A project cannot be carried out by a single individual. Irrespective of the size of the project, several individuals and organizations are involved in performing project-related tasks. Such individuals and organizations are defined as stakeholders. To accomplish the goals and objectives of a given project, project managers are necessitated to understand their relationship with stakeholders.
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Who is a Stakeholder?
A stakeholder can be defined as any individual or organization who are directly involved with a given project. In addition, a stakeholder can also be defined as a person whose interests can positively or negatively impact the project. As a result, there are different types of stakeholders who can be involved in a specific project. Also, these stakeholders keep varying for different kinds of projects.
Who are the Different Types of Stakeholders?
Generally, stakeholders can be defined as internal stakeholders and external stakeholders. Internal stakeholders are individuals who are directly involved in carrying out project activities and are generally present within the organization. External stakeholders comprise individuals who operate outside the organization. However, internal and external stakeholders can be further classified into separate categories.
Types of Internal Stakeholders
A project manager is an individual who accepts to develop the project taken up by the organization. He/She would be responsible for picking the project team members who can carry out project-related tasks efficiently. Project manager’srole will be as a team leader while performing any given project for the organization. Also, without the guidance of a project manager/team leader, a project team cannot develop the deliverables.
The project team is responsible for developing the project and delivering intended outcomes. It consists of several individuals who possess specialized skillset. Every team member has to coordinate with other team members while carrying out a project. In addition, project team members are required to report to the project manager in case of project-related issues.
PMOs or Project Management Offices are instilled with large organizations. Such offices define and maintain the standard for managing projects. PMOs indulge in specifying the policies, practices, and procedures for the effective management of projects.
Management refers to the higher authorities present within the organization. Higher authorities oversee the progress of the project at regular intervals. In addition, without the approval of higher authorities, a project cannot be executed by the project manager. Every project related decision has to be communicated with the higher authorities by the project manager.
Types of External Stakeholders
Suppliers can be individuals or organizations that provide resources for a given project. Every project requires certain inputs in the form of raw materials, IT services, spare parts, and so on. Therefore, suppliers become external stakeholders for supplying resources whilst operating outside the organization. In addition, without suppliers, a project will not have the necessary inputs for delivering desired outcomes.
Customers can be a single individual or an entire organization who proposes the project. A project is built entirely upon the customer’s needs and requirements. As a result, customers are capable of directly affecting the success rate of the project. Unless a customer is content with the outcomes of the project, project success cannot be determined.
End users are individuals who ultimately use the end results of the project. Such individuals act as beneficiaries of the project outcomes. A project’s success depends on the satisfaction level of end users. If the intended outcomes of the project do not meet the needs of end users, a project becomes a failure.
Regulatory bodies indirectly affect the outcomes of the project. A project manager is required to follow all the regulations while developing the project. Not conforming to the regulations applicable for the project leads to project failure. In turn, an organization that does not follow the regulations loses its fame in the industry.
Governing bodies are also known as project sponsors. A project sponsor is responsible for governing the management, project team, and other stakeholders. Without a project sponsor, a project cannot exist. In addition, project sponsors can be within the organization or outside the organization. Such individuals oversee the development of the project and its deliverables from the planning stage to the closure stage.
Apart from the common stakeholders and their roles mentioned above, there can be other stakeholders as per project needs. Project professionals are required to manage their relationships with every stakeholder. Every type of stakeholder plays a critical role in the success of the project. As a result, project professionals indulge in developing different strategies for each kind of stakeholder.
Professionals willing to master the techniques of maintaining various stakeholders can enroll in PMP Certification Course. The PMP Certification is designed to assist project professionals in gathering advanced skills of project management. Taking up the certification enables individuals to gain knowledge of Project Management as a whole along with industry-standard practices.