Stakeholder
An individual or group that may affect or be affected by the project.
Detailed Explanation
A stakeholder is an individual, group, or organization that may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project. Stakeholders range from the project sponsor and team to end users, regulators, and the public.
Effective stakeholder management begins with identification and analysis: Who are the stakeholders? What are their interests, influence, expectations, and potential impact? This analysis informs the stakeholder engagement plan, which defines how each stakeholder group will be managed.
The PMBOK Guide 7th Edition elevates stakeholders to a dedicated performance domain, recognizing that stakeholder satisfaction is a primary measure of project success. Projects succeed or fail not just on technical delivery but on whether stakeholders perceive value from the outcome.
Key Points
- Anyone who affects or is affected by the project
- Ranges from sponsor and team to end users and regulators
- Identification and analysis is the first step
- Engagement plan defines management approach per stakeholder
- Dedicated performance domain in PMBOK 7th Edition
- Stakeholder satisfaction is a primary success measure
Practical Example
An ERP implementation has stakeholders at multiple levels: the CEO (sponsor, strategic alignment), CFO (budget approval), department heads (process changes), end users (daily system interaction), IT team (technical implementation), external vendor (software provider), and the union (concerned about job impacts). The PM creates tailored engagement strategies for each group.
Tips for Learning and Applying
Identify stakeholders early and reassess throughout the project
Map stakeholders by power/interest for engagement prioritization
Engage resistant stakeholders proactively — ignoring them creates problems later
Remember: stakeholders are people with emotions, not just roles to manage
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