3. Define Stakeholders and Establish the Organizational Structure

Note: In this framework, the term initiative refers to programs and projects. The term work execution unit refers collectively to programs, projects, phases, releases, and work packages, all of which are considered temporary organizations.

The Imperative of Stakeholder Identification

The manager of a program, project, phase, or work package must know who has a stake in its outcome. These stakeholders are critical to success, and understanding their expectations and contributions is a foundational requirement. The initial step is to recognize the significance, influence, and interest of each stakeholder. This knowledge enables the manager to build productive relationships with influential parties and ensure their ultimate satisfaction with the results.

Key Stakeholder Roles and Responsibilities

The ecosystem of an initiative is composed of several distinct stakeholder roles, each with specific functions and interests.

• The Customer: This individual or group has a problem that the program, project, phase, or work package aims to solve. The customer fulfills three crucial roles: funding the initiative, having a significant say in what it will accomplish, and approving deliverables throughout its progression.
• The Sponsor: The sponsor is a stakeholder who desires the initiative’s success and holds the formal authority to help achieve it, often an executive who champions the cause. The sponsor’s contributions include assisting in the prioritization of objectives, engaging with unsupportive stakeholders, and suggesting improvements to the plan.
• Functional or Line Managers: These managers are responsible for specific departments and their goals. They oversee the personnel that a manager may need to staff the program, project, phase, or work package.
• The Project Management Office (PMO): In organizations with a PMO (also known as a project Office or Head of project Management), this department is a natural stakeholder. The PMO’s primary function is to support managers through activities like developing organizational program and project management methods, monitoring compliance, and providing training, coaching, and mentoring.
• Team Members: The individuals assigned to work on the activities of the program, project, phase, or work package are also stakeholders. Their job security may be linked to their performance and adherence to their assignments.
• Other Impacted Parties: Any department or individual who impacts the initiative or is affected by its outcome is considered a stakeholder.

The Stakeholder Analysis and Classification Process

Identifying stakeholders and determining the best way to collaborate with them is an ongoing process that unfolds throughout the definition of the program, project, phase, or work package. The stakeholder analysis document is an essential tool for storing this information. The process involves several key activities.

Core Analysis Activities

By undertaking this detailed analysis, a manager can effectively navigate the complexities of stakeholder relationships. This structured approach is fundamental to managing stakeholder satisfaction and is a critical task during the initialization phase of any program, project, phase, or work package.

Core Management Artifacts

Stakeholder Register

The results of stakeholder identification, analysis, and classification are consolidated into a stakeholder register. This document records the relevant stakeholders, their roles, interests, influence, expectations, and required level of engagement. It serves as the authoritative reference for all stakeholder-related decisions and is included as part of the initializing reference to ensure a shared and explicit understanding of the stakeholder landscape.

Organizational Structure

During initialization, the program, project, phase, or work package is constituted as a temporary organization, which requires the explicit establishment of its leadership structure. At a minimum, this includes confirming the sponsor, assigning the responsible manager, and identifying the leaders responsible for executing the work.

The organizational structure defines reporting lines, escalation paths, and authority limits between the sponsoring organization (represented by the sponsor), the responsible manager, and the team leaders. This ensures that decision rights are clear, issues are escalated to the correct level, and any overlaps or gaps in authority are avoided. This structure may be documented visually or textually and is referred to as the organigram.

Defined Roles and Authority

Any work execution unit, whether a program, project, phase, release, or work package, has three relative roles: sponsor, manager, and team leader. These roles are defined in relation to the specific work execution unit in focus and must be interpreted relative to that unit’s position within the overall hierarchy of work. The same individual may hold different roles simultaneously across different work execution units at different levels of the governance and execution chain.

• Program manager
  • Is the work execution unit leader of the program.
  • Is sponsored by the program sponsor.
  • Sponsors the projects within the program.
• Project manager
  • Is the work execution unit leader of the project within the program.
  • Is sponsored by the program manager.
  • Sponsors the phases and work packages within the project.
• Phase manager
  • Is the work execution unit leader of the phase within the project.
  • Is sponsored by the project manager.
  • Sponsors the work packages within the phase.
• Work Package Leader
  • Is the work execution unit leader of the work package.
  • Is sponsored by the immediate upstream manager.
  • Does not sponsor further subordinate units.

Role and Authority of Sponsors of Work Executing Units

For a given work execution unit, the sponsor represents the upstream organization in relation to that unit and is constituted in this role through the initializing reference, or a similar authorizing document, of the work execution unit. The upstream organization may be the enterprise, a program, a project, or any other parent work execution unit acting as a temporary organization itself.

The sponsor authorizes the existence of the work execution unit, appoints its manager, and provides direction at the governance level. This authority includes approving key decisions that exceed the manager’s delegated limits, resolving escalated issues, and confirming acceptance of major deliverables. The sponsor exercises oversight and decision authority where governance intervention is required, but does not manage day-to-day execution.

Role and Authority of Managers of Work Execution Units

For a given work execution unit, the manager is appointed through the initializing reference, or a similar authorizing document, of that work execution unit and is responsible for managing the work execution unit for the defined work assignment. The manager’s authority begins with authorization and ends when the work execution unit is formally closed.

Within the authority delegated by the sponsor, the manager is accountable for planning, coordinating, and controlling the work required to produce the goal deliverable of the work execution unit. This includes directing teal leaders, requesting and coordinating resources, assigning work, making management decisions within agreed limits, and escalating issues when authority thresholds are reached. The manager acts as the central point of integration between governance, execution, and stakeholders.

Role and Authority of Team Leaders within Work Execution Units

For a given work execution unit, team leaders are assigned to lead defined components of its goal deliverable. They exercise delegated authority received from the manager of that work execution unit.

Their responsibility is to organize, coordinate, and oversee the execution of their assigned work, ensuring that outputs meet agreed requirements and are delivered as planned. Team leaders report to the manager of the work execution unit, escalate issues beyond their authority to that manager, and contribute to progress reporting and coordination.