Introduction to Project Management - Understanding Stakehlders

Published on 9 May 2025 at 18:30

As outlined by the Project Management Institute (PMI), a stakeholder is anyone, whether an individual, group, or organization, who can affect on, be affected by, or perceive themselves as being affected by the project.

This all-inclusive explanation presents a vague image of this particular group and may require additional clarification.

Active and Passive Stakeholders

Stakeholders can be grouped into two broad categories: those who take an active role and those who have a more passive involvement. Active stakeholders are all those who actively carry out project activities, such as project managers, executives, suppliers and users. Inactive stakeholders refer to individuals without a specific role or involvement in project tasks, yet still contribute to the project in other ways.

Both active and passive stakeholders play a role in shaping the project, and I will illustrate their value through a made-up narrative that I hope you will find interesting.

Royal Rail

During the 1800s, a small yet noble kingdom successfully freed itself from the rule of a larger empire, thanks to the bravery of its people. Their ruler was filled with great zeal and determination, driven to help advance his people. To connect the two primary urban hubs, White City and Nishville, he resolved to build a railway.

He called upon his three most trusted companions - the Prime Minister, the Minister of Construction, and the Minister of Infrastructure (User).

As per the royal decree, I hereby declare the three of you as official members of the Project Board. Your task is to build a railroad connecting White City to Nishville. (Project Mandate)

After returning to his office, the Prime Minister promptly reaches out to Yuma, a successful middle-aged engineer and entrepreneur, for his expertise in bringing the project to fruition.

We have been instructed by His Majesty to construct a railway. As the leader of the project board, I am appointing you as the Project Manager. You’re the most versatile and dynamic person I know, and that’s why I need your help.”

Yuma enthusiastically agreed to his friend's proposal and tirelessly worked around the clock to launch their project. He provided a short overview of the expected deliverables, anticipated completion date, and the projected cost to his country's budget. He obtained all available information on companies from advanced countries capable of executing this project and shared it with the Minister of Construction, who then opened a bidding process for the construction of a railway connecting the nation's two major cities. After careful consideration, he highlights the advantages of the newly proposed transportation route for his fellow citizens and suggests to the Minister of Infrastructure the creation of a National Railway Corporation to oversee and maintain the railway network upon its completion.

Once all the information from Yuma had been thoroughly examined, the Project Board opted to issue a Tender and extend invitations to several international companies for potential participation. Numerous companies vied for the prestigious project during that era, submitting their proposals. The Project Board faced a difficult decision in choosing who to award the project to, so they sought assistance from esteemed consultants in various kingdoms. Their duty was to ensure that the project was completed within the designated timeframe, with the highest level of quality possible, and without exceeding the allocated budget. The reviewing process lasted for 3 months before ultimately choosing Foreign Railway Company (Contractor) as the recipient of the Project.

In May 1846, FRC commenced its construction. Despite the numerous risks involved, Yuma's exceptional intelligence helped him effectively manage the project. The establishment of the railway route between two cities sparked the interest of those living in villages along the way, who eagerly observed its construction from start to finish. While a majority of individuals were pleased with the advancements made, there was also a significant number who expressed worries about the potential dangers of high-speed trains for their children's safety, as well as concerns about excessive noise and pollution caused by their operations. Among the community, there were those who were superstitious and thought that their cows, grazing in the fields nearby, would suddenly start producing black milk.

The iron road connecting the two cities was almost finished, nearly two years after construction began. The Project Board had concluded their last survey. The time had come to inform His Majesty that the Project was nearing its end. In May 1848, during the Grand Opening Ceremony, the King declared to the assembled crowds at White City Central that the railway was officially open. With his royal entourage, he set out on his first journey to Nishville. The crowd cheered for the king and bid farewell to the departing train at the station.

In the upcoming month, the Project Board officially transferred the railway to the National Railway Company, entrusting them with the responsibility of running and upkeeping the rail connecting the two cities.

The new rail brought joy to all the kingdom citizens, who lived happily until the end of their days. 

Conclusion

Using a short fairy tale, I sought to illustrate the ways in which the project affects its participants and how they view this impact. This narrative is entirely fabricated and any resemblance to real historical occurrences is purely coincidental. Nevertheless, the story includes all pertinent stakeholders, including those with superstitious beliefs.

The Royal Mandate was authorized by His Majesty and the royal court. The project objectives were primarily under the responsibility of the Prime Minister as Executive. Two officials were selected to serve on the board, with each representing a key stakeholder - the Senior Supplier (with oversight of design, procurement, and implementation) and the Senior User (responsible for operation and maintenance after commissioning). Design Assurance, as articulated by prominent scholars, plays a crucial role in managing key project components such as quality, cost, and schedules. In conclusion, Yuma, the kingdom's pioneer project manager, played a crucial role in making this project a reality through their exceptional skills and abilities.