project - Identify the specific project interests of the stakeholder.
These relate back to the stakeholders stake or role in the project and may impact
their contribution to the project or their behavior when receiving project products.

Stakeholder Expectations - Priorities of other stakeholders, such as product usage
or review/audit, may conflict with the project priorities. In this case, their
expectations must be managed during project communications.

Success Criteria - Describe the project success criteria (from the perspective of
the stakeholder). This may or may not align with project objectives.

Stakeholder Objectives - Identify the stakeholders objectives related to the
project. Examples include:

Improved productivity,
Increased customer service,
Stakeholder Identification and Analysis
EPO e-Book 2012 Gord Gibben, PMP Version 12.0
http://www.members.shaw.ca/epo/ Page 16 of 26
Reduced costs.

Indicate the priority of each objective and how each will be measured.

3.2 Stakeholder SWOT

SWOT stands for Strengths, Weaknesses, Opportunities and Threats. SWOT
analysis is a useful tool for strategic planning and risk assessment and can also be
applied to Stakeholder Analysis. For each stakeholder, determine their:

Strengths What does the stakeholder excel at? How can this strength
help achieve project objectives?
Weaknesses What are the liabilities of the stakeholder? What does
the stakeholder do poorly? Will these weaknesses hurt or help in
achieving project objectives?
Opportunities What favorable circumstances or situations does this
stakeholder present? Will an alliance with this stakeholder help achieve
project objectives?
Threats What potential challenges are presented by this stakeholder?
Should this stakeholder be treated as hostile? How can the stakeholder
threats be minimized?

Record the Stakeholder SWOT (shown in table 4) on the Stakeholder Analysis
template.

Strengths

Weaknesses

Opportunities

Threats


Table 4 - Stakeholder SWOT Analysis
Stakeholder Identification and Analysis
EPO e-Book 2012 Gord Gibben, PMP Version 12.0
http://www.members.shaw.ca/epo/ Page 17 of 26

3.3 Stakeholder Support

Stakeholder support consists of two dimensions: agreement and trust. Based on
the level of support across these two dimensions, stakeholders fall into one of six
groups as shown in figure 5:

Supportive

Bedfellows
(Low Trust,
Supportive)



Allies
(High Trust,
Supportive)
Agreement

Fence
Sitters


Indifferent
Opposed

Adversaries
(Low Trust,
Opposed)

Opponents
(High Trust,
Opposed)


Low

Trust

High

Figure 5 - Stakeholder Support

1. Allies are supportive and have proven trust. They can be counted on to
champion the project and contribute to its success. The relationship with
project allies should be nurtured; they should be kept involved and informed
throughout the project.

2. Indifferent stakeholders can be trusted, but are neither supportive nor
opposed.

3. Opponents have low support for the project, but can be trusted to be honest
and forthright in their views. They will challenge the project approach or
deliverable quality and can offer constructive improvements. Opponents
should not be ignored; a problem solving approach to conflict resolution can
turn an opponent into an ally.

4. Adversaries are different from opponents. While both groups are opposed
to the project, opponents can be trusted; adversaries cannot. Their
opposition and distrust can be harmful to the project. The role of the
adversary on the project should be evaluated; avoid counting on an
Stakeholder Identification and Analysis
EPO e-Book 2012 Gord Gibben, PMP Version 12.0
http://www.members.shaw.ca/epo/ Page 18 of 26
adversary if possible. Dealing with adversaries involves a degree of risk
mitigation plans may be required.

5. Bedfellows support the project, but cannot be trusted. They have a
reputation for changing allegiance to serve their own interests. Agreements
with bedfellows should be documented; they may need to be held
accountable.

6. Fence sitters are political and will wait to determine their level of support.
Depending on political climate, they become adversaries or bedfellows.
Either way they cannot be trusted.

An effective stakeholder management strategy will build trust and support for the
project. As shown on figure 5:

Opponents can become allies through effective conflict management
and seeking a common solution. (For more on conflict management,
refer to the EPO Team Management e-Book.)
Adversaries can become allies through principled negotiation that
focuses on the issues, not the people. (For more on principled
negotiation, refer to the EPO Stakeholder Management e-Book.)
Bedfellows can become allies through exchange of influence to create
an environment of trust. (For more on influence exchange, refer to the
EPO Stakeholder Management e-Book.)

