The 100 Most Inspiring People in Project Management

September 28, 2015

RecognitionTimeCamp, the developers of TimeCamp online time tracking software that measures time spent on projects and tasks has created a list of the 100 Most Inspiring People in Project Management; congratulations to many friends and colleagues who’ve made the list.

While we’re not sure of the process used to develop the list (the links are mainly to Twitter), I’m flattered to be included at #12!  And it’s good to know my work promoting stakeholder engagement, effective communication and team development is being recognised globally.


Defining Stakeholder Engagement

August 6, 2015

Two earlier posts have discussed the concepts of stakeholder engagement.

Stakeholder Engagement GroupThis post builds on these foundations to look at the tools and techniques of proactive stakeholder engagement. Effective stakeholder engagement is a mutually beneficial process designed to enable better planned and more informed policies, projects, programs and services.

For stakeholders, the benefits of engagement include the opportunity to contribute as experts in their field or ‘users’ of the deliverable, have their issues heard and participate in the decision-making process. This should lead to:

  • Greater opportunities to contribute directly to the development of the outputs from the work;
  • More open and transparent lines of communication, increasing accountability and driving innovation;
  • Improved access to decision-making processes, resulting in the delivery of better outcomes;
  • Early identification of synergies between the stakeholders and the work, encouraging integrated and comprehensive solutions to complex issues.

For the ‘organisation’, the benefits of stakeholder engagement include improved information flows, access to local knowledge and having the opportunity to try out ideas or proposals with stakeholders before they are formalised. This should lead to:

  • Higher quality decision-making;
  • Increased efficiency in and effectiveness of delivery;
  • Improved risk management practices – allowing risks to be identified and considered earlier, thereby reducing future costs;
  • Streamlined development processes;
  • Greater alignment with stakeholder interests – ensuring outputs are delivered in collaboration with stakeholders and provide outcomes which meet their needs;
  • Enhanced stakeholder community confidence in the work being undertaken;
  • Enhanced capacity to innovate.

As with any stakeholder management process, ‘not all stakeholders are equal’ some stakeholders should be engaged because they are important to the work being undertaken, others simply need to be kept informed by appropriate levels of communication (for more on this see The three types of stakeholder communication).

The various levels of stakeholder communication, management and engagement are:

  • Inform: You provide the stakeholder with an appropriate level of communication, generally either PR or reporting.
  • Manage: You direct your communication to achieve a desired change in the attitude of the stakeholder or to manage an emerging situation.
  • Consult: You invite the stakeholder to provide feedback, analysis, and/or suggest alternatives to help develop a better outcome.
  • Involve: You work directly with stakeholders to ensure that their concerns and needs are consistently understood and considered; eg, the business representative involved in an Agile sprint).
  • Collaborate: You partner with the stakeholder to develop mutually agreed alternatives, make joint decisions and identify preferred solutions; eg, typical ‘alliance’ and ‘partnering’ forms of contract.
  • Empower: You place final decision-making in the hands of the stakeholder. Stakeholders are enabled (but also need to be capable) to actively contribute to the achievement of ‘their’ outcomes.

Stakeholder CollaborationThe first three bullets above are Stakeholder Management activities, the last three various levels of Stakeholder Engagement. Deciding which level of interaction is appropriate is a key driver of success, in any project, program or other work, some stakeholders will be best managed by simply keeping them informed, whereas the higher levels of engagement such as collaboration and empowerment require stakeholders with sufficient skills and knowledge to be able to actively participate in the endeavour, and importantly the desire to be involved!

The Stakeholder Circle® methodology provides the foundations needed to understand your stakeholder community and decide on the appropriate level of engagement for the ‘high priority’ stakeholders affected by the work. When you get to ‘Step 4 – Engagement’ the additional questions that need answering include:

  • What is the purpose and desired outcomes of the engagement activity?
  • What level of engagement is required to achieve this outcome – consult, collaborate, empower?
  • What method of engagement will you use?
  • What are the timing issues or requirements?
  • What resources will you need to conduct the engagement?
  • Who is responsible for engagement?
  • What are the risks associated with the engagement?

