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Stakeholder identification and analysis of their expectations

 

Stakeholder Perspective and Effective Relationship Management

A series of stakeholder-centered short guidance articles for increasing delivered value and the success rate of projects

 

SERIES ARTICLE

By Massimo Pirozzi

Rome, Italy

 


 

In the previous article of this series, we evidenced that, since each project is made by people to be delivered to other people, stakeholders are central with respect to all projects. Indeed, stakeholders, including the project manager and the project team, are the doers of the project, as well as other stakeholders, including customers/users, and shareholders/ investors/funders, who would like to beneficiate of project results, are the target groups of the project itself. Definitively, stakeholders contribute to project definition, implementation, and success, starting from strategies and arriving to generate benefits through their actual delivered value. On the other side, stakeholders are, at the same time, the greatest generators both of the value to be delivered, and of the complexity to be faced and solved, and this makes difficult to identify them, and to analyze their requirements and their expectations, which are basic processes to proceed towards both the planning and the development of the project.

Indeed, project stakeholder domain is characterized by a multilevel complexity:

  • stakeholders are persons, or groups of persons, and we can assume that persons are the most complex systems that exist in the world;
  • stakeholders are diverse, and they are diverse from different perspectives: project stakeholders, in fact, may have diverse interests and/or influence, may participate to and/or support diversely the project, they may add diverse value (either positive, or null, or negative), they may belong to diverse organizations and/or communities,  and, since each organization is generally characterized also by a common business and/or social language, they may even speak or understand different organizational languages;
  • stakeholders are numerous, and stakeholder relations are even more numerous: if we consider stakeholders individually, in each project it could be very easy to distinguish hundreds of relations, or thousands if we include the people from the web;
  • stakeholder relations are context sensitive: indeed, both internal and external environment, just like business, social or technological strategies, as well as economic, time, regulatory, legal, or social requirements and/or constraints, impact continuously on stakeholder relations;
  • stakeholder relations may influence each other, and this can happen continuously: then, taking care of both the relation with stakeholders and the relations among stakeholders becomes essential;
  • all stakeholder relations, due to their centrality, are important, and, at least, they have to be monitored;
  • stakeholder relations may be evolutive in the life cycle of the project: new stakeholders may come in, existing stakeholders may come out, each stakeholder may change level of importance and/or behavior, and this may happen several times.

Therefore, relations with, and among, stakeholders, introduce multilevel complexity in all projects: classification models of stakeholders are mandatory to reduce that huge complexity, and, then, to make stakeholder relations issues addressable and manageable. We can consider two main types of classification models for stakeholders, which are based on two diverse perspectives: multiple classification models, which consider the belonging of stakeholders to different subjective categories, and the classification of stakeholders in communities, which reflects the stakeholder objective behavior.

Most commonly used multiple classification models are the grids, and especially the power/influence grid, but there are also others, as the stakeholder cube, and as the salience model. The basic concept of the grids is categorizing stakeholders based on two of their main attributes, and then representing the results on a two-dimensional matrix: the most common grid is the power/interest grid (Mendelow, 1991), which categorizes stakeholders according to their level of authority in the project, and their level of interest towards the project results, but also the power/influence grid and the influence/impact grid are present in the literature. Although power/influence grid has been developed almost thirty years ago, and although it was thought to be applied generically to organizations, rather than specifically to projects, it still has all its validity: in fact, with some customization, it is a tool quite simple to use, but immediately shareable, and enough powerful to support stakeholder identification, especially by categorizing them based on their importance for, and in, the project. In addition, complexity may be somehow reduced by grouping the management of relations in four typologies: monitor, keep informed, keep satisfied, and manage closely.

More…

To read entire article, click here

 

Editor’s note: This series of articles is by Massimo Pirozzi are based on the Author’s Book “The Stakeholder Perspective: Relationship Management to Increase Value and Success Rates of Projects”, CRC Press, Taylor and Francis Group, Boca Raton (FL), U.S.A., October 2019.

