Chapter 6: Stakeholder Management

Initiating Process Planning Process Executing Monitoring and Closing Process

Group Group Process Group Controlling Group
Process Group
Identify Plan Stakeholder Manage Control
Stakeholders Management Stakeholder Stakeholder
Engagement Engagement

What is Stakeholder Management?

“Stakeholder management is critical to the success of every project in every
organization I have ever worked with. By engaging the right people in the right way in your
project, you can make a big difference to its success.” -Rachel Thompson, Experienced
Project Manager
Identify Stakeholders
The process of identifying all people or organizations impacted by the project, and
documenting relevant information regarding their interests (concern), influence (involvement),
and impact on project success.

Inputs Tools and Techniques Outputs

1. Project charter 1. Stakeholder analysis 1. Stakeholder register
2. Procurement documents 2. Expert judgement
3. Enterprise environmental factors 3. Meeting
4. Organizational process assets

Identify Stakeholder’s Inputs

1. Project charter
2. Procurement documents
- Any suppliers or relevant parties listed in contracts are generally considered to be
stakeholders.
3. Enterprise environmental factors
- Governmental standards and regulation, industry standards.
4. Organizational process assets
 - Stakeholder register templates, stakeholder registers from previous projects, historical
information, lessons learned from previous projects.
Identify Stakeholders-Tools and Techniques
1. A stakeholder analysis is a process of identifying these people before the project begins;
grouping them according to their levels of participation, interest, and influence in the project;
and determining how best to involve and communicate each of these stakeholder groups
throughout.
2. Expert Judgment - The Judgment provided based upon expertise in an application area,
knowledge area, discipline, industry, etc., as appropriate for the activity being performed. Such
expertise may be provided by any group or person with specialized education, knowledge, skill,
experience, or training. 
3. Meetings - Profile analysis meetings are project meetings designed to develop an
understanding of major project stakeholders, and they can be used to exchange and analyze
information about roles, interests, knowledge, and the overall position of each stakeholder
facing the project.
Identify Stakeholders - Outputs
1. Stakeholder register
- Identification information: name, title, role, office location, and contract information
- Assessment information: requirements, expectations, project influence, interests
- Stakeholders classification: whether they are internal or external and
supporter/neutral/resistor
The Stakeholder register should be consulted and updated on a regular basis, as
stakeholders may change - or new ones identified - throughout the life cycle of the project.
Plan Stakeholder Management
The process of developing appropriate management strategies to effectively engage
stakeholders throughout the project life cycle, based on the analysis of their needs, interests,
and potential impact on project success. The key benefit of this process is that it provides a
clear, actionable plan to interact with project stakeholders to support the project’s interests.

Inputs Tools and Techniques Outputs

1. Project management plan 1. Expert judgment 1. Stakeholder
management plan
2. Stakeholder register 2. Meetings
2. Project documents
3. Enterprise environmental factors 3. Analytical techniques
updates
 4. Organizational process assets

Chapter 7: The Roles of the CEO

Chief Executive Officer (CEO) – Corporate Management

Chief Executive

- The role of CEO is a paramount importance so far as strategic management is concerned – both
in family and professionally managed companies.
- Among all the strategists, the Chief Executive Officer (CEO) is the key person in strategic
management. He is the link between the board and top level executives of the organization.
- A company may have either a chief executive or multiple chief executives – a team consisting of
more than one person.
- CEO is the person who is to shoulder the responsibility in respect to strategic management.

Role of Chief Executive

- Formulating long term plans – CEO is the brain behind long term planning and decision making.
- Guiding and directing – EO provides his valuable guidance and direction to different
functionaries in the organization
- Integrating – Integration is an essential part of coordination as it deals with integration of
interest, timing the operations and balancing of efforts.
- Reviewing and Controlling – Review becomes very important task of CEO as he is seeing
whether everything is going according to his plans.
- Public relations – CEO is responsible for maintaining good rapport with the publics of the society
in which he works.

