In contemporary business and science, a project is
an individual or collaborative enterprise, possibly involving research or design
that is carefully planned, usually by a project team, to achieve a particular
Project is done by the sponsors or fund provided by
the Stakeholder, which are sometimes internal or external investors. Investors
are probably interested in increasing their assets by investing in different
Process Framework Matrix:
Table shown above, shows 10 knowledge areas with 5
process groups followed by different processes which are approximately 47.
Each knowledge area has 5 process group and certain processes
which depends upon the conditions and type of knowledge area.
Project Stakeholder Management
is one of the knowledge area.
are persons or organisations (e.g., customers, sponsors, the performing
organization, or the public), who are actively involved in the project or whose
interests may be positively or negatively affected by the performance or
completion of the project.Some examples of key stakeholders are creditors, directors,
employees, government (and its agencies), owners (shareholders), suppliers,
unions, and the community from which the business draws its resources.
Not all stakeholders are equal. A company’s customers are entitled to fair
trading practices but they are not entitled to the same consideration as the
An example of a negative impact on stakeholders is when a company needs to cut
costs and plans a round of layoffs.
This negatively affects the community of workers in the area and therefore the
Someone owning shares in a business such as
Microsoft is positively affected, for example, when the company releases a new
device and sees their profit and therefore stock price rise
shown above represents 5 process groups of stakeholder with input and output of
each process group along with its processes.
Internal project stakeholders generally include the project sponsor,
project team, support staff, and internal customers for the project. Other
internal stakeholders include top management, other functional managers, and
other project managers because organizations have limited resources
External project stakeholders include the project’s customers (if
they are external to the organization), competitors, suppliers, and other
external groups that are potentially involved in the project or affected by it,
such as government officials and concerned citizens
· Program director
· Project manager’s family
· Labor unions
· Potential customers
It is also necessary to focus on stakeholders with the most
direct ties to a project, for example only key suppliers
A stakeholder register includes basic information on
information: The stakeholders’ names, positions, locations, roles in the
project, and contact information
information: The stakeholders’ major requirements and expectations, potential
influences, and phases of the project in which stakeholders have the most interest
classification: Is the stakeholder internal or external to the organization? Is
the stakeholder a supporter of the project or resistant to it?
identifying key project stakeholders, you can use different classification
models to determine an approach for managing stakeholder relationships
power/interest gridcan be used
to group stakeholders based on their level of authority (power) and their level
of concern (interest) for project outcomes.
Unaware of the project and its potential impacts on them
Aware of the project yet resistant to change
Aware of the project yet neither supportive nor resistant
Aware of the project and supportive of change
Aware of the project.
After identifying and analyzing stakeholders, project teams
should develop a plan for managing them.
The stakeholder management plan can include:
and desired engagement levels
management strategies for each stakeholders
for updating the stakeholder management plan
Stakeholder analysis is a register updated for the purpose
of record about the performance of people interest as well as their power in
the project. This table in constructed in such a way that Name, Position in the
project, Engagement level with project and management strategies is kept in
mind for the purpose of audit.
Power Management Strategies
engagement is the process used by an organisation to engage relevant
stakeholders for a purpose to achieve accepted outcomes
success is often measured in terms of customer/sponsor satisfaction
sponsors often rank scope, time, and cost goals in order of importance and
provide guidelines on how to balance the triple constraint
Expectations Management Matrices:
Measure of Success
the stakeholders’ expectations can help in managing issues
should be documented in an issue log,
a tool used to document, monitor, and track issues that need resolution
issues can be a major source of conflict and result in stakeholder expectations
not being met
logs can address other knowledge areas as well.
· You cannot control stakeholders, but
you can control their level of engagement
· Engagement involves a dialogue in
which people seek understanding and solutions to issues of mutual concern
to Control Engagement:
· Key stakeholders should be invited
to actively participate in a kick-off meeting rather than merely attending it
· The project manager should emphasize
that a dialogue is expected at the meeting, including texts or whatever means
of communication the stakeholders prefer. The project manager should also meet
with important stakeholders before the kick-off meeting
· The project schedule should include
activities and deliverables related to stakeholder engagement, such as surveys,
reviews, demonstrations, and sign-offs.