How to cite this paper: Pirozzi, M. (2020). Stakeholder Perspective and Effective Relationship Management: a series of stakeholder-centered short guidance articles for increasing delivered value and success rate of projects, Stakeholder identification and analysis of their expectations, PM World Journal, Vol. IX, Issue VIII, August. Available online at https://pmworldlibrary.net/wp-content/uploads/2020/07/pmwj96-Aug2020-Pirozzi-stakeholder-perspective-series3-stakeholder-identification-and-analysis.pdf

 


 

About the Author


Massimo Pirozzi

Rome, Italy

 

 

 Massimo Pirozzi, MSc cum laude, Electronic Engineering, University of Rome “La Sapienza”, Principal Consultant, Project Manager, and Educator. He is a Member and the Secretary of the Executive Board, a Member of the Scientific Committee, and an Accredited Master Teacher, of the Istituto Italiano di Project Management (Italian Institute of Project Management). He is certified as a Professional Project Manager, as an Information Security Management Systems Lead Auditor, and as an International Mediator. He is a Researcher, a Lecturer, and an Author about Stakeholder Management, Relationship Management, and Complex Projects Management, and his papers have been published in U.S.A., in Italy, and in Russia; in particular, he is the Author of the Book “The Stakeholder Perspective: Relationship Management to enhance Project value and Success”, CRC Press, Taylor & Francis Group, October 2019.  He has a wide experience in managing large and complex projects in national and international contexts, and in managing relations with public and private organizations, including multinational companies, small and medium-sized enterprises, research institutes, and non-profit organizations. He worked successfully in several sectors, including Defense, Security, Health, Education, Cultural Heritage, Transport, Gaming, Services to Citizens, Consulting, and Web. He was also, for many years, a Top Manager in ICT Industry, and an Adjunct Professor in Organizational Psychology. He is registered as an Expert both of the European Commission, and of Italian Public Administrations.

Massimo Pirozzi serves as an International Correspondent in Italy for the PM World Journal. He received two 2019 PM World Journal Editor’s Choice Awards for his featured paper “Stakeholders, Who Are They?”, and for his report from Italy titled “PM Expo® and PM Maturity Model ISIPM-Prado®”. He received also the 2018 PM World Journal Editor’s Choice Award for his featured paper “The Stakeholder Management Perspective to Increase the Success Rate of Complex Projects”.

Massimo can be contacted at max.pirozzi@gmail.com

To view other works by Massimo Pirozzi, visit his author showcase in the PM World Library at https://pmworldlibrary.net/authors/massimo-pirozzi/

 

 

The central role of stakeholders

in projects and in project management

 

Stakeholder Perspective and Effective Relationship Management

A series of stakeholder-centered short guidance articles for increasing delivered value and the success rate of projects

 

SERIES ARTICLE

By Massimo Pirozzi

Rome, Italy

 


 

Stakeholders, who are they? The concept of stakeholders naturally corresponds to people and/or to people groups, and it definitively refers to the domain of human behaviors, but it addresses specific keywords, and, in case of project stakeholders, it has some specific attributes too.

Indeed, stakeholders, in their three hundred years of history – the word stakeholder dates back to the beginning of the eighteenth century, in England, and it meant the person who was entrusted with the stakes of bettors, i.e. a “holder of interests” – and especially in the last sixty years, progressively incorporated several key – and intense – concepts as interest, participation, support, influence, risk, responsibility, and value, and these concepts are common to all stakeholders that belong to organizational domains that may be very diverse.

Project stakeholders, in addition, focus on two specific basic attributes, which are unicity and centrality.  In fact, on one side, every project is unique, and its unicity is reflected not only in its scope, goals, objectives, deliverables, time, cost, resources, and so on, but also in its own set of stakeholders, which, then, characterizes specifically each project both with respect to others, and in terms of its inherent complexity too.

In addition, since each project is made by people to be delivered to other people, stakeholders are evidently central with respect to all projects. Indeed, stakeholders, including the project manager and the project team, are the doers of the project, as well as other stakeholders, including customers/users, and shareholders/investors/funders, who would like to beneficiate of project results, are the target groups of the project itself. Definitively, stakeholders contribute to project definition, implementation, and success, starting from strategies and arriving to generate benefits through their actual delivered value.

Stakeholder centrality is a concept that relates to both operations and strategy domains. In fact, organizations define their strategies, which are based on their own mission and vision, and projects are their operational means to accomplish strategic goals, then achieving, through their results, the expected benefits; the overall value that is generated by each project determines the stakeholder satisfaction, and the relevant project success rate, within the whole investment lifecycle (see Fig. 1). It is, indeed, a fact, that each project exists to implement an investment, which, on turn, has been mutually agreed to harmonize different stakeholder expectations; organizations define strategies, which are based on their own mission and vision, then select pursuable opportunities in accordance with their defined strategy, then set business cases up, and, finally, start projects up. The inputs of a project generally include, then, business case, contract, and Statement of Work, or equivalent documents and/or agreements: of course, there are different business cases or similar for different stakeholders, as, for instance, providers, investors, and customers are, and this leads to the existence of different perspectives, in terms of results to be achieved, that will accompany the project in all its life cycle, and also afterwards, i.e. in released product/ infrastructure/ service lifecycle.

