Project Stakeholder Management was added as a tenth knowledge area in the PMBOK® Guide—Fifth Edition. The four processes cover four of the five processes in the PMP® certification exam. Stakeholder management is expanded because identifying and analyzing stakeholder expectations and their impact on the project and developing management techniques to effectively engage stakeholders in project decisions and execution are critical to project success. The project manager and his or her team must have a continuous dialogue with stakeholders to meet their needs and expectations, address any issues they may have, and foster the level of appropriate stakeholder engagement in project decisions and activities.
With Project Stakeholder Management as a separate knowledge area, the importance of working with stakeholders on a project is emphasized. It involves focusing on managing the expectations of the project’s stakeholder groups and engaging them in the project as appropriate. Research in the project management field further has shown that stakeholder engagement is one of the major keys to project success.
Questions in this knowledge area will address the key stakeholders on projects as well as areas covered in its four process groups. The four processes not only interact with one another but also interact with processes in the other nine knowledge areas. You need to study these processes carefully to become familiar with PMI®’s terminology and perspectives. PMBOK® Guide Figure 13-1 provides an overview of the structure of Project Stakeholder Management. Know this chart thoroughly.
Following is a list of the major Project Stakeholder Management topics. Use it to help focus your study efforts on the areas most likely to appear on the exam.
Stakeholder definition
Types of stakeholders on projects
Identify stakeholders
Plan stakeholder management
Manage stakeholder engagement
Control stakeholder engagement
INSTRUCTIONS: Note the most suitable answer for each multiple-choice question in the appropriate space on the answer sheet.
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A project stakeholder is an individual, group, or organization that is actively involved in the project or have interests that may be affected, either positively or negatively, as a result of the performance or completion of the project. Stakeholders also may exert influence on the project and its results. Managing stakeholder expectations is difficult since stakeholders often have different or conflicting objectives. [Monitoring and Controlling]
PMI®, PMBOK® Guide, 2013, 30
Stakeholder management refers to any action taken by the project manager or project team to satisfy the needs of and to resolve issues with project stakeholders. The ability of the project manager to correctly identify and manage stakeholders appropriately can mean the difference between project success or failure. [Monitoring and Controlling]
PMI®, PMBOK® Guide, 2013, 391
Identifying and analyzing the stakeholders helps to classify them better for developing a strategy to help manage them and their expectations throughout the project. The most common comparison elements are: power, influence, interest, and impact. The location of the person may have an impact on one of the other measures, but it is not easily quantifiable on a low, medium, high, type scale. [Initiating]
PMI®, PMBOK® Guide, 2013, 396
Stakeholder analysis is used to analyze the information needs of the stakeholders and to determine the sources for meeting those needs. It helps to determine whose interests should be taken into account throughout the project. [Initiating]
PMI®, PMBOK® Guide, 2013, 395–396
While the plan stakeholder management process develops appropriate management strategies to effectively engage the stakeholders during the project life cycle, the key benefit of this process is to have a plan that is clear and actionable to interact with them to support the project’s interests. [Planning]
PMI®, PMBOK® Guide, 2013, 399
While a number of different organizational process assets require updates as a result of the manage stakeholder engagement process, project reports is one example. They include the formal and informal project reports that describe project status and include lessons learned, issue logs, project closure reports, and outputs from other knowledge areas. [Executing]
PMI®, PMBOK® Guide, 2013, 409
Issues logs are an output of this process, as issues are expected in this process. The log is updated as new issues are identified, and existing issues are resolved. [Executing]
PMI®, PMBOK® Guide, 2013, 408
As you work in managing stakeholder engagement you should review your project management plan. Your CEO has requested a major schedule change; among other things the project management plan is an input to this process as it contains a change management plan that documents how changes will be monitored and controlled. [Monitoring and Controlling]
PMI®, PMBOK® Guide, 2013, 411
The stakeholder engagement assessment matrix is used as a tool and technique in plan stakeholder management. The purpose of the matrix is to show gaps between current and desired engagement levels to then ensure the plan provides these data. [Planning]
PMI®, PMBOK® Guide, 2013, 402–403
