1.4a – Stakeholders and Stakeholder Engagement

Sarah quickly learns that the technical side of project management (creating schedules, tracking budgets) is only part of the job. The harder part is understanding people: who cares about this project, what do they care about, how much influence do they have, and how do I keep them engaged and aligned?

1.4a.1 Who Are Stakeholders?

A stakeholder is anyone who has an interest in, is affected by, or can affect the project.

This sounds simple, but it is deceptively broad. Stakeholders include:

• Project sponsors – who fund the work and have strategic interest
• Project team members – who do the work
• Business stakeholders – who use or benefit from the outcome
• End users – who ultimately use the deliverable
• Regulatory bodies – who enforce compliance
• Vendors and contractors – who supply goods or services
• Community members – who might be affected by the project's outcomes
• Competitors – who might be interested in the project's success or failure
• Internal support functions – like HR, IT, Finance, who enable the work

1.4a.2 Sarah's Stakeholder Challenge: The Office Renovation

In the office renovation project, Sarah initially thinks: "The key stakeholders are the facilities team, the CFO, and the department heads."

But in her second week, reality hits. She gets pulled into conversations with:

• The CEO – who cares about the move date (it is tied to a press announcement about the company's new direction)
• IT leaders – who have very specific requirements about network infrastructure
• Facilities – who care about ongoing maintenance and energy efficiency
• Department heads – who worry about disruption to their teams during the move
• Individual employees – who are anxious about their workspace and commute
• The building contractor – who has their own timeline and constraints
• Regulatory inspectors – who will sign off on compliance

Sarah realizes: Different stakeholders care about completely different things. The CFO cares about cost. The CEO cares about the launch date. Employees care about their workspace. IT cares about infrastructure. Regulators care about compliance. If I do not understand what each group cares about, I will disappoint someone.

1.4a.3 Stakeholder Analysis: Understanding Power and Interest

Sarah learns a framework for thinking about stakeholders systematically: The Power/Interest Grid

Power

Keep SatisfiedHigh Power, Low Interest

Sarah must keep them informed so they do not become blockers.

Example: VP of IT, Facilities manager's team, Major department heads

Manage CloselyHigh Power, High Interest

Sarah must communicate frequently and involve them in decisions.

Example: CFO, CEO, VP of Facilities, General Contractor

MonitorLow Power, Low Interest

Sarah monitors them to catch any changes.

Example: Current landlord, Competitors, Future employees

Keep InformedLow Power, High Interest

Sarah should listen to them and communicate transparently.

Example: Individual employees, Regulatory inspectors

Interest

1.4a.4 Stakeholder Engagement: Beyond Just Informing

Sarah learns that stakeholder engagement is not the same as stakeholder communication. Communication is one-way: you tell them something. Engagement is two-way: you involve them, listen to them, and respond to them.

Engagement Strategies

• Manage Closely: Involve them in planning and decision-making. Seek input before finalizing major decisions.
• Keep Satisfied: Provide regular updates. Solicit feedback and acknowledge it.
• Keep Informed: Provide clear, accessible communication. Create forums for questions.
• Monitor: Track their level of interest and influence. Re-classify if circumstances change.

1.4a.5 Stakeholder Expectations: The Hidden Problem

Sarah encounters a subtle but critical issue: Different stakeholders have different expectations about what success looks like.

• CEO: Success = move-in on the announced date
• CFO: Success = stay within budget
• Employees: Success = a modern, comfortable office

If Sarah does not actively manage these expectations, she ends up disappointing people. Sarah learns: You must surface and align expectations early.

1. Ask what success looks like for each group
2. Identify conflicts where expectations are incompatible
3. Facilitate trade-off discussions
4. Document agreements so expectations are clear and shared
5. Communicate transparently when circumstances change

1.4a.6 Common Stakeholder Engagement Mistakes

⚠️ Common Pitfalls

• Mistake 1: Assuming you know what stakeholders care about. (Fix: Ask them directly!)
• Mistake 2: Treating all stakeholders the same. (Fix: Tailor communication.)
• Mistake 3: Engaging too late. (Fix: Engage early and often.)
• Mistake 4: Not addressing conflicts. (Fix: Surface conflicts and facilitate trade-offs.)
• Mistake 5: Assuming engagement is a one-time event. (Fix: Engagement is continuous.)

1.4a.7 On the Exam: Stakeholder Scenarios

Exam questions test stakeholder engagement by presenting conflict or misalignment.

Good answers typically involve:

• Engaging the stakeholder directly to understand their concern
• Identifying the root cause of the issue
• Facilitating a discussion with all affected stakeholders
• Helping stakeholders understand trade-offs
• Following up to confirm satisfaction

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Pro Tip

Always address stakeholder issues directly and humanly before escalating. Empathy and clear communication are your best tools.