Stakeholders and Governance | Project Management Guide

What are Stakeholders?

Stakeholders are individuals, groups or organisations that have an interest in or are affected by a project. They can influence the success of a project or be impacted by its outcomes, making stakeholder identification and management a critical part of project management (Freeman, 1984).

Project sponsors and funders
Team members and project managers
Customers or service users
Suppliers and external partners
Local communities and regulatory bodies

Why Stakeholder Management Matters

Effective stakeholder management is essential to project success, particularly in charities and small businesses where relationships and communication are critical. Understanding stakeholder needs and expectations helps ensure that projects are aligned with organisational goals and reduces the risk of conflict or misunderstanding (PMI, 2021).

Helps align project objectives with stakeholder expectations
Improves communication and collaboration
Reduces the risk of conflict and project delays
Builds trust and support for the project
Increases the likelihood of successful outcomes

Governance in Projects

For Irish charities registered with the Charities Regulator, stakeholder management is not just good practice - it is a governance requirement under the Charities Act 2009. The Charities Regulator's Governance Code requires organisations to identify and engage with key stakeholders as part of responsible project oversight. (Charities Regulator, n.d.)

Governance in project management refers to the systems, processes and structures used to guide and control projects. It ensures that projects are aligned with organisational objectives, comply with regulations and are managed in an ethical and accountable manner.

Defines roles, responsibilities, and decision-making authority
Ensures accountability and transparency
Aligns projects with organisational strategy
Supports ethical and sustainable decision-making
Monitors performance and progress

Governance for Irish Charities - What the Law Requires

Charities in Ireland registered with the Charities Regulator must demonstrate good governance under the Charities Act 2009. This includes having clear roles and responsibilities, transparent financial reporting and documented decision-making processes.

The Charities Regulator's Governance Code is a free practical checklist that maps directly onto good project governance. It is essential reading for anyone managing projects in the Irish charity sector. Download it free at charitiesregulator.ie (Charities Regulator, n.d.)

For small businesses, good governance means clear decision-making structures, documented processes and accountability to stakeholders — all of which are core to successful project delivery. (Freeman, 1984)