PMI42 Stakeholders

EuroProjexEuroProjex [email protected]© jrt/epm/mar06

EuroProjexEuroProjex

Project and Programme Management Project and Programme Management

Session 4.2: Session 4.2: Engaging with StakeholdersEngaging with Stakeholders

Professor J Rodney TurnerProfessor J Rodney TurnerVisiting ProfessorVisiting Professor

TsinghuaTsinghua University, BeijingUniversity, Beijing



The aim of leadership is relationship The aim of leadership is relationship managementmanagement

SelfSelf--awarenessawareness(3 competencies)(3 competencies)

SelfSelf--managementmanagement(6 competencies)(6 competencies)

SocialSocialawarenessawareness

(3 competencies)(3 competencies)

RelationshipRelationshipmanagementmanagement



Quotes Quotes -- barriersbarriers

If you put a frog in cold water and slowly If you put a frog in cold water and slowly raise the temperature, it will allow itself to be raise the temperature, it will allow itself to be boiled to deathboiled to death Charles Handy, (1991)Charles Handy, (1991)

Every new idea goes through three stages:Every new idea goes through three stages: First, people think it is stupidFirst, people think it is stupid Second, people think it is dangerousSecond, people think it is dangerous Third, people think they believed that all alongThird, people think they believed that all along

Albert Albert ShoppenhauerShoppenhauer


Quotes Quotes -- PM as change agentPM as change agent

The reasonable man adapts himself to the world; The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the unreasonable one persists in trying to adapt the world to himself. Therefore all progress the world to himself. Therefore all progress depends on the unreasonable man.depends on the unreasonable man.

George Bernard Shaw, (1903)George Bernard Shaw, (1903)


Quotes Quotes -- PM as change agentPM as change agent

There is nothing more difficult to arrange, nor doubtful There is nothing more difficult to arrange, nor doubtful of success, and more dangerous to carry through, than of success, and more dangerous to carry through, than initiating changes in a stateinitiating changes in a state’’s constitution. s constitution.

The innovator makes enemies of all those who prospered The innovator makes enemies of all those who prospered under the old order, but receives only lukewarm support under the old order, but receives only lukewarm support from those who would prosper under the new. from those who would prosper under the new.

Their support is lukewarm partly from fear of their Their support is lukewarm partly from fear of their adversaries, and partly because they do not trust the new adversaries, and partly because they do not trust the new order until they have tested it by experience. order until they have tested it by experience.

Machiavelli, (1513)Machiavelli, (1513)


Leaders versus managers Leaders versus managers ––Stephen Covey after Aristotle Stephen Covey after Aristotle

1.1. Build relationships (pathos)Build relationships (pathos)2.2. Sell the vision (ethos)Sell the vision (ethos)3.3. Persuade with logic (logos)Persuade with logic (logos)

Aristotle, Stephen CoveyAristotle, Stephen Covey

Leaders Leaders –– 1, 2, 3 in that order1, 2, 3 in that order egeg Ronald ReaganRonald Reagan

Mangers Mangers –– 3 only3 only you have to do this because, because, because you have to do this because, because, because …… because I say sobecause I say so egeg John MajorJohn Major


Relating to StakeholdersRelating to Stakeholders

Responding to changeResponding to changeStakeholder engagement processStakeholder engagement process

Emotional intelligenceEmotional intelligenceCommunicating with stakeholdersCommunicating with stakeholders


Three levels of changeThree levels of change

RoutineRoutine day to dayday to day

NormalNormal ShoppenhauerShoppenhauer changechange

ExtremeExtreme lifelife--style threateningstyle threatening


Reaction to normal changeReaction to normal change

TimeTime

EmotionEmotion

InternalizationInternalization We like doing it this wayCommon understandingCommon understanding This is the way we do itImplementationImplementation Let’s try itStartStart--upup Let’s do itPositive perceptionPositive perception This is goodUnderstandingUnderstanding I see what this meansKnowledgeKnowledge I know what it is aboutControlControl I’ve heard something


Reaction to normal changeReaction to normal change

The aim is to get people to internalize the The aim is to get people to internalize the changechange

Be the first to tell themBe the first to tell them if they hear about the change as a rumour they if they hear about the change as a rumour they

will be against itwill be against it ““This is a rumour, so management must be trying to This is a rumour, so management must be trying to

keep it secret, so it must be bad, so I am against itkeep it secret, so it must be bad, so I am against it””

and then it may then be difficult to get them to and then it may then be difficult to get them to accept itaccept it

Mange them through the three stepsMange them through the three steps allow them time to think it is stupid and to fear itallow them time to think it is stupid and to fear it deal with their problemsdeal with their problems


People fear change because ...People fear change because ...

