Who Are Stakeholders in the Project?

The stakeholders of any individual project are the driving forces for project actions and reactions. Parties involved include individuals, groups, and formal organizations. Stakeholders are typically highly active in the project execution because the result of the project affects their bottom line as much as it does for the business. Stakeholders include any individuals who stand to gain or loss as a direct result of the Project X (PMBOK, 2005, pgs. 24-25). More specifically, the project team, strategic partners, customers, alliances, vendors and senior management are project stakeholders (Duke Corporate Education, 2005, pg. 11).

To ensure that goals are aligned between all stakeholders, we must exert influence and promote collaboration. No one stakeholder has more influence than the other. Successful project implementation requires cooperation and understanding from all partners and stakeholders. Sponsors have valid influence over the project because they have invested money into it. Customers are stakeholders as well because they will benefit from the project that is produced. Implementers, or team members, are stakeholders because they are the driving force behind project accomplishment. Each group has different questions and concerns; a stakeholder map can act as a key to ensuring input is received from each affected party.

Stakeholders can be divided into two groupings: internal stakeholders and external stakeholders. Internal stakeholders are those that work within the organization. The ultimate decision makers belong in this group because they control where the money comes from and how it is spent. External stakeholders do not work within the organization, never-the-less they want the project to succeed as much as the internal stakeholders. Suppliers and providers belong in this grouping and typically act as a parochial force over the project. You can not always guarantee that their advice is for the best of the project; most times they are looking out for what is best for them (Heerkens, 2001, pgs. 188-192¬).

Project X is controlled by a publicly-owned company for the Department of Defense. Therefore, the project stakeholders consist of nuclear scientists, engineers, and other technology professionals that are employed by my company, a major defense contractor. The U.S. Government including the U.S. Military and Automated Mobile Defense System (AMDS) are stakeholders because they will be affected by the final production and usage of the product. Theoretically, this project will make the U.S. Military more successful; therefore all U.S. Task Forces such as Homeland Security, State Environmental Agencies, and other Federal Agencies will be considered stakeholders in this project. Finally, all those owning stocks and bonds for the U.S. Government will be considered stakeholders because they are shareholders of our publicly traded stock. Success of the stock depends on the success of the project.

As project manager, it is my responsibility to manage and collaborate with all of the project stakeholders to ensure a successful project. This includes promoting a risk management plan that will indicate our tolerance for risk on this project. While their influence over the project may vary, a desire to know and understand the progress of Project X will be constant amongst them. Project stakeholders fund the project and keep the momentum rolling towards the final goal. The better the relationship cultivated with these groups, the better the chances of developing and maintaining a beneficial relationship with them.

References:

CTU Online. (Ed.). (ca. 2008). Phase 1 Course Material [multimedia presentation]. Colorado Springs, CO: CTU Online. Retrieved May 19, 2008, from CTU Online, Virtual Campus, MPM420- Managing Project Risks and Opportunities: 0802B-01. Website: https://campus.ctuonline.edu/MainFrame.aspx?ContentFrame=/Classroom/course.aspx?Class=23719&tid=39

Duke Corporate Education. (2005) Influencing and collaborating for results. Dearborn Trade Publishing: Chicago, IL.

Heerkens, G. (2001) Project management. McGraw-Hill: New York, NY.

Kendrick, T. (2003) Identifying and managing project risk. AMACOM: Washington, D.C.

Project Management Institute (PMI). (2004) A guide to the project management body of knowledge. Project Management Institute: Newtown Square, PA.