STAKEHOLDER ANALYSIS IN MANAGEMENT BUSINESS

STAKEHOLDER ANALYSIS IN MANAGEMENT BUSINESS

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  COLLEGE OF HUMANRESOURCE DEVELOPMENT
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  DR MBITHI MUTUA [email protected]
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  BACHELOR OF SCIENCEIN PROJECT MANAGEMENT HEPM 2301: PROJECT PLANNING STAKEHOLDER MANAGEMENT
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  DR MBITHI MUTUA [email protected]
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   In projectsinitiations the following is done.  A business problem or opportunity is identified and a business case which provides various solution options defined.  A feasibility study is then conducted to investigate the likelihood of each solution option addressing the business problem or opportunity and a final recommended solution is put forward.  Once the recommended solution is approved a project is initiated. In initiating projects we need to:
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   A termsof reference is completed  Project manager begins recruiting a project team and establishes a project office environment.  Approval is sought to move to detailed project planning. Initiation
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   Includes:  Detaileddefinition of the problem or opportunity.  An analysis of potential solutions options available.  For each option, a potential costs, benefits, risks and issues are documented.  A formal feasibility study may be commissioned.  The recommended solution and implementation plan. Developing a business case
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   The businesscase is approved by project sponsors and the required funding is allocated to proceed with the project. Business case cont’d
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   Defines thevision, objectives and scope and deliverables of the project. ◦ It also provides organizational structure ◦ Resources ◦ Funding for the project ◦ Risks ◦ Constraints Terms of reference
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   Location whetherphysical of virtual  Communications i.e telephone, computer network, email, internet access file storage, dbase storage and backup facilities.  Documentation for accounting project planning and risk modeling, Components of a project office environment
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   For youto initiate projects you must identify them Note:
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  02/02/2025 12 How canyou identify a Project? Start by doing a Situation analysis Undertake some background studies Do some stakeholder analysis This will help identify a core problem for the project Then do a problem analysis Remember that every core problem has root causes and if left unsolved can lead to undesired consequences. This sounds like saying there is a problem tree with roots and outcomes ……
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  Projects Often CauseChange  Projects often cause changes in organizations, and some people may lose their jobs when a project is completed. Project managers might be viewed as enemies if the project resulted in job losses for some stakeholders  By contrast, they could be viewed as allies if they lead a project that helps increase profits, produce new jobs, or increase pay for certain stakeholders  In any case, project managers must learn to identify, understand, and work with a variety of stakeholders 13
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  Project Stakeholder Management Processes Identifying stakeholders: Identifying everyone involved in the project or affected by it, and determining the best ways to manage relationships with them.  Planning stakeholder management: Determining strategies to effectively engage stakeholders  Managing stakeholder engagement: Communicating and working with project stakeholders to satisfy their needs and expectations, resolving issues, and fostering engagement in project decisions and activities  Controlling stakeholder engagement: Monitoring stakeholder relationships and adjusting plans and strategies for engaging stakeholders as needed Information Technology Project Management, Eighth Edition 14
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  Identifying Stakeholders  Internalproject stakeholders generally include the project sponsor, project team, support staff, and internal customers for the project. Other internal stakeholders include top management, other functional managers, and other project managers because organizations have limited resources  External project stakeholders include the project’s customers (if they are external to the organization), competitors, suppliers, and other external groups that are potentially involved in the project or affected by it, such as government officials and concerned citizens Information Technology Project Management, Eighth Edition 15
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  Additional Stakeholders  projectstakeholderlists other stakeholders including: ◦ Program director ◦ Project manager’s family ◦ Labor unions ◦ Potential customers  It is also necessary to focus on stakeholders with the most direct ties to a project, for example only key suppliers Information Technology Project Management, Eighth Edition 16
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  Stakeholder Register  Astakeholder register includes basic information on stakeholders: ◦ Identification information: The stakeholders’ names, positions, locations, roles in the project, and contact information ◦ Assessment information: The stakeholders’ major requirements and expectations, potential influences, and phases of the project in which stakeholders have the most interest ◦ Stakeholder classification: Is the stakeholder internal or external to the organization? Is the stakeholder a supporter of the project or resistant to it? Information Technology Project Management, Eighth Edition 17
