Speaker 1: Hi guys, my name is Eric, from Invencys Learning, we are back again with a set of tutorials on project management. Today in this session, we will start with one of the most important topic, stakeholder management. So let us start with the tutorial with the agenda, we will start with the introduction on stakeholder management, then we will discuss, what is stakeholder management, and its importance. Post that, we will discuss about, the stakeholder management plan, and after that we will understand the stakeholders and then we will discuss the difference between customer relationship management and stakeholder relationship management, then we will discuss about the stakeholder mapping and finally we will conclude the session with the best practices in stakeholder management. Sounds interesting right? Let's start with our first topic, what is stakeholder management? Stakeholder management, is the process of organizing, monitoring, and improving interactions with stakeholders. It involves systematically identifying stakeholders, understanding their requirements and expectations, and preparing, and carrying out specific actions in order to interact with them. A strong stakeholder management strategy will help to organize your interactions, while also analyzing the status and quality of your relationships with diverse stakeholders. There are four important phases of the stakeholder management process. Identify Stakeholders. Plan Stakeholder Engagement. Manage Stakeholder Engagement. Monitor Stakeholder Engagement. The procedures for project stakeholder management, are provided as separate processes with specified interfaces. They overlap and interact, in ways that the PMBOK guide cannot fully describe. It requires adaptability, based on the stakeholders' expectations and requirements. Now, let us see the importance of stakeholder management. Stakeholder management, is a critical component of running a successful project, developing and maintaining positive relationships with the stakeholders, is the key to success. Stakeholder management is important, since it is the lifeline of effective project relationships. This requires developing a solid relationship, and understanding how their job contributes to the project's success. Based on facts from their industry, key stakeholders might give limitations or requirements. This will assist you in comprehending the project's risks, both positive and negative, and restrictions. With all these information, project success will be ensured by managing the stakeholders. Till now, we have seen what stakeholder management is, and its importance, now, we will see the benefits of stakeholder management. There are several advantages of stakeholder management. The major benefits of stakeholder management include, ensure project success, risk management, competitive advantage, project acceptance, so let us discuss the benefits in detail. Ensure project success. Involving the stakeholders in project requirements, will enable the acceptance of stakeholder, this will help in increasing the possibility of project success. Our second benefit of stakeholder management is risk management. The more stakeholders you include, the lower your risks will be. They may raise difficulties or worries, about reaching specific objectives or requirements, during talks regarding project requirements or constraints. Identifying such risks and developing a strategy to manage them will significantly improve the success of your project. Competitive advantage. Take into account, that certain stakeholders will have a lot of expertise. This will be based on current procedures, industry expertise, or historical information, which will help the project managers, with the competitive advantage. This is crucial for sustaining the market, and maintaining the reputation of the organization. Project acceptance. Engaging and involving stakeholders, on a regular basis from the beginning, will guarantee a good project finish. The team members would have known the delivery expectations, risks, and how to manage the risks, as a result of this. During the process, they would have analyzed preliminary deliverables with the stakeholders, and this led to smooth submission of the project. These are the major advantages of stakeholder management. Now, let us see how to create a stakeholder management plan. As mentioned earlier, stakeholder management includes four components. Identifying Clients. Plan Stakeholder Engagement. Manage Stakeholder Engagement. Monitor Stakeholder Engagement. So let us start, understanding each phase in detail. Starting with the first phase, identifying clients. The process of identifying stakeholders, and documenting important information, about project stakeholders' interests, engagement, interdependence, influence, and possible impact on project success, on a routine basis. This procedure is typically initiated for the first time in a project, either prior to or concurrently, with the development and approval of the project charter. It is repeated as needed, although it should be done at the start of each phase, if there is a substantial change, in the project or the organization. Then, after identifying the interests of stakeholders, we need to plan the stakeholder management, so let us start with planned stakeholder engagement. The process of developing approaches for involving project stakeholders based on their requirements, expectations, interests, and potential impact on the project. Early in the project lifecycle, an effective strategy that acknowledges the varied information and demands of the project stakeholders is established, and it is evaluated and modified on a regular basis, as the stakeholder community changes. After the first stakeholder group, has been identified through the identify stakeholder process, the first version of the stakeholder engagement strategy is created. To reflect changes in the stakeholder community, the stakeholder engagement strategy is revised on a regular basis. Thus the plan for stakeholders will be involved, now we will see how to manage stakeholder, with managed stakeholder engagement. The process of interacting with and engaging with stakeholders to meet their needs and expectations, manage with difficulties, and encourage proper stakeholder engagement participation. Managing stakeholder engagement includes tasks such as, engaging stakeholders at the right stages of the project to gain, confirm, or keep their commitment and continuous dedication to the project's success. Negotiations and communications are used to manage stakeholder expectations, addressing any risks or possible issues, about stakeholder management, as well as anticipating the future concerns, that stakeholders may raise. Clarifying and addressing previously highlighted concerns. With the above tasks, we can manage the stakeholders. Now we will understand, how to monitor stakeholders, with monitor