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Stakeholder Prioritization

5 minutes 5 Questions

Stakeholder Prioritization refers to the process of determining the importance of each stakeholder based on their power, influence, and interest related to the project. Stakeholders typically include individuals, organizations, or entities that can affect or be affected by project outcomes. Project managers sort stakeholders into 'power-interest grids' or 'influence-impact grids' to establish which stakeholders need their immediate attention and which stakeholders can be kept informed with less direct interaction.

Stakeholder Prioritization: A Comprehensive Guide

Understanding stakeholder prioritization is important in project management because it helps allocate resources efficiently, boosts communication, and strengthens relationships with pivotal entities.
What is Stakeholder Prioritization?
Stakeholder prioritization is a strategic approach in project management where stakeholders are ranked based on their influence and interest in the project. This ranking helps in decision making and resource allocation, ensuring stakeholder needs are met based on their importance.
How does it work?
Stakeholder prioritization generally works on the power-interest grid model. Stakeholders are classified into four groups: high power/high interest, high power/low interest, low power/high interest, and low power/low interest. Actions and communication are planned accordingly for each group.
How to answer questions regarding Stakeholder Prioritization in an exam?
Understand the concepts thoroughly, relate theories to real-world scenarios, and structure your answers logically. Do not forget to mention the benefits and potential risks associated with not prioritizing stakeholders appropriately.
Exam Tips:
1. Know the definitions and concepts related to stakeholder management and prioritization.
2. Develop an in-depth understanding of the power-interest grid.
3. Use specific examples to support your arguments.
4. Use appropriate terminologies.
5. Review past exam questions and practise answering them.

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CAPM - Project Stakeholder Management Example Questions

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Question 1

Due to the budget constraints, you can only include the top priority stakeholders in the next phase of the project. How would you prioritize the stakeholders?

Correct Answer: Prioritize stakeholders based on their power and influence on the project

The best practice in project management is to prioritize stakeholders based on their power and influence on the project. These stakeholders can affect project outcomes the most due to their sway over resources or decision-making. Prioritizing based on availability may not be ideal, since the most available stakeholders might not have the necessary power or influence. Prioritizing stakeholders who worked on the project from the beginning could lead to ignoring other crucial stakeholders who joined later but hold vital influence. Lastly, random selection of stakeholders disregards their strategic importance to the project, which can jeopardize the project's success.

Question 2

Which approach is most effective for prioritizing stakeholders when their influence and interest levels have changed significantly during the project?

Correct Answer: Conduct a new stakeholder analysis and update the stakeholder register

The most effective approach for prioritizing stakeholders when their influence and interest levels have changed significantly during the project is to conduct a new stakeholder analysis and update the stakeholder register. This is the best course of action because:

1. It acknowledges that stakeholder dynamics can change throughout a project's lifecycle.
2. It ensures that the project team has the most up-to-date information on stakeholders' current influence and interest levels.
3. It allows for a comprehensive reassessment of all stakeholders, not just those who have expressed concerns.
4. It provides an opportunity to adjust engagement strategies based on the new analysis.

The other options are less effective:

Continuing with the original stakeholder engagement plan fails to address the significant changes in stakeholder influence and interest, potentially leading to misaligned engagement efforts.

Reassessing only the stakeholders who have expressed concerns is too limited in scope and may miss important changes in other stakeholders' positions.

Consulting with the project sponsor to determine new priorities based on personal preferences is subjective and may not accurately reflect the actual influence and interest levels of all stakeholders.

By conducting a new stakeholder analysis and updating the register, the project manager ensures that the team has accurate, current information to guide their stakeholder engagement efforts, ultimately contributing to better project outcomes.

Question 3

During a project review, stakeholders raised concerns that weren't previously identified. What should be your approach?

Correct Answer: Revise the stakeholder engagement plan to address these concerns, and ensure clear communication moving forward.

The best approach when new concerns are raised by stakeholders during project review is to revise the stakeholder engagement plan to address these concerns and ensure clear communication moving forward. This allows the project manager to both acknowledge and respond to the stakeholders' concerns effectively, ensuring they feel heard and contributing positively towards the project's progression. The other answers are wrong as following: Ignoring the concerns doesn't reflect well on the project manager's ability to adapt and may lead to stakeholder dissatisfaction. Telling stakeholders these concerns will be addressed in the next project is not a viable solution because it neglects the current issues, potentially leading to failure of the project. Addressing the concerns immediately without considering their impact on the project timeline and budget could potentially derail the project, causing delays and overruns.

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