C E 7 0 1 1 : S TA K E H O L D E R M A N A G E M E N T D R . B U K U N M I O G U N S A N YA L E C T U R E O V E RV I E W This session is an overview of stakeholders and their importance during the lifecycle of construction and engineering projects, specifically: • Who are the stakeholders? • Why manage stakeholders? • How can we interpret stakeholder drivers? OUTLINE • Definition of stakeholders • Key Stakeholders – Internal & External • Identify Stakeholders & Process • Analyse Stakeholders • Prioritise Stakeholders • Engage Stakeholders • Communicating • Managing Expectations W H O A R E T H E S TA K E H O L D E R S ? Anyone who can ruin my day” (XYL Ltd Leader) “ “Anyone that can affect or is affected by what you are trying to achieve”* • any individual or group of individuals that are directly or indirectly impacted by an entity or a task. • More specifically, the term project stakeholder refers to any individual or group of individuals that are directly or indirectly impacted by a project. • Stakeholders can be internal or external to the project team or they can be internal or external to the project scope. K E Y S TA K E H O L D E R S • Vary with the project type • Depend on type of contract • Project complexity level • The number of key stakeholders, their roles, and communication structure are subject to change • Each delivery stage of the project is led by a specific stakeholder and assisted by others S TA K E H O L D E R S M A N A G E M E N T W H AT IS A S TA K E H O L D E R MAN AGE ME N T S T R AT E G Y ? A stakeholder management strategy is a plan to identify, engage, and monitor internal and external stakeholders. An effective stakeholder management strategy aims to build positive relationships with stakeholders, address their concerns and needs, and ensure that their perspectives are considered well in the decisionmaking processes. S TA K E H O L D E R M A N A G E M E N T P R O C E S S • Identify • Analyse • Prioritise • Engage • Communicate often IDENTIFY Consider those who have the ability to: • impact your project • enhance your project (SMEs) • slow down your projects (e.g., teams or groups you depend on) • remove impediments • lead opinions • facilitate the change resulting from your project • provide “a voice of reason” C O N S T R U C T I O N P RO J E C T S TA K E H O L D E R S A N A LY S E T H E S TA K E H O L D E R S What is Stakeholder Analysis? “The identification of stakeholder groups, their interest levels, and their ability to influence the project or programme” (APM, 2023). The analysis provides answers to the following questions: • Who are the most important stakeholders? • What is the stakeholders’ knowledge of the project? • How will the stakeholder groups be impacted by the project? • What are the stakeholders’ positions in the project? • What do the stakeholders see as possible advantages or disadvantages of the project? • Which stakeholders might form alliances? • Which stakeholders need to be closely monitored? • Which stakeholders could jeopardize the project? Analyse Stakeholders (a) From a construction project perspective: Designer Delivery Team Funder Internal Client End User Analyse Stakeholders (b) From a construction project perspective: Councils Planners Regulatory External Neighbours Utility Co PRIORITISE STAKEHOLDERS Prioritising stakeholders is like grooming a backlog: it happens continuously Considerations: • Influence (not just power) • Interest/availability • Attitude And also... • Time value (needed this sprint? This release?) P R I O R I T I S E S TA K E H O L D E R S Stakeholder Map Provides a framework for managing stakeholders based on interest and influence High • Y-axis sometimes labeled “Power” Keep Satisfied Actively Engage Monitor Keep Informed (but can be a charged term) • X-axis sometimes just labelled “Interest” (but who likes to be thought of as disinterested?) Low Low High Interest / Availability Stakeholder Map High influence / High interest • Business owners and others with significant decision-making authority • Typically easy to identify • Can kill, sustain, or nurture the project • They’re typically easy to actively engage. Set up consistent touch points High Keep Satisfied Actively Engage Monitor Keep Informed Low Low High Interest / Availability Stakeholder Map High influence / Low interest • Those with significantly decisionmaking authority • Lacks the availability or interest to be actively engaged • It is usually difficult to have consistent touch points. Do whatever is needed to keep them satisfied. High Keep Satisfied Actively Engage Monitor Keep Informed Low Low High Interest / Availability Stakeholder Map Low influence / High interest • May be impacted by the project but have little influence • May want more of your time than you can give • Find efficient ways to communicate and keep them informed • Email updates • Presentations • Publicity campaigns High Keep Satisfied Actively Engage Monitor Keep Informed Low Low High Interest / Availability Stakeholder Map Low influence / Low interest • They aren’t (and don’t expect to be) significantly involved • They may not even be aware of your project... and may not want another email in their inbox! • Know who they are • Monitor them and be aware if they move into other quadrants High Keep Satisfied Actively Engage Monitor Keep Informed Low Low High Interest / Availability Engaging Stakeholders Now that we’ve identified our stakeholders, we need to define how we’ll be interacting with them • Determine your touchpoints: • One-on-one conversations • Standing meetings • Scrum ceremonies • Workshops • Define the objectives • Set the frequency Stakeholder engagement is the systematic identification, analysis, planning, and implementation of actions designed to influence stakeholders (Association for Project Management, 2023). TOWARDS THE APPROPRIATE COMMUNICATION STRATEGY Identify Obstacles and Opportunities Understand appetite for risk Know when to communicate Develop appropriate relationships Develop an appropriate communication strategy EXECUTING THE PLAN Who Who tracks each stakeholder, who should they hear it from, whom to ‘leverage’ What What information do they need or want, what do we need from them, what should not be given When When, how frequently, and how much time should be devoted to stakeholder management How Face to face, phone, press releases, stakeholder events? Why manage stakeholders? The Iceberg concept Rational Interests Social Interests Personal Interests Use trade-off methodology, it has always worked Sample Stakeholder Management Plan for product development A stakeholder map can drive the type and frequency of interactions, e.g., one-on-one conversations, invitations to ceremonies/events, and workshops Role Person/Group Samples – Engagement Methods / Frequency Business Owner Bob Ollis • One-on-one meetings to discuss vision, roadmap, and features prior to each release planning meeting • Attendance at requirements workshops as needed • Attendance at the release planning meeting • Attendance at the PSI Inspect & Adapt workshop • Email communication when program scope is at risk Major Stakeholder Mary Smith • Attendance at discover workshops • Preview of the prioritized backlog prior to the release planning meeting • Attendance at the PSI Inspect & Adapt workshop as needed • Attendance at the system sprint demo • Attendance at the team sprint demo (optional) • Email communication when sprint or program scope is at risk Minor Stakeholder Mike Schnitzel Subject Matter Expert Sam M. Edwards • Email updates as needed • Attendance at requirements workshops as needed • Pulled into sprint ceremonies as needed • Pulled into individual or group SME meetings as needed Read more - www.agilealliance.co.uk/stakeholdermanagementframework W H Y S H O U L D W E M A N A G E S TA K E H O L D E R S E F F E C T I V E LY ? • It helps to identify project risks and opportunities to improve decision-making • It helps to manage stakeholder risk to secure social acceptance. • Helps to better address stakeholder needs to build more positive relationships • It helps to improve trust among key stakeholders, thus smoothing the way for future projects. • It is often a requirement of key external stakeholders. DO & DON’T Do • • • • • • Consider carefully what “success” is Quantify attitudes Have a strategy (and adopt it) Identify and map the stakeholders Expect frustration & persist Communicate….lots Don’t • • • • Make assumptions Change the plan based on stakeholder pressure Think that what you say is what stakeholders hear Underestimate the amount of time that stakeholder management takes. C A S E S T U DY THE HS2 PROJECT What is HS2 - HS2? CLA SS ACTIVITY - IDENTIFY THE KEY STAKEHOLDERS ON THE HS2 PROJECT – in groups of 10 each - GENERATE THE STAKEHOLDERS MAPPING DIAGRAM Internal Stakeholders External Stakeholders Demand Side Private Supply Side · Local Residents · Local businesses and landowners · · Department for Transport (sponsor) · · British Government · Allan Cook, Chairman HS2 Ltd Engineers Contractors · Material Suppliers · Railway Industry Association · Staff Public · Special interest groups · Environmentalists · Conservationists · Archaeologists · Other Rail networks · Transport businesses · Taxpayers · Local Councils · Regulatory Agencies · Newspapers /media · European Rail Freight Association Stakeholder mapping for the HS2 project HS2 Stakeholder Analysis – Hunter & Spark (wordpress.com) QUESTIONS THANK YOU FOR COMING