 

Finally, as with any stakeholder management process, the success or otherwise of the overall process needs to be reviewed regularly and appropriate adaptation made to optimise outcomes (step 5 in the Stakeholder Circle® methodology)

Summary:

Stakeholder engagement is not a ‘one-size-fits-all’ solution to managing stakeholders and needs to be planned into the overall development of the work:

  • Some of the questions outlined above need asking at the very earliest stages of a project or program during the ‘strategic planning phase’ and will affect the way the whole of the work is planned and undertaken.
  • The culture of the organisation undertaking the work will determine how open it is to inviting stakeholder collaboration or engagement, a degree of ‘culture change’ may need to be planned into the work.
  • Stakeholder engagement is always a two-way process, the skills, capability and culture of the key stakeholders will also be a constraint on what is feasible or desirable. You may need a strategy to ‘get the stakeholders on-side’.

Overall time and effort spent on stakeholder engagement will pay dividends (see: Valuing Stakeholder Management), stakeholder engagement is simply the most proactive way of helping your stakeholders to help you deliver their requirements successfully.


The Elements of Stakeholder Engagement

July 20, 2015

Effective stakeholder engagement is a two-way interactive relationship that encourages stakeholder involvement in the organisation for the benefit of both the stakeholders and the organisation.  The trend is increasingly clear; organisations that effectively serve the needs of their stakeholders outperform those that do not.

However, what is also apparent is confusion on the part of many managers as to precisely what stakeholder engagement is, and what systems facilitate effective stakeholder engagement.  This post suggests there are three basic systems that together form the foundation for effective stakeholder engagement in most organisations, but the foundations are just that, necessary underpinnings, stakeholder engagement itself rises above the foundations to create an entirely new way of engaging with stakeholders. Let’s start with a look at the three basic components:

Stakeholder Engagement

PR = Public Relations

PR is probably the oldest of the three foundations (particularly if you include advertising within the overall ambit of PR).  For thousands of years people and organisations with something to sell to ‘the public’ have recognised the need to tell potential customers about their offering and suggest there is a good reason for the potential customer to become an actual customer or client.

Camel Market

Smart merchants realised they needed to give potential customers a reason for doing business with them (rather than someone else) and that competing on price alone was not a good move in a crowded market place.

The role of advertising is in part to make potential customers aware of your offering and in part to create a desire for the type of goods or services you are providing. Effective advertising creates a ‘call to action’ which the customer heeds.

Public Relations (PR) has a different focus.  Good PR is built around creating a positive image of the organisation in the minds of its wider stakeholder community. PR is not directly aligned to sales in the way advertising is, but does seek to make the organisation appear to be one that most stakeholders in its target audience will want to be associated with.  This may be because of exclusivity, or status, because the organisation is seen to be ‘good’, or for any one of a dozen other reasons.  Effective PR has many purposes including:

  • Underpinning its advertising by creating a ‘good first impression’ of the organisation, thereby allowing the stakeholder to take note of its advertising.
  • Explaining the value of the organisation to a wider community minimising resistance to the functioning of the organisation and facilitating its operations.
  • Making the organisation appear to be a desirable ‘citizen’ within its community; etc.

Good PR is of course authentic and reflective of the true nature of the organisation, in the modern age ‘spin’ is easily uncovered and can be very damaging.

The fundamental nature of both PR and advertising is ‘push’ communication – the organisation pushes its message out to the wider community, hopes someone listens, and then measures its impact after the event with a view to improving the ‘message’ and the effect.

 

CRM = Customer Relationship Management

CRM is focused on providing a great experience to every customer.  The commercial driver for CRM is in part the generally accepted fact that it is far cheaper to retain an existing customer then to attract a new one and in part from a win-win view that the ability to quickly and efficiently service the unique needs of each customer reduces the transaction costs for the organisation.

Customers or clients are clearly stakeholders with a significant interest in the organisation, so focusing effort on providing them with the best possible level of service, delivered quickly and efficiently is a win-win outcome. Happy customers are more likely to recommend an organisation to their friends and colleagues as well as becoming regular clients of the organisation.

Unfortunately the concept of CRM seems to have been hijacked by software systems, overseas call centres and ‘big data’; bought with a view to ‘reducing costs’.  There’s nothing wrong with any of these concepts provided the outcome is improved customer service. Where the outcome is a reduction in service, any cost savings are likely to be offset by reduced business and the cost of attracting new customers to replace the ones lost by poor service.

Whilst CRM at its best is interactive and focused on a win-win outcome for both the organisation and its stakeholders, the stakeholders directly affected by CRM are limited to the organisations customers and clients.

 

Stakeholder Management

Stakeholder management is process focused; it involves planned interaction with a wider stakeholder community, both to manage the consequences of any crisis as well as providing information and facilitating two-way communication with key stakeholders.

