Project Management Institute – Baltimore Chapter

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Project Management Institute –

Baltimore Chapter

“Managing Your Stakeholders and Their Expectations”

Mike Berendt, PMP, RMP

February 15, 2012

Copyright © 2007 PMI BC – All Rights Reserved

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Acknowledgement

Thanks to Dr. James T. Brown for his presentation at the PMI Leadership Institute Meeting on 22 October 2012. His treatment of the Art of Stakeholder Management provided the inspiration for my own analysis. Dr. Brown is the President of SEBA Solutions, a Registered Education Provider for PMI.


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Agenda What does the PMBOK say? How do we Manage Stakeholder

Expectations? Identifying Stakeholders Listening to Stakeholders Focusing on the Customer

Dealing with Problem Stakeholders Cultivating the Ideal Stakeholder


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From the PMBOKPMBOK Process 10.1 Identify Stakeholders

“The process of identifying all people or organizations impacted by the project, and documenting relevant information regarding their interests, involvement, and impact on project success”

PMBOK Process 10.4 Managing Stakeholder Expectations

“The process of communicating and working with stakeholders to meet their needs and addressing issues as they occur”

PMBOK, Fourth Edition, pg 243


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PMBOK Stakeholders

Customers/Users Sponsor Portfolio Managers/Portfolio Review Board Program Managers Project Management Office Project Managers Project Team Functional Managers Operations Management Sellers/Business Partners

PMBOK, Fourth Edition, pgs 23-27


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Power/Interest GridUsed to Classify and Prioritize Stakeholders


Keep Satisfied Manage Closely

Monitor (Minimum Effort)

Keep Informed

Power

Interest

High

HighLow


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Tools and Techniques for Managing Stakeholders

Understand Communication MethodsFormal/informal, upward/downward, lateralUse appropriate method for each stakeholder

Utilize Interpersonal Skills (Appendix G)Build trust, active listening, Resolve conflict, overcome resistance to change

Employ Effective Management Skills Presentation Skills – oral and writtenNegotiating with and among stakeholders

Use Issue Logs to document status and outcomes on stakeholder requests



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Issue Logs

Issue (Urgency/Impact)

Responsible Party (Owner)

Due Date for Resolution

Current Status

Issue Resolution

Review the Issue Logs at each Stakeholder meeting



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Managing Stakeholder Expectations – Other Ideas

Assess Stakeholder Power Identify StakeholdersListen to Stakeholders

Handle the Problem StakeholdersBuild your credibility with the collective groupMinimize distractions to the project

Build Relationships with and between StakeholdersCultivate Ideal StakeholdersBuild the cohesive, “Performing” Team


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Identifying Stakeholders

Follow the Money! (Sponsor)Who is paying or saving?How do they feel about cost increases on the

project?

Follow the Resources! (Functional Mgrs.)Who is providing people, equipment, or supplies?

External, InternalWhat are their pain points?

Follow the Deliverables (Customer/User)Who is the recipient of the product or services? Do they need it perfect, on time, or within budget?

Where is the greatest risk to the project?


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Identifying Stakeholders

Review the organizational chart

Ask your team members who they believe carries the most weight on decisionmaking for the project

Look for the unofficial people of influenceMost knowledgeable members of the team Institutional knowledge (longest tenure)Hardest, most diligent workers Informal leaders


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Listen to Your Stakeholders

Look for their pets:Pet peevesPet projectsPet people

Determine:Their pain pointsHow their performance is evaluated What they need to accomplish to have their boss

give them an “attaboy” or a promotion/raise

How do we make this project a “win” for most of our stakeholders? (NOTE: You can’t please all of the people all of the time!)


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Listening Tips

Listen through the noise – what is the real issue?

Distinguish between requirements and solutions

Quality vs. quantityTalking to more people doesn’t always clarify the

problem. Look for the right people who can articulate the

issues and understand all viewpointsDon’t react based on the first report – look for

hidden agendas


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Focus on the CustomerCustomer Satisfaction*

“Understanding, evaluating, defining, and managing expectations so that customer requirements are met. This requires a combination of conformance to requirements (verification) and fitness for use (validation)”

We must not only “build it right”, we must “build the right thing”

The longer the time frame to complete, the more likely that the original customer need will change



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Customer Knowledge – The Key Variable

“The Customer may not always be right, but they are always the customer! “ USPS

“I have to build this system or deliver this service, but I only have this much money” The Government

“We have to develop it, prototype it, and get it ready for market by 2nd Qtr or the competition will get there first” Industry

“I don’t know what I want but I’ll know it when I see it!” Your Customer


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How to help your Customer Let them know what to expect and what is expected of

them. Restate what you heard him say and get the customer

to validate that is what he wants Always take notes and provide minutes of customer

meetings (formal or informal) Look for exceptions, gaps, or holes Achieve consensus with the customer on capability

needs and requirements Needs beget requirements beget solutions beget

deliverables – Requirements Traceability Matrix is KEY!


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How to help your CustomerPMBOK Process 4.5 Perform Integrated Change

Control

“The process of reviewing all change requests, approving changes, and managing changes to the deliverables…”

Establish a Process and Enforce it!

Eliminate Scope Creep!


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Milestone Decisions

At each milestone in a project, you have three possible decisions that affect how you deal with the project going forward:

KEEP

MODIFY

CANCEL

Consider classifying your stakeholders in the same way


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Problem Stakeholders

The Meddling Stakeholder

The Overbearing Stakeholder

The Poor Stakeholder

The Untrustworthy Stakeholder

The Indecisive Stakeholder

The Unavailable Stakeholder

One or more of these will show

up on every project!


