Managing Complicated Stakeholders
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1 TECHINCAL PROJECT MANAGEMENT Managing Complicated Stakeholders C. Benjamin Anyacho, D.Min, MBA, PMP July 26, 2016
2 Table of Contents 1 Introduction Learning Objectives 5 3 Welcome and Introduction Stakeholder defined Principles for Complicated Stakeholders Principles of Persuasion Principle of High Change Quotient (CQ) and Other Principles Summary, Questions and Answers Footer Text Date 2
3 Today s Agenda Define Stakeholder Define Complexity Practical sessions Principles of managing complicated Stakeholders Successful project examples Questions and Answers Wrap Up/ Closing Remarks 3
4 Learning Objectives 1. Integrating buy-in of key stakeholders into all the five domains of project management 2. Understand the place of persuasion and negotiation in managing complicated stakeholders 3. Understand the role of Logic Vs Politics in managing stakeholders and forensic analysis of difficult stakeholders 4. Optimize outside-the-box thinking by leveraging some of the latest persuasion science, leadership, and change management tools to more effectively identify, analyze, plan, and respond to project resistors 5. Learn how to utilize all the tools at your disposal, including emotion 4
5 Learning Objectives 6. Embrace the role of project charter in stakeholder management 7. Know PM s Authority and when to say NO! 8. Understand down-to-earth stakeholders analysis strategies 9. Understand why managing up is a winning tool when dealing with certain stakeholders 10. Learn how to use the right people 11. Learn why timely communication matters in project success 12. Learn how to manage difficult stakeholder engagement 5
6 Ever worked for a boss from hell? 2016 DeviantArt. I m right and you are wrong Holidays my foot! Finish this now! I want it now! Did you leave your #%!@^&* brain at home? Get out of my face!!! What s in it for me! I m too busy 6
7 Work With Lazy Stakeholders From Hell? Managed a project from hell? 7
8 Don t Underestimate What s Left Within! 8
9 How are Conventional Management Tools Working for you? The Project manager is caught up in the battle of customer (Stakeholder) interface Winners create the rule of the game and not follow stale rules 9
10 The Strategies that Brought Us Here Cannot Sustain Us! 1.3 billion YouTube users Almost 5 billion videos are watched on Youtube every single day 300 hours of video are uploaded to YouTube every minute! 18,000 days or 46 years to watch one day upload 18,000 hours or more than 2 years to watch I hour uploads Net ad revenue in $4.8 billion 1 month video upload > 3 major US networks content created in 60 years YouTube is localized in 78 languages 10
11 Stakeholder Defined A stakeholder is an individual, group, or organization who may affect, be affected by or perceive itself to be affected by a decision, activity, or outcome of a project. PMBOK Guide, 5th edition A stakeholder is a person, group of people or an organization that has any kind of interest in your project or is affected by its outcome either directly or indirectly. Project Management Body of Knowledge (PMBOK Guide), 5 th Edition 11
12 Stakeholder Defined Internal to the organization A sponsor An internal customer or client like DDOs (District/Division/Office) A project team A program manager A portfolio manager Management/Administration Another group s manager internal to the organization (e.g. functional manager, operational manager, admin manager, etc.). 12
13 Stakeholder Defined External to the organization An external customer or client if project arose due to a contract An end user of project s outcome A supplier Subcontractors The government Local communities The media 13
14 Welcome and Introductions In a group of 3 or 4 (3 mins) Tell each other one project you managed One thing you did to manage a difficult stakeholder The outcome What will you do if you have to do it again 14
15 Identifying a Complicated Stakeholder Recognize Driver Supporter Observer 15
16 Complicated Stakeholder Recognize Resistor Neutral Advocate 16
17 Complicated Stakeholder Matrix Project Management Body of Knowledge (PMBOK Guide), 5th Edition, P
18 Dealing with Complicated Stakeholders Identify relationships among stakeholders Document the interests and motivations of stakeholders Identify conflicting interests among stakeholders Determine the level of participation required from each stakeholder 18
