self-Reflective of Management of Project course
Stakeholder Management in a project environment
Lecture by
Dr Kamal Qazi
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Agenda
A quick recap of project concepts
Managing the Project Environment (EEF & OPA)
Stakeholder Management – Resistance - process – analysis
Stakeholder Engagement
Some exercises on the way
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Project Management In Five Concepts
Initiate
Plan
Execute
Monitor and control
and Close
Professor BENT says that project failure is systemic!!
The PMI in their recent report PULSE in 2020 categorically explained that for every $1B spent on projects, an average of $114M is wasted
…and this is due to the rise of complex project and PMO issues amongst other things have offered disconnected gains.
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Managing a Project
Project has (or should have) a beginning and an end
Therefore, managing a project means managing the lifecycle of the project, starting from the beginning (initiating) and going to the end (closing)
By using processes (project management knowledge areas)
The environment in which the project runs, such as the structure and culture of the performing organisation.
Projects originate from their environments
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PROJECT ENVIRONMENT – The big picture
Projects are performed in a ‘certain’ environment and runs in an organisation with its own structure and culture and laws
[This part of the environment is called the enterprise environment factors (EEF)]
The project organisation has some assets utilised through its lifecycle
Knowledge
Policy and procedures
Processes
[This part of the project environment is called the organisational process assets (OPA)]
+ Project stakeholders
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Project Business Case
Benefit Management Plan
Project Success Measures
Project
Project activities proceed
Project Charter
Need Assessment
Organisational Process Assets
Project proceeds
Enterprise Environment Factors
Environment
Project Stakeholders
The Big Picture Of The Project Environment
Main elements that constitute the project environment EEF, OPA and project stakeholders.
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The big picture of project management
The aspects of a project that need to be managed at different stages of the project lifecycle by using processes
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Influences On The Project Process –
Enterprise Environmental Factors (EEF)
Are the factors that are related to the environment either internal or external to the performing organisation
Can potentially influence and hence impact the project
May originate from within the performing organisation, from outside of the organization, or from both
These factors may have a positive or negative influence on the project
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PS: When identifying internal and external factors, it is important to consider the context of the factor. For example, the culture of the city where the performing firm is located is an external environmental factor, while the firm’s culture is an internal factor.
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In short … Just a part of the job
Identifying the environmental factors is only part of the job
Need to understand and effectively use the positive factors of a project
Take action to minimise the effect of negative factors on the project
Environmental factors can be internal to the performing organisation – for example the organisation’s culture
Environmental factors can be external to the organisation – for example the market conditions
BUT - Organisational Process Assets (OPA) are internal only
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Influences On The Project Process –
Organisational Process Assets (OPA’s)
Processes or process-related assets - from the organisation that:
Can be used to help the project get going and succeed
For conducting work organisational process assets are typically grouped into two categories:
Processes and
Procedures
Repository to store a knowledge database of information
Such as: Own guidelines - policies, and procedures
Have an effect on the project charter
Another example of an organisation’s process assets - knowledge and learning acquired from previous projects
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Examples of processes and procedures and the knowledge base
Standardised Processes and Procedures:
Examples are organisational-level policies, such as:
Health and safety policies
Ethics policies
Project management policies and
Quality policies and procedures, such as quality checklists and auditing processes
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Standard Guidelines and Criteria:
For example:
Project closure guidelines - project acceptance criteria - proposal evaluation criteria - performance measurement criteria - and so on
Guidelines and criteria for tailoring the standardised organisational processes for the purpose of the project
… contd
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Templates:
For example templates to support some project management tasks such as:
List of standard risks to look for
Project schedule network diagrams
The work breakdown structure
… contd
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Requirements:
Examples include the following:
Communication requirements, hiring requirements, and safety and security requirements
Guidelines and requirements for project closure, such as final mandatory project audits and product acceptance criteria
You need to follow these while working out the details of the project management processes that you will perform throughout the project lifecycle.
… contd
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Tip
Processes and procedures come from outside of the project
For example:
The project management office (PMO) or some other office within the organisation
Cannot update them
Whereas knowledge databases may also come from outside the project
But you can and should update (add to them).
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Knowledge Database Repository
…Includes databases
Used to:
Retrieve information to use for your project;
Store information from your project as it proceeds for use in this and future projects.
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Knowledge Database Repository - some items
Project Files
The documents and other files produced in the project, such as the project charter and scope statement
Measurement Database
An example is a database for the performance measurements
Historical Information and Lessons Learned
Archives of files from previous projects, including lessons learned from the projects
Issue and Defect Management
A database that allows the managing of issues and defects, such as logging, controlling, and resolving an issue or defect. You can also find the status of the issue or the defect from this database.
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… contd.
Financial Database
The financial information related to the project, such as budget, work hours, and cost overruns
Configuration Management Database
Contains the change history: different versions and baselines for the company standards, policies, and archived project documents.
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Checkpoint - A quick exercise
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Q1. From the organisation’s perspective, what is the core difference between EEF & OPA?