UnknownUnknown ThreateningThreatening UnfamiliarUnfamiliar StressStress Chance of lossChance of loss AmbiguityAmbiguity Loss of power baseLoss of power base


Reaction to extreme changeReaction to extreme change

TimeTime

EmotionEmotion

StabilityStability

ImmobilizationImmobilization

DenialDenial

AngerAnger

BargainingBargainingTestingTesting

AcceptanceAcceptance

DepressionDepression






Stakeholder engagement processStakeholder engagement process

IdentifyIdentifystakeholderstakeholder

interestsinterests

Predict thePredict theresponse ofresponse ofstakeholdersstakeholders

DevelopDevelopa strategy a strategy for eachfor each

stakeholderstakeholder

CommunicateCommunicatewithwith

stakeholdersstakeholders

MonitorMonitorstakeholderstakeholdersatisfactionsatisfaction

MonitorMonitorinternal &internal &externalexternalchanges changes

SuccessfulSuccessfulprojectproject

IdentifyIdentifystakeholdersstakeholders


Stakeholder register

SchemeScheme Rural sewerage schemeRural sewerage scheme Review DateReview Date 24 Feb24 Feb ReviewersReviewers

Stakeholder Name /Stakeholder Name /GroupGroup

ObjectivesObjectives AwarenessAwarenessH/LH/L

SupportSupportH/LH/L

InfluenceInfluenceH/LH/L

Strategy to influence this stakeholderStrategy to influence this stakeholder

Project ManagerProject Manager

SponsorSponsor

Local ResidentsLocal Residents

Local AuthorityLocal Authority

Environment AgencyEnvironment Agency

Woodland TrustWoodland Trust(Environmental Pressure Group)(Environmental Pressure Group)

LandownersLandowners

Meeting project successMeeting project successcriteria of time, cost,criteria of time, cost,performanceperformance

Remove problem of failuresRemove problem of failuresand customer complaints.and customer complaints.Minimise disruption andMinimise disruption andcompensation paymentscompensation payments

Minimal noise and messMinimal noise and messAs quick as possibleAs quick as possibleNo more floodingNo more flooding

Be informedBe informed

Stop incidents, environmentalStop incidents, environmentalimprovements, closeimprovements, closecommunicationcommunication

No environmental detrimentNo environmental detrimentEarly input to planningEarly input to planningprocessprocess

Maximum compensation forMaximum compensation forland takeland take

HH

HH

HH

LL

HH

HH

HH

HH

HH

LL

LL

HH

LL

LL

HH

HH

HH

LL

HH

HH

HH

Ensure company and line manager supportEnsure company and line manager support

Obtain active support. Keep informed of progressObtain active support. Keep informed of progressproactivelyproactively

Face to face contact, agree local contact, provisionFace to face contact, agree local contact, provisionfor compensationfor compensation

Involve from start, keep informedInvolve from start, keep informed

Maintain close communicationMaintain close communication

Early communication and involvement. EncourageEarly communication and involvement. Encouragerelationship with Environment Agencyrelationship with Environment Agency

Isolate by negotiating compensation and accessIsolate by negotiating compensation and accessdetails early. Document before and after positionsdetails early. Document before and after positionsvery carefullyvery carefully


Identify success criteriaIdentify success criteria

A necessary condition of project success isA necessary condition of project success is

to agree the success criteria with all the to agree the success criteria with all the stakeholders before you startstakeholders before you start


Measures of successMeasures of success

MeasureMeasure StakeholderStakeholder TimescaleTimescaleShareholder valueShareholder value ShareholdersShareholders End+yearsEnd+yearsProfitableProfitable BoardBoard End+yearsEnd+yearsHappy sponsorHappy sponsor BoardBoard End+yearsEnd+yearsHappy consumersHappy consumers ConsumersConsumers End+monthsEnd+monthsEasy to operateEasy to operate UsersUsers End+monthsEnd+monthsEasy to sellEasy to sell MarketingMarketing End+monthsEnd+monthsTime, cost, qualityTime, cost, quality AllAll EndEndHappy project teamHappy project team Project teamProject team EndEndProfitable for contractorProfitable for contractor Project teamProject team EndEnd


Multiple views, multiple stakeholders, Multiple views, multiple stakeholders, multiple timemultiple time--frames (Turner, 2009)frames (Turner, 2009)

