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Project stakeholders:Analysis and Management Processes

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DOI: 10.14445/23939125/IJEMS-V4I3P108

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 SSRG International Journal of Economics and Management Studies (SSRG-IJEMS) – volume4 issue3 March 2017

Project Stakeholders: Analysis and

Management Processes
Youssra RIAHI
Faculty of Informatics
International University of Rabat, Technopolis parc, Sala el jadida 11100, Morocco

Abstract the degree of collaboration or potential friction

Stakeholders are all internal or external between the different parties.
actors, social and economic partners of a company. Depending on the type and size of the project, there
The activity of the company has a direct or indirect
might be several types of stakeholders that have
impact on these actors, and these actors have a
more or less important influence on the company. different requirements, goals and objectives. A
The company is therefore accountable to all parties competent project leader recognizes the key impact
and must take into account their opinions. It is that stakeholders can have both to help and hinder
important to identify stakeholders but there is also the progress of the project. Careful stakeholder
a need to plan stakeholder management. This analysis and a careful communication plan will
includes management strategies to literally engage maximize the project's chances of delivering
them and generate interest throughout the project.
deliverables on time and in budget.
Depending on the nature of the project, there may
be several types of stakeholders that may have
sometimes divergent interests. In some projects, II. STAKEHOLDER MANAGEMENT
some stakeholders can play several roles at a time. CYCLE
Stakeholders may have a positive or negative
influence on a project. Managing stakeholders in a The management of the project
pro-active way is an important factor that can stakeholders includes the processes necessary to
influence the project success. identify the persons, groups or organizations likely
to affect the project or to be affected by it, to
Keywords: Stakeholder, Salience Model, Power- analyze the expectations of the stakeholders and
Interest Grid, Management cycle, project their impact on the project, but also to develop
appropriate management strategies to effectively
I. INTRODUCTION mobilize stakeholders by involving them in project
decisions and implementation.
A project is a unique process that consists of a
Stakeholder management also pays particular
set of coordinated activities with start dates and
attention to the communication with stakeholders in
end, with the aim of achieving an objective in order to understand their needs and expectations, to
accordance with specific requirements and every address issues as they arise, to manage conflicting
project has its stakeholders.[1] Those are a group or interests, and to promote a commitment of the
an individual that may be internal or external to a stakeholders in the decisions and activities of the
company and who can affect or can be affected by project. Stakeholder satisfaction should be managed
the project. as a primary objective of the project.
The following figure gives an overview of the
Stakeholders identify all the interested parties. An management processes of the project stakeholders.
individual, group, or organization who may affect,
be affected by, or perceive itself to be affected by a Identifying
decision, activity, or outcome of a project. [2]
The stakeholder analysis synthesizes and
summarizes information about all the people, Monitoring Analysing

groups of people, organizations and institutions

involved in one way or another by the future
project.
This involves identifying all actors involved in the Executing Planning

action; to examine their respective roles, interests,

ability to participate or curb the project, estimate
Figure 1: Stakeholders management cycle

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 SSRG International Journal of Economics and Management Studies (SSRG-IJEMS) – volume4 issue3 March 2017

