Stakeholder Management - WordPress.com€¦ · value today - people, knowledge, and coherence. It fosters the creation of value and ensures that each piece of the business contributes

Stakeholder ManagementJohn Bartkus, PMP, CPF

Pensivia Apr2014

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Introduction

• 25+ years Project & Program Management- Certified Project Management Professional (PMI)- Certified Professional Facilitator (IAF)

• Organizational Performance Improvement

John Bartkus, PMP, CPF

Principal Project DirectorPensivia

Past PresidentFort Worth Chapter PMI

[email protected]

mailto:[email protected]

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Set Expectations

• Context• Stakeholder Theory• 5 Driving Questions• Process, Tools, Techniques• Call to Action

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Context – The Arena

• Business Model Evolution• Workforce Trends• Rising Expectations

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Business Model Evolution…

“[We’re in] the Era of Rampant Change, Knowledge Enterprise, Pervasive Globalization, and Increasing Complexity.”

Vadim Kotelnikov, Founder, Ten3

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“Over the last decade the biggest employment gains came in occupations that rely on people skills and emotional intelligence and among jobs that require imagination and creativity. … Trying to preserve existing jobs will prove futile—trade and technology will transform the economy whether we like it or not. Americans will be better off if they strive to move up the hierarchy of human talents. That’s where our future lies.”

Michael Cox, Richard Alm and Nigel Holmes“Where the Jobs Are” – NY Times

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“The new business model has much stronger focus on the basics of what ultimately creates value today - people, knowledge, and coherence. It fosters the creation of value and ensures that each piece of the business contributes to system-wide value. It also goes beyond the workplace and the interface between government and business and looks into building a favorable social climate within and around the company.”

Vadim Kotelnikov

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“As business and organizational complexity arises, success can be found in a balanced business system which depends on interconnections of its individual elements:”

• Profitability • Satisfied stakeholders (customers, shareholders,

employees, partners, neighbors, and other players) • Revenue and profit growth • Growth in market share • Growth in market value (stock market capitalization)

Vadim Kotelnikov

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“As business and organizational complexity arises, success can be found in a balanced business system which depends on interconnections of its individual elements:”

• Profitability • Satisfied stakeholders (customers, shareholders,

employees, partners, neighbors, and other players)• Revenue and profit growth • Growth in market share • Growth in market value (stock market capitalization)

Vadim Kotelnikov

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Context – Rising Expectations

The U.S. is a Pluralistic Society• There is diffusion of power among

society’s many groups and organizations• Built-in Checks and Balances• Prevents power from being concentrated

in the hands of a few• Allegiance of individuals is dispersed

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Context – Rising Expectations

These trends and the rising view of corporate accountability have given way to increased expectations.

Businesses have responded with Corporate Citizenship – solidifying increased expectations and setting the bar at new levels.

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Expectation Gap

1960's 2000's

Soci

al P

erfo

rman

ce

Time

SocialProblem

Society's Expectations of Business Performace

Business Actual Social Performance

SocialProblem

20151960s

Caroll & Buchholtz

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What is Stakeholder Management?

To define Stakeholder Management, let’s first explore who Stakeholders are – and what ‘stakes’ they may have.

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Who are Stakeholders?

Project stakeholders are individuals, groups, or organizations who may affect, be affected by, or perceive themselves to be affected by a decision, activity, or outcome of a project.

A Guide To The Project Management Body Of Knowledge (PMBOK Guide) – 5th Ed. Project Management Institute

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Stakeholder Examples

• Employees• Owners• Board Members• Divisions• Departments• Trade Unions

Internal External• Governments• Customers• Community• Competitors• SIGs• Partners• Suppliers

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The S.A.M.E. Mission (Stakeholders)

To promote and facilitate engineering support for national security by developing and enhancing relationships and competencies among uniformed services, public- and private-sector engineers and related professionals, and by developing future engineers through outreach and mentoring.

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What is a Stake?

A Stake is an interestor a share in an undertaking.

(Carroll & Buchholtz)

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Types of Stakes

An Interest A Right OwnershipPerson or group will be affected by a decision

Legal Right Person or group has legal title to an asset or property

Moral RightCommunity affected by plant closing

Business Owner; Shareholder

Due Process; Privacy

Fairness; Justice; Equity

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What is Stakeholder Management?

To identify and classify stakeholders, thus facilitating initial and subsequent directedengagement with stakeholders in a coordinated manner. Engagement involves communicating, negotiating, contracting and managing relationships in order to motivate stakeholders to behavein ways that support the delivery of the objective.

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Stakeholder Managementis an Attitude

that promotes Collaborationwith qualified stakeholders

for balanced results…

…supported by Action.

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5 Driving Questions

• Who are our stakeholders?• What are our stakeholders’ stakes?• What opportunities and challenges do our

stakeholders present?• What responsibilities does the [project]

have to its stakeholders?• What strategies or actions should be taken

to best handle challenges / opportunities?

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Process

Project teams must identify stakeholders, collaborate on requirements, then set and deliver on expectations.

To the extent possible, Engagestakeholders to channel their energy and influence in relation to the requirements to ensure a successful project.

