Stakeholder Management The Good The Bad The Ugly

Stakeholder Management: The Good, The Bad, The Ugly Commonwealth of MA Project Managers, March 15, 2012 Bonnie Cooper, Technology Portfolio Director, Corporate IT PMO 1

Learning Goals • Review the best practices to conduct an actionable stakeholder analysis and management plan • How to describe the characteristics of the most challenging stakeholder types. • Share real experiences and techniques to managing these challenging stakeholders. 2

The case for multi-dimensional stakeholder management BACKGROUND 3

Question Which of these stakeholder behaviors most often happens in your projects? a) b) c) d) e) Lack of clear requirements or goals Unable to make timely decisions Not able to fully pay attention Being resistant to change None of the above (I have ideal stakeholders)

Warning Signs – Missed Deadlines – Scope Creep – Confusion – Conflict – Churning 5

Perception is Reality 6

Top 10 Reasons Projects Succeed 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. User Involvement Executive Support Clear Business Objectives Emotional Maturity Optimization Agile Process Project Management Expertise Skilled Resources Execution Tools and Infrastructure The Standish Group, “CHAOS, 2010: CHAOS Success Factors” 7

Science and Art Work Roadmap Relationship Management Link to strategy (big picture) Communicate Shape work (WBS) Negotiate Schedule (activity lists) Motivate Progress (dependencies) Influence To be effective and gain trust, project managers need to relate well in two dimensions 8

Top 10 Reasons Projects Succeed 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. User Involvement Executive Support Clear Business Objectives Emotional Maturity Optimization Agile Process Project Management Expertise Skilled Resources Execution Tools and Infrastructure The Standish Group, “CHAOS, 2010: CHAOS Success Factors” 9

User Involvement • Business communications – talking to the users in their language and customs. Make sure users feel their opinion makes a difference. • Quality relationship – creating a cooperative environment with mutually agreeable ground rules for effective teamwork. • Expectation management – starts with established quality and achievable metrics. Make sure users know what is expected of them as part of the team. The Standish Group, “CHAOS, 2010: CHAOS Success Factors” 10

Top 10 Reasons Projects Succeed 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. User Involvement Executive Support Clear Business Objectives Emotional Maturity Optimization Agile Process Project Management Expertise Skilled Resources Execution Tools and Infrastructure The Standish Group, “CHAOS, 2010: CHAOS Success Factors” 11

Emotional Maturity The ability to identify and remove unnecessary requirements, as well as the aptitude to deliver bad news and accept critical feedback. The Standish Group, “CHAOS, 2010: CHAOS Success Factors” The most significant challenges when implementing a project are often people-related—factors such as changing mind-sets, motivating employees, creating honest and timely communication, building commitment, and navigating corporate culture. “Investigating the Impact of Project Managers’ Emotional Intelligence” PMI Project Management Journal, July 2011 12

Definitions and Perceptions STAKEHOLDERS 13

Definition - Stakeholder STAKEHOLDER “Person or organization (e. g. , customer, sponsor, performing organization, or the public) that is actively involved in the project, or whose interests may be positively or negatively affected by execution or completion of the project. A stakeholder may also exert influence over the project and its deliverables. ” PMBOK® Guide, Fourth Edition 14

Common Stakeholders? Common project stakeholders: – – – Project manager Project team members Customers Performing organization Central staff Project sponsor Internal versus External 15 Other stakeholders: – Functional managers – Government agencies/regulators – Suppliers and vendors/subcontractors – Resource managers – Senior management – News media – Special interest groups – Community – Users – Shareholders

Matrix for Stakeholder Analysis Person C Department A 16 Person A Person B Person D

Tools PM Process 17 Stakeholder Management Tools Initiation Project charter, business case, strategy link, metrics Planning Analysis, communication, risk, and scope plans Execution Status reporting, presentations, training, check-ins Monitor/Control Change control, decisions, performance feedback Close Deployment plans, operations cutover, lessons learned

Communications Management Plan Sample Communications Planning Matrix

Stakeholder Relationship Complexity • • • Stakeholder stability over time Degree of public interest in the project Degree of cultural diversity Percent of staff able to converse fluently in the project’s primary language Range of time zones with active stakeholders American Society for the Advancement of Project Management 19

The Other Dimension BEHAVIORS 20

The Added Dimension • Use knowledge about traits and behaviors to address each stakeholder’s needs as well as to protect yourself when necessary. • Credibility comes from relationship building in a political environment • People who have power are at the center of the organization’s informal network. • Create an environment where people operate with a win-win attitude. • Feedback is a powerful tool to guide behavior Creating Your Political Plan, Raymond L. Englund, 2005 PMI Global Congress 21

