Managing for Stakeholders — Not Stakeholder Management

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The new Knowledge Area, stakeholder management, was cheerfully welcomed in A Guide to the Project Management Body of Knowledge (PMBOK® Guide)—Fifth Edition.


We all agree on the importance of stakeholder management. It’s common sense. However, it is not common practice. Few project managers have a formal approach to stakeholder management. And many organizations lack guidelines to manage stakeholders.

Figure 1: Lack of stakeholder management leads to poor results. (Trentim, 2013)

 

Most of us rely on soft skills, communication and leadership to manage stakeholders. But while they’re helpful, interpersonal skills are far from being the sole way to implement stakeholder management. As a matter of fact, there are hard skills in stakeholder management — tools, techniques and methods that should be diligently applied to enhance stakeholder management and improve project success rates. 

 

For example, there are at least 10 different tools for stakeholder identification. Often, project managers rely only on brainstorming to write a stakeholder registry, conforming to the methodology imposed by a project management office (PMO). That’s why I believe we need a paradigm shift.

 


Figure 2: The virtuous cycle—as opposed to the “vicious cycle”—for managing stakeholders (Trentim, 2013)

 

A project manager’s goal is to add value. Value depends on stakeholder expectations and perception. Consequently, the project manager’s goal is to engage and involve stakeholders in value creation. This is what we call managing for stakeholders.

 

On the contrary, the term stakeholder management assumes we can manage expectations. This is wrong. We cannot manage people, to paraphrase U.S. author and businessman Stephen Covey. We lead people. We persuade and influence stakeholders.

 

In 2013, the Project Management Institute published my book, Managing Stakeholders as Clients. It presents a framework with a paradigm shift from traditional stakeholder management by first setting the premise that we can’t manage stakeholders or their expectations — we can only lead, influence and persuade people. To my surprise, I was the recipient of PMI Educational Foundation’s 2014 Kerzner Award* at PMI® Global Congress 2014—North Americafor my results in managing projects and programs. But in particular, the award recognized my creation of this stakeholder management framework and the results of its application.

 

The main difference between stakeholder management and managing for stakeholders is this: Stakeholder management’s goal is to manage stakeholders’ expectations, enhancing support and reducing negative impacts — a reactive measure. It’s almost as if project managers develop stakeholder management plans to protect themselves from external interference.

 

Managing for stakeholders means involving and engaging stakeholders in value creation, boosting their support and having them take ownership in a proactive way. Managing for stakeholders embraces change as a learning process.

 

 

While stakeholder management is instrumental, employing processes for conformity, managing for stakeholders is results-oriented. In summary, stakeholder management is an attempt to manage stakeholders’ expectations toward the project. On the other hand, managing for stakeholders is clearly oriented to manage the project and its results for the stakeholders, on behalf of their changing needs and expectations.

 

Now that it’s clear we should start approaching stakeholder management from a different perspective, in my next post I’ll share more tips and details from Managing Stakeholders as Clients. Don’t miss it!

 

How do you manage for stakeholders?

 

*The PMI Educational Foundationadministers the prestigious Kerzner Award. The Kerzner Award is sponsored by International Institute for Learning, Inc. (IIL)to recognize a project manager who most emulates the professional dedication and excellence of Dr. Harold Kerzner, PhD, MS, MBA.

Posted by Mario Trentim on: November 25, 2014 09:53 PM | Permalink

Comments (4)

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Good points Mario! I particularly appreciate that you are taking a notion, which is proven in managing a team, and engaging it with stakeholders.

By including stakeholders in the process, they will begin to have a sense of ownership and buy-in is a natural by-product. Also, capturing and reacting to stakeholder input will likely add value to the project, and uncover risks, which hadn't been anticipated.

This topic is ripe for deep exploration. Excellent work, thanks!

Insightful

Good pointers !

Great article! Another point to consider when conducting stakeholder analysis is to discuss and confirm how the stakeholders prefer to receive project-related information such as in what form, on what schedule, via what delivery mechanism, etc. A well-informed stakeholder goes a long way to keeping a satisfied stakeholder!

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