Q2. In the following table, match each item in the first column to items in the second column.
Factor and Asset Categories Factor or Asset Examples
Internal factor
Company’s email system
Checklist
City laws where company is
Configuration management system
An approved external provider
Commercial Risk database
Interest rate
Configuration repository from past project of the company
External factor
Processes and procedures
Knowledge databases
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Conclusion… EEF & OPA’s
Contribute to the project environment it’s stakeholders, & this environment influences and impacts the project
One very important internal EEF is the organisational culture and structure.
Note:
EEF & OPA’s are common inputs to many project management processes
Sometimes they can also appear as an output from a process, such as archived documents and lessons learned.
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Stakeholder Management and Dealing with Resistance
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The Effects of People
There are hard problems and soft problems, people are and create soft problems
Management is getting things done though people. If we can’t get the people right, we can’t get the project done
Stakeholders are people, even when they are also organisations
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Stakeholder Definition
A stakeholder is an individual, group or organisation who…
“have an interest or role in the project... Or are impacted by it”
Association for Project Management BoK (2020)
“whose interests may be positively or negatively affected as a result of project execution or successful project completion… can influence project outcomes significantly ”
Project Management Institute BoK (2013)
“that has interests in, or can affect, be affected by, or perceive itself to be affected by, any aspect of the project”
ISO 21500:2012 Guidance on project management
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Stakeholder – meaning-making in the context of the Project Environment
Stakeholder: Individuals or group who have an interest or role in the project, programme or portfolio, or are impacted by it
Stakeholder engagement: The systematic identification, analysis, planning and implementation of actions designed to influence stakeholders
*Read Chapter 3, PMBoK 7th Edition
Stakeholder theory emerged in 1960s
Challenged the idea that the ”share-holders” are the only one to be responsible to!!
Whereas, stakeholder theory focuses on “Relationships to get the best trade-off between efficient creation of a solution or change, and people’s support for the design and use of those outputs”
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Why Worry About Stakeholders?
Keeps stakeholders satisfied by fulfilling their expectations and requirements
Avoids scope creep and mitigates issues that may cause problems for the project
Ensures the project receives full cooperation from the stakeholders with minimal obstruction
Increase available information, which can improve project performance
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Projects are unique: stakeholders never the same; circumstances never the same
Different stakeholder management approaches & techniques used on different projects (determined by size, cost & complexity)
Stakeholder management is relevant for all stages of project lifecycle (pre-design; design; construction; fitting out; completion)
Stakeholder management has a cost (but not doing it also has a cost!)
Always challenging because…different stakeholders have different interests whilst some cannot be controlled at all
Stakeholder management: characteristics
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Basic Types of Stakeholder
INTERNAL –
Members of project coalition (client; consultants; contractors sub-contractors; suppliers; investors; end-users) usually have legal / contractual relationship with project
EXTERNAL-
Outside of project group (general public; community groups; local people; regulators: HSE; Rail Inspection Authority) - not linked to project legally or contractually
The challenge is always the same:
Obtain the most desirable behaviour in relation to the project
– Get Them To Do The Right Things
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An example
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Stakeholder Management Process
Traditionally 3 steps:
1. Stakeholder identification
2. Stakeholder analysis
3. Stakeholder engagement
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1. Stakeholder Identification
Brainstorming, Delphi, Nominal group techniques, Focus groups, consultants
Visiting and touring the project area
Organisational Process Assets & Enterprise Environment Factors (OPA & EEF resp.) - Lessons learned from previous projects, stakeholder documentation from previous projects, specialist stakeholder managers
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2. Stakeholder Analysis
Who are they?
What expectations do they have?
What do we need from them?
Perceived attitudes/risks
Risk if not engaged
Their current position
The future position that we desire for them
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Power – ability to stop or change the project Interest – overlap between the projects goals and stakeholder goals
High power/high interest – The project affects things they do every day. Involve them
in the project, steering group, in decisions
High power/low interest - Find out what is important to these groups and protect it
Low power/high interest– Potential allies, involve them, use them to lobby other groups
Low power/low interest – Control time spent on them but their position or view may
change in the future
2. Stakeholder Analysis
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TfGM Wigan Bus Station… an example!
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Power/Interest Matrix – TfGM Wigan Bus Station
| Keep Satisfied – meet their needs Fred Longworth High School Local Residents Local Businesses Bus Station employees Greater Manchester Combined Authority | Manage Closely – Key Players TFGM Prime Contractor VINCI |
| Monitor – least important Greater Manchester Police Greater Manchester Disabled Design Reference Group Wigan Cycle User Group | Keep Informed – Show Consideration Wigan Council (local government) Wigan councilors Bus company employees Taxi firms |
POWER
INTEREST
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Contact & discussion with stakeholders can be critical
How is it best to engage with stakeholders?
- Different for different stakeholders & different projects
Communications Strategy:
How often should we communicate?
How should we communicate?
What do you want from the communication?
