Role of stakeholder

From CEOpedia | Management online

A stakeholder is any individual, group or organization that has an interest in a project and can affect or be affected by it. In project management, stakeholders are identified and their roles and interests are assessed in order to ensure their support throughout the project. Stakeholders may include the project team, sponsors, customers, end-users, senior management, the project management office, suppliers, and other groups or individuals who have an interest in the project’s success. Understanding the interests and expectations of each stakeholder is essential for successful project management.

Example of role of stakeholder

  • Project Sponsor: The project sponsor is the person who initiates, funds and provides support to a project. They are typically a senior executive or a stakeholder representing a higher-level organization. The project sponsor is responsible for ensuring that the project meets the company’s objectives and is typically the leader of the project team.
  • Project Manager: The project manager is the person responsible for the successful planning, execution, and closure of the project. They are responsible for ensuring that the project is completed on time, on budget, and meets the quality and performance objectives. The project manager is accountable for the overall success of the project and provides leadership and guidance to the project team.
  • Project Team: The project team consists of all the individuals involved in the project. This includes the project manager, the project sponsor, other stakeholders, and any external contractors or suppliers. The project team is responsible for the successful execution of the project tasks and activities.
  • Customers: Customers are the people who will use the product or service that the project is creating. They are the end users of the product and the people who benefit from the project. Customers provide feedback to the project team to ensure that the product meets their needs and expectations.
  • Suppliers: Suppliers provide resources and materials that are needed to complete the project tasks. They are responsible for delivering the necessary items on time and within budget. Suppliers play a critical role in the successful delivery of the project.
  • Senior Management: Senior management is typically the highest level of decision-making authority in the organization. They are responsible for overseeing the project and providing the necessary resources and guidance to ensure that the project is completed successfully.

Best practices of role of stakeholder

  1. Identifying Stakeholders: Identifying stakeholders early in the project life cycle is essential in order to assess their roles, interests, and expectations. Stakeholders should be identified by their roles such as decision-makers, influencers, supporters, and opponents. Understanding their roles will help in planning and managing the project accordingly.
  2. Assessing Interests and Expectations: Once stakeholders have been identified, it is important to assess their interests and expectations. Stakeholders should be asked what they expect to gain from the project, their level of involvement and the importance of their role. This information can inform project scope and objectives, as well as help to develop strategies to engage stakeholders.
  3. Involving Stakeholders in the Planning Process: Involving stakeholders in the planning process helps ensure that their interests and expectations are understood and taken into consideration. Stakeholders should be consulted to provide feedback on the project plan, objectives, and deliverables. This helps to ensure that the project is aligned with the stakeholders’ expectations.
  4. Communicating With Stakeholders: Communicating with stakeholders throughout the project is essential for successful project management. Regular communication helps to ensure that stakeholders are informed of the progress and status of the project. Stakeholders should be notified of any changes that may affect them and should be kept updated on the project’s progress.
  5. Managing Stakeholder Expectations: It is important to manage stakeholders’ expectations in order to ensure their support throughout the project. Stakeholders should be provided with realistic expectations of what can be achieved and timelines should be communicated clearly. Regular communication helps to ensure that stakeholders are aware of the progress and status of the project.
  6. Resolving Stakeholder Issues: Managing any issues or conflicts that arise between stakeholders is essential for successful project management. Issues should be identified, discussed, and resolved in a timely manner. Consulting with stakeholders can help to identify the root cause of the issue and develop an effective resolution.

When to use role of stakeholder

Stakeholders play an important role in the success of a project. It is essential to identify and understand the interests and expectations of each stakeholder in order to ensure their involvement and support throughout the project. The following are some of the ways stakeholders can be used in project management:

  • Developing a project charter - Stakeholders can provide input into the project’s objectives, scope, and timeline.
  • Clarifying roles and responsibilities - Stakeholders can define the specific roles and responsibilities of each team member.
  • Ensuring alignment with organizational goals - Stakeholders can help ensure that the project is aligned with the organization’s overall goals.
  • Managing expectations - Stakeholders can help manage expectations from the project team, sponsors, and other stakeholders.
  • Providing feedback - Stakeholders can provide valuable feedback to the project team throughout the project.
  • Assessing risks - Stakeholders can help identify and assess potential risks to the project.
  • Monitoring progress - Stakeholders can monitor the project’s progress and provide guidance and support.
  • Making decisions - Stakeholders can help make decisions when needed, such as choosing between different options or determining how to address issues.

Advantages of stakeholders

The role of stakeholders in project management is invaluable, as they can provide support, resources, and direction throughout the life of the project. The following are some of the advantages of having stakeholders involved in project management:

  • Stakeholders can provide valuable insights and resources that can help the project team achieve the desired outcomes. They can provide financial support, access to key personnel, and access to specialized skills and knowledge.
  • Stakeholders can provide an outside perspective and help the project team stay focused on the goals of the project. By understanding the motivations and interests of each stakeholder, the project team can better prioritize tasks and allocate resources appropriately.
  • Stakeholders can also serve as advocates for the project, helping to raise awareness, gaining support, and addressing any challenges that arise. They can help to ensure the project is successful and that it meets the needs of those involved.
  • Finally, stakeholders can help to ensure that the project is completed on time and within budget. They can help to monitor progress and provide feedback, suggesting changes or areas for improvement as needed.

Limitations of stakeholders

The role of stakeholders in a project is essential in order to ensure its success. However, there are several limitations to the role of stakeholders that should be taken into account. These include:

  • Stakeholders may not have the expertise or resources necessary to effectively contribute to the project.
  • Stakeholders may have conflicting interests and goals which can lead to disagreements and delays.
  • Stakeholders may not have a clear understanding of the project requirements and objectives.
  • Stakeholders may not have the authority to make decisions or take action on behalf of the project.
  • Stakeholders may not be available to provide feedback or support when needed.
  • Stakeholders may not be willing to commit the time and resources necessary for the project.


Role of stakeholder — recommended articles
Primary and secondary stakeholder — Importance of project management — Project sponsor role — Successful project manager — Stakeholders influence — Management in construction project — Stakeholders analysis in project management — Structure of the project — Organizational project management

References

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