How to Manage Stakeholder in a Project by Salman Nargolia, Mandeep Kumar, Rajan Pal (spicy books to read TXT) 📕

other party. Stay relaxed and never show them that you want those deals badly otherwise they can use that for their advantage. Talk your way to those deals.

Understand the behaviour- Listen and observe the representative of the other party. Observe his/her negotiation style and try to figure out which deals they want badly and use that information for your benefit.

Active listening- Listen carefully to what the other has to say and don’t talk much. Only talk whenever it is necessary to make your point. Unnecessary talking can lead you to disadvantage as they can find out what deals are you looking for from the negotiation can make it hard or us to get those deals.

Walk Away- Always make a plan about what is the minimum deal that you will consider otherwise always be ready to walk away from the negotiation. Don’t just agree to all the terms of the other party. It is very important to know what you want from the negotiation and stick to it and never settle for the less.

Interest- Never show interest in the deals you want. Always keep your intentions hidden. Don’t let them see the big picture because if they will know what the deals are you are looking for; they will try to use that information for their own benefit that is getting more benefit from the negotiation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chapter 7 Risk in Stakeholder Management.

 

 

Risks are the unwanted events that happen during the project execution and can lead to the failure of the project or various other consequences like budget increase, timeline failure, etc. Risks are of both positive and negative nature. It is on us to identify the positive risk and negative risks so that we can take advantage of positive risks and mitigate the negative risks.

 

 

Risks associated with stakeholder

 

There are some risks related to stakeholder engagement and it is very important to identify those risks and take necessary steps to mitigate the risks and their effects. I will explain some of those risks here.

 

Identification of stakeholders- Stakeholders are very important for the success of our project and it is necessary to identify all the stakeholders associated with the project. If we fail to identify any of the important stakeholders in the project it can lead to extra work, extra cost or even project failure. So, take as much time as you need to find all the stakeholders related to the project.

 

Stakeholder communication- Another great risk associated with stakeholders is the risk of miss-communication. Communication is very important between the stakeholders and the project team to avoid any type of error in the interpretation of the requirements related to the project. Also, the gap in communication between the stakeholders and the project team can lead to project failure as they can miss important information if they are no enough communication between the parties.

 

Managing Stakeholders- Managing stakeholders is one of the crucial parts of managing projects. It is very important to manage the stakeholders and their requirements from the project. We use influence and power grid to manage stakeholders and we give high priority to the stakeholders who have high influence and power in the project. So, it is very important to arrange the stakeholders according to their power and influence in the organization and in the project.

 

Risk Response

 

So, after finding all the risks associated with the stakeholders, we have to make a plan on how we can mitigate those risks. If you cannot mitigate all the risks, we can use other techniques to deal with those risks as possible. I will explain some of those techniques here: -

 

Avoid the risk – In this technique, we try to change our original project plan to avoid the risks.

 

Transfer- In this technique if we cannot avoid the risk, we try to transfer the impact of the risk to the third party. For example, we buy car insurance for our car.

 

Accept – Sometimes we have to accept the risk. Every plan has some amount of risk associated with it and sometimes the risks have a positive effect and can be good for our project. 

 

Share- Sometimes we have to share the risk to gain from it. For example, if we are looking for a bear in a very big forest but we do not have enough resources to search that many areas and a second party are also looking for the same. We can divide the area and agree that whoever finds the bear will call the other one. In this way, we can complete the project with our limited resources.

 

Contingency- Sometimes unexpected risks occur in the project that we have not identified in the starting. So, the deal with them we make a contingency plan. For example, we keep 20% of the budget reserve for such risks.

 

Enhance- This technique is used to enhance the chances of positive risk.

 

Exploit- This technique is used for positive risks. In this type of technique, we try to take advantage of positive risks.

Conclusions

In conclusion, in order to achieve an outcome from the projects, good stakeholder management practices are required. Stakeholder management is the effective management of all participants in a project, be it external or internal contributors.

 

Arguably, the most important element in stakeholder management is communication where a manager has to spend his 99% time in doing meetings, checking and replying e-mails and updating and distributing reports, etc.

Reference

 

American Productivity & Quality Center (APQC). (2014). Transformational change: Making it last. Houston, TX: Author

Strategic Project Management Made Simple: Practical Tools for Leaders and Teams

Project Stakeholder Management Pearline Eckerd and Anna Lund

Ackermann, F. and Eden, C. 2011. Strategic Management of Stakeholders: Theory and Practice. Long Range Planning 44(3): 179–196.

Harrington, H. J., & Nelson, D. (2103). The sponsor as the face of organizational change. Retrieved from http://www.pmi.org/~/media/PDF/Knowledge%20Center/Change_Mgmt_whitepaper_v4.a

Project Management Institute (PMI). (2013a). Managing change in organizations: A practice guide. Newtown Square, PA: Author.

Project Management Institute (PMI). (2014). Pulse of the profession® in-depth report: Executive sponsor engagement—Top driver of project and program success. Retrieved from http://www.pmi.org/~/media/PDF/Knowledge%20Center/PMI-Pulse-Executive-Sponsor-Engagement.ashx

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Publication Date: 04-18-2020

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