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.

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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.

 

 

 


Happiness and Motivation

June 20, 2015

HappinessWe touched on the ‘power of happiness’ a couple of years ago in an article looking at the dramatic improvement in the performance of the Australian cricket team caused by the change from a coach focused on ‘driving individual performance’ to one focused on ‘creating a performing team’, that improvement in performance continues to the present time (see The Power of Happiness). This post takes a wider look at the way happiness (and unhappiness) affect both the people working in an organisation and the organisation itself.

Everyone wants a motivated and productive workforce, there seems to be a direct link between worker satisfaction, motivation and performance – a happy workplace tends to be a productive workplace; and there is definite evidence that unhappy and de-motivated workers are less productive. What is less clear is does motivation generate happiness or are happy people more inclined to be motivated and productive?

Looking at the negatives first, a 2010 survey by the Australian Institute of Management, of more than 3,000 business people revealed that negativity, apathy and disillusionment are present in the executive ranks of many Australian organisations:

  • 40% of respondents surveyed did not feel appreciated by their employer.
  • 20% of participants expressed negative sentiments about working at their current organisation.
  • Almost one in three of those surveyed criticised the workplace culture of their organisation.
  • 34% of respondents admitted they could be putting more effort into their current role.
  • 33% of those we surveyed said they are considering leaving their employer.

Surveys in the USA have shown similar trends with up to one third of the workforce disengaged or actively working against the interests of their employer, and nothing much seems to have changed in the period since the surveys.

One of the largest employer’s world-wide is the UK Civil Service headquartered in Whitehall London. The wellbeing of its workforce has been studied over many years, starting in 1967, with the findings published in the ‘Whitehall Studies’ (see: http://www.ucl.ac.uk/WhitehallII). The focus of these studies is the health of the Civil Service workforce, but there are strong links between wellbeing and motivation.

The Whitehall Studies and similar studies in Europe and Australasia show a clear relationship between position in the social hierarchy and mortality. This social gradient is present for most of the major causes of death, and has dispelled two myths. The first is that people in high status jobs have higher risks of heart disease. The second is that the gradient of health in industrialised societies is simply a matter of poor health for the disadvantaged and good health for everyone else. This aspect of heath outcomes is important, but outside of the control of any manager.

Whilst most managers within organisations cannot do much about the external factors affecting health and wellbeing (although good employers do a lot in this area) they can have a major influence on the work environment which is the other major factor in the overall wellbeing of all employees. The studies conclusively demonstrate that a motivated, happy, workplace is more productive and has better health outcomes than an unhappy one.

Within this aspect of wellbeing, the key finding from the Whitehall studies is that stress at work is the number one cause of lost time, but understanding ‘stress’ so it can be managed is not straightforward. Conventional wisdom has it that a stressful job is one characterised by a high degree of pressure and responsibility. New research, to which Whitehall II contributed, shows that negative stress at work tends to result from an imbalance between the psychological demands of work on the one hand and the person’s degree of control over the work on the other. The combination of high demand and low control generates stress leading to measurable increases in illness; with low control being especially important. ‘Figure 2’ below taken from Whitehall II clearly shows people in jobs characterised by low control have higher rates of sickness.

Whitehall-2

High demand on its own appears to be far less damaging – for many people a ‘stretch assignment’ or new challenge may be demanding but the ‘positive stress’ associated with tacking the challenge by using skills, including opportunity for developing skills, if managed correctly is a stimulus to enhanced performance.

The other antidote to negative stress is the team environment. Working with supportive colleagues and managers improves health and reduces sickness as shown in ‘Figure 3’ below:

Whitehall-3

Another controllable factor is the balance between effort and reward. High effort in the work place is a desirable quality. The Whitehall findings demonstrate that high effort must be matched by appropriate rewards. The way work is organised and the climate of feedback in the workplace all potentially affect each of the three crucial aspects of rewards; self-esteem, status and income (I will discuss rewards in the next post).

 

Creating a happy, committed, high performance team.

The Whitehall II study focused on illness and the negatives in a workplace, the place I want to finish the post is on the positives of creating a happy and productive workplace.

As a starting point, almost all of the negative influences on health defined in the Whitehall reports are juxtaposed to well established motivational theories – provide people with the right motivation and you eliminate most of the problems defined above.  The evolution of these theories has been outlined in our post The Evolution of Motivation and the various xxx are defined in our White Paper WP1048 – Motivation.