Political Landscape High Comrades Allies Adversaries Opponents Agreement Low Trust High Creating Your Political Plan, Raymond L. Englund, 2005 PMI Global Congress 22

Influencing Tools • Reciprocity – give an unsolicited gift, people will feel obliged. • Consistency – ask for commitments and enforce them. • Social Validation – leverage agreement as people determine what to do by watching others. • Liking – people like to do business with people they like. • Authority – be professional and personable. Use expertise, tap referential power. • Scarcity – stand out as the person willing to do the right things in the right ways Creating Your Political Plan, Raymond L. Englund, 2005 PMI Global Congress 23

Stakeholder Analysis: Political Plan High Comrades Allies How would you get a bully, politician and super star to be your ally? Agreement Adversaries Low Opponents Trust High Creating Your Political Plan, Raymond L. Englund, 2005 PMI Global Congress 24

Managing Types Effective stakeholder management • Meddling • Overbearing Doing what is necessary to develop and manage • Poor relationships with all individuals • Untrustworthy the project impacts. • Indecisive • Unavailable The Handbook of Program Management: How to Facilitate Project Success with Optimal Program Management by James T. Brown (ISBN-13: 978 -0 -07 -149472 -4)

The Bully What they do: Constantly intimidate, push other people around, often lose control, driven toward results, display incredible confidence, are selfish. They are volatile and intensely competitive. They push hard and reward performance. Tactics to manage the bully: • • • Avoid surprises – bullies hate to be blindsided. They respect people who talk straight and keep them in the loop. Be a source for news – bullies relish being plugged in and “in the know” Develop a profitable area of expertise – do the tasks they hate and be good at it. Build alliances that help get things done- bullies will leverage your relationships. Deliver results that matter. Managing Your Manager, Gonzague Durour, ISBN 978 -0 -07 -1751933 26

The Meddling Stakeholder • What they do: Insert themselves into decisions, processes, or meetings where their presence is not required. • Why: Lack of trust? Control freak? Tactic: Build trust by demonstrating competence. Communicate with them frequently and assign them tasks to refocus their energy. Real work often makes people invisible.

The Overbearing Stakeholder • What they do: Use power or personality to dominate. • Why: Old school? Cover up a weakness? Tactic: Use buffering techniques to minimize exposure. Meet with this stakeholder individually to minimize unnecessary conflict or grandstanding.

The Poor Stakeholder • What they do: Use influence and politics to protect their interests or achieve objectives. • Why: They have no significant budget or authority (power disadvantage). Tactic: Advocate for those who can’t and try to identify how the poor stakeholder’s objectives align or conflict.

The Untrustworthy Stakeholder • What they do: • Play both sides, don’t stand by their word. • Why: • Refuse to be personally accountable. Tactic: Ensure all important communication is documented and has traceability. Work to remove or disempower untrustworthy stakeholders (leverage colleagues).

The Indecisive Stakeholder • What they do: Never make decisions in a timely manner. • Why: Don’t like to commit. Tactic: Set up processes and structures that clearly communicate when a decision is required and the impact of the decision not being made. Establish a metric of lost time (or other impacts) due to delayed decisions.

The Unavailable Stakeholder • What they do: • Why: Always too busy to Over scheduled? participate when their input Location? or approval is required. Priorities? Tactic: Ask them to delegate their decision authority to someone capable and trustworthy. Find virtual mechanisms for the stakeholder to participate without requiring physical presence. Maintain scheduled meetings well in advance and minimize ad hoc gatherings. Access the stakeholder in informal settings (lunch breaks, walks).

The Ideal Stakeholder • What they do: Show an interest, are available when necessary, prioritize requests, help motivate, are flexible when needed. Tactic: Cultivate! • Why: Willing to be accountable.

Learning Summary WRAP UP 34

Learning Goals • How to describe the characteristics of the most challenging stakeholder types. • Share real experiences and techniques to managing these challenging stakeholders. • Review the best practices to conduct an actionable stakeholder analysis and management plan. 35

Stakeholder Analysis Checklist Multiple Dimensions Item Description Identify enterprise environmental factors What are your particular organizational culture, structure, market conditions, infrastructure, and political influences? Create the stakeholder register Who is affected by or could impact the project? Includes roles and personality types. Conduct a stakeholder analysis Create the matrices of influence and interest, agreement and trust, to inform PM focus. Identify organizational assets Leverage policies, procedures, lessons, experts, and power sources. Create your approach to handling stakeholders Your action plan to include influencing tools. 36

Contact: Bonnie Cooper bcooper@mms. org 37