19 19
20 Principle #1: Fix the Man in the Mirror! Angry Impatient Frustrated Unforgiving Selfish and self-centered Hidebound Armadillo Project Manager! Operating on old PMBOK YOU NEED HELP! 20
21 Principle #2: Pull on what is INSIDE! Project Example: Austin Elders Gathering Fundamental vicious natures cannot change Scorpion will always sting! People don't change that much. Don't waste time trying to put in what was left out. Try to draw out what was left in. That is hard enough. Marcus Buckingham and Curt W. Coffman, First, Break All the Rules 21
22 Principle #2: Pull on What is INSIDE! Cont d Do you see people from where they should be or where they are? Do you see Weaknesses or Growth Opportunities? The best lies in the most unusual places! 22
23 Mashed Potatoes leadership style Do you see people from where they should be or where they are? No such thing as weaknesses. Growth opportunities Half full not half empty Lamont or lemonade? The best lies in he most unusual places Elephant and human Marcus Buckingham and Curt W. Coffman, First, Break All the Rules 23
24 Bowl of Soup leadership style 24
25 You can see your stakeholders as lemons 25
26 ...or as a lemonade 26
27 ...or as a lemonade 27
28 Principle #3: Continuous Buy-in Project Example: Austin CIR & ADRN Project Buy-in of one Executive sponsor not a committee Build buy-in check-up into all phases and domains Watch for hidden agendas Requirements deficits are often cited as affecting more than 50% of project failures (Haas, K. B. (2007, October). Living on the edge. PMI Global Congress 2007 Manage expectations by clearly communicating upfront with the stakeholders Identify what motivates stakeholders to drive buy-in Communicate positive and possible constraints, 28 risks, and roadblocks
29 Principle #3: Continuous Buy-in: Ideation, Pre-charter, and Ownership Passive and Active Buy-in During Pre-Charter Activities Business Need Product Scope Description Strategic Plan Business Case 29
30 Principle #3: Continuous Buy-in: Pre-Charter Activities Cont d SOW Agreements Project Charter Business Case Charter Input: Project statement of work, business case, agreements, enterprise environmental factors, and organizational process assets 30
31 Principle #3: Continuous Buy-in: Pre-Assignment Project Example: Austin CIR & ADRN Project Have a Project Charter With Pre-assignments Shared ownership Pre-Assignment is a Tool and Technique of Acquire Project Team; when project team members are selected in advance (pre charter) base on their expertise The broad definition of Charter is a written document issued by an authority, creating an entity (in our case a project), and defining its rights, principles, purposes, rules and privileges. A project charter announces that a new project has started and ensures your project gets off to the right start, with management support and aligned with organizational objectives. 31
32 Principle #3: Continuous Buy-in: Project Charter 32
33 Principle #2: Have a Project Charter 33
34 Principle #3: Continuous Buy-in: Project Charter Cont d 34
35 Principle #3: Continuous Buy-in: Project Charter Cont d The Project Charter Announces that a project has begun Assigns the PM Authorizes the PM to utilize organization s resources Demonstrates management support for the project and project manager Sets out management expectations for the results Spells out the nature and scope of the work Broadly defines the project deliverables, schedule and budget Aligns the project with organizational objectives 35
36 Principle #4: PM s Authority: Sharpen the saw Project Example: PMP Dev Program Positional Authorized to act on behalf of the sponsor Referent Ability to influence using their personality Reward Ability to influence by incenting the team Coercive Ability to influence based on fear of punishment Expert Ability to influence because they respect the PM s skills or subject matter expertise Know when to say NO! 36
37 Principle #4: PM s Authority Cont d Meeting Strategy 37
38 Principle #5: Principle of Persuasion Six Principles of Persuasion by psychology professor Dr. Robert Cialdini From his research into science of influence and persuasion, published in his 1984 groundbreaking bestseller Influence: The Psychology of Persuasion, now being taught at the Manchester Business School He refers to these principles as the weapons used by influence professionals to get people to say yes 38
