What is a project stakeholder? Any person who has something to lose if the project fails.
This normally includes higher-level people in the organization. People who would personally fail if the project fails. This can include customers, shareholders, executives, vice presidents, and even high-level managers.
A complete or partial project failure would cost these individuals something. It may cost them money, time, or position.
Every project has stakeholders, even small ones. It is important to identify these people. Who stands to lose something if the project goes over budget, is late, or is never completed? Those people will natually want to control the effort, and have the right to do so. They hold the purse strings, and they go down with the project.
Does that mean a project stakeholder controls every aspect? No. They must trust those who execute it. In other words, there will be engineers, technicians, and other creative people who actually do the work. Much of the ground-level control is in their hands. They report to the project stakeholders who direct their overall efforts.
–ray