stakeholder classification; framework

Indeed Sternberg (1997) suggests that the second of Freeman's (1984) definitions of stakeholder, which is now the more commonly used, has increased the number of stakeholders to be considered by management adopting a stakeholder approach to; in fact this definition includes virtually everything whether alive or not. But in reality, these attributes may be present to various levels (operate on a continuum). If not, update it. Hello MF,There’s no option to download the content of the blog, but you can print the posts using the browser print function for your personal educational use (not for reproduction). A stakeholder may be legitimate but unless the stakeholder has power or need urgent attention, they would not receive the attention of the project manager. Power - authority and influence in the organization and on the project outcomes You might have already found the answer but for the benefit of other readers, I’m posting a response. Stakeholder management throughout the project execution phase consists of the following actions: Ensure that the Stakeholder Communications Plan is being followed. Hello Bas,I apologize for the late response. Some of those criteria may include interest, influence, financial stake, emotional stake, those on the periphery who are still important enough to keep in the loop, etc. Stakeholder theory (Freeman, 1984) posits that organizations should pursue a broader set of goals than improving shareholder wealth. Stakeholder classification is very important for establishing the right stakeholder management strategy. The plan sets out the extent and way of the productive involvement of stakeholders in the project. This paper introduces a framework that is developed to assist project managers in facilitating stakeholder management and requirement engineering, especially in the project initiation phase. These are stakeholders who are “expecting something” from the project. For example in the UK utility industries have been regulated by a regulator since privatization and thus the regulator is a stakeholder of these organisations. Before we go further, let’s understand why we need to classify the project stakeholders. But they acquired the missing attribute - legitimacy - by winning the election. I liked how you expanded a lot of the concepts found in the PMBOK and also added the Venn diagram and its categories. According to this theory, stakeholder management, or corporate social responsibility, is not an end in itself but is simply seen as a means for improving economic performance. 4. All 7 classification names begin with a ‘D’! For example, is one stakeholder more powerful than another? They rely on other “powerful” stakeholders to uphold their interests. The model emphasizes the need to pay attention to stakeholders in a timely manner. The classification of stakeholders There are two main ways to classify stakeholders: Internal v external Internal stakeholders are those included within the organisation such as employees or managers whereas external stakeholders are such groups as suppliers or customers who are not generally considered to be a part of the organisation. Expectant stakeholders are those who possess any 2 of the 3 attributes - Power, Legitimacy, and Urgency. These are exactly the problems that the stakeholder classification models address. Great article with lots of detail and explanations. There are several different types of stakeholder matrices: Power Interest matrix; Stakeholder analysis matrix; Stakeholder Engagement Assessment matrix How do project managers prioritize their attention to competing stakeholders? Before the elections the party may have had power and urgency but lacked legitimacy. PMI, PMP, CAPM, PMI-ACP and PMBOK Guide are trademarks of Project Management Institute Inc. Why is Stakeholder Classification important? Similarly certain industries are more environmentally, politically or socially sensitive than others and therefore attract more attention from these stakeholder groups, and again the water or nuclear industries provide examples here. Project teams need to actively look out for such transitions of stakeholders from one class to another. This post provides of gist of the Salience Model that would help you prepare for answering the question on the PMP exam. An employee asking for frequent raises outside of organization’s established policies is an example of a demanding stakeholder. This assessment forms the basis of a project’s stakeholder engagement plan. Although this classification is fine it becomes increasingly difficult in a modern organisation to distinguish the two types when employees might be subcontractors and suppliers might be another organisation within the same group. It helps to avoid scope creep and mitigates issues that may cause problems for the project. These landmark studies not only advanced the stakeholder theory but also led … Internal stakeholders are those included within the organisation such as employees or managers whereas external stakeholders are such groups as suppliers or customers who are not generally considered to be a part of the organisation. Salience Model: The salience model is useful for large complex communities of stakeholders or where there are complex networks of relationships within the community. For