Program Management Office

Stakeholder Management Approach and Plan

About this document

Purpose
This document details the process of identifying and managing stakeholders. Definitions, templates and worked examples are all provided.

Summary of Changes
Version 0.2 0." 0.4 '.0 Date 2 Dec 04 # Dec. 04 % Dec. 04 '0 Dec 04

Summary of Changes/Comments
Initial Draft provided to ichard !riestly for comment. $pdated version with comments from ichard. $pdated version with comments from &usan. $pdated with comments from (ichael and released for approval.

Table 1: Version History

Author
David )orthington, !(* +onsultant

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Introduction
Stakeholder identification and management is a key skill for all pro ect managers! program managers and e"ec#ti$es %collecti$ely called pro ect manager for the p#rpose of this paper&. Stakeholders are indi$id#als 'ho represent specific interest gro#ps ser$ed (y the o#tcomes and performance of a pro ect or program. Pro ect managers are acco#nta(le for the end)to) end management of their pro ects! incl#ding performance and e"pectation management of indi$id#als 'ho may (e o#tside their direct control. Pro ect managers m#st gi$e d#e consideration to the people iss#es s#rro#nding pro ects and recognise that the appropriate in$ol$ement and management of stakeholders is almost al'ays a critical s#ccess factor. Pro ect managers sho#ld therefore ha$e a formal stakeholder management process that is appropriate for the circ#mstances of the pro ect.

The Stakeholder Management Cycle

Stakeholder management plans operate at many different le$els across any organisation! from peak e"ec#ti$e (odies to indi$id#al streams of pro ects. *he stakeholder management cycle! 'hich leads to the identification of stakeholders and the de$elopment of a stakeholder management plan! can (e applied at each le$el in the same manner. *he stakeholder management cycle consists of the + steps sho'n in the follo'ing diagram.
Analyse contribution commitment and support

Start

I dentify, recognise and ackno ledge stakeholders

$ 2e

ie'
Monitor outcomes and take correcti!e actions Plan acti!ities that need to be performed to ensure commitment

"#ecute the acti!ities

,ltho#gh the a(o$e steps can (e initiated in a logical se-#ence! they can also occ#r conc#rrently and iterati$ely. *he same steps are then #sed to re$ie' stakeholders and ens#re ongoing alignment.

Step 1 Identify, recognise and ackno ledge stakeholders

Pro ect stakeholders come from all parts of an organisation! and occasionally from the 'ider comm#nity %local acti$ist gro#ps! political parties! #nions! residents etc&. .hen identifying stakeholders! consideration sho#ld (e gi$en to any interested party. .hilst a pro ect may appear to ha$e a $ery large stakeholder gro#p! there 'ill ine$ita(ly (e a hierarchy that 'ill simplify the identification of stakeholders. /or e"ample! a state)'ide clinical system pro ect may appear to incl#de e$ery doctor in its stakeholder gro#p. *his 'o#ld (e #nmanagea(le! so the gro#p 'ill need to (e red#ced (y identifying the leaders of doctor0s interest gro#ps! specific infl#ential doctors 'ithin the system and so on. Presentations to the 'ider gro#p may (e re-#ired d#ring the pro ect! ho'e$er! key stakeholder acti$ities 'ill (e targeted thro#gh the hierarchy.
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*o identify pro ect stakeholders! de$elop a list of all indi$id#als 'ho 'ill ha$e an interest in the o#tcomes of yo#r pro ect. .ays of identifying key indi$id#als incl#de3 Perform a process impact analysis %'ho is impacted (y the c#rrent system! 'ho 'ill (e impacted (y the change introd#ced (y the pro ect4&5 6onsider indi$id#als in$ol$ed in the re-#irements gathering and scope definition process5 7ndertake a (enefits analysis %'ho 'ill (enefit from the sol#tion4&5 8e$elop a list of standard stakeholders %e.g. Ser$ice 8esk! technical s#pport! (#siness testers! (#siness o'ners! Policy 8irection professionals&5 Scan local comm#nity gro#ps! employer and employee associations! informal employee gro#p leaders %Social 6l#( President& etc. 8isc#ss 'ith other pro ect managers and re$ie' doc#mentation from similar pro ects #ndertaken in the past5 8isc#ss the list 'ith the Pro ect Sponsor and other stakeholders as the list de$elops.

*here are t'o forms that can (e #sed to capt#re details regarding yo#r stakeholders! depending on the a#dience and p#rpose of the ta(le. *he first form! the Stakeholder Plan! is for p#(lic #se and 'ill often (e incl#ded in pro ect related doc#ments! s#ch as 9#siness 6ases or Pro ect Statements. *he Stakeholder Plan 'ill generally (e a s#()set of a larger 8epartment! 8i$ision or 9ranch plan.

