What is a Stakeholder in Project Management?
Stakeholders are those with any interest in your project's outcome. They are typically the members of a project team, project managers, executives, project sponsors, customers, and users. Stakeholders are people who are invested in the project and who will be affected by your project at any point along the way, and their input can directly impact the outcome. It's a good idea to practice good stakeholder management and constantly communicate with them in order to collaborate on the project. After all, they have a stake in how it all turns out.
Stakeholders vs. key project stakeholders
Project stakeholders in general can be single individuals or entire organizations who are affected by the execution or outcome of a project. Doesn't matter whether the project affects them negatively or positively. If they're affected, they're a stakeholder. Key project stakeholders, however are those stakeholders who have the influence and authority to dictate whether a project is a success or not. These are the people and groups whose objectives MUST be satisfied. They make or break the project. Even if all deliverables are in and budgets are met, if these people aren't happy, you've failed as a project manager.
Typical key stakeholders in a project
The typical key project stakeholders you'll find in any project will include some of the following:
- Customers: the direct user of a product or service, often both internal and external to the company executing the project
- Project manager: the project's leader
- Project team members: the group executing the project under the project manager's leadership
- Project sponsor: the project's financier
- Steering committee: advisory group providing guidance on key decisions. Includes the sponsor, executives, and key stakeholders from the organization
- Executives: the top management in the company executing the project, those who direct the organization's strategy
- Resource managers: other managers who control resources needed for executing the project
There are many more depending on the project, some which may include: sellers/suppliers, contractors, owners, government agencies, media outlets, even society at large.
You might also have key project stakeholders who are outside of your organization, so let’s look at the difference between internal and external stakeholders in project management.
Internal vs. external stakeholders in project management
It’s important to understand that your project may have key stakeholders inside and outside of your organization. That’s why it’s worth noting the key differences between internal and external stakeholders.
Internal stakeholders in project management
Internal stakeholders are those within your organization. They can include top management, project team members, your own manager, your peers or co-workers, a resource manager, and internal customers.
External stakeholders in project management
External stakeholders are not part of your organization, but might include external customers, government entities, contractors and subcontractors, as well as suppliers.
Identifying stakeholders for a project
Identifying internal and external stakeholders in project management will allow you to better execute your project planning by ensuring each and every stakeholder is informed throughout the project and satisfied with the end result. In order to ensure that you include all relevant internal and external stakeholders, you’ll want to learn how to create a stakeholder management plan with our helpful guide.
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