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Stakeholder Prioritization

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Stakeholder Prioritization is the process of ranking stakeholders based on specific criteria to determine the level of attention and resources that should be allocated to manage their expectations and influence effectively. This process is crucial because it is often impractical to engage all stakeholders with the same intensity due to resource constraints. By prioritizing stakeholders, business analysts can focus their efforts on those who have the most significant impact on project success. The criteria for prioritization may include factors such as power, influence, interest, urgency, legitimacy, and willingness to participate. Models like the Salience Model, which considers power, legitimacy, and urgency, can be used to classify stakeholders into categories such as definitive, dominant, dependent, or discretionary stakeholders. These classifications help in tailoring engagement strategies accordingly. Prioritization helps identify stakeholders who can positively or negatively influence project outcomes and ensures their needs and concerns are addressed appropriately. High-priority stakeholders typically require more frequent communication, involvement in decision-making processes, and may influence project scope and deliverables. Conversely, low-priority stakeholders may need less intensive engagement but should still be kept informed to maintain transparency. Stakeholder Prioritization is not a one-time activity. As projects evolve, stakeholders' power, interest, or influence may change, necessitating a re-evaluation of priorities. Regular assessment helps adapt engagement strategies to maintain stakeholder support and mitigate risks associated with stakeholder dissatisfaction. Effective prioritization enhances resource allocation efficiency, improves stakeholder relationships, and contributes to the overall success of the project by aligning stakeholder engagement activities with project objectives and stakeholder expectations.

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PMI-PBA - Stakeholder Analysis and Engagement Example Questions

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Question 1

You're managing a project that has multiple stakeholders with conflicting requirements. You want to prioritize these requirements as per stakeholder influence. What tool should you use?

Correct Answer: Stakeholder power-interest grid

The 'Stakeholder power-interest grid' is the best tool to prioritize stakeholder requirements according to their influence. This tool helps to visualize the level of power and interest a stakeholder has in the project. Stakeholders with high power and high interest need to be managed closely as they have the major influence on the project outcomes. 'Risk register' is not the correct tool in this case as it's used for identifying, assessing, and managing risks, not stakeholder requirements. 'WBS dictionary' is also not the right tool as it's used to provide detailed information about deliverables, activities, and scheduling of each component in the Work Breakdown Structure (WBS), not stakeholder influence Lastly, the 'Scope baseline' is not a tool for stakeholder prioritization. It's a component of the project management plan that includes the project scope statement, WBS, and WBS dictionary.

Question 2

During a project kickoff meeting, the project manager introduces stakeholders to the team and emphasizes the importance of prioritizing stakeholder engagement. One stakeholder is known to have significant influence but low interest in the project. How should the project manager prioritize this stakeholder?

Correct Answer: Engage the stakeholder periodically to keep them informed.

The project manager should engage the stakeholder periodically to keep them informed because even though the stakeholder has low interest in the project, their significant influence cannot be ignored. By providing regular updates, the project manager can ensure the stakeholder remains informed without overwhelming them with continuous engagement. Engaging the stakeholder only in critical project phases may lead to them feeling disconnected from the project, while engaging them continuously or sporadically may not be as effective in maintaining their interest and involvement.

Question 3

A stakeholder mapping analysis reveals that several stakeholders have varying levels of authority and criticality in the decision-making process. Which model would be most appropriate for evaluating stakeholders based on power dynamics and time-sensitive needs?

Correct Answer: The Salience Model (Power, Legitimacy, and Urgency)

The Salience Model is the most appropriate choice because it specifically addresses the key requirements mentioned in the question: varying levels of authority (Power) and time-sensitive needs (Urgency), along with Legitimacy as a crucial third dimension. The model's three components make it uniquely suited for this situation: - Power: Evaluates stakeholders' ability to influence decisions - Legitimacy: Assesses the validity of stakeholder claims - Urgency: Addresses time-sensitive needs and criticality The other options are less suitable: The Enhanced Stakeholder Circle is more focused on project phases and strategic alignment, which goes beyond the immediate need to assess power dynamics and time sensitivity. The Dynamic Influence Matrix emphasizes organizational position and resource control but lacks explicit consideration of time-sensitive needs. The Engagement Assessment Framework focuses on participation levels rather than addressing the power dynamics and time-sensitive aspects mentioned in the scenario.

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