Stakeholder

A stakeholder is any individual, group, or organization that may affect, be affected by, or believe itself to be affected by a project's outcome. The category is broader than most people initially assume. It includes the obvious parties — the sponsor, the customer, the project team — but also regulators who must approve the output, end users who will live with the result, neighboring communities affected by the work, and competitors who may respond to the project's market impact. Failing to identify a stakeholder early is one of the most common sources of late-project surprises.

Key Stakeholder Roles

Project sponsor — provides the business case and budget, issues the project charter, and holds ultimate accountability for the project's success.

Customer or client — receives the final deliverables and has authority to accept or reject them.

Project manager — leads the team, controls the schedule, manages risk, and is the primary communication channel between the team and other stakeholders.

Project team — performs the work. Each team member is a stakeholder with a direct interest in the project's success and the working conditions it creates.

Regulators and auditors — may have authority to block or require changes to the project and its outputs.

End users — will use the delivered product. Their acceptance and adoption determine whether the project achieves its intended business benefit.

Stakeholder Analysis

Stakeholder analysis identifies each stakeholder's interests, influence over the project, and potential impact on it — then defines how to engage each stakeholder appropriately. High-influence, high-interest stakeholders require close management and frequent communication. Low-influence, low-interest stakeholders may only need periodic updates. Getting the engagement level wrong in either direction creates problems: underengaged stakeholders become blockers; overengaged low-priority stakeholders consume time that should go to critical parties.

Stakeholders and Scope

Stakeholder requirements are a primary source of project scope. When a stakeholder is identified late — especially one with authority over deliverables — they often introduce new requirements that change the scope, the schedule, and the budget. Early and thorough stakeholder identification is one of the most effective scope-protection measures a project manager can take.

Related Terms

Project Charter  ·  Project Scope  ·  Deliverable  ·  Scope Creep  ·  Project Lifecycle