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Stakeholder Management: The

Good, The Bad, The Ugly


Commonwealth of MA Project Managers, March 15, 2012
Bonnie Cooper, Technology Portfolio Director, Corporate IT PMO

Learning Goals
Review the best practices to conduct an
actionable stakeholder analysis and
management plan
How to describe the characteristics of the
most challenging stakeholder types.
Share real experiences and techniques to
managing these challenging stakeholders.

The case for multi-dimensional stakeholder management

BACKGROUND

Question
Which of these stakeholder
behaviors most often happens in
your projects?
a)Lack of clear requirements or goals
b)Unable to make timely decisions
c)Not able to fully pay attention
d)Being resistant to change
e)None of the above (I have ideal stakeholders)

Warning Signs
Missed
Deadlines
Scope Creep
Confusion
Conflict
Churning

Perception is Reality

Top 10 Reasons Projects


Succeed

1. User Involvement
2. Executive Support
3. Clear Business Objectives
4. Emotional Maturity
5. Optimization
6. Agile Process
7. Project Management Expertise
8. Skilled Resources
9. Execution
10. Tools and Infrastructure

The Standish Group, CHAOS, 2010: CHAOS Success


Factors
7

Science and Art


Work Roadmap

Relationship Management

Link to strategy (big


picture)

Communicate

Shape work (WBS)

Negotiate

Schedule (activity lists)

Motivate

Progress (dependencies)

Influence

To be effective and gain trust, project managers need


to relate well in two dimensions

Top 10 Reasons Projects


Succeed

1. User Involvement
2. Executive Support
3. Clear Business Objectives
4. Emotional Maturity
5. Optimization
6. Agile Process
7. Project Management Expertise
8. Skilled Resources
9. Execution
10. Tools and Infrastructure

The Standish Group, CHAOS, 2010: CHAOS Success


Factors
9

User Involvement
Business communications talking to the
users in their language and customs. Make sure
users feel their opinion makes a difference.

Quality relationship creating a cooperative


environment with mutually agreeable ground rules
for effective teamwork.

Expectation management starts with


established quality and achievable metrics.
Make sure users know what is expected of them
as part of the team.
The Standish Group, CHAOS, 2010: CHAOS Success
Factors

10

1.
2.
3.
4.
5.
6.
7.

Top 10 Reasons Projects


Succeed
User Involvement

Executive Support
Clear Business Objectives
Emotional Maturity
Optimization
Agile Process
Project Management
Expertise
8. Skilled Resources
9. Execution
10. Tools and Infrastructure
The Standish Group, CHAOS, 2010: CHAOS Success
Factors
11

Emotional Maturity
The ability to identify and remove
unnecessary requirements, as well
as the aptitude to deliver bad news
and accept critical feedback.
The Standish Group, CHAOS, 2010: CHAOS Success Factors

The most significant challenges when implementing a


project are often people-relatedfactors such as changing
mind-sets, motivating employees, creating honest and
timely communication, building commitment, and
navigating corporate culture.
Investigating the Impact of Project Managers Emotional Intelligence PMI Project
Management Journal, July 2011
12

Definitions and Perceptions

STAKEHOLDERS

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Definition - Stakeholder
STAKEHOLDER
Person or organization (e.g., customer,
sponsor, performing organization, or the public)
that is actively involved in the project, or whose
interests may be positively or negatively
affected by execution or completion of the
project. A stakeholder may also exert influence
over the project and its deliverables.
PMBOK Guide, Fourth Edition

14

Common Stakeholders?
Common project stakeholders:

Project manager
Project team members
Customers
Performing organization
Central staff
Project sponsor

Internal versus
External

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Other stakeholders:
Functional managers
Government
agencies/regulators
Suppliers and
vendors/subcontractors
Resource managers
Senior management
News media
Special interest groups
Community
Users
Shareholders

Matrix for Stakeholder Analysis

Person C

Department
A

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Person A
Person B

Person D

Tools
PM Process

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Stakeholder Management Tools

Initiation

Project charter, business case, strategy link,


metrics

Planning

Analysis, communication, risk, and scope plans

Execution

Status reporting, presentations, training, checkins

Monitor/Control

Change control, decisions, performance feedback

Close

Deployment plans, operations cutover, lessons


learned

Communications
Management Plan
Sample Communications Planning Matrix

Stakeholder Relationship
Complexity
Stakeholder stability over time
Degree of public interest in the project
Degree of cultural diversity
Percent of staff able to converse fluently

in the projects primary language


Range of time zones with active
stakeholders

American Society for the Advancement of Project


Management
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The Other Dimension

BEHAVIORS

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The Added Dimension


Use knowledge about traits and behaviors to address
each stakeholders needs as well as to protect
yourself when necessary.
Credibility comes from relationship building in a
political environment
People who have power are at the center of the
organizations informal network.
Create an environment where people operate with a
win-win attitude.
Feedback is a powerful tool to guide behavior
Creating Your Political Plan, Raymond L. Englund, 2005 PMI Global Congress
21

Political Landscape
High

Comrades

Allies

Adversaries

Opponents

Agreement

Low

Trust

High

Creating Your Political Plan, Raymond L. Englund, 2005 PMI Global Congress
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Influencing Tools
Reciprocity

give an unsolicited gift, people will feel

obliged.

