Leverage stakeholder analysis done by the project manager

In the complex world of project management, it is imperative to understand the role and importance of stakeholders, their influence, and how to efficiently manage them. One of the essential strategies of this practice is stakeholder analysis, which is a proven technique used by project managers to gather and analyze quantitative and qualitative information to determine whose interests should be given priority throughout the project. This analysis is a fundamental part of the PMI Risk Management Professional (PMI-RMP) exam and has significant benefits when applied correctly.

Understanding Stakeholder Analysis

Stakeholder analysis is an essential component of risk management. The technique involves identifying people, groups, or organizations that could affect or be impacted by a decision, activity, or outcome of a project. It involves assessing and prioritizing stakeholders based on their interest, influence, and impact on the successful completion of a project.

Broadly, stakeholder analysis conducted by a project manager can be divided into four basic steps:

1. Identifying stakeholders: This involves determining who has a stake in the project, who would be affected by the project and its outcome.
2. Analyzing stakeholder’s needs and concerns: After identifying the stakeholders, the next step comprises understanding their needs, concerns, and expectations.
3. Prioritizing stakeholders: The third step involves prioritizing the stakeholders based on their influence and impact.
4. Engaging stakeholders: A successful project requires the continuous engagement of stakeholders. This step involves strategizing effective communication with the stakeholders, keeping them informed, and addressing their concerns in a timely manner.

Leveraging Stakeholder Analysis: Why it Matters

The importance of stakeholder analysis in project management, particularly for those preparing for the PMI-RMP exam, can’t be overstated. It helps in identifying potential risks, understanding stakeholders’ attitudes towards the project, and eventually devising risk response strategies that align with stakeholders’ needs and concerns.

Here’s how leveraging stakeholder analysis benefits project managers:

• Risk Identification and Assessment: Stakeholder analysis allows the project manager to identify potential risks, their causes, and potential effects. For instance, a stakeholder might be resistant to change or may have a different opinion about the project. Understanding their concerns helps in devising suitable risk response strategies.
• Better Communication and Engagement: Stakeholder analysis directs the manner and frequency of communication with different stakeholders, enhancing their engagement and commitment to the project.
• Project Buy-in and Success: By addressing stakeholders’ concerns and needs effectively, a project manager can secure their buy-in, a vital factor towards the project’s success.

Practical Example

Consider a software development project. The project manager identifies the stakeholders: developers, testers, the client, and the end-users.

1. Developers and Testers: They have high interest and influence over the project. However, their resistance to change may pose a risk to the project’s success.
2. The Client: They have a high level of interest but might show a varying degree of influence over the project based on the project phase.
3. End Users: They may have low influence but a high interest in the project’s outcome.

Once the identification and assessment are done, project managers can develop communication and risk response strategies considering the potential shares of each stakeholder.

In the PMI-RMP exam context, understanding the dynamics of stakeholder analysis, its application, and importance are key towards scoring high. Ultimately, leveraging stakeholder analysis means better risk management, efficient communication, enhanced engagement, and a higher likelihood of project success.