A. Stakeholders identification engaged even more.

Listen, inform, thank
Leading
This process consists of identifying the persons, and involve.
groups or organizations that may affect a decision,
or be affected by a project activity, or its final Figure 2: Appropriate strategy for each commitment
outcome. It also analyzes and documents relevant level
information about stakeholder interests, D. Stakeholders execution
participation, interdependencies, influence and This process involves communicating and working
potential impact on the success of the project. The with stakeholders to meet their needs and
identification of stakeholders is based on data from expectations, address issues as they arise, and
the project charter, procurement documents, promote appropriate stakeholder involvement in
environmental factors of the business and project activities through its life cycle. The project
manager will use his interpersonal and managerial
organizational assets.
skills in order to promote the involvement of the
stakeholders with the support of the different means
B. Stakeholders analysis of communication previously identified in the
This step involves the analysis of stakeholder‟s communications management plan.
responsibilities, contribution and commitment to
the project. By specifying the interests, needs and E. Stakeholders monitoring
concerns of the various parties involved, the This process consists of an overall follow-up of the
analysis is useful in helping decision-making when relations with the project's stakeholders and the
different stakeholders have contradictory interests, adaptation of strategies and plans for their
when the resources are limited and when the needs involvement. The objective is to maintain or
of the actors involved needs to be finely balanced. increase the effectiveness of stakeholder
engagement activities throughout the life cycle of
C. Stakeholders planning the project. This process is supported by the project
This process involves developing appropriate management plan, the major problems registry,
management strategies to effectively involve work performance data and project documents.
stakeholders throughout the project life cycle, based
Using this input data and an information
on an analysis of their needs, interests and potential
management system; the project manager will be
impact on the success of the project. Based on the
able to broadcast information about the
project management plan, the stakeholder register,
performance of the work in order to assess the
the environmental factors of the company and the
overall effectiveness of the strategy adopted in
organizational assets, the project manager will be in
managing the stakeholders.
a position to "develop the stakeholder management
plan". This plan, which is a component of the
III. TYPES OF STAKEHOLDERS
project management plan, will serve to determine
the frequency and range of information provided to
stakeholders. A stakeholder with other concerns is a A. Internal stakeholders
potential risk to the project. To avoid spending too
much time in the wrong place, a strategy based on Internal stakeholders include general groups such as
the stakeholder‟s commitment level can be created. managers and employees (and/or volunteer workers
or other types of members, in not-for-profit
organizations). For example the procurement
Commitment level Strategy function may have to market itself to senior
Depending on the management or management teams, or may have to
impact, inform the
communicate changes in purchasing policy and
different parties and see
Unaware procedures to all staff. [3]. Internal stakeholders are
if the level of
commitment needs to represented by:
be improved.
Listen, influence and  The leaders: they may be tempted to privilege
Resistant their personal interest to the detriment of the overall
convince.
Listen and evaluate if it interest of the company.
Neutral  The shareholders of the company: they are a
can become resistant.
Listen, inform and special type of stakeholder. They have no
Supportive thank. Determine if the contractual relationship with the company, but are
different parties can be co-owners and are therefore directly interested in

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 SSRG International Journal of Economics and Management Studies (SSRG-IJEMS) – volume4 issue3 March 2017

the results of the company in general, and by its environmental issues related to the company's
financial results in particular. They seek a return on operations. Life and community development still
investment, that is to say, of dividends. depend largely on the economic spin-offs
 The employees of the company: constitute an generated by enterprises, in terms of employment,
essential part of the capital of the company. They but also professional taxes, the life of
ensure not only the production of a good or a associations, maintenance of utilities and
service, but may also improve the quality of businesses.
products and services if placed in favorable
conditions (quality of management and the working C. Phantom stakeholders
environment, incentives autonomy, training and People who are subject to, part of, or impacted
remuneration). by the project, yet have not formally been
identified by the project manager or project team
B. External stakeholders
as stakeholders.[4]
Businesses are increasingly aware of the need to
maintain a positive reputation in the marketplace, IV. THE POWER/INTEREST GRID
and this may require a more inclusive approach to
This instrument sheds light on the interest of
stakeholder management which recognizes the
possible actors in the project or some of their
legitimate needs and concerns of wider, secondary
aspects, and on the power or influence of an actor to
or „indirect stakeholders. External stakeholders are
move things forward and to achieve the expected
likely to have quite diverse objectives and degrees
results.
of influence.

Those stakeholders are:

 Customers: have the power of pressure based on A

B
competitive intensity. Taking into account the
expectations of clients requires a range of
measures to improve the customer service from
quality procedures, to toll-free numbers and
satisfaction surveys.
 Suppliers: the company is considered Co- C D
responsible of the actions of its subcontractors
because it has all the latitude to condition its
purchases to the respect of social or
environmental criteria.
 Competitors, local, national or international:
the company can adopt strategies to be more
Figure 3 : Power/ interest matrix
competitive than they are (innovation, "price
war", protection measures ...) or try to avoid
competition in deals or alliances to share the
market. This classifies stakeholders in relation to
the power that they hold and their level of interest
 The State: governments, international in the project. The type of relationship, which the
organizations and local authorities. The State is a project manager will need to establish and maintain
stakeholder through its legislative role. It may with each type of stakeholder grouping, is shown
impose constraints on enterprises or, on the
for each of the four zones. [5]
contrary, improve the environment in which the
business carries out its activities. Well aware of
Quadrant A stakeholders have interests and can
the importance of this actor, companies lobby
more or less the authorities to ensure an enabling influence the achievement of objectives.
environment and a regulatory framework at least
as flexible as that of their foreign competitors. The actors of Quadrant B also deserve attention
 The neighbors: these are all those who live around because, because of their power, they can behave
the sites of a company and directly or indirectly, destructively, for example when they are
benefit or suffer the economic, social or uninformed and feel neglected. Quadrant C

