The Evolution of Project Management

September 25, 2017

The publication of the PMBOK® Guide sixth edition at the beginning of September, and the decision last week by ISO committee TC258 to revise ISO standard 21500 should mark the end of an era in the development of project management. For most of the last 50 years the dominant view of project management associations has been that project management is a generally transferable skill. This has resulted in the view that ‘project management’ can be represented by a single ‘BoK’ (Body of Knowledge), a single ‘competency baseline’ and capability can be demonstrated by passing a single credential or certification. However, whilst the PM professional associations have advocated this view, the job market has always retained a focus on different industry experience – you don’t get an IT project manager’s job without IT experience.

As outlined above, from the emergence of ‘modern project management’ in the 1960s[1] the predominant view of the professional associations and most academics and practitioners has been that ‘project management’ is a single discipline with transferrable skills. A single qualification framework is appropriate and the skills and techniques are generally applicable across all industries.  However, in the years between the 1960s and the 2000s, as different industries and disciplines progressively adopted the concept of ‘project management’ this holistic view has become increasingly stressed.

The future suggested in this post still sees project management as a single discipline focused around some high-level objectives; but rather than having a single set of generally accepted good practices applicable to most projects most time, the emerging discipline needs to be capable of embracing a range of different approaches to project management and a diverse toolbox of techniques that can be mixed and matched to optimise the creation of the project’s deliverables.

Project management literature has identified at least three key dimensions to project management:

  1. An ‘adaptive/agile’ approach -v- a disciplined structured approach.
  2. The size, scale, and difficulty associated with the work of the project.
  3. Simple relatively predictable projects -v- complex projects with emergent properties.

In addition to these parameters (mapped in the diagram above), there is also the degree of certainty associated with the work, the technical complexity of the product, and the attitude of the stakeholder community[2].

It’s time for a change.

The project management techniques needed to manage different types of project vary enormously; for example:

  • The optimum approach to managing a relatively small, simple project to upgrade a website may benefit from an adaptive/Agile approach to managing the work and should only require a ‘light touch’ to control the work;
  • Contrast this to the disciplined approach needed to design and build a new chemical plant where not only do complicated parts need to be manufactured to precise dimensions months in advance and shipped halfway around the world, but the work has to be carefully managed and the parts assembled in a precise sequence to allow all bits to be fitted together properly in a safe working environment.

Both these endeavours are projects, but the project management techniques needed for success are dramatically different. Even within the one project, some elements may benefit from an ‘agile’ approach to the work (eg, systems integration), while other elements of the work will require a very disciplined approach to achieve success – building space rockets does require ‘rocket science’.

The challenge facing the project management profession and project management academics is firstly defining the common core of project management, and then adapting the approach to developing and documenting the overall project management body of knowledge in a way that recognises the core commonality of being ‘a project’ whilst allowing different approaches to the management of the work. And once these foundations are in place, flowing these concepts through into documented standards, knowledge frameworks and certifications. In the 21st century a ‘one size fits all’ approach to the management of projects is no longer appropriate.

PMI has started down this path, they have agile certifications and have included both tailorability and agile concepts into the 6th edition of the PMBOK® Guide. Developments in the ISO space are also moving towards this integrated but separated approach to managing different types of projects. ISO 21500 Guidance on Project Management, is being updated and transformed into a higher level ‘management standard’, if this development is successful, in the future a series of implementation guides can be foreseen focused on different types, sizes and phases of project development and delivery.

What’s missing at the moment is a holistic and agreed understanding precisely what a project actually is[3] (this will segregate project management from other forms of management), and then a framework distinguishing the different types of project that exist within the overall frame of a project but requiring different styles of project management. Some of the multitude of factors that need to be considered include:

  • The inherent size of the project usually measured in terms of value;
  • The degree of technical difficulty in creating the output (complication) caused by the characteristics of the project’s work and its deliverables, or the time-frame the deliverables are required within;
  • The degree of uncertainty involved in the project;
  • The degree of complexity associated with the work and the stakeholder relationships;
  • The difference between client project management and contractor project management;
  • The various methodologies and strategic approaches to managing the project and developing the product (Agile, PRINCE2, etc);
  • The maturity of the environment in which the project is being delivered (developing economies/organisations -v- mature economies/organisations); and
  • The difference between project, program and portfolio management.