Fig.1 – The Project Investment Value Chain

A crucial issue comes out: objective “project requirements” in fact do not exist – even though it would be easier to deal with them –, while, in each project, there are “stakeholder requirements” characterized by an intrinsic subjectivity, which is due to both the facts that they are originated by stakeholders, i.e. people, and that they are the result of a mediation among diverse stakeholder expectations.

More…

To read entire article, click here

 

Editor’s note: This series of articles is by Massimo Pirozzi are based on the Author’s Book “The Stakeholder Perspective: Relationship Management to Increase Value and Success Rates of Projects”, CRC Press, Taylor and Francis Group, Boca Raton (FL), U.S.A., October 2019.

How to cite this paper: Pirozzi, M. (2020). Stakeholder Perspective and Effective Relationship Management: a series of stakeholder-centered short guidance articles for increasing delivered value and success rate of projects, The central role of stakeholders in projects and in project management, PM World Journal, Vol. IX, Issue VII, July. Available online at https://pmworldlibrary.net/wp-content/uploads/2020/07/pmwj95-Jul2020-Pirozzi-the-central-role-of-stakeholders-in-projects-series-article-3.pdf

 


 

About the Author


Massimo Pirozzi

Rome, Italy

 

 

 Massimo Pirozzi, MSc cum laude, Electronic Engineering, University of Rome “La Sapienza”, Principal Consultant, Project Manager, and Educator. He is a Member and the Secretary of the Executive Board, a Member of the Scientific Committee, and an Accredited Master Teacher, of the Istituto Italiano di Project Management (Italian Institute of Project Management). He is certified as a Professional Project Manager, as an Information Security Management Systems Lead Auditor, and as an International Mediator. He is a Researcher, a Lecturer, and an Author about Stakeholder Management, Relationship Management, and Complex Projects Management, and his papers have been published in U.S.A., in Italy, and in Russia; in particular, he is the Author of the Book “The Stakeholder Perspective: Relationship Management to enhance Project value and Success”, CRC Press, Taylor & Francis Group, October 2019.  He has a wide experience in managing large and complex projects in national and international contexts, and in managing relations with public and private organizations, including multinational companies, small and medium-sized enterprises, research institutes, and non-profit organizations. He worked successfully in several sectors, including Defense, Security, Health, Education, Cultural Heritage, Transport, Gaming, Services to Citizens, Consulting, and Web. He was also, for many years, a Top Manager in ICT Industry, and an Adjunct Professor in Organizational Psychology. He is registered as an Expert both of the European Commission, and of Italian Public Administrations.

Massimo Pirozzi serves as an International Correspondent in Italy for the PM World Journal. He received two 2019 PM World Journal Editor’s Choice Awards for his featured paper “Stakeholders, Who Are They?”, and for his report from Italy titled “PM Expo® and PM Maturity Model ISIPM-Prado®”. He received also the 2018 PM World Journal Editor’s Choice Award for his featured paper “The Stakeholder Management Perspective to Increase the Success Rate of Complex Projects”.

Massimo can be contacted at max.pirozzi@gmail.com

To view other works by Massimo Pirozzi, visit his author showcase in the PM World Library at https://pmworldlibrary.net/authors/massimo-pirozzi/

 

 

Introduction to the Series

 

Stakeholder Perspective and Effective Relationship Management
A series of stakeholder-centered short guidance articles for increasing delivered value and the success rate of projects

SERIES ARTICLE

By Massimo Pirozzi

Rome, Italy

 


 

Each project is made by people to be delivered to other people; stakeholders, i.e. people and/or groups of people, are therefore central with respect to all projects. Indeed, stakeholders, including the project manager and the project team, are the doers of the project, as well as other stakeholders, including customers/users, and shareholders/ investors/funders, who would like to beneficiate of project results, are the target groups of the project itself. In fact, stakeholders contribute to projects’ success in all respects: they are, at the same time, the greatest generators both of the value to be delivered, and of the complexity to be faced and solved, they affect the delivered value even arithmetically, through their positive, neutral, or negative behaviors, and their satisfaction is – of all evidence – the critical success factor in all projects. Definitively, the role of stakeholders is crucial to determine both effectiveness and efficiency of all projects.

