Original Source: Tutorials Point
“Introduction
When working on a project, there are many people or organizations that are dependent on and/or are affected by the final product or output. These people are the stakeholders of a project.
Stakeholder management involves taking into consideration the different interests and values stakeholders have and addressing them during the duration of the project to ensure that all stakeholders are happy at the end.
This branch of management is important because it helps an organization to achieve its strategic objectives by involving both the external and internal environments and by creating a positive relationship with stakeholders through good management of their expectations.
Stakeholder management is also important because it helps identify positive existing relationships with stakeholders. These relationships can be converted to coalitions and partnerships, which go on to build trust and encourage collaboration among the stakeholders.
How Does Stakeholder Management Work?
Stakeholder management, in a business project sense, works through a strategy. This strategy is created using information gathered through the following processes:
Stakeholder Identification – It is first important to note all the stakeholders involved, whether internal or external. An ideal way to do this is by creating a stakeholder map.
Stakeholder Analysis – Through stakeholder analysis, it is the manager’s job to identify a stakeholder’s needs, interfaces, expectations, authority and common relationship.
Stakeholder Matrix – During this process, managers position stakeholders using information gathered during the stakeholder analysis process. Stakeholders are positioned according to their level of influence or enrichment they provide to the project.
Stakeholder Engagement – This is one of the most important processes of stakeholder management where all stakeholders engage with the manager to get to know each other and understand each other better, at an executive level.
This communication is important for it gives both the manager and stakeholder a chance to discuss and concur upon expectations and most importantly agree on a common set of Values and Principals, which all stakeholders will stand by.
Communicating Information – Here, expectations of communication are agreed upon and the manner in which communication is managed between the stakeholders is established, that is, how and when communication is received and who receives it.
Stakeholder Agreements – This is the Lexicon of the project or the objectives set forth. All key stakeholders sign this stakeholder agreement, which is a collection of all the agreed decisions.
In today’s modern management project practice, managers and stakeholders favor an honest and transparent stakeholder relationship…”
http://www.tutorialspoint.com/management_concepts/stakeholder_management.htm
Contributors: Open SourceCategories: Industry Articles, SIG U Resource
SRC Type: Sourcing Management, Stakeholder Engagement