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ITPM L6: Stakeholder Management (Develop a stakeholder analysis (b.…
ITPM L6: Stakeholder Management
Define a project communications plan
a. Stakeholder Management and Communication
Once we understand who are stakeholders are, together with their relative positions, we can establish a communication strategy.
Methods
Frequency
Style
Level of detail
Ownership
Methods; how we communicate (eg email, in person, phone, written, etc)
Frequency; level of regularity (weekly, monthly, daily)
Style; formal, informal, social (over a coffee), broadcast – meeting/video cast
Level of detail; how much or how little detail to provide
Ownership; agree who will communicate with whom
b. A Project Communications Plan: Documenting communication strategy
Forms part of the project plan
Documents the stakeholders and positions
In addition to the previous slide, answers the following questions:
-Who has specific information needs?
-What are those needs?
-How will these needs be met?
-When can they expect the information?
-What will be the format?
c. A Project Communications Plan – Key Areas
Information Requirements
-Varies by project
-Typically focus on scope, schedule, budget
-May include quality, and risk.
Type of report or metric
-Formal or informal reviews
-Newsletters
-Email/Video broadcast
Escalation
Frequency
will
vary over the duration of the project
Content may include
-Project predictions/forecast
-Project progress
-Regular reviews
-Comparison plan vs actual
The reporting styles and ways of presenting the content will be covered in a separate module.
Learning Objectives
Revisit formal organised management structures
Describe the informal organisation.
Define stakeholders
Define stakeholder management
Develop a stakeholder analysis
Articulate the need for iterative stakeholder analysis
Define a project communications plan
Describe how information may be distributed to the project stakeholders
Revisit formal organised management structures
Revisit - Organisation and Project Resources
Describe the informal organisation
The Informal Organisation
Characteristics include:
Relaxed communication approach
Collaborative; not dictated by authority
Driven by influence and co-operation rather than power
Perceived power is determined by relationships
Can be more complex than the formal organisation because there are no formal rules
Discussion: Why should we care about stakeholders?
Why do they matter?
Who should care?
When do we begin?
When do we stop?
Define stakeholders
a. Stakeholders
The organisations or people who have an interest or role in the project, programme or portfolio or are impacted by it. APM
Stakeholders can be
Within the team
Within the organisation
Within third party organisations
May include legal, compliance, quality, depending upon the project
Internal stakeholders include:
Team members
Employees
Directors
Managers
Support staff
Users
External stakeholders include:
Contractors
Suppliers
Competitors
Government
Trade unions
Customers
Banks
Society
Shareholders
Pressure groups
Define stakeholder management
a. Definition of Stakeholder Management
Stakeholder management is the systematic identification, analysis, planning and implementation of actions designed to engage with stakeholders. APM
b. Practical Stakeholder Management
A defined process
Engenders communication
Generates enthusiasm
Allay fears
Gain insights and perspective
Enables us to balance their needs/wants
The intention is to actively manage expectations
c. Discussion: Importance of stakeholders
Are all stakeholders of equal status?
Why?
How do we define them?
d. The Stakeholder Management Process
Identification
Analysis
Planning
Implementation
Handover/close
The process is iterative throughout the PLC
Develop a stakeholder analysis
a. Stakeholder Mapping
Identify key stakeholders
-Who are they?
-How powerful/controlling are they?
-Do they have any influence?
Interaction
-Purpose?
-Frequency?
-Style?
Decide which stakeholders we need to meet the needs of
b. Stakeholder Grid
Figure 11.3 Power and interest matrix
Source: Johnson, G and Scholes, K (1999) Exploring Corporate Strategy, 5th edition, Prentice Hall Europe. Reprinted with permission.
Brainstorm to create a list of stakeholders who have an interest in the project or it’s outcomes
Identify which are positive and which are negative
Determine the degree of influence each stakeholder has
0 = no influence
10 = critical influence - can kill the project
Plot them on to the stakeholder matrix
Typically, this can be done using post it notes
Focus on each quadrant in turn, for example …
Category D – may need sponsor involvement
Category C – frequent communication/interaction
Category B – regular communication/broadcast
Category A – infrequent communication/broadcast
All Stakeholders have the potential to influence the project progress and/or outcomes therefore need to be
actively managed
c. Stakeholders require active management
Stakeholders often change their perspectives, especially if they’re not kept informed/updated.
Where the stakeholder feels neglected/not listened to – they can become negative and disruptive.
Conflicting/Differing stakeholder expectations
Users want a faster, easier log in
Organisation wants to preserve security
Infrastructure teams want consistent equipment
Management want costs to be reduced/minimised
d. Assessing stakeholder power and interest
Perception of power/interest may vary
-During the life of the project
-Depending on their relationship with the sponsor
-Depending upon resource impacts
-Because they change roles
New stakeholders can arrive
Existing stakeholders may change
Even good projects can fail through ‘bad press’
In business practice …
The grid is often reversed
Sometimes the axes are
-Power/interest
-Power/control
-Engaged/interested
-Local/Global vs control
The principle is to ensure we
-Identify all stakeholders
-Recognise their relative positions
-Identify key objectives
-Communicate appropriately
The axes of the grid may vary; but the concept remains the same.
Identify as many stakeholders as you can
Then decide how many of them you need to actively manage
Decide how often you’ll communicate
Choose the methods of communication carefully
Be careful to prioritise communication so that the ‘right people’ gain updates first.
e. Comparative Stakeholder Analysis
Over time, stakeholder positions can move
We often use stakeholder analysis to predict future positions
The communication strategies will vary across all stakeholder groups
Some stakeholders may need to be encouraged to maintain their current position
Other stakeholders will need active management to encourage support
This is an alternate way of presenting a stakeholder analysis. Where there is a narrative added to reflect the management of the stakeholders
This is often held within an excel spreadsheet.
Articulate the need for iterative stakeholder analysis
Describe how information may be distributed to the project stakeholders
9. Conundrum
Stakeholders are critical to the project
They have varied attitudes and positions
They can be passive or active
What can we do to increase stakeholder engagement in IT projects?
10.Closing Thoughts
Stakeholders need to be
-Defined early
-Actively managed
-Regularly communicated with
Stakeholder management is
-Expectation management
-Active risk management
-An essential part of effective project management