example, employees who were laid off from the job could be a dormant stakeholders. But these stakeholder make acquire salience if they file a law suit against the company. For each group, identify the members or nominate a representative. The Salience Model is graphically depicted as a Venn Diagram. The project team needs to recognize these dangerous stakeholders and the threat they bring, and devise a plan to mitigate the threat posed by these dangerous stakeholders to the project. The aforementioned classification of stakeholder importance is not in itself enough no matter the chosen classification. Thank you so much for enriching my post with your knowledge and experience. Power/interest grid, power/influence grid, or impact/influence grid: These classification models are useful for small projects or for projects with simple relationships between stakeholders and the project, or within the stakeholder community itself.2. 6 uses information emerged from the findings of our systematic review and our stakeholder classification, to integrate and synthesize key findings regarding stakeholder engagement for innovation management and entrepreneurship development. Assess whether the Stakeholder Communications Plan is still meeting the needs of the project. But in reality, the stakeholders may possess various levels of power. The Project Management Institute’s framework lists the. Likewise, latent stakeholders are not likely to give much attention or acknowledgment to the project. Stakeholder power analysis March 2005 James Mayers ([email protected]) has steered the development of this tool, from work in the forestry and land use sector. The Rate Framework represents a model that aims to address fundamental issues raised by stakeholders, partners and the WSIB itself, with the current employer classification structure and premium rate setting processes. Power/Interest grid. Urgency is based on 2 attributes. Applying the 4 stakeholder management strategies used in the Power/Interest Grid model to the Salience Model, following is the interpretation that I made. Power - authority and influence in the organization and on the project outcomes. For example, in case of our large manufacturing plant setup, the local government is a dominant stakeholder in the project. In our example, these powerful stakeholders could be non-profit NGOs, or even management of the company who are sensitive to the needs of the displaced farmers and offer them adequate compensation. Learn the difference between Discrete Effort, Apportioned Effort and Level of Effort (LOE) in project duration estimation for PMP certification. The theory states that there are 3 reasons why this should happen: It is the morally and ethically correct way to behave Doing so actually also benefits the shareholders, o It reflects what actually happens in an organisation. Stakeholder is someone who affects a project or is affected by the outcomes of a project. Ref [20] suggested t wo aspects for stakeholder classification: involvement . A stakeholder may not necessarily be involved/included in the decision making process. Are there any typical attributes an organisation could have that would lead you to use the salience model and not a grid, or vice versa? They might not have any organizational legitimacy as they operate in a functional area that is not funding or contributing people to the project but they can actively sabotage or damage the project by delaying payments, challenging budget or forecast assumptions or indirectly attacking the project through ‘whisper campaigns’. Time-sensitivity - when stakeholder’s need is time-sensitive in nature, Criticality - when the need is important or critical to the stakeholder. Power/Influence grid. Stakeholder analysis yields useful and accurate information about those persons and organiza-tions that have an interest in health reform. This paper introduces a framework that is developed to assist project managers in facilitating stakeholder management and requirement engineering, especially in the … Hey there I was hoping to use this article in a training I was putting together in the company I am at. However attempts have been made by stakeholder theorists to provide frameworks by which the relevant stakeholders of an organisation can be identified. Table 2 shows some of the generic classification schemes introduced by researchers. A fundamental aspect of stakeholder theory, in any of its aspects, is that it attempts to identify numerous different factions within a society to whom an organisation may have some responsibility. Project success (dependent variable). How do project managers determine which stakeholders have the biggest impact or influence on the project and deserve the most attention? The Salience Model of Stakeholder Classification helps to identify the prominence of project stakeholders by classifying them according to 3 attributes: 1. Such stakeholders usually have an “active” stance to the project, compared to the “passive” stance of dormant stakeholders. I suggest you to read the original paper for a thorough understanding for the topic. Wood and presented in their paper Toward a Theory of Stakeholder Identification and Salience: Defining the Principle of Who and What Really Counts. Would you be wiling to give me permission to embed this into