What is the main focus of stakeholder management?

• A. Building and maintaining positive relationships
• B. Reporting on financial performance
• C. Creating technical specifications
• D. Establishing project timelines

Answer: (A)

Stakeholder management primarily revolves around building and maintaining positive relationships with individuals or groups who have an interest in a project or organization. This involves understanding their needs, expectations, and potential influence on the project's success. By fostering strong relationships, project managers can encourage stakeholder engagement, which is crucial for gaining support, addressing concerns, and ensuring alignment with project goals.

Effective stakeholder management also involves clear communication, addressing stakeholder concerns, and actively involving them in decision-making processes. This approach not only enhances collaboration but also helps in mitigating risks, as stakeholders are more likely to offer valuable insights and support if they feel their input is valued and considered.

In contrast, the other options focus on specific activities or outputs that are part of broader project management processes rather than the relational aspect central to stakeholder management. Reporting on financial performance, creating technical specifications, and establishing project timelines are important tasks within projects but do not encapsulate the essence of managing relationships with stakeholders.