Part 2: Practical Analysis of an Organization
Azad Jammu and Kashmir Council
Azad Jammu and Kashmir Council is a constitutional body
established under section 21 of the Azad Jammu and Kashmir Interim Constitution
Act, 1974. The Council has clearly defined executive, legislative and judicial
sphere enumerated in the third schedule of the Act. The Council is the highest
linking forum between Pakistan and Azad Jammu and Kashmir with following
One of the
major and main function of the AJ Council Secretariat is the collection
of income tax from the territory of Azad Kashmir . The AJ Council Board
of Revenue in the AJ Council Secretariat and its attached department, the
Commissioner of Income Tax with its offices in all the seven districts of Azad
Kashmir undertake the collection of income tax. 80% of the collection of income
tax is released to the Government of Azad Kashmir straight-away while the
balance of 20% goes to the Council’s consolidated Funds.
wing of the AJ&K council
The development wing is concerned
with the Projects in the following priorty sectors
Management in a development Project:
The project we have chosen for the Stakeholder Management is
the AJ&K council Lodges building which is located in sector F-5/2 Islamabad
and has just been completed with the budget of 672 Million Rupees.
The following stakeholders were involved in the project:
1. The council itself being the client
2. Top Mangement (Minsiter,Secretary,Joint
3. Internal project team (Chief
Planning, Executive Engr, Site Engrs etc)
4. Deputy Secretary Finance
5. Members of the Council (end users)
6. Employees of the Council
(Naqvi and Siddiqui consultancy firm)
( M/S Matracon Pvt Ltd.)
Pir Bakhsh Jamali
Raja Tariq Ahmad
Naqvi & Siddiqui
Design and Monitoring
Assistan Exec Engr.
After that we Classified the Stakeholders with regards to
their Power and interest.
High power/High interest:
Secretary/Joint Secretary/Executive Engr.
High Power/Low Interest:
DS Finance/DS Council
Low Power/High Interest:
Members of council/Consultant
Low power/ Low interest:
Employees of council
This includes the Communication strategy i.e Meetings and
presentations between stakeholders Internal and external.
The strategies that will be used for dealing with
stakeholders expectations and concerns i.e Win/Win strategy
The relationship betweeen stakeholders
Power Management Strategies
Hard worker, leads by example.
Likes to be updated daily
Knows his trade well. Likes to be
updated on site.
Regular updates on the projects
cost in monthly reports
The council Executive Development
Committee meetings take place on a weekly basis headed by the Secretary
Incharge where all stakeholders share their thoughts and their
preferences/issues regarding the project.
Concerns relating to the project
The Members of the council had certain issues regarding the
Lodges building at the start because it lacked certain facilites like HVAC
system for the building and the lack of a servant room in the building which
indeed was corrected in the design of the project very early on.
Similarly the provision for HVAC system was then added later
on and the proposed budget of the building was increased from initial 550
million to 672 Million Rs.
Currently the one open issue regarding the building is the lack
of furnishing for the rooms which is going to be tendered very soon but that
would not be included in the budget for the project instead in a separate head.
The stakeholders are kept engaged in the project through
various push communication tools (one way engagement) like
Letters to contractors/Clients
Briefings to Members of the council
And also through Participation and taking joint decisions in
on the Stakeholder Management Process:
Although the Project under consideration was recently
delivered and inauguarted by the Minister incharge the stakeholder management
process at the Ajk council can still be improved in the following ways:
1. The identified Stakeholders must
take their Responsibility more seriously to achieve the project objectives on a
2. The project was delayed for 2 years
due to stakeholders not ready to commit after the project started which
resulted in massive loss of resources and a large amount of work was done
3. The process of planning Stakeholder
Management seems rather vague. The plan does not seem to be very effective as
it does not include all the requirement
needed and the ways the council will handle the project.
4. The contolling aspect of the process
can further be improved by getting personally intouch with the stakeholders
rather than just sending them letters or seeing them in meetings. This would
help in getting their points across easily and the requirements can be
understood thoroughly which would eventually increase the quality of the