&takeholder !lan . !ro,ect ///

&takeholder
1rnie +amp-ell

!osition0 Title
Director

Department0 *rganisation
+entral 23&

!rimary el. (anager

4ill &mith

Interests
6 *wner of the process 6 1nsure that total IT spend within area is managed effectively 6 &ponsor and champion of IT governance process 6 !rovide direction and make -usiness decisions relating to IT &pend

3elen 4urke

2D5

3ead *ffice

4ill &mith

The second form, the &takeholder (ap, is for the personal use of the pro,ect manager and the management team. The &takeholder (ap is used to identify the level of support currently -eing received -y stakeholders and to map actions to maintain or increase that support. The &takeholder (ap is shown -elow.

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Step $ Analyse contribution, commitment and support

Contribution *he degree to 'hich a stakeholder is re-#ired to contri(#te to a pro ect to ens#re s#ccess depends on a n#m(er of factors! incl#ding the stakeholder0s position and a#thority 'ithin the organisation! the degree to 'hich the pro ect is reliant #pon the partic#lar stakeholder to pro$ide a prod#ct or ser$ice! the le$el of :social; infl#ence of the indi$id#al and the degree to 'hich the indi$id#al is familiar 'ith specific aspects of the (#siness. <ach of these factors can (e analysed in more detail d#ring stakeholder analysis. *he o#tcome is s#mmarised into a contri(#tion inde"! 'hich has the follo'ing $al#es3 Critical. *he stakeholder has the po'er to make the pro ect s#cceed or to pre$ent it from s#cceeding altogether5 %esirable. *he pro ect can (e completed e$en 'itho#t an acti$e contri(#tion from the stakeholder! (#t this 'o#ld ha$e a serio#s impact on the -#ality! elapsed time and cost of e"ec#tion. =s a(le to act as an ad$ocate for the pro ect to peers5 &on'essential. ,ltho#gh the stakeholder can contri(#te to the pro ect! this contri(#tion is either not essential or can (e more easily o(tained from other stakeholders. %>ote3 an indi$id#al 'ith a contri(#tion inde" (elo' >on)essential is not a stakeholder&.

Commitment <ach stakeholder 'ill display a different le$el of commitment to the pro ect! e$en thro#gho#t the life of the pro ect. *he range of commitment to a pro ect is represented (y the follo'ing $al#es3 Committed (make it happen). *he stakeholder has committed to contri(#ting to the pro ect! prefera(ly in 'riting! and is a$aila(le to do so. *he commitment may (e doc#mented in the form of an agreed plan! descri(ing 'hat 'ill (e pro$ided and (y 'hen! or other forms of 'ritten comm#nication %e)mail! memo! letter! contract! statement of intent&5 Supporti!e (help it happen). *he stakeholder is 'ell informed! sees $al#e in 'hat is (eing done! #nderstands his/her contri(#tion and is 'illing to pro$ide it! altho#gh no formal commitment has (een entered into5 &eutral (let it happen). *he stakeholder may or may not (e informed a(o#t the pro ect and 'hile they do not disagree! they are not acti$ely in$ol$ed in any capacity! or may (e indifferent a(o#t the pro ect o( ecti$es and o#tcomes5

%isagrees (stop it from happening). *he stakeholder may or may not (e informed! (#t does not see $al#e in the pro ect and the 'ork (eing performed! he/she 'o#ld rather not (e in$ol$ed and in fact 'o#ld prefer the 'ork not to (e carried o#t at all. 2e$ie' each stakeholder and determine 'hat their c#rrent le$el of contri(#tion and commitment are! and enter their name in the stakeholder map.

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&takeholder (ap . !ro,ect ///

Ernie

+ritical

Helen

+ontri-ution

Desira-le

Peter

iles

7on8 essential

!yron

Disagrees 7eutral

&upportive +ommitted

+ommitment
Target >o' identify 'here each stakeholder :needs; to (e to ens#re an ade-#ate le$el of contri(#tion and commitment to'ards the pro ect. *his 'ill reflect the ideal or target scenario for the pro ect. <nter each stakeholder0s name onto the map in the target position. =f the stakeholders target is f#rther right or #p'ards dra' an arro' from c#rrent to target. =f the stakeholder is c#rrently in the ideal position! simply circle the stakeholder0s name.

