Business Analysis Level 1

ANALYZE STAKEHOLDERS

CONFIDENTIALITY 2010 BA ValueBASE LLP, The concepts and methodologies contained herein are proprietary to BA ValueBASE LLP. Duplication, reproduction or disclosure of information in this document without the express written permission of BA ValueBASE LLP is prohibited.

Approach to Problem Solving An Overview

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Objective

1. To realize the stakeholder analysis is a lot more than a list of people from the client organization 2. To realize the importance of 'assessing' the 'nature' of each stakeholder's involvement in the project 3. To discover the importance of having a proper 'strategy' for dealing with stakeholders depending upon the 'nature' of their involvement

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Stakeholder A Definition

A Group or an Individual who has interests that may be affected by an initiative and/or have influence over it. - BABOK V 2.0

Any Individual or Group who is impacted by the problem (+/-) and/or impacted by / interested (+/-) in the solution

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Stakeholder Analysis - Definition

Stakeholder Analysis is a 'ongoing' activity to identify stakeholders and assess: 1. The nature of impact of the problem/solution on them

2. The influence they can wield on the project.

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Purpose of Stakeholder Analysis

To Identify the stakeholders, their roles and responsibilities To determine the impact of the problem / solution on every stakeholders To discover the nature of influence positive / negative that every stakeholder can wield To customize your communication / interaction with them based on the impact and influence To coagulate potential issues that stakeholders can create / face that can disrupt the project

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When is it done?

A.Stakeholder Analysis is done at the early stages of the project

As soon as you discover / understand the Business Need Conducting the stakeholder analysis early in the project will help in planning and executing the stakeholder centric activities. Early analysis will help in establishing a good relationship with the key stakeholders.

B.It is maintained and updated throughout the lifecycle of the project

The interest of the stakeholder would vary due to various factors; hence updating stakeholder profiles is an ongoing activity and lasts through out the life cycle of the project.

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Typical Stakeholder Roles / Groups

Stakeholder Roles
Sponsors

Description
Responsible for initiating the effort to define a business need and develop a solution that meets that need. Authorizes work and controls the budget. Is your champion and will help remove hurdles
Decision Maker, mostly in collaboration with Sponsor. Is ultimately impacted directly by the success of the solution. Approves the problem definition, solution needs and the final solution to be implemented

Business/Solution Owner

Domain SMEs

Domain Expert/Subject Matter Expert (SME) are the key information providers. An individual with in-depth knowledge of a topic relevant to the business need or solution scope.
Those who will directly interact with the solution, all participants in a business process. May have specific legal, contractual, or governance requirements regarding what is included in a requirements document. Those responsible for designing and implementing the solution. Typically, in our projects, the Architects & Designers are Implementation SMEs Responsible for managing the work required to deliver a solution that meets a business need, and for ensuring that the projects objectives are met. Those outside the boundary of a given organization / organizational unit, who make use of the products / services produced by the organization Those outside the boundary of a given organization / organizational unit, who deliver products / services to the organization / organizational unit

End Users Regulators Implementation SMEs Project / Program Manager Customers Suppliers

[BABoKv2.0, p10, Sec 1.5.6: Stakeholders]

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Stakeholder Profile
A List of all the Stakeholders Basic Information about the Stakeholder, like:
Name of the Stakeholder Stakeholder Role / Group Designation Description of the Stakeholder Contact Details Specific Notes / Constraints (e.g. works part-time, works 6 AM to 3 PM, only call between 4 PM and 6 PM, etc.)

Stakeholder Profile is a public artifact; the customer will also have access Only include information that is acceptable for public consumption

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STAKEHOLDER ANALYSIS
Interest & Influence Stakeholder Map Collaboration Strategies

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Stakeholder 'Interest'
Interest is a function of Change Appetite and Impact of the Solution on the Stakeholder Interest can be negative or positive; Typical Questions to determine Interest Is s/he impacted by the problem currently? To what degree is the impact? Is it a minor irritant or a major impediment? Will the solution will benefit him/her directly? Does the stakeholder also think the same? Will the solution require the stakeholder to change? What is the degree of change expected? What is the stakeholder's appetite for change? To what extent can the stakeholder contribute to the definition of the solution? Recommended Rating
Change Appetite High High Low Low Impact of Interest Solution High Low High Low High Low (High) Low

Change Appetite: High or Low

Impact of Solution: High or Low

If you want a three or a multi point scale, feel free to use them. Just dont over complicate things. At the end of the day, this is objectivity applied to subjective assessment!