StakeholdersStakeholders

InvestorInvestor

ConsumerConsumer

OperatorsOperators

SponsorSponsor

Manager/teamManager/team

Senior supplierSenior supplier

SuppliersSuppliers

PublicPublic

OutputOutput -- endend

EfficiencyEfficiency

Price, timePrice, timeFeaturesFeatures

DocumentationDocumentationTrainingTraining

EfficiencyEfficiencyRisk, safetyRisk, safety

EfficiencyEfficiencyExperienceExperience

EfficiencyEfficiencyProfitProfit

ProfitProfitClient satisfactionClient satisfaction

EnvironmentEnvironment

OutcomeOutcome -- +months+months

ProfitProfitReputationReputation

PricePriceBenefitBenefit

OperabilityOperabilityARMARM

RelationshipsRelationshipsInvestor loyaltyInvestor loyalty

ReputationReputationRepeat businessRepeat business



EnvironmentEnvironmentSocial cost/benefitSocial cost/benefit

ImpactImpact -- +years+years

Whole life valueWhole life valueLearningLearning

AdvantageAdvantageDevelopmentDevelopment

Operability, ARMOperability, ARMLearningLearning

New projectsNew projectsLearningLearning




EnvironmentEnvironmentSocial cost/benefitSocial cost/benefit


Predicting stakeholder responsesPredicting stakeholder responses

Three questionsThree questions1.1. Does this stakeholder support the project?Does this stakeholder support the project?2.2. Can they influence the outcome?Can they influence the outcome?3.3. Are the aware of the project?Are the aware of the project?


SWOT analysisSWOT analysis

ProponentsProponents StrengthsStrengths

To support youTo support you

WeaknessesWeaknesses To being undermined by To being undermined by

opponentsopponents

OpportunitiesOpportunities The project gives themThe project gives them

ThreatsThreats Of the project you need Of the project you need

to down play or addressto down play or address

OpponentsOpponents StrengthsStrengths

to undermine youto undermine you

WeaknessesWeaknesses To being undermined by To being undermined by

youyou

OpportunitiesOpportunities The project might giveThe project might give

ThreatsThreats Of the project causing Of the project causing

them to oppose itthem to oppose it


StakeholdersStakeholders

View ofView ofOutcomeOutcome

NegativeNegative

PositivePositive

Influence OutcomeInfluence OutcomeNoNo YesYes


Stakeholder engagement strategyStakeholder engagement strategy

NullifyNullifyIsolateIsolate

ProtectProtectReinforceReinforce

InformInform

InformInformGainGain

commitmentcommitment

MaintainMaintaincommitmentcommitment

AttitudeAttitude

SupportSupport OpposeOppose

KnowledgeKnowledge

AwareAware

IgnorantIgnorant


PowerPower--impact matriximpact matrix

Impact of stakeholderImpact of stakeholder

Power ofPower ofStakeholderStakeholder

Keep i

nfor

med

Keep i

nfor

med

Main

tain i

nteres

t

Main

tain i

nteres

t

Active

cons

ultat

ion

Active

cons

ultat

ionKey pl

ayer

Key pl

ayer

stron

g buy

stron

g buy

--inin

HiHi

LoLo

HiHi LoLo


SocioSocio--dynamicsdynamics

Acceptance of MethodsAcceptance of Methods

CommitmentCommitmentto Goalsto Goals

HiHi

LoLo

HiHi LoLo

Passives Passives

Zea

lots

Zea

lots

Mu

tin

eers

Mu

tin

eers

Op

pon

ents

Op

pon

ents

Moa

ner

sM

oan

ers

Wavere

rs

Wavere

rs

SchismSchismaticsatics

GoldenGoldenTriangleTriangle


SocioSocio--dynamicsdynamics

Golden TriangleGolden Triangle high synergy, medium antagonismhigh synergy, medium antagonism synergy aids progresssynergy aids progress antagonism means goals are questioned/improvedantagonism means goals are questioned/improved

ZealotsZealots strong synergy, no antagonismstrong synergy, no antagonism unquestioning supportunquestioning support

WaverersWaverers medium synergy, medium antagonismmedium synergy, medium antagonism qualified supportqualified support


SocioSocio--dymaniacsdymaniacs

OpponentsOpponents opposite of zealotsopposite of zealots unthinking oppositionunthinking opposition

MutineersMutineers strong antagonism, weak synergystrong antagonism, weak synergy will lose everything to stop others succeedingwill lose everything to stop others succeeding

SchismaticsSchismatics high synergy, high antagonismhigh synergy, high antagonism support the projectsupport the project but think it is being done wrongbut think it is being done wrong


SomnoSomno--dynamicsdynamics

PassivesPassives weak synergy, weak antagonismweak synergy, weak antagonism silent majority, dead weightssilent majority, dead weights between 40% to 80% of stakeholdersbetween 40% to 80% of stakeholders but they often tilt the scalesbut they often tilt the scales if they follow the project it will be a successif they follow the project it will be a success

MoanersMoaners moaningmoaning--MinniesMinnies






Emotional intelligenceEmotional intelligence

SelfSelf--awarenessawareness(3 competencies)(3 competencies)

SelfSelf--managementmanagement(6 competencies)(6 competencies)