On the Stakeholder Analysis template stakeholder support section (shown in
table 5), select the appropriate check-box (one only) to indicate the stakeholder
agreement for the project and the level of trust.

Supportive Bedfellow Ally
Agreement Fence Sitter Indifferent
Opposed Adversary Opponent
Low High
Trust

Table 5 - Stakeholder Support

In the comments section, provide further description of the stakeholder support
and relate this back to the required commitment level shown on the Stakeholder
Identification sheet.
Stakeholder Identification and Analysis
EPO e-Book 2012 Gord Gibben, PMP Version 12.0
http://www.members.shaw.ca/epo/ Page 19 of 26

3.4 Stakeholder Power and Influence

Stakeholder influence is their ability to make or influence decisions related to the
project. Influence is categorized according to table 6.


Influence Category Influence on project
Decision Maker Have the formal authority to directly affect the projects
ability to achieve objectives.
Gatekeeper Able to route, delay or block project communications.
Opinion Leader Significant informal influence that will indirectly affect
the projects ability to achieve objectives.
Minimal Has no formal or informal influence on the project
Table 6 - Stakeholder Influence

Determine the formal power of the project stakeholder as follows:

High power means the person or group has the power of veto and can
cancel or significantly change the project,
Medium power indicates that the project could achieve its objectives against
this stakeholders opposition, but it would not be easy,
Low indicates the stakeholder can do little to adversely affect the outcome
of the project.

Complete the stakeholder support analysis by describing their ability to impact
project objectives and any confidentiality concerns that must be considered when
planning project communications.

3.5 Predicted Behavior

In the Stakeholder Forecast section, predict the future behavior of the stakeholder
that may help or hurt the project. This may include an assessment of the
stakeholder volatility or a prediction of their reaction to future events.

Indicate the stakeholders potential impact on project objectives based on their
future behavior. For example, the funding authority stakeholder may withhold
project funding if the organization has poor financial results.

The predicted behavior of a stakeholder can be related to their stake in the project
as follows:

Stakeholder Identification and Analysis
EPO e-Book 2012 Gord Gibben, PMP Version 12.0
http://www.members.shaw.ca/epo/ Page 20 of 26
1. Providing a product or service will these stakeholders maintain their
commitment to the project and continue to meet delivery dates or service
levels?
2. Receiving or using a product or service will the need for the product or
service change over the project? Will the stakeholder change the nature of
the product wanted or try to modify cost or schedule?
3. Having an interest in the execution or outcome of the project will this
vested interest change over the life of the project? Does the stakeholder
have the power or influence to impact the projects ability to achieve
objectives?

3.6 Stakeholder Communication Strategy

Communications Strategy - The stakeholder communication strategy should
address the stakeholder commitment level. Compare the required commitment
level (from the Stakeholder Identification sheet) with the current commitment level
(based on the Stakeholder Analysis). Prepare a communications strategy to
close the gap between current and required commitment and then maintain the
required commitment. This may include methods of leveraging strong support
from powerful stakeholders or means of mitigating the affect of stakeholders
opposed to the project.

Communications Style - The communication style to be used depends on the need
to control both the message content and the audience involvement as shown in
Figure 6 (adapted from Guide to Managerial Communication by Mary Munter).

Tell
Sell
Consult
Join
Audience Involvement
Content
Control
low high
high
low
Tell
Sell
Consult
Join
Audience Involvement
Content
Control
low high
high
low

Figure 6 - Communication Styles

Stakeholder Identification and Analysis
EPO e-Book 2012 Gord Gibben, PMP Version 12.0
http://www.members.shaw.ca/epo/ Page 21 of 26
The Tell style is used when there is a need to control the content of the
communication. In these cases the project manager has sufficient information and
is instructing, informing or explaining. The Project Status Report is an example of
a Tell communication.

The Sell style is appropriate when the project manager is persuading or
advocating and needs some audience involvement. Project proposals and change
request recommendations are examples of Sell communications.

The Consult style is used when the project manager needs input, but wants to
control the interaction. This style is helpful when learning and managing
stakeholder expectations. Examples of the Consult style include requirements
workshops or scope definition meetings.

The Join style is a collaborating style where stakeholder commitment is needed
or sought. Issue resolution, conflict management, and risk identification are
examples of the Join style.
Stakeholder Identification and Analysis
EPO e-Book 2012 Gord Gibben, PMP Version 12.0
http://www.members.shaw.ca/epo/ Page 22 of 26

4. Review

Project stakeholders are individuals and organizations that are actively involved in
the project, or whose interests may be positively or negatively affected as a result
of project execution or project completion; they may also exert influence over the
project and its results.