2011 BA ValueBASE LLP

Stakeholder Influence
Influence is the degree to which the stakeholder can sway decisions to his / her line of thinking. Typically, Sponsors, Business Owners and a few Domain SMEs can be very influential. Influence is neutral no Negative or Positive

Typical Questions to determine Influence

Does the stakeholder control the funding for the project? Does the stakeholder make vital decisions? How high in the org structure does the stakeholder serve? Is the stakeholder nominated by the sponsor or business owner to direct the project? How much of informal influence outside the formal org structure does the stakeholder weild? Recommended Rating High or Low

If you want a three or a multi point scale, feel free to use them. Just dont over complicate things. At the end of the day, this is objectivity applied to subjective assessment!

2011 BA ValueBASE LLP

Stakeholder Map
A Influence Vs Interest grid. Stakeholder Map helps in understanding the need for communication and potential resistance to change.

High

Influence

3
4

Low

Low

Interest

High

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Collaboration Strategies
This quadrant include stakeholders with High Influence - High positive Interest & High Influence - High negative Interest

High

KEEP SATISFIED
Influence

MANAGE CLOSELY

KEEP INFORMED (Minimum Effort)

Low

MONITOR
Interest
High

Low

- Dont share this with the customer stakeholders - Even within the project team, keep this on a need to know basis! - Discuss with other senior team members PM, SA, etc. to qualify your assessment

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Collaboration Strategies

KEEP SATISFIED

MANAGE CLOSELY
MONITOR

High Influence High (Positive) Interest 1. Work in Collaboration/ Partnership and keep on board. 2. Manage them closely and maintain support
High

High Influence High (Negative) Interest / Resistance 1. Build Relationships when possible. Take time to know them. 2. Understand the underlying reasons for resistance. Spell out the consequences of not changing. 3. Acknowledge their concerns. 4. Compromise on strategy where it is possible 5. Stand firm on principles and the need for change 6. Involve other influencing people who are more positive in influencing them 7. Manage them closely. 8. Use an interactive communication method.

Influence

High

KEEP INFORMED (Minimum Effort)

Low

Low

Interest

3. Refine communications to align with project goals. 4. Leverage stakeholder influence. 5. Use in project teams to deliver change. 6. Reward their support. 7. User an interactive communication method.

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Collaboration Strategies

High

KEEP SATISFIED

High Influence Low Interest

MANAGE CLOSELY

1. Keep them satisfied. 2. Send regular information about project but not constant involvement.

Influence

KEEP INFORMED (Minimum Effort)

MONITOR

3. Ensure that they support the project. 4. Target communications to align with project goals.
High

Low

Low

Interest

5. Provide information to help them become supporters 6. Enthuse about change and sell the benefits. 7. Use an push communication method.

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Collaboration Strategies
The following are the guiding questions that can be used for framing the strategies
What actions should be taken to keep the stakeholder informed about the project? (Communication Strategies)

What actions should be taken to involve the stakeholder in this project, either directly or indirectly? (Involvement Strategies)
What actions should be taken to provide the stakeholder with the skills, knowledge and attitudes required to take on new roles resulting from this project? (Education Strategies) What actions should be taken to provide the support that the stakeholder will need to make this change happen? (Support Strategies) What actions should be taken to hold the stakeholder accountable for making this project successful? (Accountability Strategies) What actions should be taken to provide incentives (rewards and recognition) to encourage the stakeholder to make this project successful? (Incentive Strategies) What actions should be taken to remove non-performers and hard-core resisters in the stakeholder group? (Resistance Strategies)

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Thank You

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