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Stakeholder Identification

5 minutes 5 Questions

Stakeholder identification is the process of identifying individuals, groups, or organizations that could impact or be impacted by a project's outcome. It involves determining who has a vested interest in the project and understanding their expectations, influence, and potential impact on project s…

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PMP - Stakeholder Identification Example Questions

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Question 1

You are managing a large-scale urban redevelopment project involving multiple stakeholders, including local government, businesses, and community groups. During the planning phase, you discover that a prominent environmental advocacy organization, previously not identified as a stakeholder, has been vocally opposing the project due to potential ecological impacts. The organization has gained significant media attention and public support, potentially jeopardizing the project's approval. As the project manager, what is the most appropriate course of action to address this situation?

Correct Answer: Initiate a comprehensive stakeholder analysis to incorporate previously unidentified groups, including the environmental advocacy organization, into the project's communication plan, and engage with them to understand and address their concerns collaboratively.

The correct answer involves actively engaging with the newly identified stakeholder to address the project's potential environmental impacts. This is crucial in stakeholder management, where open communication and collaboration can often lead to mutually beneficial outcomes. The wrong answers, while relevant to stakeholder engagement and project management, either avoid direct engagement with the critical stakeholder or attempt to mitigate the concerns through indirect methods. These tactics can sometimes be effective but do not address the fundamental need for direct dialogue and collaboration with key stakeholders, specifically when the concerns involve significant issues such as environmental impacts.

Question 2

In the process of identifying program stakeholders, what is a key step that the program manager should take?

Correct Answer: Analyze the program's sphere of influence to identify stakeholders who may impact or be impacted by the program

The key step in identifying program stakeholders is to analyze the program's sphere of influence. This allows the program manager to identify all stakeholders who may impact or be impacted by the program, not just those with direct authority or involvement. Relying solely on the program charter may miss important stakeholders, and limiting identification efforts to only the planning phase could overlook stakeholders that emerge later in the program lifecycle. A thorough analysis of the program's sphere of influence ensures a comprehensive understanding of all relevant stakeholders throughout the program's duration.

Question 3

A financial regulator, unforeseen as a stakeholder in the initial phase, has raised significant concerns about an ongoing project in your bank. What would be the best action to take as the project manager?

Correct Answer: Include the regulator as a key stakeholder, understand their concerns, and integrate those into your project scope.

Answer 'Include the regulator as a key stakeholder, understand their concerns, and integrate those into your project scope.' is the best action to take as the project manager. It follows good project management practice by acknowledging the project's impact on different stakeholders, including regulators. It's essential, especially in such sensitive fields like finance, to address regulators' concerns immediately and adjust the project scope accordingly. The other alternatives are not the best because they either postpone handling the issue, which could lead to later complications ('Continue the project and address their concerns after project completion.'), delegate it which can lead to misunderstanding and miscommunication ('Delegate the concern to the risk management team.'), or ask for a formal letter which only provides a report of the issues rather than actively integrating the concerns into the project scope ('Ask the regulator to provide a formal letter outlining their concerns.'). Engaging directly is key, as it enables feedback and clarification discussions.

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