Good stakeholder management is a proactive process, focused on facilitating regular communication and anticipating needs, issues and problems that are likely to arise within the stakeholder community. Tools and methodologies such as the Stakeholder Circle® are designed to facilitate efficient stakeholder management. Stakeholders are identified, there needs assesses and their relative importance determined. Based on this assessment, communication and other interactions are initiated to gather the support and assistance needed by the organisation and to head off or minimise any threats or problems.

The focus of stakeholder management tends to be ‘defensive’, and is aimed at creating the best possible stakeholder environment to allow the organisation to do its work efficiently   The process is interactive, seeking to engage constructively with the organisations stakeholders and looking for win-win outcomes that benefit the organisation and the stakeholder, but is driven by the organisation, from the perspective of the organisation.

 

Stakeholder Engagement

Stakeholder engagement builds on these three foundations (particularly ‘stakeholder management’) to create a different paradigm.  Stakeholders are encouraged to actively engage with the organisation and contribute to its growth and development whilst at the same time the organisation and its staff engage with their community through Corporate Social Responsibility (CSR) initiatives and the like. These engagement processes build a strong, two-way relationship in which the stakeholders and the organisation work together to build a common future that is both mutually desirable and beneficial.  I will be writing about stakeholder engagement in a future post.

 

Conclusion

The three foundations of Stakeholder Engagement: ‘Stakeholder Management’, CRM and PR are quite different processes focused on achieving different outcomes.  In a well managed organisation all three functions work together to crate a supportive stakeholder environment and a successful organisation. However, whilst the systems need to be aligned and compatible they are very different and should not be confused.

In particular CRM and Stakeholder Management systems have very different objectives, focus on quite different stakeholder groupings, need significantly different information sets, and have very different measures of success:

  • CRM focuses on customers (or clients). Whilst customers as a ‘class’ of stakeholder are important, generally an individual customer is not. The focus of a CRM system is managing large amounts of data to provide ‘all customers’ with a generically ‘good’, potentially ‘tailored’ experience.
  • Stakeholder Management focuses on indentifying the key stakeholders ‘at this point in time’ that require specific management focus as well as the wider group of stakeholders that need to be engaged (or at least watched). In most situations very few individual clients or customers would be sufficiently important to feature in this list, but there will be lots of stakeholders who are highly unlikely to ever become ‘customers’, for example suppliers and competitors.

The shift to ‘stakeholder engagement’ does not add new systems but does require a paradigm shift in thinking. The key element of stakeholder engagement is opening up to the ‘right stakeholders’ and either inviting them into the organisation, or reaching out to them, to help create a mutually beneficial future – more on this later.

 

 

 


Opportunity Lost

October 3, 2014

RICSThe first edition of the RICS / APM guidance note on Stakeholder Engagement is a missed opportunity. Hopefully the second edition will plug many of the glaring gaps.

The guide is built around ten principles:

  • Principle 1: Communicate
  • Principle 2: Consult early and often
  • Principle 3: Remember they’re only human
  • Principle 4: Plan it
  • Principle 5: Relationships are key
  • Principle 6: Simple, but not easy
  • Principle 7: Just part of managing risk
  • Principle 8: Compromise
  • Principle 9: Understand what success is
  • Principle 10: Take responsibility

All sound principles but in a strange order

Any complex endeavour needs a clear understanding of its objectives and then a plan to achieve the objectives before starting work, but ‘Understand what success is’, is at #9 and ‘Plan it’ at #4.  Surly the whole point of engaging stakeholder is to enhance the probability of success. Which means #1 understand what success is, #2 plan how to achieve success and then move into implementation.

But implementation needs focus, completely missing from the guide is any practical guidance on ways to understand the stakeholder community, prioritising the stakeholders so the communication effort is focused where needed and then managing the overall engagement effort for maximum effect. The best the guide can offer is a simplistic 2×2 matrix. My methodology, the Stakeholder Circle® is one of several that recognise the multiplicity of dimensions needed to understand a stakeholder, the outline is available free of charge from http://www.stakeholdermapping.com/stakeholder-circle-methodology/

The last omission is considering the path to stakeholder management maturity. The path to maturity is mapped at: http://www.stakeholdermapping.com/srmm-maturity-model/

I had hoped stakeholder engagement was moving beyond the soft ‘fluffy’ platitudes of the past into a pragmatic management process, allied to risk management, focused on maximising the aggregate benefit from a project to all of its stakeholders.  These ideas are in the RICS Stakeholder Engagement guide but unfortunately the guide lacks any guidance on how to achieve these objectives, with the exception of the CASE model in Appendix 3.