Digital age & social media – significant for stakeholder management
3. Stakeholder Engagement
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The nature of the message
Intended purpose
Proximity to the audience
Requirement for timeliness in interaction or response
Personal preferences
The need for a record of the communication
Timing
Requirements for synchronicity/asynchronicity
Cost
Stakeholder Engagement – Medium Choice
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Overly rich
communication
causes confusion
EFFECTIVE
COMMUNICATION
Routine communication
for routine change
Rich communication
for complex changes
Too little information and
sensitivity leads to mistrust
and lack of commitment
Complex
Routine
CHANGES
Face to face
(one to one or group)
Interactive
(e.g. telephone, video
conferencing)
Personal 'memoing'
(e.g. tailored memos, letters)
General bulletins
(e.g. circulars, announcement
on notice boards)
TYPE OF
MEDIA
Lengel, R. and Daft, R. (1988) The selection of communication media as an effective skill. Academy of Management Executive, vol.2, no. 3 pp. 225–232
Stakeholder Engagement – Medium Choice
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An Engagement Plan
| Target Audience | What information? | When? | Method of Communication | Provider |
| Bus Station Customers (general) | Plans for the station | Monthly | Posters | Project Team |
| Disabled users and representatives | Plans, models of accessibility features | At design stage | Focus group | TfGM Headquarters |
| Wigan Town Councilors | Economic and use Impact models, progress reports | Bi-Weekly council meeting | Presentation | Project Manager |
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Stakeholder Resistance
Change human behaviour from what it is, to what we need it to be, for project success
What makes people change their behaviour?
What makes people resist making changes to their behaviour?
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Who is the Problem?
Does lack of resistance mean acceptance?
They could just be waiting for a better time…
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“Nature has placed mankind under the governance of two sovereign masters, pain, and pleasure. It is for them alone to point out what we ought to do, as well as to determine what we shall do.”
Introduction to the Principles of Morals and Legislation
Jeremy Bentham, 1789
Principle of Utility
The past is where the predictable pleasure/pain balance is, the future’s balance is unknowable
So in a time of change naturally people will focus on what they are losing or imaginary future losses
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We all want a fair share, but don’t we also want the biggest fair share?
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A few millimeters more – how feel? Emotions come into play
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Adams’s equity theory of motivation
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“Ah, the good old days”
The past is knowable and safe
A glorious vision of the future might not be enough
Losses or pains might only be imaginary, but they are powerfully motivating
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Three (3) Ways to Change Stakeholder Behaviour – Gartner
2.
1.
3.
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… Contd. Potential behavioural obstacles
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Kotter and Schlesinger (1979) – Tactics To Manage Resistance
Education and Communication – When resistance appears to be the result of misinformation or limited communications counteract this by investing heavily in communicating the rationale for change
Participation and Involvement – When change resistance appears to be the result of stakeholders feeling marginalized or excluded from the process
Facilitation and Support – When the change is producing anxiety and uncertainty in stakeholders, increase resources to provide emotional and physical/technical support.
Negotiation and Agreement – When stakeholders are empowered to a position of significant influence on project outcomes and can cause significant damage, this approach favours incentivizing adoption of the change.
Manipulation – Often utilised as a last-resort measure, intentionally limiting information to some stakeholders.
Explicit and Implicit Coercion – Often also utilised as a last-resort measure when stakes are considerably high, this approach utilizes threats of undesirable consequences to the resisters.
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A TfGM Problem…
“Shopkeepers are always complaining and protesting. Don’t they know this will be better for them, this line will bring more shoppers to town?”
Which quadrant of the P/I matrix???
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| Keep Satisfied – meet their needs | Manage Closely – Key Players |
| Monitor – least important | Keep Informed – Show Consideration |
POWER
INTEREST
Empathy Mapping
The ability to understand and share the feelings of another
Your pain in my heart – its more than just walking in their shoes
Try to project yourself into that person’s experience and understand the context you want to explore. The roots of resistance but also the tactics to deal with it are out there somewhere
Conclusion!
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PAINS & GAINS
What do they THINK & FEEL?
WHO are we empathising with?
What do they need to DO?
GOALS
What do they DO?
POSSIBLE and ACTUAL ACTIONS
What do they HEAR?
SENSORY
What do they SEE?
What do they SAY?
SENSORY
Conclusion!!
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Conclusion!!!
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Stakeholder Engagement Vs Stakeholder Management
Conclusion!!!!
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RECAP:
Stakeholder – meaning-making in the context of the Project Environment
Stakeholder: Individuals or group who have an interest or role in the project, programme or portfolio, or are impacted by it
Stakeholder engagement: The systematic identification, analysis, planning and implementation of actions designed to influence stakeholders
*Read Chapter 3, PMBoK 7th Edition
Stakeholder theory emerged in 1960s
Challenged the idea that the ”share-holders” are the only one to be responsible to!!
Whereas, stakeholder theory focuses on “Relationships to get the best trade-off between efficient creation of a solution or change, and people’s support for the design and use of those outputs”
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Thank you for engaging and hope this lecture gave you some tips on how to manage your stakeholders (Assignment – Knowledge area )
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