Concepts
It is further important to document their positioning relative to the program, which can effectively be done by creating a stakeholder matrix. This process is a vital part of achieving the Program Management Professional (PgMP) certification.
I. Identifying Stakeholders
Stakeholders refer to individuals, groups, or organizations that have a vested interest in the outcome of the program. They can influence or be influenced by the program’s course of action, objectives, and policies. The stakeholders in a program may typically include the following:
- Sponsors: These are persons or entities who provide resources and support for the project and are accountable for enabling success.
- Suppliers: Organizations providing products or services necessary for the program.
- Program team: The team of individuals directly involved in implementing the program.
- End-users: These are the beneficiaries of the program’s output.
- Government agencies: They may influence the program through regulations, policies, and laws.
II. Stakeholder Matrix
A stakeholder matrix, also known as a stakeholder map, is a graphical representation that portrays stakeholders’ relative interest and their level of influence on a program. It is a beneficial tool for understanding stakeholders and formulating strategies to manage them.
Here’s a basic example of how to formulate a stakeholder map:
| Low Interest | High Interest | |
|---|---|---|
| Low Influence | Minimum Effort | Keep Informed |
| High Influence | Keep Satisfied | Key Players |
This simple 2×2 matrix has Interest on the x-axis and Influence on the y-axis. Stakeholders with high influence and high interest, like program sponsors, are the key players and require significant focus. Those with high influence but low interest need to be kept satisfied, and those with high interest but low influence should be kept informed.
III. Positioning Stakeholders Relative to the Program
Stakeholders positioning relative to the program is an essential step as it aids in devising communications and engagement strategies tailored to each stakeholder group. Stakeholders positioning may be based on:
- Their interest in the program
- Their influence on the program
- Their potential impact on the program
A high interest and high influence stakeholder may be a key decision-maker or sponsor whose positioning is significant for the program. For example, an executive sponsor usually falls in this quadrant.
A high interest and low influence stakeholder may be an end-user or a junior team member who needs to be kept informed about program updates.
Low interest and high influence stakeholders could be regulators or senior executives not directly involved in the program. These stakeholders need to be kept satisfied to ensure a smooth execution of the program.
Regular assessment and reprioritization of stakeholders relative to the program is necessary as their interest and influence might change over time due to various factors like strategic shifts, regulatory changes, or project advancements. Managing stakeholders by considering these dimensions and updating the stakeholder matrix routinely can considerably enhance the success and efficiency of a program.
By adhering to these guidelines for identifying stakeholders, creating a stakeholder matrix, and appropriately documenting stakeholders’ positions, Program Management Professionals can ensure stakeholder engagement and alignment, thereby ensuring the smooth execution and ultimate success of their program.
Answer the Questions in Comment Section
True/False: In program management, stakeholders include only the team members who are directly involved in the execution of the program.
- True
- False
Answer: False
Explanation: Stakeholders include anyone who has an interest in the program or will be affected by its outcomes. This encompasses not only team members but also sponsors, consumers, government agencies, and others.
What is a stakeholder matrix in program management?
- a) A tool used to communicate with stakeholders
- b) A documentation of stakeholders’ positions relative to the program
- c) A flowchart of the program management processes
- d) A budget plan for stakeholders
Answer: B
Explanation: A stakeholder matrix is a tool used for identifying, documenting, and understanding the needs and expectations of the stakeholders, including their relative positions and interests in the program.
Multiple Select: Who can be classified as stakeholders in a program?
- a) Program sponsors
- b) Teams executing the program
- c) Potential users or beneficiaries of the program’s outcomes
- d) Competitors
Answer: A, B, C
Explanation: Stakeholders include the program sponsors, teams executing the program, and end-users or beneficiaries. Competitors are generally not considered as stakeholders.
True/False: Creating a stakeholder matrix is the final step in identifying and managing stakeholders in a program.
- True
- False
Answer: False
Explanation: Creating a stakeholder matrix is not the final step. It is an ongoing process throughout the lifecycle of a program. Managers need to constantly update it as stakeholders’ interests and influence may change over time.
What is the main purpose of creating a stakeholder matrix in a program?
- a) To assess the risk associated with each stakeholder
- b) To document the stakeholders’ positions relative to the program
- c) To measure the performance of stakeholders
- d) To identify stakeholders’ financial contributions to the program
Answer: B
Explanation: The main purpose of creating a stakeholder matrix is to document the stakeholders’ positions relative to the program, so that their needs, interests, and influence can be better managed.
Multiple Select: What are the parameters used in a stakeholder matrix?
- a) Stakeholder’s interest
- b) Stakeholder’s power
- c) Stakeholder’s knowledge about the program
- d) Stakeholder’s location
Answer: A, B, C
Explanation: Parameters used in a stakeholder matrix typically include stakeholder’s interest in the program, their power or influence, and their knowledge about the program.
True/False: A stakeholder matrix typically reflects the current state of stakeholder relations and does not require updating.
- True
- False
Answer: False
Explanation: A stakeholder matrix is a dynamic document that should be updated regularly to reflect changing stakeholder relations and program dynamics.
What role does a sponsor play in program management?
- a) Implementation of tasks
- b) Provide resources and support
- c) Monitoring and controlling
- d) All of the above
Answer: B
Explanation: Sponsors often provide the resources and support necessary for the program. They usually are not involved in the day-to-day tasks or monitoring and controlling functions.
True/False: Program Managers play a key role in stakeholder management and influencing their engagement.
- True
- False
Answer: True
Explanation: Program Managers play a pivotal role in stakeholder management. They are responsible for identifying and managing stakeholders, keeping them engaged, and ensuring their interests are taken into account.
Multiple Select: Which of the following benefits does a well-managed stakeholder matrix provide to the program?
- a) Better understanding of stakeholders’ interests and influence
- b) Improved communication among stakeholders
- c) Higher rate of program success
- d) Detailed risk management plan
Answer: A, B, C
Explanation: A well-managed stakeholder matrix provides an understanding of stakeholders’ interests, improved communication among stakeholders, and increases the likelihood of program success by effectively managing their expectations. It is not specifically a tool for generating a risk management plan.
Great post! Identifying stakeholders is crucial for the success of any program.
How do you prioritize stakeholders once they are identified?
Thanks for sharing! This was really informative.
Can someone explain how a stakeholder matrix is used in program documentation?
Really appreciate the detail in this post.
What tools can be used to create a stakeholder matrix?
Nice article, very useful.
I found the section on sponsor identification very helpful.