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2 – ORGANIZATIONAL INFLUENCES AND PROJECT LIFE CYCLE
2.2 Project Stakeholders and Governance
A stakeholder is an individual, group, or organization who may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project. Stakeholders may be
actively involved in the project or have interests that may be positively or negatively affected by the performance or completion of the project. Different stakeholders may have competing
expectations that might create conflicts within the project. Stakeholders may also exert influence over the project, its deliverables, and the project team in order to achieve a set of outcomes
that satisfy strategic business objectives or other needs. Project governance—the alignment of the project with stakeholders’ needs or objectives—is critical to the successful management of
stakeholder engagement and the achievement of organizational objectives. Project governance enables organizations to consistently manage projects and maximize the value of project
outcomes and align the projects with business strategy. It provides a framework in which the project manager and sponsors can make decisions that satisfy both stakeholder needs and
expectations and organizational strategic objectives or address circumstances where these may not be in alignment.
2.2.1 Project Stakeholders
Stakeholders include all members of the project team as well as all interested entities that are internal or external to the organization. The project team identifies internal and external, positive
and negative, and performing and advising stakeholders in order to determine the project requirements and the expectations of all parties involved. The project manager should manage the
influences of these various stakeholders in relation to the project requirements to ensure a successful outcome. Figure 2-7 illustrates the relationship between the project, the project team, and
various stakeholders.