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  Table 13-1. SampleStakeholder Register Name Position Internal/ External Project Role Contact Information Stephen VP of Operations Internal Project sponsor [email protected] Betsy CFO Internal Senior manager, approves funds [email protected] Chien CIO Internal Senior manager, PM’s boss [email protected] Ryan IT analyst Internal Team member [email protected] Lori Director, Accounting Internal Senior manager [email protected] Sanjay Director, Refineries Internal Senior manager of largest refinery [email protected] Debra Consultant External Project manager [email protected] Suppliers Suppliers External Supply software [email protected] Information Technology Project Management, Eighth Edition 18
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  Classifying Stakeholders  Afteridentifying key project stakeholders, you can use different classification models to determine an approach for managing stakeholder relationships  A power/interest grid can be used to group stakeholders based on their level of authority (power) and their level of concern (interest) for project outcomes Information Technology Project Management, Eighth Edition 19
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  Figure 13-2. Power/InterestGrid Information Technology Project Management, Eighth Edition 20
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  Stakeholder Engagement Levels  Unaware:Unaware of the project and its potential impacts on them  Resistant: Aware of the project yet resistant to change  Neutral: Aware of the project yet neither supportive nor resistant  Supportive: Aware of the project and supportive of change  Leading: Aware of the project Information Technology Project Management, Eighth Edition 21
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  Stakeholder Engagement Levels  Unaware:Unaware of the project and its potential impacts on them  Resistant: Aware of the project yet resistant to change  Neutral: Aware of the project yet neither supportive nor resistant  Supportive: Aware of the project and supportive of change  Leading: Aware of the project Information Technology Project Management, Eighth Edition 22
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  Planning Stakeholder Management After identifying and analyzing stakeholders, project teams should develop a plan for management them  The stakeholder management plan can include: ◦ Current and desired engagement levels ◦ Interrelationships between stakeholders ◦ Communication requirements ◦ Potential management strategies for each stakeholders ◦ Methods for updating the stakeholder management plan Information Technology Project Management, Eighth Edition 23
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  Sensitive Information  Becausea stakeholder management plan often includes sensitive information, it should not be part of the official project documents, which are normally available for all stakeholders to review  In many cases, only project managers and a few other team members should prepare the stakeholder management plan  Parts of the stakeholder management plan are not written down, and if they are, distribution is strictly limited Information Technology Project Management, Eighth Edition 24
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  Table 13-2. SampleStakeholder Analysis Name Power/ Interest Current Engagement Potential Management Strategies Stephen High/high Leading Stephen can seem intimidating due to his physical stature and deep voice, but he has a great personality and sense of humor. He previously led a similar refinery upgrade program at another company and knows what he wants. Manage closely and ask for his advice as needed. He likes short, frequent updates in person. Chien High/ medium Resistant Chien is a very organized yet hardheaded man. He has been pushing corporate IT standards, and the system the PM and sponsor (Debra and Stephen) like best goes against those standards, even though it's the best solution for this project and the company as a whole. Need to convince him that this is okay and that people still respect his work and position. Ryan Medium/ high Supportive Ryan has been with the company for several years and is well respected, but he feels threatened by Debra. He also resents her getting paid more than he does. He wants to please his boss, Chien, first and foremost. Need to convince him that the suggested solution is in everyone's best interest. Betsy High/low Neutral Very professional, logical person, (lets along well with Chien. She has supported Debra in approving past projects with strong business cases. Provide detailed financial justification for the suggested solution to keep her satisfied. Also ask her to talk to Chien on Debra's behalf. Information Technology Project Management, Eighth Edition 25
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  Issue Logs  Understandingthe stakeholders’ expectations can help in managing issues  Issues should be documented in an issue log, a tool used to document, monitor, and track issues that need resolution  Unresolved issues can be a major source of conflict and result in stakeholder expectations not being met  Issue logs can address other knowledge areas as well Information Technology Project Management, Eighth Edition 26
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  Controlling Stakeholder Engagement You cannot control stakeholders, but you can control their level of engagement  Engagement involves a dialogue in which people seek understanding and solutions to issues of mutual concern  Many teachers are familiar with various techniques for engaging students  It is important to set the proper tone at the start of a class or project Information Technology Project Management, Eighth Edition 27
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  Ways to ControlEngagement  Key stakeholders should be invited to actively participate in a kick-off meeting rather than merely attending it  The project manager should emphasize that a dialogue is expected at the meeting, including texts or whatever means of communication the stakeholders prefer. The project manager should also meet with important stakeholders before the kick-off meeting  The project schedule should include activities and deliverables related to stakeholder engagement, such as surveys, reviews, demonstrations, and sign-offs. Information Technology Project Management, Eighth Edition 28
