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<\/figure>\n<\/div>\n\n\nWho are the stakeholders in project management?<\/h2>\n\n\n\n
According to Kerzner’s Project Management: A Systems Approach to Planning, Scheduling, and Controlling<\/em><\/a>, \u201cstakeholders are individuals or organizations that can be favorably or unfavorably impacted by the project.\u201d<\/em><\/p>\n\n\n\n In simple words, stakeholders are people interested in a particular project that have an influence on its outcome. And every project has stakeholders, irrespective of its size.<\/strong><\/p>\n\n\n\n According to the PMI, stakeholders can be passively or actively involved in a project \u2014 or can even be unaware of their involvement<\/strong>.<\/p>\n\n\n\n They can be internal or external to the project<\/strong>.<\/p>\n\n\n\n Also, the project can impact them positively or negatively<\/strong>.<\/p>\n\n\n\n So, stakeholders are interested in a particular project and\/or have an influence on its outcome. <\/p>\n\n\n\n But who exactly are they?<\/p>\n\n\n\n And how can we classify them?<\/p>\n\n\n\n Let’s start with identifying types of stakeholders.<\/p>\n\n\n\n We can use project management<\/a> in all industries. There is no universal list of stakeholders to apply to all projects. Also, projects don’t exist isolated from various influences. <\/p>\n\n\n\n There are many stakeholders for each project, depending on the project size, type, industry, etc.<\/p>\n\n\n\n Their priority can change during the different project phases<\/a>.<\/p>\n\n\n\n Their interests can change throughout the project, as well.<\/p>\n\n\n\n Failing to meet the needs of just one influential or powerful stakeholder at a critical time can lead to the project’s failure.<\/p>\n\n\n\n We can classify stakeholders as follows:<\/strong><\/p>\n\n\n\n Let’s explain these types of stakeholders in more detail.<\/p>\n\n\n\n If you want your project to succeed, you need to identify all key stakeholders and learn how to handle relationships with them.<\/p>\n\n\n\n While anyone impacted by the project is theoretically a stakeholder, key stakeholders have the influence and authority to determine whether a project is a success or not.<\/p>\n\n\n\n But, how to recognize key stakeholders?<\/p>\n\n\n\n The Harvard Business Review article proposes five questions<\/a> to ask in order to determine key stakeholders for your project.<\/p>\n\n\n\n According to their writing, you can identify stakeholders as the key ones if:<\/p>\n\n\n\n As stated by the Project Management Institute<\/a>, \u201cproject stakeholders usually include<\/em><\/p>\n\n\n\n Additional key stakeholders may vary depending on the project’s nature.<\/p>\n\n\n\n For instance, if your project is related to the pharmaceutical industry, one of the key stakeholders will be the government, as the pharmaceutical industry is highly dependent on law regulations.<\/p>\n\n\n\n As the name suggests, internal stakeholders are employees of the organization or the company carrying out the project.<\/p>\n\n\n\n The project can directly affect these stakeholders \u2014 such as project users.<\/p>\n\n\n\n But, internal stakeholders<\/em> are not limited only to project users.<\/p>\n\n\n\n They can also be other employees or heads of departments like marketing, IT, human resources, etc.<\/p>\n\n\n\n Practically everyone inside the company who has a stake in the project and can affect it can be classified as an internal stakeholder. <\/p>\n\n\n\n For example, internal stakeholders may include:<\/p>\n\n\n\n On the other hand, external stakeholders<\/em> are the individuals or organizations outside the company who are interested in the project or can have an influence on it.<\/p>\n\n\n\n External stakeholders: <\/p>\n\n\n\n As we can notice, it is quite easy to determine who are the internal and the external stakeholders.<\/p>\n\n\n\n But, there are other, more complex classifications, and we will explain them too.<\/strong><\/p>\n\n\n\n Primary stakeholders are those with the most impact on your project. They can influence a project positively or negatively.<\/p>\n\n\n\n Some examples of most common primary stakeholders include:<\/p>\n\n\n\n This stakeholders list is not finite.<\/p>\n\n\n\n Depending on your industry and project type, there can be more primary stakeholders.<\/p>\n\n\n\n Secondary stakeholders are not directly involved in the project but can have an influence on it.<\/p>\n\n\n\n Some examples of secondary stakeholders are:<\/p>\n\n\n\n Project stakeholders can also be direct and indirect. <\/strong><\/p>\n\n\n\n As we can guess from the name, direct stakeholders are directly involved in the project and can change its direction.<\/p>\n\n\n\n In project management, some examples of direct stakeholders include:<\/p>\n\n\n\n Indirect stakeholders are individuals or groups who are not involved in project activities<\/a> but care about the project outcome, as they have something at stake.<\/p>\n\n\n\n They care more about the project’s outcome than its implementation.<\/p>\n\n\n\n For example, in most cases, the government can be identified as an indirect stakeholder.<\/p>\n\n\n\n Direct and indirect stakeholders vary depending on the industry and project type. <\/p>\n\n\n\n In order to clarify these classifications, we can provide some project stakeholder examples.<\/p>\n\n\n\n As we have already learned, there is no universal list of stakeholders that we can apply to all projects in all industries.<\/p>\n\n\n\n Let’s mention some of the most common project stakeholders, and explain them in more detail.