Do you know what is the most important topic in Project Management?
No doubt, it is Stakeholder Management.The reason behind its significance lies in the complexity of understanding, capturing, and documenting project requirements. To truly comprehend these ideas, it becomes imperative to align them with the needs and expectations of all involved parties. And that's where the concept of stakeholders plays a crucial role.
Stakeholders encompass individuals, groups, or organizations with an interest in the project, capable of influencing its outcome through resource mobilization. According to the PMI®, stakeholders are "individuals and organizations who are actively involved in the project or whose interests may be positively or negatively affected as a result of project execution or successful project completion."
To effectively manage stakeholders, a thorough analysis is indispensable. This process involves gathering information about them and categorizing them based on attributes such as power, interest, influence, and level of involvement. The outcome of this analysis aids in developing a comprehensive stakeholder engagement plan, essential for success.
Today, lets discuss two vital models for Analyzing Stakeholders.
a. Salience Model: This model employs a Venn diagram, featuring circles that represent three essential attributes - power, legitimacy, and urgency. The intersection of these attributes highlights stakeholders who possess multiple attributes, making them highly significant.
Stakeholders are classified into seven distinct groups.
1. Discretionary: Low power, legitimacy, and urgency; their impact is minimal.
2. Dormant: High legitimacy but low power and urgency; they may become influential in the future.
3. Dominant: High power but low legitimacy and urgency; their involvement may require careful handling.
4. Dangerous: High urgency but low power and legitimacy; they might create disruptive situations if ignored.
5. Definitive: Moderate levels of power, legitimacy, and urgency; their involvement is essential for success.
6. Demanding: High power and urgency but low legitimacy; managing their expectations becomes crucial.
7. Dependent: High legitimacy and urgency but low power; their support is vital for progress.
b. Power Interest Grid: This model categorizes stakeholders based on their power and interest in the project. Stakeholders are divided into four distinct groups:
1. High-power – High-interest: Significant influence and are highly invested in the project's success.
2. High-power – Low-interest: Substantial power but limited interest in the project's details.
3. Low-power – High-interest: Keen interest in the project's success but minimal power to affect it significantly.
4. Low-power – Low-interest: Little influence or interest in the project's outcomes.