39 Principle #5: Principle of Persuasion Six Principles of Persuasion by Dr. Robert Cialdini 1. Reciprocity 2. Scarcity 3. Authority 4. Consistency 5. Liking 6. Consensus and Social Proof 39
40 Principle #5: Principle of Persuasion: Reciprocity Six Principles of Persuasion, Dr. Robert Cialdini 1. Reciprocity: People are more obligated to give when they ve received something first Restaurant waiter: 1 mint gift = 3% increase in tips 2 mints = 14% increase return with a 3rd mint = 23% increase First to give How you give personalized When to give Unexpected 40
41 Principle #6: Principle of Persuasion: Scarcity Six Principles of Persuasion, Dr. Robert Cialdini 2. Scarcity: People want more of those things there are less of British Airways 2003 daily London-NY flights change Benefit of your value proposition Uniqueness Limited-time discount from a vendor? Deadline, looming consequences? Price of inaction?-what they stand to lose Scarcity is a great principle for creating a greater sense of urgency, and is especially useful if you have an internal or external deadline looming 41
42 Principle #7: Principle of Persuasion: Authority Six Principles of Persuasion, Dr. Robert Cialdini 3. Authority: People will follow CREDIBLE KNOWLEDGIBLE EXPERTS Claiming to be an authority figure is less powerful than when a third party does it for you Why doctors and physiotherapists display their diplomas on the wall Relators introduction of team with years of experience 20% rise in appointment and 15% rise in signed contracts 42
43 Principle 8#: Principle of Persuasion: Consistency Six Principles of Persuasion, Dr. Robert Cialdini 4. Consistency: People like consistency and commitment to what we say or do; Initial commitment and small, initial commitments now 400% increase in the neighborhood campaign to place front yard sign for drive safely because of small initial commitments 10 days earlier 43
44 Principle #9: Principle of Persuasion: Liking Six Principles of Persuasion, Dr. Robert Cialdini 5. Liking: We like People who are similar to us People who pay us genuine compliments People who cooperate with us GENUINE COMPLIMENTS BEFORE AGREEMENTS: Example of 2 well-known MBA students, a) one group was told time is money get to business, (55% success) b) was told to exchange personal information (90% came to agreements because of similarities) 44
45 Principle #10: Principle of Persuasion: Consensus Six Principles of Persuasion, Dr. Robert Cialdini 6. Consensus and Social Proof: People look to the actions and behaviors of others to determine their own Hotels bathroom sign to reuse towels-35% reuse Notes like 75% of our guest reuse their towels. Please do so as well 26% rise 75% of our guest reuse in this room reused their towels 33% increase in reuse Use case studies and testimonials In 1987, social scientist Anthony Greenwald approached potential voters 100% said they would vote On election day, 86.7% of those asked went to the polls compared to 61.5% of those who were not asked 45
46 Practical session (4 minutes) 1. You are managing a complicated project, and in the implementation phase. There arise conflicts among various stakeholders, including project team members. These conflicts should usually be resolved in favor of who and why? 2. It seems like some managers are playing hardball on your project; some are stonewalling. The PM needs Organizational Process Assets (OPA): the plans, processes, policies, procedures, and knowledge bases specific to and used by the performing organization and Enterprise Environmental Factors (EEF): internal and external environmental factors that can influence a project's success, including Organizational culture, Organizational structure, Internal and external political climate. List your source/s for obtaining OPA and EEF 46
47 Practical session (4 minutes) 1. You are managing a complicated project, and in the implementation phase. There arise conflicts among various stakeholders, including project team members. These conflicts should usually be resolved in favor of who and why? 1. Customer In general, differences among stakeholders should be resolved in favor of the customers. 2. List your source/s for obtaining OPA and EEF. OPA and EEF come from Stakeholders: consultants, customers, sponsors, and professional and technical associations 47
