Project Management - Stakeholder Risk Management

In this article we'll address the people swirling aroundgoing to do about it?)
your project: stakeholders. You'll find some tips andWhat we do to leverage our supporters and minimize
other resources for optimizing stakeholderthe effect of our opponents will depend upon the
involvement in your project.answers to the questions above. The more we know
"Who cares?"about our stakeholders, the better we can plan to
"What do they care about?"work with them. One thing is certain: ignoring them
"What am I going to do about it?"will sap their support and inflame their opposition, so
Those are the three simple questions a project teamplan for communication.
can ask to understand their stakeholders and developRapid changes in information technology continue to
a strategy for keeping them happy.bring us new ways to flood our stakeholders with
As we developed a workshop on stakeholderdata, but that doesn't necessarily make us effective
management built on those three questions one ofcommunicators. Who needs information? What
our project management experts, put all the piecesinformation? How often? In what format? These
together when he said, "That's just risk managementquestions form the basis of your communication plan.
for people."As you develop your communication plan remember
We think he's right. Review this classic riskthese two tips:
management process. Can you see the parallel?1. Positive personal relationships are the foundation of
1. Identify risks.effective communication. Personal relationships
2. Analyze and quantify the risk.magnify the value of the technology we use to
3. Develop a risk response.deliver information.
So on your next (or current) project consider2. Use two or more mediums of communication for
treating your stakeholders as opportunities or threats.every stakeholder. For example, meetings should be
Step One: Identify risks (stakeholders)accompanied by documentation.
Just as with risk management, we can only manageThe Secret to Success
stakeholders that we are aware of, so be creativeWhat's the secret to risk management? Do it.
and energetic in identifying stakeholders. Cast yourProactive, systematic risk management means finding
net wide and consider all those stakeholders thatthe problems before they find you. Risk management
won't make a peep unless you step on their toes.doesn't have to be complex, but it does have to be
Regulators, end-users, your customer's customers,disciplined. The same holds true for our stakeholders.
and internal support staff such as accounting orUnderstanding who they are and what they want
procurement. Too many project managers don'toften isn't that difficult. The key is to be proactive,
include these secondary stakeholders in their normalto reach out, and influence them before they
communicationplans yet get indignant when theyinfluence you.
obstruct the project. In risk management we identifyAbout LSA Global
threats and opportunities. Stakeholders can beSince 1995, LSA has helped organizations create and
project adversaries just as easily as advocates.maintain distinct competitive advantages through
While you are trying to uncover the hiddenhuman capital.
stakeholders, don't forget about the obvious ones:We work with leading organizations to drive success
your team, your sponsor, and the people who will bethrough their people and the strategies, structures,
approving the funding.systems, and processes that attract, inspire, develop,
TIP: Make sure your stakeholders have a name andand retain top talent. Our solutions focus on the
email id. Stakeholders are people, not organizations.areas of:
"Facilities" isn't going to sign off on your changeSales Revenue Growth
request, but Cindy, who runs the department, might.Leadership and Management Performance
Step Two: Analyze and quantify the risk (what doHuman Resource Performance
they care about?)Strategy Execution and Transformation
Risk management calls for prioritizing the risksCustomer Service, Satisfaction, and Loyalty
according to probability and impact. We can prioritizeProject Management Performance
stakeholders similarly - by authority and interest.Engineering Performance
Interest means "how much do they care?" andWe believe our clients' success in the marketplace is
authority equates to their ability to affect therealized through increased revenue, decreased costs,
project.and higher productivity. We are fiercely devoted to
Now analyze the high priority stakeholders. You won'tthe success of our clients and proud that over 85%
be able to quantify your stakeholders as much asof our business comes from repeat business with
your project risks, but you can organize some keysatisfied clients and that we have a 97%+ customer
information: What do they care about? How will thesatisfaction rating.
project affect them? How does this project fit intoKnow more about Project Planning and Project Risk
their priorities? What do you need from them for theManagement at:
project to run smoothly?Copyright © 2008 Learning Alliance Corporation
Step Three: Develop a risk response (What are youDBA LSA Global All Rights Reserved.