The key is designing the work so that everyone in the team experiences:

  1. Job satisfaction
  2. Good relationship with co-workers
  3. Good relationship with their manager
  4. New and interesting challenges
  5. Feeling valued by the organisation.

Once these elements are in place, the key challenge is allowing people to enjoy working. In this respect setting hard targets can be counterproductive!  A target is a predetermined level of performance that people are expected to achieve, the problem is if people have the know-how to achieve the target, there is little motivation to surpass the target. But if they do not have the know-how to achieve the target, they are left with two options: distort or game the system.  Goals may cause systematic problems in organisations due leading to unethical behaviour, increased risk taking, decreased cooperation, and decreased intrinsic motivation. As the ongoing banking crisis has demonstrated, aggressive goal setting within an organization will foster an organisational climate ripe for unethical behaviour (see more on this in: The normalisation of deviant behaviours).

Shift from ‘management setting targets’ to a process of challenging everyone to help move the organisation from where it is now to where it needs to be and you encourage the achievement of the best possible outcome.

–  Challenge people and teams to improve the way work is done by redesigning their work methods.
–  Challenge them to develop systems that provide clear business value.
–  Challenge them to devise an architecture that will meet future growth projections.
–  Challenge them to create new products that will be successful in the marketplace.

Challenges empower people; they provide the opportunity for autonomy and mastery in pursuit of a clear purpose (all strong intrinsic motivators).  Then all that is needed is for leaders to respect and acknowledge the individuals in their team, provide support and protection to the team, and importantly to celebrate the successes of the team (see The Power of Happiness). But remember, leadership is not a position description – see more on the attributes of a leader.

happiness-3

The challenge for a leader is to create the environment for happiness to flourish, a supportive and successful team. After that it is largely up to each individual to decide to enjoy the opportunity to ‘be happy’!  To an extent the multitude of self-help advice on the subject is correct, each person decides if they wish to be happy of miserable. The good new is happiness tends to be contagious, in the right environment it only takes one or two happy souls to start the ball rolling and over a relatively short period of time most people will ‘learn to be happy’.  For the few who insist on spreading negativity and unhappiness, remember another trait of high performance leaders is “getting the right people on the bus, [and the] the wrong people off the bus “ (Jim Collins – Good to Great).

In summary – a well led, motivated team will be a happy team and happy teams are productive teams.  They are great to lead and great to be part of!   The alternative is the type of problems identified in the Whitehall studies.  The challenge is creating the culture change needed to allow people to enjoy working on your team – it may not be easy, but it is worth the effort.


Making Projects Work: Effective Stakeholder and Communication Management

April 16, 2015

Making Projects WorkMy third book, Making Projects Work is now generally available in hardback and Kindle editions.

Making Projects Work: Effective Stakeholder and Communication Management focuses on the skills needed by project management teams to gather and maintain the support needed from stakeholders to make their project successful.

The underlying premise in the book is that projects are performed by people for people. The key determinants of success are the relationships between people in the project team and between the team and its wider community of stakeholders. This web of relationships will either enable or obstruct the flow of information between people and, as a consequence, will largely determine project success or failure.

Making Projects Work provides a framework for understanding and managing the factors required for achieving successful project and program outcomes. It presents guidelines to help readers develop an understanding of governance and its connection to strategy as the starting point for deciding what work needs to be done. It describes how to craft appropriate communication strategies for developing and maintaining successful relationships with stakeholders. It highlights the strengths and weaknesses of existing project controls and outlines effective communication techniques for managing expectations and acquiring the support required to deliver successful projects on time and under budget.

Features – the book:

  • Provides a framework for understanding and managing factors essential for achieving successful project and program outcomes.
  • Facilitates an understanding of governance and its connection to strategy as the starting point for decisions on what work needs to be done.
  • Describes how to craft appropriate communication strategies to develop and maintain successful relationships with stakeholders.
  • Supplies an understanding of the strengths and weaknesses of existing project controls.
  • Outlines effective communication techniques for managing perceptions and expectations and to acquire the support necessary for successful delivery.

For links to more information on this, and my other two books, start at: http://www.stakeholdermapping.com/stakeholder-management-resources/#Books


For Stakeholders, 2×2 Is Not Enough!