Project stakeholders fall into one of eight categories as shown in table 7.

Stakeholder
Category
Stakeholder Description
Output delivery Individuals, groups, or organizations responsible for the
delivery of the projects outputs
Product usage Directly or indirectly use the project products; ultimately
responsible for the achievement of business objectives
using the project deliverables
Product support Responsible for ensuring that the project product is
available for use
Funding authority Accountable for the outcome of the project and grant
approval for release of funding and provision of resources
Contributor Individuals or groups who provide inputs and services to
the project
Review/audit Groups or organizations who need to review or audit the
project and its deliverables to ensure that proper
processes are followed and the quality of deliverables
meets appropriate standards
Outcome affected Public/press/media, unions or bargaining units, and
competitors of the organization
Related projects Other project teams may provide inputs to or receive
outputs from the project

Table 7 - Stakeholder Categories

Stakeholder Identification and Analysis
EPO e-Book 2012 Gord Gibben, PMP Version 12.0
http://www.members.shaw.ca/epo/ Page 23 of 26
As shown in figure 7, Stakeholder Communication Planning is a three-step
process:

1. Identification of project stakeholders using the Stakeholder Identification
sheet (in the Project Communications Plan Excel template),
2. Analysis of project stakeholder support and influence using the
Stakeholder Analysis Word template,
3. Preparation of a project stakeholder communications management strategy
as outlined in the EPO Communications Planning e-Book.



Figure 7 - Stakeholder Communications Planning Steps and Templates

Stakeholder
Identification
sheet
Stakeholder
Analysis
Stakeholder
Identification
Stakeholder
Analysis
Communication
Planning
Stakeholder
Identification
sheet
Stakeholder
Analysis
Stakeholder
Identification
Stakeholder
Analysis
Communication
Planning
Stakeholder Identification and Analysis
EPO e-Book 2012 Gord Gibben, PMP Version 12.0
http://www.members.shaw.ca/epo/ Page 24 of 26

The relationship between Stakeholder Identification and Analysis and the
complete set of EPO version 12.0 e-Books is shown in figure 8.



Figure 8 - Electronic Project Office Version 12.0 e-Books


Stakeholder Identification and Analysis
EPO e-Book 2012 Gord Gibben, PMP Version 12.0
http://www.members.shaw.ca/epo/ Page 25 of 26

5. Bibliography

Briner, Wendy, Colin Hastings, Michael Geddes, Project Leadership, Second
Edition, Gower Publishing Ltd, 1996

Cleland, David, Project Management, Strategic Design and Implementation,
Second Edition, McGraw-Hill, Inc., 1994

Gray, Clifford, Erik Larson, Project Management The Managerial Process, Third
Edition, McGraw-Hill, 2006

Munter, Mary, Guide to Management Communication, Effective Business Writing
and Speaking, Sixth Edition, Prentice Hall, 2002

Pinto, Jeffrey K., Power & Politics in Project Management, Project Management
Institute, 1996

PMI Standards Committee, A Guide to the Project Management Body of
Knowledge, Project Management Institute, 2008

PMI Standards Committee, Organizational Project Management Maturity Model
(OPM3), Project Management Institute, 2008

Pritchard, Carl, The Project Management Communications Toolkit, Artech House
Publishers, 2004

Thomsett, Rob, Radical Project Management, Prentice Hall, 2002

Verma, Vijay K., Organizing Projects For Success, Project Management Institute,
1995

Verma, Vijay K., Human Resource Skills for the Project Manager, Project
Management Institute, 1996

Verzuh, Eric, The Portable MBA in Project Management, John Wiley & Sons, 2003
Stakeholder Identification and Analysis
EPO e-Book 2012 Gord Gibben, PMP Version 12.0
http://www.members.shaw.ca/epo/ Page 26 of 26

5.1 Links

Project Management - Tasmanian State Government
http://www.projectmanagement.tas.gov.au/pm_templates/pm_templates1.htm

Stakeholder Identification:
http://www.maxwideman.com/issacons4/iac1440/index.htm

Stakeholder analysis:
http://www.maxwideman.com/issacons4/iac1441/index.htm