48 Principle #11: Understand your organization, its Politics, EEF, and OPA Project Example: TX City Impact Roundtables Understand the difference between Logic Vs Politics Politics can t be avoided: Manage the project in the present and think to the future George Baron, PMP, program manager, Timisoara, Romania 48
49 49
50 Principle #11: Understand your organization, its Politics, EEF and OPA Project Example: TX City Impact Roundtables Always keep the project goal front and center. Never let emotions come into play and always respond to situations not individuals ~ Charanjeet Singh, PMP, project manager, Vancouver, Canada Organizational Process Assets are the plans, processes, policies, procedures, and knowledge bases specific to and used by the performing organization ~PMBOK Guide 5 th Edition Enterprise Environmental Factors (EEF): internal and external environmental factors that can influence a project's success, including Organizational culture, Organizational structure, Internal and external political climate 50
51 Principle #12: Identify Stakeholders Project Example: Diversity MGM System 51
52 Principle #12: Identify Stakeholders Con t Stakeholder Register Identifies the project stakeholders Determines their level of power over, and involvement with the project Documents their needs, wants, and expectations from the project Allows the project manager to prioritize his/her time and effort with multiple stakeholders Must be comprehensive and completed early in the project Will also be conducted prior to project chartering in order to identify the key stakeholders for project 52
53 Principle #12: Identify Stakeholders Cont d Project Example: Diversity MGM System You are leading a highway expansion project (Loop 1 in Austin, Texas) who are your likely stakeholders? 53
54 Principle #12: Identify Stakeholders Cont d Identify Stakeholders: How Who is or will be affected, positively or negatively, by what you are doing or proposing to do? Who holds official positions relevant to what you are doing? Who runs organizations with relevant interests? Who has been involved in any similar situations in the past? Whose names come up regularly when you are discussing this subject? HealthKnowledge--Public Health Action Support Team CIC ('PHAST') 54
55 Principle #12: Identify Stakeholders Cont d Identify Stakeholders: Process Objective Identify the project stakeholders and prioritize the project manager s communications and efforts based upon a stakeholder analysis (such as power/interest) 55
56 Principle #12: Identify Stakeholders Cont d Project Management Body of Knowledge (PMBOK Guide), 5th Edition, p393 Identify Stakeholders Cont d ITTOs Identify Stakeholders Knowledge Area: Stakeholder Inputs Tools & Techniques Outputs 1. Project charter 2. Procurement documents 3. EEF 4. OPA Process Group: Initiating 1. Stakeholder analysis 2. Expert judgment 3. Meetings 1. Stakeholder register 56
57 Stakeholder Analysis Project Example: Austin Disaster Relief Network 1.Stakeholder analysis Identify stakeholders Identify impact / support Assess reactions High Power / Interest Grid Consistent Management High Focus Power Low Focus Informational Communication Low Low Interest High Copyright and all rights reserved 2013 Project Management Institute, Inc., A Guide to the Project Management Body of Knowledge, 5th Edition. ISBN Page
58 Project Management Body of Knowledge (PMBOK Guide), 5th Edition Stakeholder Analysis Cont d Ability to impose their will 8 Appropriateness of their involvement Power Legitimacy Salience Model Need for immediate attention Urgency Dormant 2. Discretionary 3. Demanding 4. Dominant 5. Dangerous 6. Dependent 7. Definitive 8. Non Stakeholder 58
59 Non Stakeholder Stakeholder Salience Model Stakeholder analysis 59
60 Principle #13: Stakeholder Management Planning Project Example: Diversity MGM System Develop appropriate management strategies to engage stakeholders throughout the project, based on their needs, interests, and potential impact on project success 60
61 Project Management Body of Knowledge (PMBOK Guide), 5th Edition Principle #13: Stakeholder Management Planning Cont d Unaware Resistant Neutral Supportive Leading Thomas Jones C D Dick Emmanuel C D Melissa Smith C D Richard Mills C D 61
