Project stakeholders
All members of the project team, as well as any interested entities that are either internal or external to the company, are considered stakeholders. To determine project requirements and expectations, the project team must identify all stakeholders, both internal and external, performing and advising, as well as those that are positive and negative. To ensure a successful outcome, the project manager must manage the influence of all stakeholders in relation to project requirements. Participating in a project requires that stakeholders have different levels of authority and responsibility. This level of responsibility and authority can change throughout the project’s lifecycle. They may contribute in surveys or focus groups, or they could be full sponsors, which include financial, political, and other support. Other stakeholders can also hinder the success of the project. These stakeholders need to be identified and addressed by the project manager throughout the project’s lifetime. Stakeholder identification is an ongoing process throughout the project’s life cycle. The success of a project depends on the identification of stakeholders and understanding their influence. Failure to do this can cause delays, cost increases, unexpected problems, and even cancellation of the project. Late recognition that the legal department is a major stakeholder can lead to delays and higher expenses. This is due to the legal requirements that must be met before the project can proceed or the product scope can be delivered. Here are some examples: Sponsor: A sponsor is a person or group that provides resources and support for the project, and is responsible for its success. The sponsor can be either external or internal to the project manager’s company. The sponsor promotes the project from its conception to its completion. The sponsor acts as a spokesperson for the project to higher management levels and promotes the benefits it brings. The sponsor is responsible for initiating the project and ensuring that it is formally authorized. He also plays an important role in the creation of the charter and scope. The sponsor can be used as an escalation route for issues that are not under the control of project managers. Other important issues that the sponsor might be involved with include authorizing changes to scope, phase-end reviews and go/no-go decision making when there are high risks. After project closure, the sponsor ensures that the project’s deliverables are transferred smoothly into the business of the requesting company. Customers and users: Customers or organizations are those who approve and manage the project’s product, service, and result. Users are the people or organizations that will use the product, service or result of the project. Customers and users can be either internal or external to an organization, and may exist in multiple layers. Customers for a new pharmaceutical product might include the doctors who prescribe it, patients who use it, and the insurance companies that pay for it. Customers and users can be used interchangeably in some areas. In others, customers refers to the entity that acquires the product. Users refers to those who will use the product directly. Sellers: External companies who enter into a contract to supply components or services for the project are called vendors, suppliers or contractors. Business partners: