Who would you define as a project stakeholder? Possibly list some categories of stakeholders
A project stakeholder is any individual or group, such as employees, clients, supporters,
or members of the public who may be impacted by the project in a positive or negative way or who are involved in the project (Serrador, 2009). Stakeholders can be externally and internally involved in the project. For example, project team members are stakeholders who will directly and internally affect the project performance; the customers are external stakeholders who may have the final interest in the project.
List 3 to 5 reasons why stakeholder management is important to project success
I think the first biggest reason why stakeholder management is important to project success is if some of the stakeholders’ needs are not considered, they may act against the project (Wideman, 2002). The FoxMeyer ERP program is a great example of stakeholder management failure. Without considering the job impact on the warehouse employees, the automation project was damaged and the company went bankrupt eventually.
Secondly, identifying and managing stakeholders’ interests and expectations is crucial to the project outcome. As we can see in the case of Canada’s Gun Registration System, due to unexpected change orders, leads to significant cost overruns and delays
to the project.
Thirdly, properly estimating, mitigating and managing the complexity in stakeholder management can ensure the project's success and avoid costly delays and overruns. The example of Homeland Security’s Virtual Fence emphasizes the need to identify and
engage stakeholders early on in the project and incorporate their feedback throughout the lifecycle. Failure to do so can result in unhappy stakeholders, technical issues and lead to project failures.
What are some possible consequences of stakeholder mismanagement
There are three common consequences of poor stakeholder management: project cost overruns, schedule delays, and project failure.
Project delays: Stakeholder mismanagement can result in delays in project delivery, as stakeholders may resist project implementation or withdraw their support, leading to a loss of momentum and project delays.
Budget overruns: Mismanaging stakeholders can also lead to budget overruns as stakeholders may demand additional resources, changes, or compensation for perceived negative impacts of the project.
Project failure: If stakeholders are not effectively managed, they may actively work against the project, ultimately resulting in project failure (Turner & Müller, 2005).
Provide at least one professional example
of a situation where effective stakeholder management either significantly benefited a project or where ineffective stakeholder management harmed a project.
