Understanding the Distinction Between Project Stakeholders and Project Sponsors
In project management, understanding the roles and responsibilities of different participants is crucial for the project's success. Two such roles that are often confused are those of a project stakeholder and a project sponsor. While stakeholders can be anyone with an interest in or impact on the project, sponsors play a more specific role that ensures the project's financial backing and overall success.
Who is a Project Stakeholder?
A project stakeholder is anyone with an interest or involvement in the project. These can include individuals or groups inside or outside the organization who can be positively or negatively impacted by the project, or who can influence its success. Some stakeholders have a formal project role, such as a sponsor, while others have a stake in the project but do not have a formal role, such as end-users.
Stakeholders can have varying levels of influence and interest. For example, a project manager, who is a key stakeholder, reports to a sponsor who ensures that the project is justifiable, provides authority, and oversees performance.
Who is a Project Sponsor?
A project sponsor is an individual with overall responsibility for ensuring project success. They ensure that the project is financially justifiable and provides high-level support throughout the project lifecycle. Essentially, they pay the bills for the project and are advocates who promote it within the organization.
The sponsor is generally the person who signed off on the project's beginning and is the most important stakeholder. They have a vested interest in the project’s success and often stand one level above the project manager. The sponsor ensures the project manager has adequate resources and support.
Key Distinctions
Key distinctions between a project sponsor and a project stakeholder include:
A project sponsor is a stakeholder like everyone else. However, their role is more significant because they provide the financial backing and high-level support that are critical for the project's success.
A project sponsor ensures the project is financially justifiable and provides the necessary resources. They are responsible for the project's return on investment (ROI).
Project stakeholders, on the other hand, can influence the project in various ways based on their specific interests and roles. For example, end-users can provide feedback that can shape the project's requirements, while a legal consultant can ensure that the project complies with regulatory standards.
Conclusion
Understanding the roles of a project sponsor and a project stakeholder is crucial for effective project management. While both play essential roles, sponsors are the critical link between the project and the organization's financial and strategic goals. By identifying and managing these roles, project managers can ensure that the project is aligned with the organization's objectives and delivers the desired outcomes.
A video on the topic:
Hi, a project sponsor is also one of your project stakeholders could be groups. He/she/they are specialized stakeholders that provide the resources to allow the project to occur – people, money, time, machines, etc. He/she/they have to be managed as exceptionally important stakeholders of your project because they can withhold their support, which would decrease your chances of delivering a successful project to almost zero.
Refer to the complete description on StackPath for a comprehensive understanding of project sponsors.