The other items listed have specific stakeholder references that, while similar, are not in the communications management plan. [Planning]
PMI®, PMBOK® Guide, 2013, 296, 403
The identify stakeholder process has a number of purposes. It identifies people, groups, or organizations that could impact or be impacted by a decision, activity, or outcome of the project. It analyzes and documents relevant information concerning their interests, involvement, interdependencies, influence and potential impact on project success. Its key benefit is to allow the project manager to identify the appropriate focus for each stakeholder. [Initiating]
PMI®, PMBOK® Guide, 2013, 393
In stakeholder analysis, the last step is to assess how key stakeholders are likely to react or respond to various situations in order to plan how to influence them to enhance their support and mitigate any potential negative impacts. [Initiating]
PMI®, PMBOK® Guide, 2013, 396
Information on resistant stakeholders can be damaging, and consideration is needed regarding distributing the stakeholder management plan and the stakeholder register. The project manager needs to be aware of the sensitive nature of these documents. When preparing and updating them, the best practice is to review the underlying assumptions to ensure continued accuracy and relevancy. [Planning]
PMI®, PMBOK® Guide, 2013, 404
A key activity in manage stakeholder engagement is to manage stakeholder expectations through negotiation and communications, ensuring project goals are achieved. [Executing]
PMI®, PMBOK® Guide, 2013, 405
Work performance information is performance data collected from various controlling processes that are analyzed and integrated based on relationships among areas. The data are transformed into information, which is correlated and contextualized and provides a sound foundation for project decisions. The status of deliverables is an example. [Monitoring and Controlling]
PMI®, PMBOK® Guide, 2013, 413
New product development organizations are noted for setting up Governance Boards to oversee projects. Additionally in this situation, it is a long project that is important to the company. Project governance ensures the alignment of the project with stakeholder needs and expectations and is critical to the management of stakeholder expectations and to the achievement of organizational objectives. [Executing]
PMI®, PMBOK® Guide, 2013, 30
Stakeholder identification is a continual process throughout the project life cycle. The legal department often is overlooked, but it is a significant stakeholder, and in this situation, delays resulted. Significant expenses often are due to legal requirements that must be met before the project can be completed, or the project scope is delivered. [Initiating]
PMI®, PMBOK® Guide, 2013, 31
Overlooking negative stakeholders’ interests can result in an increased likelihood of failures, delays, or other negative consequences to projects. The project manager must control stakeholder engagement, which can be difficult since they often have different or competing objectives. [Monitoring and Controlling]
PMI®, PMBOK® Guide, 2013, 32
In the salience model, stakeholders are described in classes based on their power or ability to impose their will, urgency or need for immediate action, and legitimacy or their involvement. [Initiating]
PMI®, PMBOK® Guide, 2013, 396
While it is rare that all organizational process assets are used in any process, these are of particular importance as they provide insight on previous stakeholder management plans and their effectiveness. They can be used to plan stakeholder management activities for the current project. [Planning]
PMI®, PMBOK® Guide, 2013, 401
Since the Chief Financial Officer has financial responsibility for all of the company’s work, in preparing a stakeholder engagement strategy, he or she probably is aware of this project, and probably is resistant to change, perhaps feeling resources could be better spent on other initiatives. [Planning]
PMI®, PMBOK® Guide, 2013, 402
The other possible answers are activities in the manage stakeholder engagement process. Its benefit is to allow the project manager to increase support and minimize resistance from stakeholders to significantly increase chances for success. [Executing]
PMI®, PMBOK® Guide, 2013, 404–405
Project document updates are an output to the manage stakeholder engagement process. These updates involve the stakeholder register. It should be updated as stakeholder information changes, when new stakeholders are identified, or if stakeholders listed in the register are no longer involved in or impacted by the project. [Executing]
PMI®, PMBOK® Guide, 2013, 409
Conflicts are common on projects and between stakeholders. Other interpersonal skills useful in managing stakeholder engagement are building trust, active listening and overcoming resistance to change. [Executing]
PMI®, PMBOK® Guide, 2013, 407–408
Projects involve change, and most everyone tends to resist it. A change log is useful to review in the control stakeholder engagement process. Other useful documents are the schedule, stakeholder register, issue log, and project communications. [Monitoring and Controlling]
PMI®, PMBOK® Guide, 2013, 412–413
