PS-CS#4
MGT 6303, Project Stakeholders 1
Course Learning Outcomes for Unit IV Upon completion of this unit, students should be able to:
2. Recommend processes of project stakeholder management. 2.1 Derive a simple stakeholder management plan.
6. Examine engaging stakeholders in global environments.
6.1 Identify stakeholders in a global project context. 6.2 Determine the strategies in the stakeholder management plan.
Course/Unit Learning Outcomes
Learning Activity
2.1
Unit Lesson Chapter 4 Video: Drawn Out PM: Plan Stakeholder Engagement 6th Ed. PMBOK Unit IV Course Project
6.1
Unit Lesson Article: “Educator Insights: Euro Disney-- What Happened? What Next?” Article: “Slow Start at Europe’s Disneyland” Unit IV Case Study
6.2
Unit Lesson Article: “Educator Insights: Euro Disney-- What Happened? What Next?” Article: “Slow Start at Europe’s Disneyland” Unit IV Case Study
Required Unit Resources Chapter 4: Planning Stakeholder Management In order to access the following resources, click the links below. Spencer, E. P. (1995, September). Educator insights: Euro Disney-- What happened? What next? Journal of
International Marketing, 3(3), 103–114. https://libraryresources.columbiasouthern.edu/login?url=http://search.ebscohost.com/login.aspx?direc t=true&db=bsu&AN=4457717&site=ehost-live&scope=site
Cohen, R. (1992, June 8). Slow start at Europe’s Disneyland. New York Times.
http://bi.gale.com.libraryresources.columbiasouthern.edu/global/article/GALE%7CA174899532/b7334 a066fdcd136be1605df4eb7770a?u=oran95108
The Crowd Training. (2019, February 9). Drawn out PM: Plan stakeholder engagement 6th ed PMBOK
[Video]. Cielo24. https://c24.page/w64vzqysk85xrrwu5xxn3nkh8c A transcript and closed captioning are available once you access the video.
Unit Lesson What does it really mean to manage stakeholders? In a typical company setting, a leader or manager is said to manage those within the scope of control because the manager can issue policies, directives, and orders, and the subordinates proceed to carry out the direction. The manager then checks progress and provides
UNIT IV STUDY GUIDE
Plan Stakeholder Management
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course correction, advice, and further direction until the ultimate objective is reached. Stakeholders do not have a direct reporting relationship with the project manager and the project team. Stakeholders do not report to the project at all—they are just there---but at the same time, they could impact the outcome of the project in ways that are both positive as well as negative. In what sense then can anyone be said to manage stakeholders?
Herding Cats The analogy of herding cats is a common one when it comes to managing stakeholders. Like a typical project stakeholder, a cat goes where the cat wants to go and is generally indifferent to commands, orders, or directives of any kind. However, the cat may come to you if invited and if perhaps tempted with a bit of catnip or perhaps some tuna. Stakeholders, like cats, are likely to have no inherent interest in following a project manager (or anyone for that matter) but may follow if it is in the interest of the stakeholder to do so. Clearly, stakeholders are not entities that may be pushed in a given direction but instead may be pulled or drawn to a given direction, state of mind, or level of support by providing appropriate incentives. Management in the sense of stakeholder management is not that which is found in a traditional functional organization reporting structure. Instead, stakeholder management could be better described as stakeholder influence.
Influencing Stakeholders While stakeholders may behave in some ways like cats, they are not cats; they are humans. Catnip, in this case, will not work. What then can the project manager offer as the stakeholder equivalent of catnip to steer the hearts and minds of stakeholders? Often such steering is associated with trade and negotiation. Said in another way, the project manager influences—and therefore indirectly manages—stakeholders when the stakeholder responds to offered incentives. Such incentives vary widely in organizations but tend to reflect, either directly or indirectly, the following formula:
“Support this project, and in return __________” The blank after return could be completed by many different options:
In return, I will support your project scheduled later in the year.
In return, you can be a part of something big!
In return, you will gain significant visibility of senior executives.
In return, I will share insights into the technologies we are using.
In return, I will support your proposal for funding. The alternatives are many, and often the trade of support for incentives is less overt than what is stated in the few examples above. When approaching stakeholders and seeking their support, the essence of the underlying message and suggested trade may be clearly communicated—if only implicitly. The most important factor to recognize is that stakeholders must always be drawn in rather than directed. The old saying “you can’t push on a string” applies here in addition to the herding cats analogy.
Stakeholder Engagement The term, engagement, is a rather curious word that reflects the indirect nature of stakeholder management. Engagement has many connotations. It evokes images of communication and interaction that may be played out in many ways. For example, a phone call, a videoconference, and a meeting are examples of engagement. It does not stop there, however. Engagement could also involve a dinner meeting, an activity such as a golf game, or a weekend retreat. Regardless of the method, a stakeholder is engaged when the interest is captured; there is two-way communication, discussion, interaction, and, hopefully, a meeting of the minds. It is also entirely possible to plan a stakeholder event but have the stakeholder “tune out” and not become engaged with the project at all. Attaining a state of engagement requires a focused effort; therefore, to gain the attention of the stakeholder, engage in interaction and communication and arrive at the alignment of interests. This is not easy to do; therefore, the Guide to the Project Management Body of Knowledge (PMBOK® Guide) promotes the planning and management of stakeholder engagement. This forces the project team to carefully consider how best to draw in stakeholders using engagement activities,
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communication media, and other messaging approaches. Engagement does not happen by itself. It must be spurred on in some way by the effective outreach of the project team.