The common core

The core element of all projects is the intentional ‘temporariness’ of the team (organisation) set up to deliver the project. The ‘temporary organisation’ is given an objective to create a deliverable for a client and then to shut down efficiently; in addition, there is an intention on the part of most key stakeholders to treat the work as a ‘project’. This means the project has to be started (initiated), the work planned, then undertaken, and on completion the temporary organisation has to be closed – and of course, all of these activities need monitoring and controlling.

Where 21st century project management needs to diverge from the doctrines of the last century is in the way these overarching objectives are achieved – defining 44 or 49 processes as ‘generally accepted best practices’ is no longer appropriate.  The concept of ‘project management’ needs to be able to adapt to very different approaches, allow the project team to select from a toolbox of ‘useful techniques and methodologies’ and then encourage the teams to craft the processes they actually use to optimise the delivery of the project’s outputs to its clients.

Achieving this will require a different approach to developing standards, a different approach to training and qualifying practitioners and the creation of very different communities within the profession that encourages cohesion whilst embracing diversity of practice.

It will be interesting to see if our profession is up to the challenges.

____________________

[1] For more on the origins of ‘modern project management’ see: http://www.mosaicprojects.com.au/PDF_Papers/P050_Origins_of_Modern_PM.pdf

[2] For more on the dimensions of project management see: http://www.mosaicprojects.com.au/WhitePapers/WP1072_Project_Size.pdf

[3] For more on defining a project see: https://mosaicprojects.wordpress.com/2016/08/11/seeking-a-definition-of-a-project/

Advertisements

Defining Project Success using Project Success Criteria

July 4, 2017

Everyone likes a successful project but the big question is what makes a project successful??  A good example is the Sydney Opera House; was the Sydney Opera House successful or not?

Was the Sydney Opera House a success

The project ran significantly over budget finished very late and was technically less than perfect; $millions are currently being spent rectifying many of the technical deficiencies in the building. But can anyone say Sydney Opera House is not one of the most recognised and therefore successful buildings in the world?[1]

Success is an ephemeral concept! Different people will have different perspectives and judge the success or failure project differently. Neither a project nor a program manager can control many of the factors that have made the Sydney Opera House worldwide icon but they can address the concept of success with their stakeholders and then work to deliver a successful outcome based on these discussions.

So what is success? There are probably three key elements, but these frequently create a paradox that requires a balanced approach to success. The three fundamental elements are:

  • The Iron Triangle (Scope + Cost + Time)
  • Benefits realised (or maximised)
  • Satisfied stakeholders (but, when??)

One of the key paradox is a myopic focus on the Iron Triangle particularly time and cost can frequently destroy benefits and leave the stakeholders unhappy, but focusing on keeping stakeholders happy can frequently have detrimental effects on the Iron Triangle. There are no easy solutions to this problem[2].

In my view, the successful delivery of a project or program requires:

  • Achieving the overall goal for the project;
  • Delivering its objectives; and
  • Meeting its success criteria.

But, to achieve success you need to define and agree the project goal, the project objectives, and the project success criteria with your key stakeholders with a view to achieving a combination of stakeholder satisfaction and value created. The goal and objectives frame the project’s work and direction. The success criteria frame how the objectives are achieved.

 

The Project Goal

Goals are high-level statements that provide the overall context defining what the project is trying to achieve. One project should have one goal (if there are multiple goals you are most likely looking at a program of work[3])!  For example:  Within 180 days, reduce the pollution in the rainwater runoff from a council tip by 98%.