Nevertheless, most of project management literature, and of consequent project managers’ training, relegated stakeholders in a secondary role for almost twenty-five years. In fact, in the original PMBOK (Project Management Institute, 1987) the stakeholders were considered just as participants to the project, and not as the protagonists they effectively are, as well as their role was subordinated to the role of communications – among themselves … may be that the concept of people, i.e. stakeholders, being subordinated to their behaviors, i.e. their communications,  it is a bit peculiar – until, twenty-five years later, ISO 21500:2012 (International Organization for Standardization, 2012) determined that “stakeholder” was a “subject group”, and, right after, in the PMBOK Guide Fifth Edition (Project Management Institute, 2013), “project stakeholder management” was promoted to one of the “knowledge areas”. After that, we should expect to evidence an important improvement in project success rates, mainly due to an increased people-centered maturity both in project managers and in their organizations, which, in turn, could lead to significant improvements in both efficacy and efficiency of projects … but, unfortunately, this did not happen.

In fact, it seems that the path towards project effectiveness and efficiency is a steep ascending route. Quite recent qualified surveys (Project Management Institute, 2018) do still confirm to us that, on average, almost one third of projects do not meet their original goals/business intent – meaning that a large percentage of projects are ineffective, since they do not satisfy their stakeholders’ expectations – , and, moreover, almost one half of projects experience scope creep (Harold Kerzner wrote, with a certain fatalism: “there are three things that most project managers know will happen with almost certainty: death, taxes, and scope creep …”) and/or time delays and/or cost overruns – meaning that an even larger percentage of projects are inefficient, since they do not correspond to their initial project/stakeholder requirements…

 

More…

To read entire article, click here

 

Editor’s note: This series of articles is by Massimo Pirozzi are based on the Author’s Book “The Stakeholder Perspective: Relationship Management to Increase Value and Success Rates of Projects”, CRC Press, Taylor and Francis Group, Boca Raton (FL), U.S.A., October 2019.

How to cite this paper: Pirozzi, M. (2020). Stakeholder Perspective and Effective Relationship Management: a series of stakeholder-centered short guidance articles for increasing delivered value and success rate of projects, Introduction to the Series, PM World Journal, Vol. IX, Issue VI, June. Available online at https://pmworldlibrary.net/wp-content/uploads/2020/05/pmwj94-Jun2020-Pirozzi-stakeholder-perspective-and-effective-relationship-management1-introduction.pdf

 


 

About the Author

 


Massimo Pirozzi

Rome, Italy

 

 

 Massimo Pirozzi, MSc cum laude, Electronic Engineering, University of Rome “La Sapienza”, Principal Consultant, Project Manager, and Educator. He is a Member and the Secretary of the Executive Board, a Member of the Scientific Committee, and an Accredited Master Teacher, of the Istituto Italiano di Project Management (Italian Institute of Project Management). He is certified as a Professional Project Manager, as an Information Security Management Systems Lead Auditor, and as an International Mediator. He is a Researcher, a Lecturer, and an Author about Stakeholder Management, Relationship Management, and Complex Projects Management, and his papers have been published in U.S.A., in Italy, and in Russia; in particular, he is the Author of the Book “The Stakeholder Perspective: Relationship Management to enhance Project value and Success”, CRC Press, Taylor & Francis Group, October 2019.  He has a wide experience in managing large and complex projects in national and international contexts, and in managing relations with public and private organizations, including multinational companies, small and medium-sized enterprises, research institutes, and non-profit organizations. He worked successfully in several sectors, including Defense, Security, Health, Education, Cultural Heritage, Transport, Gaming, Services to Citizens, Consulting, and Web. He was also, for many years, a Top Manager in ICT Industry, and an Adjunct Professor in Organizational Psychology. He is registered as an Expert both of the European Commission, and of Italian Public Administrations.

Massimo Pirozzi serves as an International Correspondent in Italy for the PM World Journal. He received two 2019 PM World Journal Editor’s Choice Awards for his featured paper “Stakeholders, Who Are They?”, and for his report from Italy titled “PM Expo® and PM Maturity Model ISIPM-Prado®”. He received also the 2018 PM World Journal Editor’s Choice Award for his featured paper “The Stakeholder Management Perspective to Increase the Success Rate of Complex Projects”.

Massimo can be contacted at max.pirozzi@gmail.com

To view other works by Massimo Pirozzi, visit his author showcase in the PM World Library at https://pmworldlibrary.net/authors/massimo-pirozzi/

 

 

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