SocialSocialawarenessawareness


RelationshipRelationshipmanagementmanagement



Emotional intelligence Emotional intelligence -- social competencesocial competence

social awarenesssocial awareness

relationship relationship managementmanagement

empathyempathy organizational awarenessorganizational awareness serviceservice

building bondsbuilding bonds teamwork & collaborationteamwork & collaboration inspirational leadershipinspirational leadership influenceinfluence developing othersdeveloping others change catalystchange catalyst conflict managementconflict management


Stakeholder engagement processStakeholder engagement process

IdentifyIdentifystakeholderstakeholder

interestsinterests

Predict thePredict theresponse ofresponse ofstakeholdersstakeholders

DevelopDevelopa strategy a strategy for eachfor each

stakeholderstakeholder

CommunicateCommunicatewithwith

stakeholdersstakeholders

MonitorMonitorstakeholderstakeholdersatisfactionsatisfaction

MonitorMonitorinternal &internal &externalexternalchanges changes

SuccessfulSuccessfulprojectproject

IdentifyIdentifystakeholdersstakeholders

OrganizationOrganizationawarenessawareness

OrganizationOrganizationawarenessawareness

EmpathyEmpathyDevelopingDeveloping

othersothersServiceService

BuildingBuildingbondsbonds

InspirationalInspirationalLeadershipLeadership

Teamwork &Teamwork &collaborationcollaboration

InfluenceInfluence

ConflictConflictmanagementmanagement

ChangeChangecatalystcatalyst



QuotesQuotesResponding to changeResponding to change

Stakeholder engagement processStakeholder engagement processEmotional intelligenceEmotional intelligence

Communicating with stakeholdersCommunicating with stakeholders


Three types of communication on Three types of communication on projectsprojects

Sponsor tells the project manager what is Sponsor tells the project manager what is requiredrequired

Project manager reports progress to the clientProject manager reports progress to the client Sponsor and project manager inform people Sponsor and project manager inform people

affected by the project about it and persuade affected by the project about it and persuade them it is a good idea and to support itthem it is a good idea and to support it

Sponsor tells the project manager what is Sponsor tells the project manager what is requiredrequired

Project manager reports progress to the clientProject manager reports progress to the client Sponsor and project manager inform people Sponsor and project manager inform people

affected by the project about it and persuade affected by the project about it and persuade them it is a good idea and to support itthem it is a good idea and to support it


Marketing the projectMarketing the project

ProductProduct the benefits the project givesthe benefits the project gives

PricePrice the commitment people have to makethe commitment people have to make

PlacePlace how and where the project impacts on their liveshow and where the project impacts on their lives

PromotionPromotion how and where you communicate the projecthow and where you communicate the project

People, process, physical environmentPeople, process, physical environment


Communicating with stakeholdersCommunicating with stakeholders

Who are the target audience?Who are the target audience? What are the objectives of each What are the objectives of each

communication?communication? What are the key messages?What are the key messages? What information will be communicated by What information will be communicated by

whom?whom? When will the information be given?When will the information be given? How will feedback be encouraged?How will feedback be encouraged? What media will be used?What media will be used?


Target audienceTarget audience

Understand the target audienceUnderstand the target audience Research to organizationResearch to organization

objectivesobjectives methods and proceduresmethods and procedures collection, analysis and reportingcollection, analysis and reporting

Segment the marketSegment the market groups of target audience with similar groups of target audience with similar

characteristics and concernscharacteristics and concerns


Objectives of communication planObjectives of communication plan

Raise awarenessRaise awareness Gain commitmentGain commitment Keep business areas informedKeep business areas informed Promote key messagesPromote key messages Demonstrate commitment to requirementsDemonstrate commitment to requirements Make communication two wayMake communication two way Ensure common understandingEnsure common understanding Maximize benefitsMaximize benefits


Encourage feedbackEncourage feedback

Make people feel that they have an influence Make people feel that they have an influence over the design of the changeover the design of the change they should FEEL that they dothey should FEEL that they do it doesnit doesn’’t matter if they actually dot matter if they actually do

Ask for feed backAsk for feed back Show that you are listeningShow that you are listening

through your body languagethrough your body language by answering questionsby answering questions by making (at least superficial) changes to the by making (at least superficial) changes to the

designdesign


MediaMedia

Seminars, workshops, focus groupsSeminars, workshops, focus groups Bulletins, briefings, pressBulletins, briefings, press--releasesreleases WebWeb--pages, social mediapages, social media Project lunchesProject lunches Video and CDVideo and CD Press and the mediaPress and the media Site exhibitionsSite exhibitions



END of SESSION END of SESSION 4.24.2

[email protected]@[email protected]@polimi.it

PMI42 Stakeholders

Documents

Transcript of PMI42 Stakeholders