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Meddling Stakeholder

Develop “Rules of Engagement” for all stakeholders and enforce them Written or verbal Document how often and what format will be used to

communicate with stakeholders (Plan Communications, Stakeholder Management Strategy)

Assess the cause for the meddling Does he not trust the Project Manager? Will his experience help in any way? If they insist on being involved, then involve them

Some Stakeholders are just Control Freaks – Keep them informed and let them participate without taking over


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Meddling Stakeholder

Develop “Rules of Engagement” for all stakeholders and enforce them Written or verbal Document how often and what format will be used to

communicate with stakeholders (Plan Communications, Stakeholder Management Strategy)

Assess the cause for the meddling Does he not trust the Project Manager? Will his experience help in any way? If they insist on being involved, then involve them

Some Stakeholders are just Control Freaks – Keep them informed and let them participate without taking over


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Overbearing Stakeholder

Because of their position of power or personality, they can be domineering and put the program at risk

Make sure this stakeholder does not destroy other project relationships or teamwork

Seek help with this one – look for another stakeholder of equal power to neutralize this one

Build the team – Build a “Performing” organization that tolerates but largely ignores the overbearing stakeholder – Let them have their say but do what the group decides


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Overbearing Stakeholder

Because of their position of power or personality, they can be domineering and put the program at risk

Make sure this stakeholder does not destroy other project relationships or teamwork

Seek help with this one – look for another stakeholder of equal power to neutralize this one

Build the team – Build a “Performing” organization that tolerates but largely ignores the overbearing stakeholder – Let them have their say but do what the group decides


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Poor Stakeholder

Has interests and is impacted by the project but has no significant budget authority

May play politics in order to gain influence

Understand his objectives Do they line up or conflict with more powerful

stakeholders? How do we leverage opportunities with him? His opinions may be a predictor of future issues


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Poor Stakeholder

Has interests and is impacted by the project but has no significant budget authority

May play politics in order to gain influence

Understand his objectives Do they line up or conflict with more powerful

stakeholders? How do we leverage opportunities with him? His opinions may be a predictor of future issues


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Untrustworthy Stakeholder Plays both sides, won’t stand by his word,

refuses to document anything with a signature

Root cause may be fear of accountability, inexperience, or ignorance

Team must document all important communication Solid Communication Plan Document decisions (Minutes and Action Items)

Keep a record of his behavior Take Proactive action or partner with others Watch what you say – It may come back to you!


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Untrustworthy Stakeholder Plays both sides, won’t stand by his word,

refuses to document anything with a signature

Root cause may be fear of accountability, inexperience, or ignorance

Team must document all important communication Solid Communication Plan Document decisions (Minutes and Action Items)

Keep a record of his behavior Take Proactive action or partner with others Watch what you say – It may come back to you!


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Indecisive Stakeholder

Can never make decisions in a timely manner; does not remain committed to previous decisions

Set up processes and structures that clearly communicate when the decision is required and the impact of delays Milestones on Schedules Capture lost time/money due to delayed decisions Action Logs and suspenses What would your boss say if he knew that your inaction

was the primary reason the project could not deliver?


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Indecisive Stakeholder

Can never make decisions in a timely manner; does not remain committed to previous decisions

Set up processes and structures that clearly communicate when the decision is required and the impact of delays Milestones on Schedules Capture lost time/money due to delayed decisions Action Logs and suspenses What would your boss say if he knew that your inaction

was the primary reason the project could not deliver?


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Unavailable Stakeholder

Always “too busy” to participate when their input or approval is required

Usually the ones that question decisions or challenge deliverables at pivotal points because they become involved at the last minute

Never available to help but always available to critique the result


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Unavailable Stakeholder

Always “too busy” to participate when their input or approval is required

Usually the ones that question decisions or challenge deliverables at pivotal points because they become involved at the last minute

Never available to help but always available to critique the result


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Unavailable Stakeholder Strategies

Keep a detailed log of efforts made to communicate with this stakeholder

Get them to delegate authority to someone they trust to represent them

Eliminate the excuses Maintain scheduled meetings and timeframes that do

not conflict with other events Publish schedules and topics well in advance and follow

up with email and phone reminders Find a way to include them without their physical

presence – Telecon, video-conferences, webinars One-on-one contact for important decisions – visit them

personally (respect their power)


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The Ideal Stakeholder

Shows an interest in the project

Makes themselves available when necessary

Assigns qualified personnel to act on their behalf when they are away

Are willing to be held accountable

Reviews and signs documents in a timely manner


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The Ideal Stakeholder (cont) Prioritizes their requirements

Tells you how best to communicate with them

Doesn’t pressure the Project Manager to circumvent the management prcesses

Looks for opportunities to assist the project team

Helps motivate key personnel by showing their appreciation for the project work


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The Ideal Stakeholder (cont) Prioritizes their requirements

Tells you how best to communicate with them

Doesn’t pressure the Project Manager to circumvent the management processes

Looks for opportunities to assist the project team

Helps motivate key personnel by showing their appreciation for the project work


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Closing Thoughts

However, this is the exception and not the rule, so use your Stakeholder Register and Issue Logs to Manage all of your Stakeholders’ expectations, meticulously documenting their concerns and how you addressed them. At the end of the day, we all want to see the project completed on time, on budget, and with the level of quality desired!

Or do we………

May all your stakeholders be the Ideal Stakeholder!

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Questions???

Mike Berendt, PMP, RMPVice President – [email protected]

mailto:[email protected]

Project Management Institute – Baltimore Chapter

Documents

Transcript of Project Management Institute – Baltimore Chapter