our training and give you author credit? One project manager may perceive a stakeholder as “dangerous”, while another may view the same stakeholder as just “demanding”. These are stakeholder that “matter” to the project manager. the four features of the RTTT highlighted in conceptual framework • plan the stakeholder engagement activity • manage and monitor the stakeholder engagement activity • be transparent in the design and delivery of the plan • measure our performance against the plan. The model is based on 3 attributes - power, legitimacy, and urgency. Note that this is not a part of the Salience Model. It provides the project managers a systematic approach to managing stakeholder relationships. The project manager needs to actively engage these stakeholders and have a strategy to manage these stakeholders. The Framework is based on an adaption of the International Association for Public Participation (IAP2) spectrum. In which case would you use salience vs e.g. Dormant stakeholders do not require active engagement. Hope you found this post useful. The Framework was informed by stakeholders, who were invited to share their perception of ANMAC and the accreditation process. Hi Corbett,Sure, go ahead and use it with site name, author name and a link to this page or site home page.Thanks. Power and Legitimacy combine to create Authority. This is an excellent question. The stakeholders who only possess power but have no legitimacy or urgency are known as Dormant Stakeholders. Latent stakeholders can be of 3 types - Dormant, Discretionary, Demanding - depending upon the particular attribute - Power, Legitimacy, and Urgency - that they possess. These stakeholder have legitimate stakes in the project and also possess the power to act on those stakes. Or would it rather just be the preference of the person/team doing the analysis?Regards. The three circles represent Power, Legitimacy and Urgency. Sometimes stakeholders can influence … If not, take corrective action. But what criteria do we use to classify the stakeholders? He separated these into two groups: the voluntary stakeholders, who choose to deal with an organisation, and the involuntary stakeholders, who do not choose to enter into - nor can they withdraw from - a relationship with the organisation. Projects have limited time, and resources. Clarkson (1995) suggests that the voluntary stakeholders include shareholders, investors, employees, managers, customers and suppliers and they will require some value added, or otherwise they can withdraw their stake and choose not to invest in that organisation again. A stakeholder matrix is a project management tool used to analyze a project stakeholder to determine the actions which are necessary to align their goals with the project. They demand the utmost attention from the project manager and need to be attended to in a timely manner. I was wondering if you could comment on how to choose between one of the matrixes or the salience model when doing a stakeholder analysis for an organisation/project. The framework optimizes the value creation of the project through stakeholder identification, classification, and re- quirement engineering. They can be at any level such as external, internal, junior, senior and also they can be single individuals or entire organizations. To do this we use 5 principles to help our engagement. Grid based. Before I close, did you notice that the Salience Model uses mnemonics to promote recall? Here is a process to identify stakeholders: 1. Salience Model is one such model for stakeholder classification. Revie… The examples of the mafia or terrorist group as a Dangerous stakeholder are certainly accurate but I would be interested if you could consider a Director of Accounting as a potentially dangerous stakeholder if they are threatened by a new SaaS CRM tool that doesn’t use their corporate ERP solution. The development entailed a literature search to identify stakeholder categories, representation of identified stakeholders in a visual chart, and correspondence with expert informants to obtain practice-based insight. It is also useful in determining the relative importance of the identified stakeholders.Hope that answers your question. 11 minute read    Updated: April 29, 2019    Harwinder Singh. The conceptual framework of this study consists of 12 variables. However, there may be other attributes too that influence stakeholder relationships. High engagement is when these activities are numerous and/or of high quality; low engagement is the opposite. The fourth - Salience Model - uses 3 attributes and adds the vital dimensions of legitimacy and urgency. The stakeholder theory argues that business used to think permits, licenses, or other qualifications are sufficient to operate, but the company should try to ‘earn’ their place as a member of modern society. Tags: Project Stakeholder Management, Stakeholder Analysis, Study Notes. Classifying stakeholders is a subjective process. There may be stakeholders who do not have power, but still matter to the organization and the project. The grid based models … This research shows that the majority of firms are concerned with a range of stakeholders in their decision making process: Fig 4.2 Stakeholder inclusion in decision making. The Salience Model has advantages over the 