stakeholder engagement. Monitoring project stakeholder interactions and customizing tactics for engaging stakeholders by modifying engagement strategies and plans. So let us see the strategies to monitor stakeholder management, they are, work performance information, change request, updates of the project management plan, updates to project documents. So let us start with these in detail. Work performance information, this provides information regarding the status of stakeholder involvement. The more involvement leads to more interaction. Change request, corrective and preventative activities, to enhance the present level of stakeholder involvement, may be included in a change request. Updates to the project management plan, any modification to the project management plan, is submitted as a change request to the organization's change control procedure. Updates to project documents. As a consequence of monitoring stakeholder management, project documents may be modified. The issue log, lessons learned register, risk register, and stakeholder registration are some of the documents that may be modified as a result of this procedure. Thus, we can create a stakeholder management plan. But before going ahead we will see the overview of stakeholder management. Identify stakeholders include, project charter, business documents, project management plan, project documents, agreements, enterprise environmental factors, organizational process assets, as inputs, and expert judgment, data gathering, data analysis, data representation. Documents are the tools and techniques for identifying stakeholders and then using these inputs and tools, we will create the following outputs for identifying stakeholders they are. Stakeholder register. Change requests. Project management plan updates. Project documents updates. Similarly, we will create outputs for other plans as well. For plan stakeholder engagement, the output of this is stakeholder engagement plan, then change requests. Project management plan updates. Project documents updates are the outputs of managed stakeholders engagement. And finally, we have work performance reports. Change requests. Project management plan updates. Project documents updates are the outputs of monitor stakeholders engagement. Till now we have seen the details of stakeholders management plan, now we will see the difference between CRM and SRM. If you've never used either of these types of software, deciding between a CRM and an SRM can be tough. You may be unsure whether you require a stakeholder database or what the differences are between the numerous consultation technologies available. Or perhaps you're thinking if you should continue with Excel, because it served you well in the past. CRM stands for customer relationship management, CRMs are usually structured on a sales process that is very different from a commitment process. SRM stands for stakeholder relationship management. SRM software is specifically developed for community and stakeholder participation. So let us start with the difference between customer and stakeholder. Initially, customers are people who get or consume things and choose between various products and organizations. So here, CRM can take the feedback from stakeholders and use it for engagement. Whereas, SRM will help the stakeholders community to participate in the decision making and project progress. Thus, we understand the major difference between CRM and SRM. Now let us understand the stakeholder mapping. The process of identifying and classifying key stakeholders engagement and accomplishing your organization's policy objectives is known as stakeholder mapping. Stakeholder mapping is done using a variety of frameworks. Many companies use it as part of their stakeholder analysis, especially for their strategic stakeholders. Stakeholder mapping often entails assigning a score to each stakeholder based on the following criteria, influence, interest, impact. For each of these criteria, most users use a high, medium, and low ranking or a one to five rating system. Stakeholders are then mapped on a grid based on their influence and interest. Now we will see the mapping. Low influence and low interest need to be monitored. High influence and low interest need to be satisfied. Low influence and high interest need to keep them informed. High influence and high interest need to manage carefully. Another common model for stakeholder mapping is Mitchell, Agle, and Wood's power urgency legitimacy model, which is used to predict stakeholder behavior. Power to influence the organization. Legitimacy, considering the organization's relationship and activities in terms of desirability, properness, or appropriateness. Urgency, among the requirements established for the organization, in terms of criticality, the stakeholders' time sensitivity. These fall under a Venn diagram of power, legitimacy, and urgency. Latent stakeholders are stakeholders who fall under areas one, two, or three. They are seen as less important for success if they possess only one of the three qualities. Expectant stakeholders are stakeholders in areas four, five, or six. These stakeholders frequently have a direct financial interest in or influence on your project. Definitive stakeholders are stakeholders that have all three criteria in area seven and are given top consideration. These are the popular stakeholder mappings. Now, we will see the best practices used in stakeholder engagement plan. Stakeholder management is created by the managers that will impact the project's success. There are four major factors that help to improve the stakeholder management. Shared stakeholder lists collect the right information, maintenance, stakeholder mapping. It is important to be updated with the stakeholder list and make sure that you have access to the latest and most up-to-date list. This can be a huge time saver. Next, we have collect the right information. In this, make a list of all the fields you've chosen are critical to track. This will save you time while also providing you with far more information on a stakeholder than simply their name and email address. Then in stakeholder management, it is very important to maintain the plan and update it regularly as per the requirements by stakeholders, which will enhance the rate of project success. Finally, mapping your stakeholders to analyze critical variables such as demographics, level of relevance, influence, effect, and interest is one approach to dramatically enhance your engagement efforts. These are the best practices in stakeholder engagement such that it will help project managers to assure the project's success. Till now, we have seen everything about stakeholder management. Please let us know if you have any questions in the comment section. Planning to get certified in project management? Don't worry. We got it covered. For more information, reach out to our website Invences Learning.