The goal is a key statement in the Project Charter[4] and if the project is to be successful, all key stakeholders need to agree the goal.  The goal needs to be specific and should define the project in a way that focuses attention on the key outcomes required for overall success from a technical and strategic business perspective[5].

 

Project Objectives

The objectives are lower level statements that describe the specific, tangible products and deliverables that the project will create; each objective (and the overall goal) should be SMART[6]. For the runoff project the objectives may include:

  • Develop wetlands to trap 99.8% of sediment
  • Install channels to collect and direct the runoff
  • Install screens remove floating debris
  • Etc….. There will be a number of objectives……

Each objective requires defining and specifying with clear performance criteria so you know when it has been achieved. This may be done by the client or by the project team during the scope definition process. The performance criteria may be defined by a set of precise specifications that are specific and measurable or may be defined as a performance requirement with either:

  • The external contractor to provide the specific details of how the objective will be achieved, or
  • The internal project team to develop the details in consultation with the client

The defined objectives are the building blocks that facilitate the achievement of the goal and the creation of the benefits the organisation is expecting from the project[7]. The benefits need to be realised to create value.

 

Success criteria

Success criteria are different they measure what’s important to your stakeholders. Consequently, they are the standards by which the project will be judged at the end to decide whether or not it has been successful in the eyes of its stakeholders. As far as possible the stakeholders need to be satisfied; this includes having their expectations fulfilled and in general terms being pleased with both the journey and the outcome (in this respect scope, cost and/or time may be important).

Success criteria can be expressed in many different ways some examples include:

  • Zero accidents / no environmental issues;
  • No ‘bad press’ / good publicity received;
  • Finalist in the project achievement awards;
  • Plus the goal and all of the objectives achieved (yes – you still need to do the work).

For any project, the success criteria should be split between project management success criteria which of related to the professional aspects of running the project; plus project deliverable success criteria which are related to the performance and function of the deliverable.

Documenting the success criteria is important, it means you can get project stakeholders to sign up to them, and having them clearly recorded removes ambiguity about what you are setting out to do. The four basic steps to create useful success criteria are

  1. Document and agree the criteria; each criteria should include:
    1. The name of success criteria,
    2. How it is going to be measured,
    3. How often it is going to be measured, and
    4. Who is responsible for the measurement.
  2. Use continuous measurements where possible. For example, rather than ‘finish the project on time’ measure progress continually ‘no activity completes more than 5 days after its late finish date’.
  3. Baseline today’s performance.
  4. Track and report on your progress.

As with any performance indicators, the art is to select a few key measures that represent the wider picture if there are too many success criteria defined the impact will be severely reduced. For example, the effectiveness of meetings, communication, and stakeholder attitude could be measured scientifically using the ‘Index Value’ in the Stakeholder Circle[8] or pragmatically by measuring the number of open issues against a target (eg, no more than 5 high priority open issues).

 

Summary

Goals and objectives are the building blocks required to allow the realisation value from the project’s outputs; they are essential ingredients in a successful project but are insufficient on their own.  The role of success criteria is to direct the way work at the project is accomplished so as to meet stakeholder expectations, and to craft a perception of success in the stakeholder’s minds.

Project success is an amalgam of value created for the organisation and your stakeholders being satisfied with the journey and the outcome.  This concept of success may seem subjective, but it does not have to be. Successful organisations work to take the guesswork out of this process by defining what success looks like and agreeing these definitions with the key stakeholders, so they all know when the project has achieved it.