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&takeholder (ap . !ro,ect ///

Ernie Ernie Peter Helen

+ritical

+ontri-ution

Desira-le

Peter

iles

iles

7on8 essential

!yron

Disagrees 7eutral

&upportive +ommitted

+ommitment
Step * %e!elop an action plan
=dentifying any o(stacles to the f#ll contri(#tion and commitment of a stakeholder is the first step to'ards identifying any acti$ities that may ser$e to remo$e these o(stacles. =t is therefore a good practice to identify any s#ch o(stacles d#ring stakeholder analysis so that they can (e taken into acco#nt 'hen planning. ?(stacles co#ld incl#de items s#ch as3 @ack of kno'ledge and information5 .as not s#fficiently engaged d#ring planning and decision)making5 Aas not yet (een re-#ested to participate5 =s already committed to another pro ect or responsi(ility and is not a$aila(le5 6annot (e made a$aila(le d#e to e"pected location and d#ration5 8oes not agree 'ith the changes (eing proposed! sees the changes as a potential threat5 8oes not ha$e the re-#isite le$el of a#thority to (e a(le to contri(#te effecti$ely5 8oes not ha$e the re-#isite skills to (e a(le to contri(#te effecti$ely5 =s in conflict 'ith other stakeholders5 =s an e"ternal pro$ider and no formal agreement has yet (een p#t in place5 *here may (e do#(ts a(o#t the capa(ility! sta(ility or a$aila(ility of an e"ternal s#pplier! cons#ltant or contractor.

9ased on the positioning of stakeholders on the Stakeholder Map and on the o(stacles that ha$e (een identified! appropriate acti$ities can (e listed and incl#ded in an action plan.

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*he main p#rpose of these acti$ities is to remo$e the o(stacles and infl#ence stakeholders to'ards the desired state! rather than necessarily all the 'ay to the committed le$el. /or e"ample! 'hilst it is preferential to ha$e the 8irector)Ceneral! 8ep#ty 8irector)Ceneral! ,rea 6<?s and the selected soft'are $endor 6ommitted! a social! clinical or related (#siness #nit leader co#ld (e enco#raged to (e s#pporti$e %say! acti$ely promote the pro ect& rather than ignore the pro ect %ne#tral&. *he le$el of effort e"pended on each stakeholder sho#ld (e eno#gh to mo$e them to the desired state! and then maintain that state thro#gho#t the pro ect. =ncreasing and maintaining the contri(#tion of stakeholders that are already in agreement or committed also increases the likelihood of a s#ccessf#l pro ect. Special care needs to (e taken 'hen dealing 'ith critical and desira(le stakeholders that are in disagreement. =f it is not possi(le to o(tain their commitment then it (ecomes necessary to red#ce the pro ect0s dependence on their contri(#tion %mo$e them from critical or desira(le to non)essential&. *he first step in dealing 'ith disagreement sho#ld al'ays (e that of listening! #nderstanding and ackno'ledging iss#es and concerns. *he follo'ing ta(le may (e #sed to identify the actions that need to (e taken to increase stakeholders0 commitment to the pro ect Stakeholder Management Plan *arget Primary ,ctions @e$el 2elationship
6ritical 6ommitte d 9ill >iles 8esira(le S#pporti$e 8esira(le 6ommitte d >on) essential >e#tral 9ill .eekly Meeting one)on)one. =n$ite to 'eekly pro ect (riefings. ,ttends stat#s and steering committee. =an to meet monthly prior to steering comm. ,sk for commitment to fill ,cting 6hair role 'hen Aelen is a'ay. .eekly meeting one)on)one. Aold informal Phase 2 disc#ssions 'hen Pa#l is in to'n. ,rrange $endor site $isit for Dan#ary. 8isc#ss incl#sion in 'eekly stat#s meetings %confirm 'ith Aelen first&. Pro$ide ind#stry scan doc#ments to sho' reasoning for decisions to)date. =ncrease one)on)one meetings from monthly to fortnightly. /ortnightly one)on)one meetings to disc#ss pro ect stat#s. 7nderstand role and d#ration. 7nderstand po'er (ase. 8isc#ss role of 7nion 6ons#ltati$e 6ommittee in f#t#re planning sessions. =n$ite as o(ser$er. S#ggest coffee after ne"t stat#s meeting.

Stakeholder
<rnie

6#rrent @e$el
6ritical >e#tral

Aelen

6ritical 6ommitte d 8esira(le 8isagrees

6ritical 6ommitte d 6ritical 6ommitte d

9ill

Peter

=an

9yron

>on) essential >e#tral

Pete

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Step + Action the plan

*his step simply p#ts the planned acti$ities into action! and may incl#de3 6omm#nicating 'ith stakeholders and keeping them informed of matters that are likely to (e of interest to them5 ?(taining information from stakeholders that 'ill (e rele$ant to the pro ect5 Managing the e"pectations of stakeholders5 =n$ol$ing stakeholders in all key decisions a(o#t the pro ect5

Step , Monitor the outcomes and take correcti!e actions

*he p#rpose of this step is to periodically re)assess the position of each stakeholder to determine 'hat f#rther action %if any& is re-#ired to keep him or her committed and s#pporti$e of the pro ect. *his essentially re-#ires a re$ie' of steps 1 to 4 to determine 'hether there are any ne' stakeholders! 'here they are positioned in terms of their commitment and infl#ence and 'hat action needs to (e taken in relation to them. , similar re$ie' of e"isting stakeholders sho#ld also (e cond#cted to determine 'hether any $ariations to the stakeholder management plan is re-#ired.

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