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Stakeholder Analysis

5 minutes 5 Questions

Stakeholder analysis is a critical component of stakeholder management, as described in the PMBOK Guide Seventh Edition. It involves systematically gathering and analyzing information about project stakeholders to determine their interests, expectations, influence, and potential impact on the project. Stakeholder analysis helps project managers prioritize stakeholders based on their importance and influence, enabling them to develop targeted engagement strategies. The process typically includes identifying stakeholders, categorizing them based on their role and impact, assessing their power and interest in the project, and determining their communication needs. By conducting a thorough stakeholder analysis, project managers can anticipate and address potential conflicts, align stakeholders' expectations with project objectives, and ensure that the right stakeholders are involved at the right time. This analysis should be revisited throughout the project lifecycle to account for changes in stakeholder dynamics and to adapt engagement strategies accordingly.

Stakeholder Analysis in PMBOK 7th Edition

Why Stakeholder Analysis is Important:

Stakeholder analysis is crucial for project success as it helps identify and understand the various individuals, groups, or organizations that can impact or be impacted by the project. This process enables project managers to effectively engage stakeholders, manage their expectations, and address their needs throughout the project lifecycle.

What is Stakeholder Analysis:

Stakeholder analysis is a systematic approach to gathering and analyzing information about project stakeholders. It involves identifying stakeholders, assessing their interests, influence, and potential impact on the project, and developing strategies to effectively manage their involvement.

How Stakeholder Analysis Works:

1. Identify stakeholders: Create a comprehensive list of all individuals, groups, or organizations that have a stake in the project.

2. Gather information: Collect data on each stakeholder's interests, expectations, influence, and potential impact on the project.

3. Analyze stakeholders: Assess their power, interest, and attitude towards the project using tools like the Power/Interest Grid or Salience Model.

4. Prioritize stakeholders: Determine which stakeholders require the most attention based on their influence and impact.

5. Develop engagement strategies: Create tailored approaches to manage each stakeholder's involvement and communication needs.

Exam Tips: Answering Questions on Stakeholder Analysis

1. Focus on the importance of stakeholder analysis in project management.

2. Understand the steps involved in conducting a stakeholder analysis.

3. Familiarize yourself with stakeholder analysis tools and techniques.

4. Be prepared to explain how stakeholder analysis influences project decisions and communication strategies.

5. Practice applying stakeholder analysis concepts to different project scenarios.

6. Remember that stakeholder analysis is an ongoing process throughout the project lifecycle.

7. Emphasize the connection between stakeholder analysis and other project management processes, such as communication planning and risk management.

8. Be ready to discuss how stakeholder analysis contributes to project success and stakeholder satisfaction.

9. Understand the ethical considerations involved in stakeholder analysis and management.

10. Review real-world examples of stakeholder analysis applications in various industries and project types.

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PMP - Stakeholders - PMBOK 7th edition Example Questions

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Question 1

Which stakeholder analysis technique is used to map and analyze relationships among project stakeholders to identify potential alliances and conflicts?

Correct Answer: Social Network Analysis

Social Network Analysis is used to map and analyze relationships among project stakeholders. It helps identify patterns of interactions, potential alliances, conflicts, and the influence that stakeholders have over one another. By understanding these relationships, project managers can develop effective strategies for stakeholder engagement and communication. The Power/Interest Grid categorizes stakeholders based on their level of power and interest in the project but does not analyze relationships between them. The Stakeholder Engagement Assessment Matrix assesses stakeholders' current and desired levels of engagement without focusing on their interrelationships. The Salience Model prioritizes stakeholders based on power, legitimacy, and urgency, but it does not map out the relationships and potential alliances or conflicts among them.

Question 2

Which of the following is the first step in performing a stakeholder analysis?

Correct Answer: Identify all potential project stakeholders

The first step in performing a stakeholder analysis is to identify all potential project stakeholders. This is essential because you need to know who the stakeholders are before you can assess their interests and influence, prioritize them, or develop engagement strategies.

Question 3

In a large-scale transportation project, a project manager has identified a low-power, high-interest stakeholder. How should the project manager manage this stakeholder?

Correct Answer: Keep the stakeholder informed and consult with them regularly

In project management, stakeholders are classified into different categories based on their power and interest. A stakeholder with low power but high interest should be kept adequately informed and frequently consulted. This is because although they might have limited influence over the project, they have high interest and could be significantly impacted by the project's outcome. Prioritizing their needs over other stakeholders might bring unfairness to other interested parties and might not reflect the true scenario. Ignoring a stakeholder, irrespective of their power, will likely result in lack of trust and cooperation in the project. Directly involving them in decision-making might not be feasible due to their low power, they will unlikely have the necessary authority or resources to contribute significantly to decision-making.

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