STAKEHOLDER ANALYSIS AND MANAGEMENT Chapter 6 Objectives Knowing
STAKEHOLDER ANALYSIS AND MANAGEMENT Chapter 6
Objectives Knowing who the stakeholders Understanding what it is they expect from the project and delivered solution Analyzing the stakeholders need Understand the CATOW technique Know what is the Business Activity Model BAM
INTRODUCTION all team members have important roles to play, in identifying stakeholders, in helping to understand their needs and in helping to manage their expectations from the project
1 - STAKEHOLDER CATEGORIES AND IDENTIFICATION the first step in stakeholder management involves finding out who the stakeholders are? A stakeholder is: ‘anyone who has an interest in, or may be affected by, the issue under consideration’. This means, more or less, anyone affected by the project or who may be in a position to influence it.
each project will have its own distinctive set of stakeholders, determined by the nature of the project and the environment
1 -STAKEHOLDER CATEGORIES AND IDENTIFICATION Customers Partners Suppliers These are the people or organisations for whom our organisation provides products or services These are the organisations that work with our organisation These provide our organisation with the goods and services that it uses • large or small; • regular or occasional; • wholesale or retail; • corporate or private; • commercial or publicsector; • civilian or military; • domestic or export for example to provide specialist services on our behalf. An example of a partner organisation may be a outsourcing company that provides call-centre services. • major or minor; • regular or occasional; • domestic or overseas. We must consider how to manage that change most effectively so as not to lose customers that we wish to retain Suppliers are stakeholders because they are interested in the way we do business with them, what we wish to buy, how we want to pay and so on.
STAKEHOLDER CATEGORIES AND IDENTIFICATION Competitors Regulators Owners Competitors vie with Many organisations us for the business are now subject to of our customers, regulation or inspection For a commercial business, the owners are just that – the people who own it directly. (a sole trader or partnership. ) We have to consider what their reactions might be and whether they might try, for instance, to block our initiative or to produce some sort of counter-proposal a limited company the owners are the shareholders. These regulators will be very interested in making sure that changes proposed by an organisation are within the letter and spirit of the rules they enforce. For public limited companies, the majority of shares are held by institutions such as investment companies and pension funds, and so the managers of these share portfolios become proxy owners
STAKEHOLDER CATEGORIES AND IDENTIFICATION Employees Managers Other stakeholders The people who work in an organisation clearly have an interest in the way it is run and in changes that it makes many layers of management, and each may form a distinctive stakeholder grouping in particular cases there may well be other stakeholders They may be : - as individual stakeholders in small firm. -Group in big companies - Or employees belong to trades unions • board-level senior managers; • middle managers; • junior managers; • front-line supervisors Such as : • the insurers of an organisation • the police it is an error to assume that a group such as ‘managers’ is homogeneous in its views
2 - ANALYSING STAKEHOLDERS make an assessment of the weight that should be attached to their issues. No stakeholder should be ignored. Use Stakeholder power/interest analysis: this technique depends on tow things : 1 - level of interest in the project 2 - the amount of power or influence they have
Stakeholder power/interest analysis plot stakeholders where they actually are
3 - STAKEHOLDER MANAGEMENT STRATEGIES the nine basic situations
3 - STAKEHOLDER MANAGEMENT STRATEGIES No interest and no power/influence: they can be ignored as regards day-to-day issues on a project Some or high interest but no power/influence: keep such stakeholders informed of what is going on. No, some or high interest and some power/influence: as middle or senior managers, keep them supportive of the project, possibly by frequent, positive communication with them but perhaps also by involving them more with the project.
3 - STAKEHOLDER MANAGEMENT STRATEGIES No interest but high power/influence: as senior managers have no direct interest in the project, we cant ignore them but: 1 - maybe we have to male one-to-one meetings perhaps, in order to ensure that they do not start to raise concerns OR 2 - increased interest of influential stakeholders to support us
3 - STAKEHOLDER MANAGEMENT STRATEGIES Some interest and high power/influence: an indirect interest A- keep them satisfied, so that they do not feel the need to take a greater interest in the project. B- OR may get a stakeholder of this kind more actively involved in the project High interest and high power/influence: important to appreciate the concerns and opinions of key stakeholders, and this will need to be taken into account when making any recommendations
- ANALYSISNG PERSPECTIVES CATWOE - ILLUSTARATING THE PRESPECTIVE - BAM
BUSINESS PERSPECTIVES 1. 2. The key stakeholders should be asked how they view, from their own perspectives, the purpose and objectives of the part of the organisation that is within the scope of the change project. For example: Bank tellers handling customers’ needs in a branch of a bank may see their area of the business as ‘a system to provide customers with an accurate and speedy service, whilst maintaining security of cash’. A business development manager in the same branch may perceive ‘a system to encourage customers and potential customers to use the investment facilities offered by the bank’.
CATWOE framework for defining and analysing business perspectives: C = customer A = actor : responsible for performing T = transformation: the activity that lies at the heart of the system, W = world view: beliefs about the organisation O = owner: the person, or group of people, who can take major decisions about the business system E = environment : PESTLE
Banking example again and analyze it using CATWOE: 1. 2. 3. 4. 5. 6. Customer: people with accounts at the branch, . Actors: bank tellers; back office staff and branch management. Transformation: cash deposit and withdrawal, answering account enquiries and setting up standing orders. World View: customers continue to deal through a bank branch Owner: the senior management – possibly the chief executive Environment: PESTLE government policies on banking regulation (P); global banking crisis (E); increasing use of online services (S); electronic funds transfer (T); the attitude of financial regulators (L) and the behaviour of anti-capitalist protesters (E).
BUSINESS PERSPECTIVES Sometimes the perspectives developed for key stakeholders are so different that further progress is impossible.
BUSINESS ACTIVITY MODELS BAM provide a conceptual model of what we would expect to see, to fulfill a particular stakeholder perspective. Show what the organization is doing Creating BAM require business analyst to think about the activities that each stakeholder perspective implies.
BUSINESS ACTIVITY MODELS 1. 2. 3. The principles underlying the BAM approach are as follows: There will be one BAM for each business perspective. The BAM helps in the analysis of the business situation and the identification of improvements. The model is not concerned with who carries out the activities or where they are carried out.
BUSINESS ACTIVITY MODELS five types of business activity : Planning Activities Controlling Activities Monitoring activities Enabling Activities Doing Activities
BUSINESS ACTIVITY MODELS Doing Enabling Planning Monitoring Control • The heart of the model • Drives from transformation of CATWOE • ( provide accurate customer services) • Use resource needed to achieve the doing • Lead into doing activities. ( recruit staff ) • All the activities follow from planning • Example: define staff skills, define sales target • Evaluation of the performance • Require to institute the necessary remedial action
BAM
BAM Examples
WASTE SERVICE
Travel Company
Fashion Clothes
What happens next? In BAM the business analyst must resolve any conflict between the various views of BAM stakeholders Hopefully the analyst would have been able to combine all the models and achieve a consensus BAM. If so the analyst will be able to move onto modelling the business processes (How these activities are completed) and then proceed onto GAP analysis.
Make the BAM for the Bank , drive it from Bank tellers perspective.
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