Consistency ask for commitments and enforce them.


Social Validation leverage agreement as people
determine what to do by watching others.

Liking people like to do business with people they like.


Authority be professional and personable. Use expertise,
tap referential power.

Scarcity

stand out as the person willing to do the right


things in the right ways
Creating Your Political Plan, Raymond L. Englund, 2005 PMI Global Congress

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Stakeholder Analysis: Political


Plan
High

Comrades

Allies
How would you get a bully,
politician and super star to
be your ally?

Agreement

Adversaries

Low

Opponents

Trust

High

Creating Your Political Plan, Raymond L. Englund, 2005 PMI Global Congress
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Managing Types
Effective stakeholder management
Meddling
Overbearing
Doing what is necessary to
develop and manage
Poor
relationships with all individuals
Untrustworthy
the project impacts.
Indecisive
Unavailable
The Handbook of Program Management: How to Facilitate Project Success with Optimal
Program Management by James T. Brown (ISBN-13: 978-0-07-149472-4)

The Bully
What they do:
Constantly intimidate, push other people around, often lose control,
driven toward results, display incredible confidence, are selfish. They
are volatile and intensely competitive. They push hard and reward
performance.

Tactics to manage the bully:


Avoid surprises bullies hate to be blindsided. They respect
people who talk straight and keep them in the loop.
Be a source for news bullies relish being plugged in and in
the know
Develop a profitable area of expertise do the tasks they hate
and be good at it.
Build alliances that help get things done- bullies will leverage
your relationships.
Deliver results that matter.
Managing Your Manager, Gonzague Durour, ISBN 978-0-07-1751933
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The Meddling Stakeholder


What they do:
Insert themselves into
decisions, processes,
or meetings where
their presence is not
required.

Why:
Lack of trust?
Control freak?

Tactic: Build trust by demonstrating competence.


Communicate with them frequently and assign them tasks to
refocus their energy. Real work often makes people invisible.

The Overbearing
Stakeholder
What they do:
Use power or
personality to
dominate.

Why:
Old school?
Cover up a
weakness?

Tactic: Use buffering techniques to minimize exposure.


Meet with this stakeholder individually to minimize
unnecessary conflict or grandstanding.

The Poor Stakeholder


What they do:
Use influence and
politics to protect
their interests or
achieve objectives.

Why:
They have no
significant budget
or authority (power
disadvantage).

Tactic: Advocate for those who cant and try to identify how
the poor stakeholders objectives align or conflict.

The Untrustworthy
Stakeholder
What they do:
Play both sides,
dont stand by their
word.

Why:
Refuse to be
personally
accountable.

Tactic: Ensure all important communication is documented


and has traceability. Work to remove or disempower
untrustworthy stakeholders (leverage colleagues).

The Indecisive Stakeholder


What they do:
Never make decisions
in a timely manner.

Why:
Dont like to commit.

Tactic: Set up processes and structures that clearly


communicate when a decision is required and the impact of
the decision not being made. Establish a metric of lost time
(or other impacts) due to delayed decisions.

The Unavailable Stakeholder


What they do:
Always too busy to
participate when their
input or approval is
required.

Why:
Over scheduled?
Location?
Priorities?

Tactic: Ask them to delegate their decision authority to


someone capable and trustworthy. Find virtual mechanisms
for the stakeholder to participate without requiring physical
presence. Maintain scheduled meetings well in advance and
minimize ad hoc gatherings. Access the stakeholder in
informal settings (lunch breaks, walks).

The Ideal Stakeholder


What they do:

Why:

Show an interest, are


available when
necessary, prioritize
requests, help motivate,
are flexible when needed.

Willing to be accountable.

Tactic: Cultivate!

Learning Summary

WRAP UP

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Learning Goals
How to describe the characteristics of the
most challenging stakeholder types.
Share real experiences and techniques to
managing these challenging stakeholders.
Review the best practices to conduct an
actionable stakeholder analysis and
management plan.

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Stakeholder Analysis Checklist


Multiple Dimensions
Item
Identify enterprise
environmental factors

Description
What are your particular organizational
culture, structure, market conditions,
infrastructure, and political influences?

Create the stakeholder register Who is affected by or could impact the


project? Includes roles and personality
types.
Conduct a stakeholder analysis Create the matrices of influence and
interest, agreement and trust, to inform
PM focus.
Identify organizational assets

Leverage policies, procedures, lessons,


experts, and power sources.

Create your approach to


handling stakeholders

Your action plan to include influencing


tools.

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Contact:
Bonnie Cooper
bcooper@mms.org
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