CMI 524 - Learning Outcome 1.4

Stakeholder Analysis

• Stakeholders are individuals or groups with an interest in a project or decision-making process
• They can have varying levels of power and influence
• Stakeholders play crucial roles in risk management, helping to identify, assess, and mitigate potential risks
• Agreeing on shared goals is vital to ensure all parties are aligned and committed to project success
• Stakeholders can take on various roles (e.g., advisors, sponsors, supervisors) depending on expertise and responsibilities

Stakeholder Roles

• Stakeholders contribute to success by providing resources, expert guidance, strategic oversight, and managing daily operations
• Other roles may include consultants offering specialized skills or external partners providing resources and services
• Clearly defining stakeholder roles sets expectations and responsibilities
• Clearly defined roles ensure accountability and smooth project progress

Defining Stakeholder Authority

• Defining the lines and limits of authority is crucial for maintaining order and accountability
• Stakeholders should have clearly communicated and understood roles and responsibilities
• For instance, a project manager may have authority to allocate resources, but not change the project scope without senior management approval
• These boundaries help prevent conflicts and ensure efficient decision-making

RACI Matrix

• A RACI matrix clarifies roles and responsibilities for different stakeholders within a project or organization

• The matrix assigns tasks and responsibilities to various roles

• The RACI acronym stands for:

  • Responsible (performs the task)
  • Accountable (ownership of task completion)
  • Consulted (input required, expertise needed)
  • Informed (needs to be updated on progress)

• Using a RACI matrix ensures clarity in roles and a balance of responsibilities

Risk Management

• Stakeholders play critical roles in risk management. They help in identifying, assessing, and mitigating potential risks
• Different stakeholders could highlight different risk areas (e.g., supplier highlighting supply chain risks, legal advisor highlighting regulatory risks).
• Involving stakeholders ensures a comprehensive understanding and development of effective mitigation strategies
• This approach increases awareness, fosters shared responsibility, encourages proactive risk management, and increases the likelihood of project success.

Agreeing Shared Goals

• Agreeing on common goals amongst stakeholders is crucial for aligning efforts
• Open communication and negotiation are necessary to reconcile different interests
• Shared goals may vary depending on stakeholder roles (e.g., senior management focusing on financial outcomes, employees prioritizing working conditions).
• Stakeholders can collaboratively work together towards achieving agreed-upon outcomes by establishing common goals like improving customer satisfaction and market share, preventing conflicts, and fostering a cooperative project environment

Stakeholder Analysis

• Stakeholder analysis identifies and assesses the influence of individuals or groups who have a stake in the organization
• Stakeholder analysis is a process that identifies all stakeholders who have a stake in the organization (including internal & external stakeholders)
• Stakeholder analysis helps understand stakeholder influence on project outcomes; prioritize stakeholders based on interest and influence; and strategically manage stakeholders.
• A stakeholder map visually represents levels of power and interest in different stakeholders, helping prioritize stakeholder engagement strategies

This quiz explores the concepts of stakeholder analysis, their varying roles, and authority in project management. Learn how defining stakeholder roles and aligning shared goals is crucial for project success. Assess your understanding of how stakeholders influence risk management and project outcomes.