The key word in the question was experts. Useful ways to obtain information from experts is to use a survey, such as a Delphi approach, or to use a focus group, an excellent approach to obtain insight into attitudes, useful to control stakeholder engagement. [Monitoring and Controlling]
PMI®, PMBOK® Guide, 2013, 412–413
The sponsor is critical throughout the project. He or she provides resources for the project and is accountable for its success. From the beginning through closure, the sponsor promotes the project. [Initiating, Planning, Executing, and Monitoring and Controlling]
PMI®, PMBOK® Guide, 2013, 32
The needs of operations managers who perform and conduct business operations are important considerations in projects that affect their future work and endeavors. They should be engaged, and their needs identified in the stakeholder register. By considering them and appropriately including them in all project phases, the project manager can gain insight and avoid unnecessary issues that may arise if their input is overlooked. [Initiating, Planning, Executing, and Monitoring and Controlling]
PMI®, PMBOK® Guide, 2013, 13
Lessons learned, stakeholder register templates, and stakeholder registers from previous projects are examples of organizational process assets that can influence the identify stakeholders process. [Initiating]
PMI®, PMBOK® Guide, 2013, 395
A profile analysis meeting is a tool and technique in the identify stakeholders process. Its purpose is to develop a deeper understanding of major project stakeholders. The meetings can be used to exchange and analyze information about roles, interests, knowledge, and the overall position of each stakeholder about the project. [Initiating]
PMI®, PMBOK® Guide, 2013, 398
The stakeholder register contains assessment information as a key component. The assessment information includes: major requirements, main expectations, potential influence in the project, and the phase in the project life cycle with the most interest. [Initiating]
PMI®, PMBOK® Guide, 2013, 398
Among other key items useful in the project management plan to review while preparing the stakeholder management plan is the change management plan. All projects involve some type of change. Reviewing this plan can help the project manager work with stakeholders who may be resistant to the project to help turn them into ones who are supportive or at least neutral to the resulting changes. [Planning]
PMI®, PMBOK® Guide, 2013, 400
The stakeholder engagement assessment matrix shows the stakeholders current engagement in the project, and the project manager and team then can use it to note the desired level of engagement. As a tool and technique in plan stakeholder management, the project manager then uses it to help prepare the stakeholder management plan. [Planning]
PMI®, PMBOK® Guide, 2013, 402–403
The stakeholders’ ability to influence the project is highest during the initial phases and gets progressively lower as the project progresses. Active management of stakeholders’ involvement decreases the risk of the project failing to meet its goals and objectives [Executing]
PMI®, PMBOK® Guide, 2013, 406
Among other things, an escalation process is helpful especially if there are issues or risks involving communications that the project manager wishes to escalate to determine the most appropriate response or to share the approach he or she plans to follow. [Executing]
PMI®, PMBOK® Guide, 2013, 406
Project documents are an input to control stakeholder engagement. They originate from initiating, planning, executing, or controlling processes and include the project schedule, stakeholder register, issue log, change log, and project communications. [Monitoring and Controlling]
PMI®, PMBOK® Guide, 2013, 411–412
This documentation is an example of an organizational process asset to update as it includes the root cause analysis of issues faced, the reasons certain corrective actions were taken, and other types of lessons learned about stakeholder management. [Monitoring and Controlling]
PMI®, PMBOK® Guide, 2013, 415
The stakeholder management plan identifies the management strategies required to effectively engage stakeholders. It includes, among other things, the identified interrelationships and potential overlap between stakeholders. This information is invaluable especially if some stakeholders are resistant or negative to the project and also in determining the level of frequency of desired interaction and communications requirements. [Planning]
PMI®, PMBOK® Guide, 2013, 403
Historical information about previous projects, organizational communications requirements, issue management procedures, and change control procedures are examples of organizational process assets that can influence the manage stakeholder engagement process. [Executing]
PMI®, PMBOK® Guide, 2013, 407
In control stakeholder engagement, they are examples of distribution formats from information management systems, a tool and technique in this process. Such systems provide a structured tool for the project manager to capture, store, and distribute information to stakeholders about project cost, schedule progress, and performance. The project manager can use these systems to consolidate reports from several systems and facilitate report distribution. [Monitoring and Controlling]
PMI®, PMBOK® Guide, 2013, 412