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Process Steps

• Identify• Qualify• Collaborate• Contract• Deliver

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Process Steps

• Get Input from Key Stakeholders

• Beginning of the Stakeholder Register

• Iterative & Ongoing


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Identify Stakeholders – Approach

1 2 3 4 n

Identify additional stakeholders by progressively interviewing identified stakeholders and expanding list

Start with Key Stakeholders usually including:• Project Sponsor• Project Manager• Primary Customer

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Identify Stakeholders – Outcome

Multi-dimensional, overlapping

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Stakeholder Register

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Process Steps• Establish Dialogue• Analyze & Assess

- Interest & Needs- Challenges- Opportunities


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Engaging for Understanding

• Engage as early as possibleNobody likes to be surprised by change

Raj Sharma, “The 6 Principles of Stakeholder Engagement”Supply Chain Management Review

• Listen with Both Ears OpenEver been asked to participate in a survey

• Be open to receiving and incorporating stakeholder input – even if it doesn’t align with the program’s vision/goals.

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Engaging for Understanding

“If you’re going to take the time to ask stakeholder’s for their opinions or to open the doors for participation in a program’s development, make sure it counts for something.”

Raj Sharma

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A Stakeholder Typology Tool(Mitchell, Agle and Wood)

• PowerThe ability or capacity to produce an effect

• LegitimacyThe perceived validity or appropriatenessof a stakeholder’s claim to a stake

• UrgencyDegree to which a stakeholder’s claim calls for immediate attention or response

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A Stakeholder Typology ToolOne, Two, or Three Attributes Present…

1Dormant

2Discretionary

3Demanding

5Dangerous 7

Definitive

4Dominant

6Dependent

POWER

LEGITIMACY

URGENCY

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POWER

URGENCY

A Stakeholder Typology ToolExample…

5Dangerous

“Attention Shoppers,on aisle seven you’ll

find mahogany ripped from the heart of the

Amazon !”

34Interest

Power

KeepSatisfied

ManageClosely

Monitor KeepInformed

Low Interest High

Low

High

Power

Assessment (Power vs Interest)

Dale Jones

Jennifer Barnaum

Jack Lee

Carl Loven

Sarah McIntosh

Bruce Edwards

Zoya Engle

Ed Thomas

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Stakeholder Register - Expanded

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Process Steps• Gain mutual

understanding• Roles & Responsibilities• Define steps necessary

to manage challenges & facilitate opportunities.

• Communication Plan !


37Chuck Tryon

Do people like change?

38Chuck Tryon

It’s not that people don’t like change…

They don’t like being changed.

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Collaborating - Sustainable Agreements

Sam Kaner, “Facilitator's Guide to Participatory Decision-Making”

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Process Steps• Communicate Plan and

intended results• Gain reciprocal

commitment • SETS Expectation

Constitutes a Promise• Update as Needed


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Managing Expectations

Expectations are the key to success.

You can’t meet what you don’t set.

Raj Sharma

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Process Steps• Follow through on

Commitments ! Establishes Trust

• COMMUNICATEClearly & Frequently

• Take Action on Feedback


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The single most important action that contributes to effective Stakeholder Management is open Communication.

Single Most Effective Tool *

In the absence of Information …… people make things up.

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Communication

Communication is the glue that binds stakeholders to the vision and activities of a project. Effective communication engages the hearts and minds of all stakeholders by facilitating movement along an ‘Engagement Continuum.’

Catholic Diocese of Rochester

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Engagement Continuum

Everything beyond Awareness requires Involvement.

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Summary

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Agriculture Age (farmers)Industrial Age (factory workers)Information Age (knowledge workers)Conceptual Age (creators / empathizers)

(Adapted from Dan Pink, A Whole New Mind)

* connectors *

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Summary

• Our ‘Special Interest Society’ requires greater attention to ‘Stakeholder Management’

• Expectations are continually Rising• Setting/Managing Expectations is the key

to success – through the engagement of stakeholders.

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5 Process Steps

Engage ! Communicate !


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Stakeholder Managementis an Attitude

that promotes Collaborationwith qualified stakeholders

for balanced results…

…supported by Action.

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Call to ActionWhat concept, tool, technique or rejuvenated idea can you

take back today to apply to your most challenging current project ?

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Sources

• Vadim Kotelnikov, Founder, Ten3

• Dan Pink, A Whole New Mind• Michael Cox, Richard Alm and Nigel Holmes “Where the Jobs

Are” – NY Times• Carroll & Buchholtz “Business and Society: Ethics and

Stakeholder Management”• Project Management Institute (PMI): “A Guide To The Project

Management Body Of Knowledge (PMBOK Guide)”• Sam Kaner, “Facilitator's Guide to Participatory Decision-

Making”• Raj Sharma, “The 6 Principles of Stakeholder Engagement”

Supply Chain Management Review

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Q&A

• 25+ years Project & Program Management- Certified Project Management Professional (PMI)- Certified Professional Facilitator (IAF)

• Organizational Performance Improvement

John Bartkus, PMP, CPF

Principal Project DirectorPensivia

Past PresidentFort Worth Chapter PMI

[email protected]

mailto:[email protected]

Documents

Stakeholder Management - WordPress.com€¦ · value today - people, knowledge, and coherence. It fosters the creation of value and ensures that each piece of the business contributes