STAKEHOLDER MANAGEMENT
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1 STAKEHOLDER MANAGEMENT The People Challenge! ENTERPRISE PROJECT MANAGEMENT LTD. 1
2 WHAT IS A STAKEHOLDER? Any individual or group that perceives they are either positively or negatively impacted as a result of the project being implemented! ENTERPRISE PROJECT MANAGEMENT LTD. 2
3 THE KEY TO SUCCESS! Planning Exercise aimed at Profiling Stakeholders Defining their stakes Establishing their Influence & Importance for the project ENTERPRISE PROJECT MANAGEMENT LTD. 3
4 Stakeholder Management ENTERPRISE PROJECT MANAGEMENT LTD. 4
5 Levels of Stakeholder Engagement Level 1 Level 2 Level 3 Driven by external pressures undertaken in an adhoc manner and limited to issues that created conflict with stakeholders Focused on increasing understanding, managing risks and resolving conflict Focused on contributing to learning and innovations in products and processes to enhance sustainability. ENTERPRISE PROJECT MANAGEMENT LTD. 5
6 Benefits of Stakeholder Engagement Effective and Strategically aligned stakeholder engagement can: Lead to sustainable development by giving those who have a right to be heard the opportunity to be considered in decision-making processes Enable better management of risk and reputation Allow for pooling of resources (knowledge, people, money & technology) to solve problems and reach objectives Enable understanding of complex business environments Enable organizations to learn from stakeholders, resulting in product and process improvements Inform, educate and influence stakeholders & the business environment to improve their decision-making & actions Build trust ENTERPRISE PROJECT MANAGEMENT LTD. 6
7 Engagement Framework ENTERPRISE PROJECT MANAGEMENT LTD. 7
8 Accountability Commitment & Principles Stakeholder engagement is used to deal with issues of material significance: to the business to the stakeholders Provides direction in how to align stakeholder engagement with the organizational or project core strategy/objectives Inclusive commited to reflect at all stages of the process, - views and needs of all stakeholder groups Stakeholder views obtained through an engagement process that allows freedom to express inclusive (consideration of the voiceless stakeholders) ENTERPRISE PROJECT MANAGEMENT LTD. 8
9 Inclusivity Materiality Requires knowing what concerns and is important to the project/organization and the stakeholders Completeness: Requires understanding& management of material impacts and associated stakeholder views, needs & performance perceptions and expectations Responsiveness: Requires coherently responding to stakeholders and the organizations material issues ENTERPRISE PROJECT MANAGEMENT LTD. 9
10 Process Principles Is it genuine? Are we just going through the motions of consultation for public relations or are we serious about getting the complete picture Is it fair and well informed? Does the process of engagement allow all stakeholders to be considered or significantly impacted stakeholders ignored? Are internal/external processes in place that enable you to gain a good understanding of impacts and stakeholder perception? What difference will this make? What are you going to do about issues raised? How does this impact performance or business benefit? Are you willing/able to make the changes required? ENTERPRISE PROJECT MANAGEMENT LTD. 10
11 Stakeholder Identification Dimensions: Responsibility people/groups to whom the project has legal, financial and/or operational responsibilities Influence people/groups who are able to influence others, formal and informal Proximity people/groups project interacts with most often, internal stakeholders, eg we depend on for day to day operations Dependency people/groups who are most dependent on the project for safety. Livelihood, health, welfare, suppliers etc. Representation people/groups that are through regulatory structures etc. Entrusted to represent others e.g. unions ENTERPRISE PROJECT MANAGEMENT LTD. 11
12 STAKEHOLDER MAPPING Gary Jim Jason David Kevin Matt Harry Ian Stan Julia Mike Bob Patrick Mark Jane Power Influence / Dave Graham Stefan Roland Mary Colin Mike Phil Alison Yolanda Roger John Bob Gordon Carl Hilda Eric Geoff Fred Support for Project/Willingness to Change ENTERPRISE PROJECT MANAGEMENT LTD.
13 Mobilization Mobilization - Stakeholder Analysis Titles/Org Functions Strongly Against Moderately Against Neutral Moderately Supportive Strongly Supportive CEO R&T HR 13 ENTERPRISE PROJECT MANAGEMENT LTD. 13
14 DEFINING STAKEHOLDER INTERESTS What are the stakeholders expectations of the project? What are the benefits to the stakeholder? What resources is the stakeholder willing to commit to the project? What other interests does the stakeholder have that may cause project conflict? ENTERPRISE PROJECT MANAGEMENT LTD. 14
15 INFLUENCE Influence is the power that a stakeholder may have over a project to control Project decisions Exert influence which can either positively or negatively affect the project The extent to which groups or individuals are able to persuade, influence or coerce others into making decisions/following specific courses of action ENTERPRISE PROJECT MANAGEMENT LTD. 15
16 IMPORTANCE Distinct from Influence Stakeholders upon which the project places great priority Important for the PM to determine which stakeholders the project places a priority on meeting Needs Interests Expectations May have a weak capacity to participate & limited power to influence key decisions ENTERPRISE PROJECT MANAGEMENT LTD. 16
17 COMBINE INFLUENCE / IMPORTANCE A thorough Stakeholder assessment combines influence and importance for each stakeholder Stakeholder Influence Importance Action A Low High Need to protect their interests B High High Needs to establish a good relationships for project support C High Low Needs monitoring may be a source of risk D Low Low Needs limited monitoring ENTERPRISE PROJECT MANAGEMENT LTD. 17
18 Engagement Plan Stakeholder Message(s) Method(s) Who How Often ENTERPRISE PROJECT MANAGEMENT LTD. 18
19 COMMUNICATION: PITFALLS retained utilised agreed understood heard spoken ENTERPRISE PROJECT MANAGEMENT LTD. 19
20 BAND WIDTH Forum Fax Video conference Telephone Face to face Technical Communication Feelings, Emotions ENTERPRISE PROJECT MANAGEMENT LTD. 20
21 CONCLUSION Know and nurture your stakeholders! Identify Analyze Manage Communicate effectively with the stake in mind Manage conflict PROJECT SUCCESS depends on effective Stakeholder management! ENTERPRISE PROJECT MANAGEMENT LTD. 21
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