Stakeholders in Projects

 

Notes on Stakeholders in Projects

1. Definition:

   • Stakeholders: Individuals, groups, or organizations that are affected, may be affected, or perceive themselves to be affected by a project.

2. Characteristics:

   • Stakeholders can be positively or negatively impacted.
   • Example:
     • Positive: A new software that simplifies tasks for employees.
     • Negative: A highway project that disrupts a residential neighborhood.

3. Key Stakeholders:

   • Project Manager:
     • Manages the project and team to deliver the outcomes.
   • Customer:
     • Uses the product or service; determines the ultimate success or failure.
     • Example: A smartphone project is unsuccessful if no customer buys it, despite meeting all project objectives.
   • Project Team:
     • Performs the work to create deliverables.
     • Example: Developers coding software or workers painting walls.
   • Project Sponsor:
     • Provides funding, resources, and sign-offs.
     • Often acts as the key decision-maker and supporter.
   • Functional Manager:
     • Heads departments like IT, Sales, or Finance.
     • Controls access to resources needed for the project.
     • Example: Negotiating with the IT manager to allocate technicians for a Windows upgrade project.

4. Broader Scope:

   • Stakeholders can include:
     • Employees indirectly impacted by the project (e.g., Mary perceiving her job will become easier).
     • Those negatively impacted, such as employees losing jobs due to automation.
     • Entities like the government or regulatory bodies.

5. Conflict Example:

   • A common conflict occurs between project managers and functional managers over resource scheduling.
   • Example: A project manager needs technicians for a project, but the IT manager needs them for helpdesk tasks.

6. Stakeholder Importance:

   • Customer is often considered the most critical stakeholder as they determine the project's success.
   • Projects should prioritize delivering value to the customer.

7. Stakeholder in Agile:

   • Agile frameworks introduce stakeholders like Product Owners who represent customer needs and prioritize deliverables.

8. Key Takeaway:

   • Stakeholders include anyone impacted (positively or negatively) or even those who perceive to be impacted.
   • Understanding and managing stakeholders is crucial for project success.

Summary Example:

Stakeholders in a project range from the project manager and team to customers and functional managers. For instance, when upgrading systems, the IT head (functional manager) may clash with the project manager over technician allocation. It's essential to manage these dynamics while ensuring the project delivers value to key stakeholders like the customer, who ultimately decides the project's success.