Hopefully the 2nd Edition will not be too far away.

The 1st Edition is available from http://www.rics.org/shop


Effective Communication = Effective Project Stakeholder Management

May 17, 2014

A small group of project manager s spent an enjoyable 90 minutes in an ‘un-conference session’ during the Project Zone Congress  earlier this month discussing the biggest single challenge to project success – stakeholders!  Depending on the type of project, between 50% and 90% of the risks in the risk register are associated with stakeholders.

Agreement was quickly reached by the group on the proposition that ‘stakeholders’ are a very wide and diverse group, some supportive and useful, others negative and obstructive and all with different needs and aspirations; so the conversation quickly moved onto the management of stakeholders and the proposition that ‘effective stakeholder management = effective stakeholder communication’.   But what does effective mean?  There is probably not a lot of point in communicating if you do not want an ‘effect’.

To be effective, the project’s stakeholder engagement and communication planning needs to develop an overall strategy for these two closely linked processes and then identify appropriate tactics to maximise the probability of achieving a successful project outcome.

Strategy

Effective communication is the key, and there are three general classes of communication; reporting, public relations and purposeful communication.

Reporting fulfils two useful purposes; firstly it demonstrates you are running your project properly, project managers are expected to produce reports and have schedules, etc., issuing reports shows that you are conforming to expectations[1].  Secondly, copying a report to a person keeps you in touch with them for when more significant communications are needed.  Reporting may not be communication but it is useful[2].

Public relations (PR) cover the broadcast communications needed to provide information to the wider stakeholder community to market the value of the project and to prevent information ‘black holes’ developing that breed misinformation and rumour.  The power of social media to amplify bad news is massive and it is nearly impossible to kill rumours once they have started even if the information being circulated is completely false.  Effective PR using a range of available mediums including web portals and social media can mitigate (but cannot eliminate) this type of negative influence on your stakeholders, both within the organisation and externally.

Developing an effective PR campaign is a skilled communications process but well worth the effort on almost every project. It is far easier to create a good first impression than to try to change an already formed bad impression among your stakeholders. This aspect of project communication is probably the most underrated and under used.

Purposeful  communication is hard work and needs to be focused on the important stakeholders (both positive and negative) with whom you need to cause an effect. Purposeful communication needs to be planned, which means you need to know precisely what effect you are seeking and then work out how to achieve the effect. This usually means you want the stakeholder to start to do something, do something differently or stop doing something.  Some of the tactics that can be used to make your communication effective include:

  • WIFM – ‘what is in it for me’ – try to align your needs with something the stakeholder desires (this is called Mutuality).
  • WIFMF – ‘what is in it for my friend’ – if there is no practical WIFM is there something the stakeholders friends of colleagues may benefit from?
  • Build peer pressure through the stakeholder’s network of contacts.  It’s hard to hold out against a group.
  • Use your network to develop persuasive pressure.
  • Delivering information incrementally in a carefully planned way with different people playing different roles in the communication plan.

Effective communication needs to be designed to be effective within the stakeholder’s culture. This means leaning how the person operates and what is normal for them – you need to communicate within their paradigm.  And you need regular testing of the overall communication process to make sure it’s working effectively.

Don’t be lulled into a false sense of security just because everything in your stakeholder environment is currently peaceful and productive. A ‘big mission’ or crisis can override culture for a short time and make a group seem like a homogeneous team but once the pressure is off people revert to their normal behaviours and unexpected issues can emerge – constant vigilance and maintenance of key relationships is critical to achieving final success

Constant surveillance and routine reassessments of the stakeholder community and of the effectiveness of your communication strategy and tactics is essential to understanding how your stakeholder community is evolving and to monitor the effectiveness of the communications[3]. Based on these assessments you can adjust the strategy and tactics you are using to ensure on-going effective stakeholder engagement.

___________

[1] For more on the artefacts needed to be ‘seen as a proper project manager’ see: http://eprints.usq.edu.au/20949/3/Whitty_PMOz_2011_PV.pdf

[2] For more on the difference between reporting and communicating see ‘Beyond Reporting – The Communication Strategy’:  http://www.mosaicprojects.com.au/Resources_Papers_094.html.

[3] For more on prioritising stakeholders and assessing the effectiveness of communications see: http://www.stakeholder-management.com/shopcontent.asp?type=methodology-description