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 SSRG International Journal of Economics and Management Studies (SSRG-IJEMS) – volume4 issue3 March 2017

stakeholders may seem unimportant, but they

may just be cautious and have decided to wait
and watch before showing more interest or
using their influence. Quadrant D actors are
important despite their lack of power. They are

Often those who bring skills and / or the

dynamism that makes cooperation work.

D. Key stakeholders

High power, high interest stakeholders are key Figure 5: Example of stakeholder engagement assessment
players. Key Players are stakeholders who have a matrix
high influence on your project and a high interest in
the project's success or failure. VI. STAKEHOLDER REGISTER
In order to identify the key stakeholders, many
It is the output of the process of the stakeholder
questions can be asked:
identification. This document includes:
 Who holds the project budget?
 Identification information: name,
 Who is responsible for the relationship
organizational position, location, role in the
with the customers?
project, contact information;
 Who will get promoted if the success of
 Assessment information: major requirements,
the project is reached?
main expectations, potential influence in the
 Who will be providing resources?
project, phase in the life cycle with the most
interest;
V. SALIENCE MODEL
 Stakeholder classification: internal/external,
This instrument focuses on the different views of supporter/neutral/resistor.
the key stakeholder in relation to the objectives of
the cooperation. To define a key stakeholder, we The stakeholder register must be consulted and
look at the three central decisive functions to have a updated regularly through the life cycle of a project
key position in the context of the project: because the stakeholders may change.
 Legitimacy: Is the appreciation by the other
actors that the action of the first actor is desirable or
VII. STAKEHOLDER MANAGEMENT
appropriate according to socially constructed
norms, values, beliefs and definitions. PLAN
 Power: Is the ability (expressed or potential)
of an actor to impose his will on others. The project management plan includes stakeholder
 Urgency: Is the feeling, by the actor management plan. It consists of identifying the
himself, that his own request is urgent or important. strategies required to effectively manage the
engagement of stakeholders.
The three criteria (power, legitimacy, urgency) The stakeholder management plan provides:
-Engagement level of stakeholders.
-Identified interrelationships between stakeholders.
-Stakeholder communication requirement during
the current project phase.
-Information that must be sent to all stakeholders
(language-format-context…).

Figure 4: Salience model / Typology of stakeholders -Time frame required distributing the information.

make it possible to classify the stakeholders into

eight categories.

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 SSRG International Journal of Economics and Management Studies (SSRG-IJEMS) – volume4 issue3 March 2017

VIII. STAKEHOLDER ENGAGEMENT stakeholders, and should take their interests

ASSESSMENT MATRIX appropriately into account in decision-making and
operations.
The stakeholder engagement assessment matrix is -Principle 2: Managers should listen to and openly
the appropriate tool to use in order to evaluate communicate with stakeholders their respective
participation levels of the project team to ensure concerns and contributions, and about the risks that
that all the members are on the same level to reach they assume because of their involvement with the
the completion of the project successfully. corporation.
The different commitment levels presented n -Principle 3: Managers should adopt processes and
Section 2.3 in this article are presented in a table modes of behavior that are sensitive to the concerns
with “C” referring to “Current” and “D” referring to and capabilities of each stakeholder constituency.
“Desired” for each stakeholder. -Principle 4: Managers should recognize the
interdependence of efforts and rewards among
IX. RESPONSIBILITY ASSIGNMENT stakeholders, and should attempt to achieve a fair
MATRIX (RACI) distribution of the benefits and burdens of corporate
This tool is used to clarify the roles and activity among them, taking into account their
responsibilities of each member of the project team. respective risks and vulnerabilities.
RACI is an acronym derived from the four key -Principle 5: Manages should work cooperatively
responsibilities most typically used: Responsible, with other entities, both public and private, to
Accountable, Consulted, and Informed. [7] insure that risks and harms arising from corporate
-R: Responsible: The members who do the work activities are minimized and, where they cannot be
required to achieve the task. The work can be avoided, appropriately compensated.
delegated to other members, so the responsibility -Principle 6: Managers should avoid altogether
can be shared. activities that might jeopardize inalienable human
-A: Accountable: The individual who is rights (e.g., the right to life) or give rise to risks
answerable for the activity or decision. There must which, if clearly understood, would be patently
be only one accountable for each task or unacceptable to relevant stakeholders.
deliverable. -Principle 7: Managers should avoid altogether
-C: Consultant: The individual to be consulted to activities that might jeopardize inalienable human
make a final decision and with whom there is two- rights (e.g., the right to life) or give rise to risks
way communication. which, if clearly understood, would be patently
-I: Informed: The individuals who are kept up-to- unacceptable to relevant stakeholders. [8]
date on progress and any decision or action that is
taken. XI. COMMUNICATION WITH
STAKEHOLDERS