<\/p>\n\n\n\n They include:<\/p>\n\n\n\n Projects often require funding.<\/p>\n\n\n\n Project funding is how the money necessary to undertake a project is secured and made available as needed. It can be via a single source or through multiple investors.<\/p>\n\n\n\n Investors can contribute to your project with more than just funding. They can provide ideas or advise you and bring their connections valuable for its success.<\/p>\n\n\n\n We can classify investors according to the previously provided types of stakeholders. They are:<\/p>\n\n\n\n Let’s illustrate their role by providing an example.<\/p>\n\n\n\n Suppose you are a start-up company and want to develop a mobile application as an audio guide for blind people. The application aims to help blind people orient themselves outside by describing what is in front of them. <\/p>\n\n\n\n As it is non-commercial, you clearly need investment to carry out the project. These investors are people from the outside of your start-up.<\/p>\n\n\n\n They are primary stakeholders as they secure funding and enable your work.<\/p>\n\n\n\n And they are undoubtedly direct stakeholders as your project success depends on their decisions and provided funds.<\/p>\n\n\n\n \n Streamline your business \u2014 improve planning, align teams, and finish all your tasks with Plaky.<\/p>\n\n One of the most important stakeholders is the company owner. Owners have exclusive rights over a business as they provide capital and decide how everything company-related operates. <\/p>\n\n\n\n We can classify them as:<\/p>\n\n\n\n Owners usually have full ownership in terms of the products and services. Also, a company can have more than one owner.<\/p>\n\n\n\n In the end, owners are, without any doubt, one of the most important and most influential stakeholders.<\/p>\n\n\n\n Employees are one of the most valuable company assets in completing tasks that result in products or services being delivered to clients. <\/p>\n\n\n\n As they work on projects, their influence is significant. Their performance can affect project output and success. Employees can perform supervisory, managerial, operational, or other functions. <\/p>\n\n\n\n They are:<\/p>\n\n\n\n There is no need for further explanations why employees are critical stakeholders for any project success.<\/p>\n\n\n\n Without employees who work on a project realization, there would be no project at all.<\/p>\n\n\n\n Suppliers are entities who provide goods and services needed for the project realization. They are closely associated with organizations as they are important external stakeholders. <\/p>\n\n\n\n Suppliers are:<\/p>\n\n\n\n It is obvious that suppliers are external stakeholders.<\/p>\n\n\n\n But why are they secondary<\/em> stakeholders?<\/p>\n\n\n\n We can use different industries to provide explanations.<\/p>\n\n\n\n For instance, the food and the pharmaceutical industries are highly dependable on their suppliers. The same applies to the chemical industry, as suppliers are those who provide materials for production.<\/p>\n\n\n\n But, in all these cases, suppliers are not directly affected by the final product and its sales, as they are paid for the raw materials they provide.<\/p>\n\n\n\n And they are indirect stakeholders as they are not involved in the production process.<\/p>\n\n\n\n According to Investopedia<\/a>, \u201ca creditor is an entity (person or institution) that extends credit by giving another entity permission to borrow money intended to be repaid in the future<\/em>.\u201d<\/p>\n\n\n\n Creditors are:<\/p>\n\n\n\n A creditor can be a financial institution, like a bank or a credit union, extending a loan required for the project realization.<\/p>\n\n\n\n Community refers to individuals interested in a project or affected by it. It consists of people who live or work within a particular area that the project impacts. <\/strong>A company’s relationship with the surrounding community can influence whether or not people purchase products and services and contribute to its financial success.<\/p>\n\n\n\n Communities are:<\/p>\n\n\n\n Let’s provide an example.<\/p>\n\n\n\n People living near the place of the factory’s construction are certainly interested in the project and affected by it.<\/p>\n\n\n\n Their attitude towards the project can differentiate between its realization or termination.<\/p>\n\n\n\n For instance, they can protest against the construction of the factory if they think it endangers the environment.<\/p>\n\n\n\n Trade unions are also known as labor unions. Investopedia defines a labor union<\/a> as “an organization formed by workers in a particular trade, industry, or company for the purpose of improving pay, benefits, and working conditions<\/em>.”<\/p>\n\n\n\n Trade unions are:<\/p>\n\n\n\n Every business has to maintain good relationships with trade unions, as they represent workers, and workers significantly influence a project’s outcome.<\/p>\n\n\n\n Government agencies are one of the major stakeholders. The government is the country’s ruling body in which a business operates and takes taxes out of the company’s revenue and employees’ income. <\/p>\n\n\n\n Government agencies are:<\/p>\n\n\n\n Some industries, like pharmaceuticals, are heavily regulated, and project managers<\/a> must deal with government regulators and departments.<\/p>\n\n\n\n Customers are crucial to the company’s success, as their satisfaction can directly influence whether internal stakeholders are satisfied.<\/p>\n\n\n\n They are people who purchase a company’s product or service, and a business doesn’t exist without customers. And, the quality of a company’s product or service directly affects them.