2.4.1 Identifying Project Stakeholders

In identifying project stakeholders, we need to go beyond the project organization's internal environment to determine which external stakeholder groups can impact our operations and the degree to which they are able to influence the project's implementation. Internal stakeholders are a vital component in any stakeholder analysis and their impact is usually felt in relatively positive ways; that is, while serving as limiting and controlling influences, most internal stakeholders do want to see the project developed successfully. On the other hand, many external stakeholder groups operate in manners that are hostile to project development. For example, consider the case in which a European city is seeking to upgrade its subway system, adding new lines and improving facilities. There is a strong potential for those who are interested in preserving antiquities to actively resist the completion of such a project if they perceive that the tunnel digging could be destroying valuable artifacts. Cleland (1988) refers to these types of external stakeholders as "intervenor" groups and demonstrates that they have the potential to pose a major threat to the successful completion of projects.

Among the set of project stakeholders that project managers must consider are individuals in the following categories.

Internal

• Top management
• Accountant
• Other functional managers
• Project team members

External

• Clients
• Competitors
• Suppliers
• Environmental, political, consumer, and other "intervenor" groups

Let us briefly consider the demands that these stakeholder groups commonly place on project managers. Although we will start with top management, it is also important to note that "top management," as a single entity, may be too simplistic a classification for this stakeholder group. A valid argument could be made that within top management there are obviously differing degrees of enthusiasm for and commitment to the development of a particular project. Likewise, any environmental intervenor groups are likely to be composed of a number of different factions with their own agendas and priorities. In other words, a good deal of conflict and differences of opinion will be discovered within any generalized group. Nevertheless, this approach is useful because it demonstrates the inherent nature of conflict and other pressures arising from project development, as it exists between stakeholder groups, rather than within any group.