The way in which you came to be project leader will affect some of the variables. A self-generated project makes you the sponsor of the project: The impetus for the project came from you. At work, however, the sponsor of the project is ultimately responsible for the end result. This could be your immediate superior, the company president, owner, or perhaps a top executive. He will often be responsible for the financial backing and may select key team members as well as experts and advisors. The sponsor or individual(s) requesting the project may very often set the time frame as well. An organization or a group may sponsor a project, meaning that they set the budget and time frame. You then act as project manager.

Beyond the sponsor are stakeholders who will also have an interest, personal or financial, in the end result. The more stakeholders involved, the more you need to appease a variety of people. If you've made your home office more efficient through remodeling, you are the primary stakeholder. The other stakeholders are your clients, who will benefit from your increased ability to complete work more quickly.

Any party interested in or affected by the outcome of the project is a stakeholder. This will also include project members who are responsible for the work they contribute to the project. Stakeholders may contribute ideas on a regular basis, be involved in a hands-on manner, or not be involved in the actual work of the project at all. Stakeholders may be the community at large. Everyone in the city who will be using the new bridge is not necessarily working on it, but they will all benefit from the ease with which they will be able to drive to work once the bridge is completed. You'll read more about the stakeholders later in the book.