April 4, 2015

The world loves 2×2 matrices – they help make complex issues appear simple. Unfortunately though, some complex issues are complex and need far more information to support effective decision making and action. The apparent elegance of a 2×2 view or the world quickly moves from simple to simplistic.

One such situation is managing project and program stakeholders and convincing the stakeholders affected by the resulting organisational change that change is necessary and potentially beneficial. As a starting point, some stakeholders will be unique to either the project, the overarching program or the organisational change; others will be stakeholders in all three aspects, and their attitude towards one will be influenced by their experiences in another (or what others in their network tell them about ‘the other’).

The problem with a simple 2×2 view of this complex world is the assumption that everyone falls neatly into one of the four options and everyone categorised as belonging in a quadrant can be managed the same way. A typical example is:

power-interest

Power tends to be one dimension, and can usually be assessed effectively, the second dimension can include Interest, Influence, or Impact none of which are particularly easy to classify. A third dimension can be included for very small numbers of stakeholders by colouring the ‘dots’ typically to show either importance or attitude.

The problem is you may have a stakeholder assessed as high power, low interest who opposes your work, who you need to be actively engaged and supportive – ‘keep satisfied’ is a completely inappropriate management strategy.

The Salience Model developed by Mitchell, Agle, and Wood. (1997) introduces the concepts of urgency and legitimacy.

Salience

Urgency refers to the degree of effort the stakeholder is expected to expend in creating or defending its ‘stake’ in the project, this is an important concept! However the concepts of ‘legitimate stakeholders’ and non-stakeholders are inconsistent with stakeholder theory and PMI’s definition of a stakeholder – anyone who believes your project will affect their interests can make themselves a stakeholder (even if their perception is incorrect) and will need managing. This model also ignores the key dimension of supportive / antagonistic.

The three dimensional Stakeholder Cube is a more sophisticated development of the simple 2×2 chart. The methodology supports the mapping of stakeholders’:

  • Interest (active or passive);
  • Power (influential or insignificant); and
  • Attitude (backer or blocker).

Ruth_MW

This approach facilitates the development of eight typologies with suggestions on the optimum approach to managing each class of stakeholder (Murray-Webster and Simon, 2008). However, the nature of the chart makes it difficult to draw specific stakeholders in the grid, or show any relationships between stakeholders and the activity. However, as with any of the other approached discussed so far, the classifications can be used to categorise the stakeholders in a spreadsheet or database and most of the key dimensions needed for effective management are present in this model. The two missing elements are any form of prioritisation (to focus effort where it is most needed) and the key question ‘Is the stakeholder in the right place?’ is not answered.

Information needed for a full assessment

The factors needed for effective stakeholder management fall into two general categories, firstly the information you need to prioritise your stakeholder engagement actions; second the information you need to plan your prioritised engagement activities.

The two basic elements needed to identify the important stakeholders at ‘this point in time’ are:

  • Firstly the power the stakeholder has to affect the work of the project. This aspect tends to remain stable over time).
  • Secondly the degree of ‘urgency’ associated with the stakeholder – how intense are the actions of the stakeholder to protect of support its stake? This aspect can change quickly depending on the interactions that have occurred between the project team and the stakeholder.

I include a third element in the Stakeholder Circle® methodology, how close is the stakeholder to the work of the project (proximity) – stakeholders actively engaged in the work (eg, team members) tend to be need more management attention than those relatively remote from the work.

The next step is to assess the attitude of the important stakeholders towards the work of the project. Two assessments are needed, firstly what is the stakeholder’s current attitude towards the project and secondly what is a realistically desirable attitude to expect of the stakeholder that will optimise the chance of project success?

Attitudes can range from actively supportive of the work through to active opposition to the work. The stakeholder may also be willing to engage in communication with you or refuse to communicate . If you need to change the stakeholder’s attitude, you need to be able to communicate!

From this information you can start to plan your communication. Important stakeholders whose attitude is less supportive than needed require carefully directed communication. Others may simply require routine engagement or simple reporting .

If this all sounds like hard work it is! But it’s far less work then struggling to revive a failed project. This theme is central to my new book, Making Projects Work, Effective stakeholder and communication management. You generally only get one chance to create a first impression with your stakeholders – it helps to make it a good one.

Making Projects Work


Stakeholders generate profits for shareholders

October 29, 2014

A few months ago I posted on the concept of Understanding stakeholder theory and suggested organisations that focus on providing value to stakeholders do better than those focused on short term rewards for shareholders and the associated benefits flowing to executive bonuses.