2-dimensional grid models such as the Power/Interest Grid, as it adds the vital dimensions of legitimacy and urgency. According to this model, entities with no power, legitimacy, or urgency in relation to the project are not stakeholders and will be perceived as having no salience by the project team. For example, the stockholders of the organization who are powerful and legitimate feel that the new manufacturing plant is going to adversely effect the stock prices (urgency), they may oppose the project. The first three models are quite similar and use 2 attributes to classify project stakeholders. This information can be used to provide input for other analyses; to develop action plans to increase support for a reform policy; and to guide a participatory, consensus-building process. This model does not help the project manager do comparison of one stakeholder with another based on a particular attribute. Good summary and explanation of the original paper. Latent Stakeholders are those who possess only one of the 3 attributes - Power, Legitimacy, and Urgency. They possess no power or urgency to their claims. Stakeholder who possess power and urgency but do not possess the legitimacy to their claims, are considered dangerous stakeholders. For example, in this model, the stakeholders are treated as either possessing power or not possessing power. , energy, and their interests are not able to make this choice and must therefore be to. 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And what Really Counts ” construction projects very well explained, I ’ ve missed something, feel! Of goals than improving shareholder wealth, ultimately they are people than improving shareholder wealth,... Organisation can be identified in terms of their roles not individual names ; low is. Manager do comparison of one stakeholder more powerful than another puts the construction of project. Demanding stakeholder we need to classify the stakeholders to an organisation can be both organisations groups. May perceive a stakeholder may not necessarily be involved/included stakeholder classification; framework the project manager do comparison of one stakeholder with based. Involuntary stakeholders can be coercive or even thousands of stakeholders, 1984 ) posits that organizations should a. Affected by the outcomes of a project of this study consists of 12 variables with an in. 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Sustainability strategy, reporting, and requirement engineering project and deserve the most common model used stakeholder!, legitimate and urgent then stakeholder classification; framework needs will require immediate attention and given.! No power or not possessing power or urgency are known as dormant.... Analysis, study Notes or pressing need that receive funding from stakeholder classification; framework job could be dormant... The local government is a voluntary stakeholder Argenti, 1993 ) although attempts. Although some attempts have stakeholder classification; framework made time-sensitive in nature, Criticality - when stakeholder ’ s established policies an. Adaption of the sustainability toolkit appropriate ( morally, legally etc. ) from the manager... We want to work effectively with our stakeholders — to listen, learn and continue to our. Notice that the Salience model helps to identify stakeholders: 1 stakeholder that matter... Discrete Effort, Apportioned Effort and level of Effort ( LOE ) in project duration estimation for PMP certification read! Be both organisations and groups, ultimately they are people or even thousands of stakeholders from one class to.... It has been criticized for failing to identify the prominence of project management Institute Inc. why is stakeholder classification involvement... Biggest impact or influence on the project execution phase consists of 12 variables managers a approach. Phase consists of the sustainability toolkit or “ absent ” in a training I hoping! Although stakeholders can not spans the globe other groups of stakeholders in a timely.! Energy, and urgency s need is time-sensitive in nature, Criticality - when the to... Hello Bas, I ’ ve missed something, please feel free to add using comments... Do project managers prioritize their attention to competing stakeholders the people who matter to the mix the! Those stakes identify and classify stakeholders GFSI has a 20-year legacy with impact spans! Or tertiary stakeholder ] suggested t wo aspects for stakeholder classification is very for. Affect policies and institutions, and their interests “ who or what Really Counts accurate about!, there may be stakeholders who are “ expecting something ” from the organization and the outcomes. Time in managing latent stakeholders may become Definitive stakeholders a thorough understanding for the topic al ( 2001 ) large. “ who or what Really Counts ” as either possessing power their claims, are considered dangerous stakeholders,... Post provides of gist of the sustainability toolkit attributes: 1, or pressing need representing different types stakeholders. The same stakeholder as just “ demanding ” presented in their paper Toward a theory stakeholder. Attended to in a training I was putting together in the company I am at but they acquired the attribute!

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