This means the key to stakeholders perceiving your project as successful lays in understanding the criteria they will measure success by, incorporating those measures into your project success criteria, and then working to achieve the criteria. But even this is not enough, to engage your stakeholders you need to communicate the criteria, communicate your progress and communicate your success at the end. For more on effective communication see: http://www.mosaicprojects.com.au/PM-Knowledge_Index.html#PPM07

_______________________

 

[1] For more on the success or failure of the Sydney Opera House see Avoiding the Successful Failure!:  http://www.mosaicprojects.com.au/Resources_Papers_046.html

[2] For more on paradox see: https://www.projectmanagement.com/blog-post/30669/The-Problem-With-Paradox

[3] For more on differentiating projects and programs see: http://www.mosaicprojects.com.au/WhitePapers/WP1002_Programs.pdf

[4] For more on the project charter see: http://www.mosaicprojects.com.au/WhitePapers/WP1019_Charter.pdf

[5] For more on project success see: http://www.mosaicprojects.com.au/Mag_Articles/N001_Achieving_Real_Project_Success.pdf

[6] SMART = Specific, Measurable, Attainable, Relevant and Time-framed.

[7] For more on linking objectives and benefits see: http://www.mosaicprojects.com.au/WhitePapers/WP1042_Outputs_Outcomes_Benefits.pdf

[8] The Stakeholder Circle® index value see: http://202.146.213.160/help-files/stakeholder-engagement-profile/#engagement-index


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.

 

 

 


Governance and stakeholders

June 7, 2015

CrisisBoth stakeholder theory and the modern concept of organisational governance place importance on the organisation fulfilling the needs of all of its stakeholders. The older, generally discredited ‘stockholder’ theory suggested the primary purpose of an organisation was to maximise value for its owners – generally interpreted by those in power as looking after the short-term interests of ‘those in power’ or the few with a direct investment in the organisation.

Three on-going sagas demonstrate the fallacy of taking a short term ‘stockholder’ approach to creating value.

1. The FIFA Crisis: Ignoring the alleged criminality of many of the key actors, my view is the biggest ‘governance failure’ in FIFA for the last decade or more has been the perceived method of allocating development funds to national soccer authorities.  The perception is that most of these funds were distributed at the behest of Sepp Blatter, and therefore if the associations wanted to keep on receiving their development funding they needed to vote for Blatter.

There is nothing wrong with funding the development of the game – it is one of FIFA’s primary objectives.  The governance breakdown was in the lack of a robust and transparent process for allocating the money to soccer associations that could make the most beneficial use of the funds and requiring accountability for the expenditure. The $billions in largely unaccounted largess distributed on a less than transparent basis is I suspect the root cause of much of the evil besetting FIFA at the present time.

Its too early to determine the damage to both FIFA and the game of soccer (football) from the breakdown in governance but one thing is already very clear, the big loser over the last decade has been the game, its players and its supporters – ultimately the stakeholders who really matter.

2. The on-going Banking Crisis: The focus of banks on employing and rewarding greedy people focused on maximising their bonuses at the expense of the Banks customers and shareholders lead to the financial crisis and a series of other failures, reviews and prosecutions in the USA, UK and Australia at least.

In Australia, the governance failure was senior managers and the Board’s Directors putting short-term profits ahead of the long term development of the bank. Front line sales people were paid to sell inappropriate products to clients – they do not get bonuses for not selling product even if it is in the best interest of the client.  Middle managers were paid to ignore potential problems – their KPIs and bonuses were driven by the sales volumes of their staff, etc.

The banks and their stockholders did very well for a while, now many of the problems created by this governance and cultural failure are starting to emerge, the short term stock speculators are taking their profits and dumping bank stocks.  Trust in the banking system is at an all time low (financial advisers are deemed less trustworthy then politicians). Very few of the stakeholders in the baking industry, including employees, long term investors,  clients or governments are on the ‘winning side’.  I’m waiting to see what game changing ‘disruptive innovation’ emerges – anyone offering a viable alternative to the banks has a once-in-a-lifetime window of opportunity to start up in a market looking for a viable alternative to ‘big banks’.

3. The on-going Child Abuse Crisis: The Australian Government’s Royal Commission into child abuse continues to uncover major breakdowns in governance in a vast range of organisations. The thing I find most upsetting is the abject failure of the leadership in most of these organisations to uphold the values of the organisation.  Abuse was ignored, covered up, secret payments made to ‘settle complaints’, etc.  The focus of the various churches, school and other institutional leaders was always a short term attempt to protect the institution from ‘bad publicity’. Hide the perpetrators of the evil and diminish the claims of the abused children (causing even more distress and harm).

