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Stakeholder Management

5 minutes 5 Questions

Stakeholder Management involves identifying the individuals, groups, or organizations that can impact or be impacted by the project, and developing strategies to manage their expectations and engagement. Stakeholder management focuses on effective communication, inclusion, and feedback mechanisms to ensure that stakeholders' needs and expectations are understood and managed appropriately. A project manager needs to master interpersonal and communication skills to build and maintain strong relationships with stakeholders, which can significantly influence the project's success.

Stakeholder Management according to PMBOK Guide Seventh Edition

Why it is important:
Stakeholder Management is crucial because it establishes a clear communication path between the project team and stakeholders. It ensures that stakeholders are appropriately involved and their needs are met, thereby contributing to project success.

What it is:
Stakeholder Management is a process of identifying, analyzing, planning, and implementing actions towards managing stakeholders' expectations and engagement levels in the project.

How it works:
Stakeholder Management consists of four processes: Identifying stakeholders, planning stakeholder engagement, managing stakeholder engagement, and monitoring stakeholder engagement. This includes classes of stakeholders, proactive management techniques, and tools like a stakeholder register and others.

Answering Questions on Stakeholder Management in an exam:
Understand the key concepts of stakeholder management, such as stakeholder analysis, engagement assessment matrix, and others. Consider the project scenario and the stakeholder's current and desired engagement level before answering the questions. Be aware of the impact of successful stakeholder management on project success.

Exam Tips: Answering Questions on Stakeholder Management:
1. Always consider the project's perspective and understand the role of stakeholder management in it.
2. For scenario-based questions, remember that effective communication is paramount in stakeholder management.
3. Use the PMBOK Guide Seventh Edition as reference material for your preparation.
4. Stakeholder identification is not a one-time activity; it happens throughout the project life cycle.
5. Engagement plans should be tailored to each stakeholder or group thereof.

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PMP - Business Management Example Questions

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Question 1

During the planning phase of a new construction project, the project manager conducts a stakeholder analysis to identify all individuals or groups that could impact the project. What is the best approach to effectively manage stakeholder engagement?

Correct Answer: Maintain ongoing communication and collaboration with stakeholders

The best approach to effectively manage stakeholder engagement is to maintain ongoing communication and collaboration with stakeholders. Stakeholders can have a significant impact on the success of a construction project. By maintaining ongoing communication and collaboration, the project manager can ensure that all stakeholders are informed, involved, and aligned with the project goals and objectives. This approach allows the project manager to proactively address any concerns or issues raised by stakeholders, gather valuable input and feedback, and build strong relationships based on trust and transparency. While the other answer options also emphasize communication and cooperation with stakeholders, they use synonyms like 'continuous', 'regular', and 'constant'. However, 'ongoing' is the most appropriate term as it implies a consistent and uninterrupted flow of communication and collaboration throughout the project lifecycle.

Question 2

In a project where stakeholders have conflicting interests, what is the most effective approach for managing stakeholder expectations?

Correct Answer: Develop a stakeholder engagement plan that addresses each stakeholder's concerns

The most effective approach for managing stakeholder expectations in a project with conflicting interests is to develop a stakeholder engagement plan that addresses each stakeholder's concerns. This approach is comprehensive and inclusive, ensuring that all stakeholders feel heard and valued. Here's why this is the best answer: 1. It acknowledges all stakeholders: By addressing each stakeholder's concerns, this approach ensures that no one is left out or feels overlooked. 2. It promotes transparency: A comprehensive engagement plan fosters open communication and builds trust among all parties involved. 3. It allows for conflict resolution: By identifying and addressing concerns upfront, potential conflicts can be mitigated or resolved early in the project. 4. It supports project success: When stakeholders feel their interests are considered, they are more likely to support the project, leading to better outcomes. The other options are less effective because: - Focusing only on high-power stakeholders may alienate others and lead to resistance or project failure. - Prioritizing vocal stakeholders might overlook important concerns from less assertive but equally important stakeholders. - Creating a compromise that equally addresses all interests may result in a suboptimal solution that doesn't fully satisfy anyone's needs. A well-developed stakeholder engagement plan allows for a balanced approach that considers all perspectives while working towards the project's goals.

Question 3

During the final stages of delivery for a client project, a critical stakeholder begins to frequently request one-on-one status meetings, disrupting your schedule. How should you handle this?

Correct Answer: Propose a structured communication plan with fixed update schedules.

Proposing a structured communication plan with fixed update schedules is the best approach for handling this situation. This solution offers a balanced and professional approach, providing the stakeholder with regular and structured updates while minimizing the disruption to the project manager's schedule. The other options are not as effective for a variety of reasons. Continually agreeing to frequent meetings may cause significant disruptions to the project manager's schedule and could impact the success of the project delivery. On the other hand, limiting interaction with the stakeholder or reporting their behavior to upper management could potentially negatively affect the working relationship and could exacerbate the issue rather than solving it.

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