186 Project Management
called stakeholders. Technically, stakeholders can be something
other than people (a department, for example), but I’ve found it
easy to consider stakeholders simply as the “people” compo-
nent of project interfaces. Let’s examine who these people are
and what makes them so important to us.
What Makes a Stakeholder a Stakeholder?
“Stakeholder” is an extremely common term in project man-
agement. Although you’ll find a wide variety of definitions for
the term, one of the best ways of defining it is to consider what
makes a stakeholder a stakeholder. What exactly are the char-
acteristics of stakeholders and stakeholder groups? Several of
the most widely accepted ones are listed below. It’s important to
note that any oneof these characteristics can make someone a
stakeholder:
- Stands to gain or lose through the success or failure of
the project - Provides funding for the project
- Has invested resources in the project
- Participates in (works on) the project
- Is affected by the outputs of the project
- Is affected by the outcome of the project
- Is in the “chain of accountability”
All of these characteristics are probably clear, except per-
haps the chain of accountability. This term relates to an inter-
esting twist on the ordinary interpretation of “stakeholder” and
is worth mentioning for its political implication. The chain of
accountability is often seen within complex matrix organiza-
tions, where a number of departments exist, each with layers of
management. In organizations structured this way, several sig-
natures must often be secured before a project is finally consid-
ered approved. Everyone who signs off to approve the project is
viewed as taking on some accountability for the project. These
people are in the chain of accountability.As such, they may
see themselves as stakeholders—and feel that they have the
right to exert influence on the project, if they sense the need.