The finished product of a stakeholder analysis is a

communication plan that is a part of the full project
plan.
The effort of communication, mode and frequency
Figure 6: Example of RACI matrix depend on the cost and the level of influence of the
stakeholder. Some will require simple and
infrequent news; others will require regular,
X. CLARKSON’S PRINCIPLES OF
detailed and frequent communications.
STAKEHOLDERS MANAGEMENT
Communication tools may include:
Formal meetings: with powerful stakeholders.
The purpose of the principles of stakeholder‟s
Informal meetings: with interested persons.
management is to provide guidelines to help
Mailing list: disseminating information to people on
business managers in order to interact with business
the progress of the project.
stakeholders, and to meet the needs of the project
Newsletters: By mailing list, sent by e mail or
stakeholders.
printed.
-Principle 1: Managers should acknowledge and
Information screens: visual representation of the
actively monitor the concerns of all legitimate
progress of the project in public places.

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 SSRG International Journal of Economics and Management Studies (SSRG-IJEMS) – volume4 issue3 March 2017

Website: regular information updates on the project [4] “PROJECT STAKEHOLDER MANAGEMENT”- Project
Management and Leadership – 2016
in "self-service".
[5] “FROM CLIENT TO PROJECT STAKEHOLDERS: A
Individual Briefings: for those who have more STAKEHOLDER MAPPING APPROACH ROBERT
interest and are willing to attend. NEWCOMBE” Department of Construction Management &
Tours and Demonstrations: for interested external Engineering The University of Reading, Whiteknights, PO Box
219, Reading, RG6 6AW
people and organizations.
[6] PMI, 5th Edition PMBOK Guide-2013
Public forums: more appropriate when there are [7]https://en.wikipedia.org/wiki/Responsibility_assignment_matr
community stakeholders. ix
Press Releases: report on significant project [8] The Clarkson Centre, 1999
milestones.
Advertisements and mailings: newspapers,
magazines, billboards.
Liaison committee: representatives from larger
groups.

XII. CONCLUSION

Economic agents, individuals and

organizations whose interests are linked to a
company or a project are grouped under the generic
term of stakeholders. Stakeholders are all the actors,
internal or external, and economic and social
partners of the company. The activity of the
company has a direct or indirect repercussion on
these actors, and these actors have a more or less
important influence on the company. They are
complex networks of influence, relationships,
partnerships, power, and interdependence: to a
certain extent, the company depends on each of its
stakeholders for its survival, and vice versa.
Stakeholder management is closely linked to the
success of the project and the success of the
organizations. To properly carry out the stakeholder
management task, there is a very specific process to
follow.
A good project leader recognizes the key impact
that stakeholders can have both to help and to
hinder the progress of the project. Careful
stakeholder analysis and a careful communication
plan will maximize the project's chances of
delivering deliverables on time and in budget.
The management and communication strategies to
be adopted for each type of stakeholder will be
detailed in future works.

REFERENCES
[1] Youssra Riahi, “Project management: techniques and
methodologies”, International Journal of Science and Research,
Volume 6 Issue 2, February 2017, 465 - 469
[2] PMBOK 2013, p.563
[3] “Internal, Connected and External Stakeholders”, CIPS
Group Easton House, Easton on the Hill, Stamford, Lincolnshire,
P9 3NZ, United Kingdom

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