The long term damage this short-sighted policy of ‘cover-up’ and ‘look-the-other-way’ will cause to the churches in particular has yet to emerge but I suspect there will be massive consequences that damage both the institution and the people the institutions serve, their congregations.

Summary

In each of these cases, the governance failure started at the very top of the organisation, the Executive Committee, Directors, and Bishops failed to develop a culture focused on achieving good outcomes for all of the respective organisation’s stakeholders and allowed corrupt cultures to develop focused on advantaging a very select group of ‘stockholders’.  The resulting crises will be causing damage to the organisations and their stakeholders for decades to come. Unfortunately in the vast majority of cases the people responsible for the breakdown of governance in their organisation are still hanging on to their jobs and pretending the failures are the fault of people lower down the organisational hierarchy.

Avoiding this type of problem is not easy but it starts with the governing bodies recognising that they, and they alone, can set the cultural and ethical tone for an organisation. The functions of governance outlined in our White Paper may seem soft and fuzzy concepts but if they are not implemented effectively and rigorously the next crisis will only be a matter of time. Long term success can only be assured by governing for all stakeholders, which in turn requires an ethical framework and a culture that demands transparency and accountability (as well as technical excellence) from everyone working in the organisations hierarchy.


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


Lessons from manufacturing

December 6, 2014

In much of the developed world, and particularly Australia, small to medium sized manufacturing businesses are in decline.  However, the manufacturing landscape is not all ‘doom and gloom’ there are always a few organisations that are developing and performing well above the trend. This blog will suggest the ‘high performance work practices’ used in many of these high performance manufacturing businesses are directly transferrable to project teams.

Research has shown a correlation between High Performance Work Practices (HPWPs) and ways high performing manufacturing SMEs tend to operate.  HPWPs are a set of management tools and practices that help get the best out of an organisation and its employees, creating business success. The practices are divided into three broad areas, developing and encouraging:

  • Knowledge, skills and abilities;
  • Motivation and effort; and
  • Opportunities to contribute.

HPWPs manifest in five interlinked organisational outcomes:

  1. Self-managed work teams.
  2. Employee involvement, participation and empowerment.
  3. Total quality management.
  4. Integrated production technologies.
  5. The learning organisation.

hilst some of the specific tools are unlikely to be directly translatable to many project teams, the key practices are.  High performance organisations are focused on motivating their team members (employees), building their knowledge and giving them opportunities to contribute to the success of the organisation.  If your team is happy, safe and efficient, you maximise the opportunity for success (see more on team motivation) .

HPWPs are not ‘rocket science’; most of the individual concepts are well established in management theory, what’s new is a clear demonstration of the advantages gained by integrating the elements in a coordinated and planned way to drive high performance. (See more on HPWPs).

Achieving this is partially governance, partially organisational management, ensuring the team has the tools and skills to succeed, and that the work environment allows then to work efficiently.  The rest is attitudinal, ensuring the team are happy and feel valued, and employing team members that have a positive, collaborative and supportive attitude; leadership is the key, but so is ensuring you have ‘the right people on the bus’ (see more on leadership). It is much easier to teach a person new skills than it is to change their attitude.

Achieving a ‘high performance’ culture is a journey that needs planning; successful manufactures built their HPWP structure incrementally starting small and adding to the practices over time, ensuring all of the elements work together; a similar approach should work for project teams.

The trigger for this post was a recent survey by the University of Melbourne’s Centre for Workplace Leadership that has clearly demonstrated the value of HPWPs in SME manufacturing sector (see: http://www.workplaceleadership.com.au/projects/high-performance-manufacturing-workplaces-study/), and as the title suggests, we believe translating these concepts into practical project team management should drive similar successes.