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PMP Practice Questions #61

In a new urban redevelopment project, the project manager, Carlos, is tasked with identifying and prioritizing stakeholders to efficiently manage their expectations and engagement. The project impacts a diverse group, including local government authorities, residents, business owners, and environmental groups. Each group has varying levels of influence and interest in the project’s outcomes. Carlos needs a structured approach to analyze these stakeholders and develop an effective engagement strategy. What should be Carlos’s first step in this process?

A) Create a detailed communication plan for all stakeholders, ensuring frequent updates.
B) Categorize stakeholders based on their level of influence over and interest in the project, to tailor his engagement strategies.
C) Hold a public meeting to gather input from all stakeholders simultaneously.
D) Focus primarily on the stakeholders with the most apparent interest, such as local residents and business owners.

Analysis:

Carlos, the project manager of a new urban redevelopment project, faces the challenge of identifying and prioritizing a diverse group of stakeholders, including local government authorities, residents, business owners, and environmental groups. Each group has different levels of influence and interest in the project’s outcomes. Carlos needs to adopt a structured approach to analyze these stakeholders and formulate an effective engagement strategy. His first step should be to establish a foundation for understanding and managing stakeholder expectations and engagement efficiently.

Analysis of Options:

Option A: Create a detailed communication plan for all stakeholders, ensuring frequent updates. While creating a detailed communication plan is an essential step, it should come after understanding the stakeholders’ needs and expectations. Before formulating a communication plan, Carlos needs to categorize the stakeholders to tailor the communication strategies effectively. Therefore, this step is crucial but not the first action to be taken.

Option B: Categorize stakeholders based on their level of influence over and interest in the project, to tailor his engagement strategies. Categorizing stakeholders based on their level of influence and interest is a foundational step in stakeholder management. This approach allows Carlos to tailor his engagement strategies according to the specific needs and influence of each stakeholder group. By doing this first, Carlos can then develop a communication plan that is more targeted and effective, making this option the most logical first step.

Option C: Hold a public meeting to gather input from all stakeholders simultaneously. Holding a public meeting can be a valuable part of stakeholder engagement, but it should not be the first step. Without first understanding and categorizing the stakeholders, a public meeting may not effectively address the varied concerns and levels of interest. It is more strategic to hold such a meeting after the initial analysis and categorization of stakeholders.

Option D: Focus primarily on the stakeholders with the most apparent interest, such as local residents and business owners. Focusing primarily on stakeholders with the most apparent interest, such as local residents and business owners, might seem intuitive. However, this approach can lead to the neglect of other important stakeholders. A more inclusive approach that considers all stakeholders’ influence and interests is necessary for comprehensive stakeholder management.

Conclusion: Based on the need for a structured approach to stakeholder analysis and engagement, Option B (Categorize Stakeholders Based on Their Level of Influence Over and Interest in the Project) is the most appropriate first step for Carlos. This approach provides a foundation for understanding the dynamics and needs of each stakeholder group, which is essential for developing effective engagement strategies. This step should precede the development of a communication plan or holding large meetings. It ensures a more tailored and effective approach to managing stakeholder expectations and engagement in the project.

PMP Exam Content Outline Mapping

DomainTask
ProcessTask 4 Engage stakeholders
ProcessTask 2 Manage communications

Topics Covered

  • Stakeholder Register
  • Categorize Stakeholders using Power / Interest or Power/ Impact
  • Stakeholder Engagement Plan
  • Communication Management Plan

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