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  Using Software toAssist in Project Stakeholder Management  Productivity software, communications software, and collaboration tools can promote stakeholder engagement  Social media can also help engage stakeholders. For example, LinkedIn has thousands of groups for project management professionals  Some project management software includes functionality like Facebook’s to encourage relationship building on projects, like giving high fives for a job well done Information Technology Project Management, Eighth Edition 29
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  02/02/2025 30  Stakeholdersare those who are influenced by and exert an influence on the project entity  Map the stakeholders and their respective roles  Ask yourself - Who will be influenced, positively or negatively, by the project?  Select which stakeholders to involve in planning and/or implementing the project Stakeholder Analysis
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   A methodologyfor identifying stakeholders, assessing their needs and concerns, and creating a plan to communicate with them.  Stakeholder engagement: The use of stakeholders as participants in a collaborative decision making process that guides the creation and execution of a defined scope of work Stakeholder Analysis
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  02/02/2025 32 Stakeholder Analysis Fourmain groups of stakeholders: • Beneficiaries • Implementers • Financing agents • Decision makers
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  02/02/2025 33 Stakeholder Analysis(4 Steps) Identifying Key Stakeholders Beneficiaries, vulnerable groups, possible adversely effected groups, socio economic characteristics, relationships etc. Determining Stakeholder Interests Benefits, expectations, resources they could mobilise etc Determining Stakeholder Power and Influence Power and dependency relationships, control of decision making, resources etc. Formulating a Stakeholder Participation Strategy in view of analysis, planning and implementation
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  02/02/2025 34 Here isyour stakeholder analysis matrix Stakeholder Interest and Attitude Role in Preparation Involvement during Project
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  4R Stakeholder AnalysisMatrix WHAT IS THE 4R STAKEHOLDER ANALYSIS MATRIX? RIGHTS RESPONSIBILITIES RETURNS (OR BENEFITS) RELATIONSHIPS
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  Rights  Access toand use of resources (statutory and customary)  Ownership of resources (statutory and customary)  Decision-making over resource use and management (e.g. setting by-laws, enforcement/fines, zoning/exclusion, licensing/income, etc.) 4R Stakeholder Analysis Matrix
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  Responsibilities  Forest/resource management(planning, monitoring, measurement, etc.)  Implementing decisions in rules, regulations, procedures, etc.  Abiding by rules & regulations 4R Stakeholder Analysis Matrix
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  Returns (or benefits) Direct benefits arising from forest resources accessed  Direct benefits derived from employment related to the resource/area  Indirect benefits such as those accruing to entire community from resource management agreements 4R Stakeholder Analysis Matrix
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  Relationships  Inter-relationships amongstakeholders within the community or outside of the community  Conflict among stakeholders 4R Stakeholder Analysis Matrix
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  Exercise: The 4RStakeholder Analysis Matrix Stakeholders Rights Responsibility Relationship Returns Stakeholder A Stakeholder B Stakeholder C
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  02/02/2025 41 Together withstakeholders do a problem analysis Problem analysis is a procedure which allows to: ◦ Analyse an existing situation ◦ Identify key problems in this context ◦ Visualise the problems in form of a diagram/tree (cause-effect relationships)
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  02/02/2025 42 crucial! As withweeds, the roots must be tackled, if the weeds are to disappear
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  02/02/2025 43 Finding “theroots of the evil”  Which is the problem to be solved?  Who owns the problem?  One focal problem, focus!  Find the causes and effects to the focal problem  The causes of the problem shall be “tackled” through activities within the framework of the project in order to solve the problem in a sustainable way Problem Analysis
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  02/02/2025 44 Why aProblem Tree? Objective Tree Overall objectives Project Purpose Results Problem Tree Effects Focal problem Causes
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  02/02/2025 45 Problem treeexample 1 De-forestation and forest degradation Wasteful use and poor management of forests Inadequate legal framework Unclear land administratio n Forests are exploited without investing in their renewal Inefficient farming requires more and more land to satisfy the needs Low priority of forest conservation Root causes CORE PROBLEM
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  02/02/2025 46 Unclear landadministration Traditional and modern administratio n concurrently Weak political system Demarcation of farms inadequate or lacking Slow handling of land ownership issues Inadequate skills and know-how Lack of equipment Shortage of funds Problem tree example 2
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  02/02/2025 47 Problem analysisexample 3 Causes Effects Destruction of coral & mangrove habitats Illegal fishing methods applied Decreasing fish stocks Low price received by fisherfolk Processed fish is of bad quality Limited access to markets Decreasing in-comes of fisherfolk Establishing cause-effect relations between problems