62 Diversity Management System (DMS) Stakeholders Engagement Plan Principle #8: Stakeholder Management Planning Cont d Division: Federal Recipient Division (FRD) Objective: To manage and engage stakeholders about DMS system/program, Internal Implementation, Internal Change Requirements, Internal Impact, and External Impact. Purpose: Identify a process that will allow us to simplify, clarify, streamline, and standardize our current process. Questions to Answer Phases SME Internal Implementation? Internal Change Requirement? Internal Impact? External Impact? Certification MGMT Benjamin Integrated platform for DBE/SBE/HUB Certification MGMT Centralized processing system; real-time processing FRD, CST: New vendor # creation thro B2Gnow; Replaces Mainframe Direct access to CPA SANS, TUCP Partners Online Cert. Application Benjamin Automated & Streamline process for New and renewal applications Replacement of manual application, communication OCR: Streamlined online vendor correspondence Real time access to applications Vendor Management/ Emma Benjamin 62 Baseline System
63 Project Management Body of Knowledge (PMBOK Guide), 5th Edition PP Principle #14: Be a Negotiator: Know the right thing to say Project Example: TX City Impact Roundtables and DMS Projects Communication Management Planning 1.Communication requirements analysis: Channels, sources of info, PMBOK Communication technology: Urgency, availability, ease of use, project environment, sensitivity and confidentiality of information 3.Communication models: Encode, transmit message, decode, acknowledge feedback/response 4.Communication methods: Interactive, Push or pull 63
64 Review Questions Vocabulary Review Lesson Review
65 Communication Management Planning Project Management Body of Knowledge (PMBOK Guide), 5th Edition 65
66 Principle #15: Manage Stakeholder Engagement Project Example: Enterprise Accounting System Objective: Communicating and working with stakeholders to meet their needs and expectations throughout the project The manage stakeholder engagement process: Involves managing communications to satisfy the needs of, and resolve issues with project stakeholders Actively manages the expectations of stakeholders to increase the likelihood of project acceptance Addresses concerns that have not become issues yet, usually related to the anticipation of future problems Clarifies and resolves issues that have been identified 66
67 Project Management Body of Knowledge (PMBOK Guide), 5th Edition Managing Stakeholder Engagement: ITTO ITTOs Manage Stakeholder Engagement Knowledge Area: Stakeholder Inputs Tools & Techniques Outputs 1. Stakeholder management plan 2. Communications management plan 3. Change log 4. OPA Process Group: Executing 1. Communication methods 2. Interpersonal skills 3. Management skills 1. Issue log 2. Change requests 3. Project management plan updates 4. Project documents updates 5. OPA updates 67
68 Principle #16: Utilize Key Stakeholders to Engage Difficult Stakeholders Project Example: Students Welfare Center Don t stretch. Stand! 68
69 Principle #16: Utilize Key Stakeholders to Engage Difficult Stakeholders Do not ignore a difficult stakeholder View them and treat them with the importance a key stakeholder deserves Be Patient: Take the time to truly understand their perspective and concerns Empathize with them Request for feedback Address all concerns and honestly implement their feedback 69
70 Principle #17: Control Stakeholder Engagement Project Example: Shopping Center Renovation Objective: Continual process of controlling stakeholder engagement as defined in the stakeholder management plan The control stakeholder engagement process: Monitors overall project stakeholder relationships and adjusts strategies and plans for engaging stakeholders Maintains or increases the efficiency and effectiveness of stakeholder engagement activities as the project evolves and its environment changes 70
71 Project Management Body of Knowledge (PMBOK Guide), 5th Edition Principle #17: Control Stakeholder Engagement Cont d ITTOs Control Stakeholder Engagement Knowledge Area: Stakeholder Process Group: Monitoring and Controlling Inputs Tools & Techniques Outputs 1. Project management plan 2. Issue log 3. Work performance data 4. Project documents 1. Information management systems 2. Expert judgment 3. Meetings 1. Work performance information 2. Change requests 3. Project management plan updates 4. Project documents updates 5. OPA updates 71
