Why stakeholder management is an important part of project management.
Stakeholder management is an important aspect of any project. Most projects that operate on will involve many contributors, and each one has the ability to speed up, slow down or prevent your progress altogether. Stakeholders may not be in the driving seat, but they can be extremely useful advocates, sponsors, and agents of change.
But what you may not appreciate is the depth of the benefits of effective stakeholder management. Project managers often view stakeholder management as a form of risk management. After all, keeping shareholders happy and meeting their expectations certainly reduce the risk of negative impacts that affect your project. Therefore, this view is not
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It's not just a case of keeping stakeholders happy - it is also about using time, experience and influence to help you achieve your goals.
It can be said that understanding is what separates the best project managers from the average performance.
• In 2013 based on Project Management Book by Richard Newton, the project management blog Elizabeth Harin (3) highlighted the less obvious benefits of stakeholder management in four points:
1-Free resources (3): Stakeholders can give project managers access to a range of additional resources at no additional cost.
2- Increase awareness of success (3): good stakeholder management at all stages of the project should ensure that the project is considered positively, regardless of the actual outcome.
3- A smoother delivery process (3): It is much easier to deliver them to someone who already knows a little about them and was aware of the development of the project. Stakeholders who have been effectively managed will be more willing to take action when your project reaches its conclusion.
3-
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This Stakeholder Group consists of individual and organizational buyers of Apple products. The main concern of customers is to be effective and efficient products that are affordable. Apple products have higher price points. However, Apple's premium pricing strategy is acceptable because it matches the high quality and aesthetics of these products. The company also has environmental recycling programs and responsible sources to meet customer demand for business sustainability.
2 - Apple staff (4).
Employees are the second priority stakeholders in Apple's approach to CSR. This stakeholder group consists of employees at Apple's facilities. The main interests of these stakeholders are adequate compensation and career development. The staffs as a group of stakeholders are important because they directly determine the human resource capabilities of Apple to innovate and develop profitable products.
3 - Investors
Waters, R. D., Burnett, E., Lamm, A., & Lucas, J. (2009). Engaging stakeholders through social
Stakeholder is anyone with an interest in a business; stakeholders are individual, groups or businesses. They are affected by the activity of the business. There are two types on stakeholders who are internal and external. Internal stakeholder involves employees, managers/directors and shareholders/owners. External stakeholder involves suppliers, customers, government, trade unions, pressure groups and local and national communities.
Stakeholder engagement is relevant to any type of organisation: business, public or civil society. It is particularly important in the context of running an organisation responsibly and is integral to the concept of Corporate Responsibility.
“This perspective reveals conditions that the stakeholder considers valuable or beneficial… the customer, a regulatory body, or the board of directors of the company,” (Balestrero & Udo, 2014, p. 251). Measuring success for stakeholders, while dynamic, does tend to
needs to be sought out. Stakeholders, as they are normally called within corporate culture, are a
Project management is known as the discipline of planning, organizing, motivating, and controlling resources to achieve specific goals. In the diagram to the left in the picture you can see that as a project manager you are the center of either a great accomplishment or a major failure. Some of the major factors to being a successful project manager would be a person that is a great manage several projects or responsibilities and scope issues on an every day basis. If you have a pr...
My stakeholders include family, the company I work for, coworkers, friends, and the local community. My family and friends expect success from me, just as I will expect success from them. My co-workers expect positive teamwork skills and dependability. I expect my teammates to be just and
Hence, the stakeholders which are described as those who are affected by the organisation performance ,actions and duties and those actions includes employees, clients, local community and investors as well. The theory of stakeholders also suggests that it is the responsibility of firm to make sure no rights of stakeholders are dishonoured and make decisions in the interest of stakeholders which is also the purpose of stakeholder theory to make more profit and balancing it while considering its stakeholders (Freeman 2008 pp. 162-165). In the other words organisation must also operates in a more socially accountable approach by carrying out corporate social responsibility as (CSR) activities.
Sometimes, the stakeholders of the projects have their own personal objectives which become a hindrance in carrying out the project successfully.
Stakeholder analysis is important for successful implementation of projects and/or strategic activities within any organisation. It is used to analyse the stakeholders in order to understand them and classify them according to their power, influence and interest. Stakeholders are people who have an interest in a commercial entity including those within the organisation and outside. These include the boss, senior executives, customers, suppliers, government, your co-workers, the team and others. All these people are important in the implementation and success of strategy.
With this stakeholder analysis, the following research question will be answered: “Which stakeholders are involved in the process and which are the most critical?” According to Newcombe (2003), the stakeholder analysis has become a recognized technique for determining how stakeholders interact with organizations. A broad definition
In the globalized economy, Successful project managers are in much demand across many industries. Organizations strongly need experienced project managers to lead their staff to accomplish their business goals and deliver successful projects. In an increasingly complex environment, project managers need to turn into many roles and have all kinds of responsibilities at each level of management within an organization. Good project managers are not born. They need to be trained. They develop their skills through study, practise and experience. They become better project managers after they finish a successful project each time. They learn new techniques and apply them on their projects. They learn their lessons from failed projects and then improve to be better project managers in the future.
This paper will reflect on the different uses of Project Risk Management and ways in which it can benefit organizations to have the ability to identify potential problems prior to the problem occurring. Risk, this is not something to be taken lightly whilst dealing with matters that include high end projects meeting specific details, deadlines and expectations for the end client. Project risk management teaches one to be aggressive early on in the phases of planning and implementing the tools for a project. This is usually easier as costs are less and the turnaround time to solve the issues at that present moment is beneficial rather than later. The result in a successful project for one’s self and other key people involved in the process is also another requirement. Stakeholder satisfaction is important because the
When using performance management to improve an organisation’s productivity you need to first decide who is the focus of the organisation’s long term goals, are they focusing on Shareholders or Stakeholders. The Shareholder approach focuses on the profit to the shareholders, no other factors need to be considered aside from the bottom line profits. The Stakeholder approach is a well-rounded, balanced approach to management, considering more than just how much money the organisation makes.
Project management creates a situation where the workers perform their duties and responsibilities in a structural and devoted manner. With much dedication and focus it is possible to use fewer workers to accomplish and execute a project. Allowing fewer workers to perform a project allows frees up possible persons to work other tasks. The increased efficiency of teams in their tasks is of a consequent meaning that the effectiveness of the organization as whole is increased as well (Larson, 2014). Doing this allows project management the ability to hold people accountable and this makes the workers much more efficient in their tasks than a slew of