Engagement Categories The engagement plan is never a one-size-fits-all operation. Different stakeholders respond in different ways to the cues of the project team. Also, you can categorize stakeholders according to the level of support of the project. When planning stakeholder management and engagement, it is useful to take the results of the initial stakeholder analysis and categorize them using the stakeholder engagement matrix, as presented in the PMBOK® Guide. Review this Stakeholder Management Plan Template to see how the information about stakeholders is categorized. Once categorized, it is the challenge of the project team to draw in stakeholders from their current level of engagement to an improved level of engagement by using techniques tailored for such a purpose. The initial level of stakeholder engagement is referred to as unaware. Stakeholders who do not know about the project but could benefit the project if they became aware and supportive are placed in this first category. The priority of the engagement plan for the unaware stakeholder is to “get the word out” and, in doing so, present the news about the project in a positive light. The next level of stakeholder engagement is referred to as resistant. A resistant stakeholder is not understood as an improvement over an unaware stakeholder. Nevertheless, there are those existing stakeholders who do not favor the project. The best-case engagement plan considers how to alter the viewpoint of the resistant stakeholder to that of a supporter. However, this is not always possible. At a minimum, the project team would seek to neutralize the potential negative impact of the resistor and to include specific actions to address this in the engagement and communication plan. A stakeholder who is a project supporter is highly desirable to the project team. The engagement plan of the project team seeks to retain all supporters and, if possible, inspire them to become a champion of the project. Finally, stakeholders in the leading category are champions of the project. Engagement strategies for leading stakeholders seek to maintain such leadership and to use it where possible to the advantage of the project.
Stakeholder Engagement Versus Communication Planning In earlier editions of the PMBOK® Guide, all stakeholder-directed activity was in the project communication management knowledge area. The rationale behind this was that the purpose of stakeholder identification was to inform the creation of the project communication plan. While this thinking still holds true to a degree, it is recognized that something more than communication is needed when a project team interacts with its many stakeholders. Communication, while two-way in most cases, is viewed as not sufficiently active concerning drawing in stakeholders to support the mission of the project. Throughout the PMBOK® Guide, all activities are initiated, planned, executed, and controlled. This applies to stakeholder management as it does in all other knowledge areas, thereby suggesting a degree of activism by the project team that goes beyond communication by seeking to create movement in stakeholder viewpoints and support.
Monitoring, Control, and Stakeholders Is it possible to control stakeholders? In the same way that cats cannot be herded, stakeholders cannot be controlled. However, it is possible to create a plan to engage stakeholders, evaluate the progress of the plan, identify gaps in the intended goals and execution, and finally, correct the course as needed to get the stakeholder management plan back on track. Technically, this is not controlling cat herding but instead monitoring and adjusting the plan to herd cats. For example, suppose a stakeholder was identified as resistant, and a strategy was created to address the potential negative impact on the project. After applying the strategy, the project team would review the result and determine if the stakeholder had remained resistant or if the category had improved in any way. If the situation improved, the stakeholder might be re-categorized. Also, it is possible that the strategy did not work, thereby leading to the creation of alternative approaches. Finally, if the stakeholder remained resistant but the negative impact or potential for negative impact was reduced, then the strategy may remain in place as-is. Such monitoring activity is ongoing, and, in many ways, it is like the management of project risk with the accompanying risk register. It could be said that stakeholders offer a form of risk—both positive and negative. Like risks on the project risk register, stakeholders and
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stakeholder categories are listed in a table that is reviewed and updated periodically to ensure that the appropriate engagement methods are undertaken.
Suggested Unit Resources In order to access the following resources, click the links below. The book shows the most effective way of balancing the fundamental pillars, assisting the modern day manager by handling a dynamic, constantly adjusting workplace, which easily adapts to all challenges and changes. Mohammadian, H. D. (2019). International project management, Volume I : A focus on HR approach in
multinational corporations. Momentum Press. https://libraryresources.columbiasouthern.edu/login?url=http://search.ebscohost.com/login.aspx?direc t=true&db=e000xna&AN=2090316&site=ehost-live&scope=site
The following article explores organizational issues. Angeleanu, A., Keppler, T., & Eidenmüller, T. (2016). Effective stakeholder management in international
supply chain projects. Proceedings of the European Conference on Management, Leadership & Governance, 9–16. https://libraryresources.columbiasouthern.edu/login?url=http://search.ebscohost.com/login.aspx?direc t=true&db=bsu&AN=115309702&site=ehost-live&scope=site