72 Principle #18: Have a Change Management Plan Project Example: Diversity Mgmt. System Change Management is applied to material changes in the project scope that impact Schedule, Budget or Benefits of the project. A consistent Change Management process has benefits such as the following: Change decisions are transparent and are based on thorough analysis If the change significantly impacts the project s business case, there is an opportunity to decide whether this project is still a viable investment for the company When a change is significant (especially a budget change) it can impact the overall portfolio of projects in the enterprise and across the firm; this process provides executive management with the information they need to manage the impact to the overall portfolio oe.ucdavis.edu/local
73 Principle #19: Manage Up Managing up, "You want to be described as indispensable Doing what you can to make your manager's job easier will not only help them do their job, but you will be considered a valuable asset to your manager and to your organization. Rosanne Badowski, co-author of "Managing Up: How to Forge an Effective Relationship With Those Above You 73
74 Principle #19: Manage Up Cont d It s relationships that influence and fuel team interactions, project successes and individual careers. Brian Irwin, PMP, Gravette, Arkansas, USA-based author of Managing Politics and Conflict in Projects Be a genuine source of help to your bosses and stakeholders, and you have a defense against difficult stakeholders. Managing up doesn t mean sucking up! 74
75 Principle #20: Principle of Honor and Relevance 75
76 Principle #20: Principle of Honor and Relevance Cont d Project Example: Austin Elders Gathering Respect their opinions Showcase their leadership and recognize their contributions Acknowledge their importance and relevance Show them the implication of their non-participation Engage them as champions of the project How do you manage workplace politics? 76
77 Principle #21: Know What is Project Success Project Example: Diversity MGM System When all stakeholders are satisfied Proper identification of requirements Addressing various needs, concerns, and expectations of all stakeholders Active, effective, and collaborative communication among stakeholders Managing stakeholders towards meeting project requirements and creating project deliverables 77
78 Principle #21: Know What is Project Success Cont d 78
79 Principle #21: Know What is Project Success Cont d Balancing competing project constraints: I. Scope II. Quality III. Schedule IV. Budget V. Resources, and VI. Risk Project Example: Diversity MGM System Other Constraints Other Constraints Other Constraints Through integration, utilize proper documentations to put the project on tract and concentrate on the Project success 79
80 Principle #22: Principle of High Change Quotient (CQ) Project Example: Austin Elders Gathering You can lead change from head (Strategic, futuristic, and purposeoriented), hands (efficient, tactical, process-oriented), or heart (engaging, caring, people-oriented), Barbara A. Trautlein, PhD, Principal, Change Catalysts, LLC 80
81 Summary Principles for Managing Complicated Stakeholders Fix yourself first! Charter Develop project chartered Know what is project success Know PM s Authority Identify ALL Stakeholders Analyze ALL Stakeholders down-to-earth analysis Plan Stakeholders Management Be a deal broker and negotiator know what to say Manage Stakeholder engagement Use what you have (great stakeholders) to get what you need Have a Change Management Plan 81
82 Summary Principles for Managing Complicated Stakeholders Manage up Listen, acknowledge, and respond to all concerns Understand your organization, its Politics, EEF, and OPA Understand Logic Vs Politics Minimize risks and compensate for those that cannot be avoided Be just, not fair Acknowledge conflicts and hit it head-on! Know when to say NO! Use the right people Be sensitive: utilize all the tools at your disposal, including emotion Timely communication 82
83 Thank You Footer Text Date 83
84 Questions & Answers Footer Text Date 84
85 Follow me on Benjamin Anyacho Name: C. Benjamin Anyacho, D.Min, MBA, PMP Twitter: Benjamin Anyacho Web site: BenjaminAnyacho.com Web site: Leaders.thinkers.org Leaders.thinkers@gmail.com LinkedIn: Benjamin Anyacho, MBA, PMP LinkedIn.com/leaders.thinkers LinkedIn.com/NonProfitManagementProfessionals Facebook: Benjamin Anyacho Phone: Address: Leaders and Thinkers International P. O. Box 80374, Austin, TX Footer Text Date 85
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