Month: March 2015

Stakeholder Management

Stakeholder Management – Stakeholder Management Analysis – Stakeholder Map – Stakeholder Management Framework – Identification of stakeholders and understanding their needs is key to change management, project management and daytoday activities of the business.

The stakeholder management includes identification the stakeholders, stakeholder analysis, stakeholder engagement, stakeholder information flow, abiding by agreements, stakeholder debriefing. Stakeholder mapping is the process of mapping stakeholders in terms of their power (influence) and interest. Another related framework is The Pig a metaphor that shows that everyone sees the pig differently, the butcher, the piglet, the farmer, the environmentalist and the store owner, etc.

stakeholder management

Net Present Value – NPV

NPV – Net Present Value – How to calculate net present value (NPV)? Net present value is calculated as a sum of cash flow through project life cycle adjusted to the discount interest rate. NPV is calculated to estimate the net benefit of a project and other types of multiyear engagements. NPV Calculation Diagram – net present value calculation methodology.

NPV is a key finance tool. Usually, the initial cashflow is negative due to the investment required (e.g. purchase of new equipment). As time progresses, the company starts to generate positive cash flow. The further away is the cashflow, the more discounted it becomes (i.e. cash today is worth more than the same amount of cash in the future).

npv calculation diagram