A new report: From the stockholder to the stakeholder by Arabseque Asset Management and Oxford University supports this contention.

From the Stockholder to the Stakeholder reviews existing research on environmental, social and governance (ESG) issues. It is a meta-study of over 190 different sources the authors have demonstrated a strong correlation between organizations that take ESG seriously and economic performance. For example:

  • 90% of relevant studies show that sound sustainability standards lower the cost of capital;
  • 88% of relevant studies show a positive correlation between sustainability and operational performance;
  • 80% of relevant studies show a positive correlation between sustainability and financial market performance.

However, to translate superior ESG quality into competitive advantage, sustainability must be deeply rooted in an organisation’s culture and values. The consequences of failing to take ESG seriously continues to be demonstrated by another of my regular topics, BP. The report contains a plot of oil company share prices from 2009 (pre the Deepwater horizon disaster) through to 2014. BP’s share price continues to suffer the consequences of the short sighted cost cutting that precipitated the Gulf of Mexico disaster:

BP-Price

The report concludes that it is in the best economic interests of corporate managers and investors to incorporate ESG considerations into decision-making processes starting at the governance level right down the organisation hierarchy.

The full report can be downloaded from  http://www.mosaicprojects.com.au/pdf/Stockholder_to_Stakeholder.pdf.


The Evolution of Ethics

October 17, 2014

ethicsOur White Paper on Ethics discusses a number of ethical approaches used to determine what is ethical in the modern world. What is not covered in the White Paper is the evolution of ethical thinking. A blog post by Ricardo I. Guido Lavalle outlining a presentation by Prof. Clovis de Barros, who teaches Ethics at Universidade de Sao Paulo (USP), Brazil; fills this gap.

Prof. Clovis suggests Ethics evolved through five main phases outlined below:

  • Greek times, when ethics were about fitting oneself into the great cosmological order. Right actions were those that helped the Cosmos achieve its maximum order. From this standpoint Greek philosophers (mainly Aristotle) assumed rigid, stable social layers where aristocracy had the most part in the game.
  • Consequentialism, holds that the consequences of one’s conduct are the ultimate basis for any judgment about the rightness or wrongness of that conduct. Niccolo Macchiavelli (The Prince, 1513) is the best known proponent of this school of thought; he strove to maximize prince’s power. Right actions were those that had achieved the most power for the prince. Attention here, the right actions were considered right after they proved to be efficient in achieving the desired outcome – ‘the ends justify the means’.
  • Utilitarianism, holds that the proper course of action is the one that maximises utility, usually defined as maximizing total benefit whilst reducing suffering or the negative consequences. Proposed by Bentham (1780) and John Stuart Mills, is a great justification for liberalism and aims for ‘the greatest happiness of the greatest number’. It is a simple and attractive standpoint, and it even fits with common democratic views. However, it presents some issues regarding minorities.
  • With Immanuel Kant (1781) emerges the inner spiritual origin of ethics. Kant contested utilitarianism with his deontology. An action was right if the very inspiration of it was good, regardless of the consequences. The ultimate goal was to form a corpus of universally valid actions, such they were valid in any context, and forever. The puritan ethics of duty and good purpose is an earlier expression of this long-lasting and very successful ethical view.
  • In contrast to all previous views, post-modernist ethics is about relativism. Ethics has become transactional, an agreement between parties, were openness and transparency of purposes are crucial. Post-modern Ethics is the result of a social contract, and agreement. Professional organisations such as PMI develop an agreed code of ethics to guide their members.

However, the transactional basis of post-modern ethics does not eliminate many of the founding concepts developed over millennia. PMI’s Code of Ethics and Professional Conduct balances many of these themes:

  • Overall the spirit of the Code is Kantian; a code developed by a ‘global’ body should seek to be of universal applicability.
  • Some elements of the Code are a quest for the good intentions inherent in Greek virtues (honour and fairness), (2.4 We make commitments and promises, implied or explicit, in good faith)
  • Others tend to utilitarian (2.1 We make decisions and take actions based on the best interests of society, public safety, and the environment).
  • Whilst others are post-modern ethics (3.1 We proactively and fully disclose any real or potential conflicts of interest to the appropriate stakeholders).

What this brief scan of history highlights is the way the long history of ethical thinking affects the modern definitions of ethics. The White Paper looks at their practical application.