<\/p>\n\n\n\n Customers are:<\/p>\n\n\n\n Customers buy products or services and expect high-quality and reasonable prices. And businesses need to meet customer needs to ensure success.<\/p>\n\n\n\n The media is another critical project stakeholder that can significantly influence the perception of the project and impact its success.<\/p>\n\n\n\n Companies have to announce their products and services to potential customers.<\/p>\n\n\n\n The media can contribute to creating positive or negative opinions regarding company activities.<\/p>\n\n\n\n Bad publicity can lead to project failure.<\/p>\n\n\n\n For this reason, establishing and nurturing good relations with the media is essential.<\/p>\n\n\n\n We can classify the media as:<\/p>\n\n\n\n Maybe your company decided to build a new mine and exploit ore. The media coverage can have a significant influence on your project. Bad media coverage can lead to project termination.<\/p>\n\n\n\n It’s quite simple \u2014 if stakeholders, especially those who are key stakeholders, are not happy, nobody’s satisfied. And the chances are high that the project will fail. <\/p>\n\n\n\n Stakeholders are vital for any project’s success.<\/p>\n\n\n\n They can provide industry insights or an understanding of current processes. It is important to secure support from people who can offer expert advice, as project managers cannot be experts in every project aspect.<\/p>\n\n\n\n Involving stakeholders can also lessen the risk of project failure<\/a>.<\/p>\n\n\n\n During discussions on project requirements<\/a> or constraints, they may discover dangers or issues that can endanger meeting project targets. And, identifying threats on time can help you successfully develop a strategy to mitigate them.<\/p>\n\n\n\n As stakeholders are essential to your project, you must secure their support. And you don’t want to miss someone important. Therefore, you need to identify stakeholders involved in your project carefully.<\/p>\n\n\n\n But, how to do that?<\/p>\n\n\n\n We prepared a brief guide for you.<\/p>\n\n\n\n Don’t be deceived by stakeholders’ opinions regarding their importance to your project.<\/p>\n\n\n\n Some people may have significant roles in the organization, but at the same time, they may not be important to the project you are leading.<\/p>\n\n\n\n Also, some parties may think they are important to your project, but they actually don’t have that much influence.<\/p>\n\n\n\n Don’t decide who stakeholders are based on your or someone else’s opinion.<\/p>\n\n\n\n Determine who they are according to the facts and analysis.<\/p>\n\n\n\n Let’s dive deeper into stakeholder identification.<\/strong><\/p>\n\n\n\n According to the Project Management Institute Body of Knowledge <\/em>(PMBOK\u00ae Guide \u2014 6th edition<\/em><\/a>), identifying stakeholders is “the process of identifying project stakeholders regularly and analyzing and documenting relevant information regarding their interests, involvement, interdependencies, influence, and potential impact on project success.” <\/em>This process is conducted occasionally throughout the project, as needed. <\/p>\n\n\n\n Stakeholder identification usually happens for the first time before or when the project charter<\/a> is developed and approved. It is vital to perform stakeholder identification at the beginning of each project phase. Also, you have to revisit your stakeholder list when any significant change happens in the project or the organization.<\/p>\n\n\n\n PMBOK Guide<\/em> determines inputs, tools, techniques, and outputs vital for stakeholder identification. <\/p>\n\n\n\nWhat are the types of stakeholders in project management?<\/h2>\n\n\n\n
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Stakeholders vs. key project stakeholders<\/h3>\n\n\n\n
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Internal vs. external stakeholders<\/h3>\n\n\n\n
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Primary vs. secondary stakeholders<\/h3>\n\n\n\n
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Direct vs. indirect stakeholders<\/h3>\n\n\n\n
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Examples of stakeholders in a project<\/h2>\n\n\n\n
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Investors as stakeholders<\/h3>\n\n\n\n
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Free project management software<\/h2>\n
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\n <\/picture>\n <\/div>\n<\/div>\n <\/p>\n\n\n\nOwners as stakeholders<\/h3>\n\n\n\n
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Employees as stakeholders<\/h3>\n\n\n\n
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Suppliers as stakeholders<\/h3>\n\n\n\n
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Creditors as stakeholders<\/h3>\n\n\n\n
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Communities as stakeholders<\/h3>\n\n\n\n
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Trade unions as stakeholders<\/h3>\n\n\n\n
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Government agencies as stakeholders<\/h3>\n\n\n\n
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Customers as stakeholders<\/h3>\n\n\n\n
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Media as stakeholders<\/h3>\n\n\n\n
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Why are stakeholders important in project management?<\/h2>\n\n\n\n
How to identify stakeholders in a project<\/h2>\n\n\n\n
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