Other Roles of the CEO

1. Being the top most general manager of the organization, he integrates different functional areas
of management and visualizes the total organization.
2. He foresees the external environmental factors and their impact on the business.
3. He organizes the whole data, ideas and information and conceptualizes them.
4. The CEO looks forward based on his past experience and ability to understand the future
changes.
 5. He evaluates the present mission, objectives, policies and strategies against the future probable
changes and reformulates them, if necessary.
6. He formulates new objectives, policies and strategies as and when grand changes takes place in
the environment like economic liberalization and technological advancement.
7. The CEO provides information and data to the board regarding strategy formulation.
8. He provides the observation the observations of strategy evaluation to the board and advises it
either to continue the present strategy or to reformulate it or formulate a new strategy.
9. The CEO provides data regarding external environment to senior managers, guides and helps
them in formulating, implementing and evaluating and reformulating strategies at strategic
business units are based on the corporate strategies.

Chapter 8: The CEO and Strategy

Vision Formulation

A vision statement is a document that states the current and future objectives of an
organization. The vision statement is intended as a guide to help the organization make decisions that
align with its philosophy and declared set of goals. It can be thought of as a roadmap to where the
company wants to be within a certain timeframe. A vision statement is not only used in business, as
non-profits and governmental offices also use them to set goals.

A vision statement doesn’t have any particular length. It can be as short as an aspirational
sentence or pages long, depending on how much detail you want to give it. However long it is, the vision
statement is formally written and is used as reference in company documents to serve as a guide for
actions now and in the future.

• What Is the Purpose of a Vision Statement?

A vision statement isn’t a pie-in-the-sky document that collects the shared fantasies of the
organization and then is filed away. Similar to a mission statement, it’s a living document that is referred
to as a lodestar to lead a company to its next innovation.

What goes into a vision statement

- Be concise
- Be clear
- Have a time Horizon
- Make it Future-Oriented
- Be stable
- Be challenging
- Be abstract
- Be inspiring

Project Manager
 A strong vision statement also works to help differentiate your company from others. All
companies want to become profitable, but a company that can set an agenda to achieve that goal is
going to set itself apart and inspire others. Use a vision statement to focus the efforts of the
organization on the core competencies it needs to achieve its goals.

Best Practices for Writing a Vision Statement

There is no template to writing a vision statement, however a common structure for successful
ones includes these traits:

• Be Concise: This is not the place to stuff a document with fluff statements. It should be simple,
easy to read and cut to the essentials, so that it can be set to memory and be repeated
accurately.

• Be Clear: A good rule of thumb for clarity is to focus on one primary goal, rather than trying to
fill the document with a scattering of ideas. One clear objective is also easier to focus on and
achieve.

• Have a Time Horizon: A time horizon is simply a fixed point in the future when you will achieve
and evaluate your vision statement. 

• Make it Future-Oriented: Again, the vision statement is not what the company is presently
engaged in but rather a future objective where the company plans to be.

• Be Stable: The vision statement is a long-term goal that should, ideally, not be affected by the
market or technological changes.

• Be Challenging: That said, you don’t want to be timid in setting your goals. Your objective
shouldn’t be too easy to achieve, but also it shouldn’t be so unrealistic as to be discarded.

• Be Abstract: The vision statement should be general enough to capture the organization’s

interests and strategic direction.

• Be Inspiring: Live up to the title of the document, and create something that will rally the troops
and be desirable as a goal for all those involved in the organization.

Best Examples of Vision Statements

IKEA

“Our vision is to create a better everyday life for many people.”

That’s aspirational, short and to the point. More than that, it sets the tone for the company and makes it
clear that they’re in the market to offer low-priced good furnishings that suit everyone’s lifestyle.

Nike

“Bring inspiration and innovation to every athlete* in the world.” (*If you have a body, you are an
athlete.)”
Nobody cared much for sneakers in the past. They were just another piece of sports equipment. But
Nike saw a future that had not yet existed, in which they delivered products that inspired and motivated
people. Notice how they include everyone as an athlete. It’s clever and inclusive.”

McDonald’s

“To be the best quick service restaurant experience.”

Being the best means providing outstanding quality, service, cleanliness and value, so that we make
every customer in every restaurant smile.” The power of this vision is that it’s constructed like a
checklist. The word best is a word that requires definition, and McDonald’s provides it with qualifiers,
making the roadmap to success clearly marked with signposts.

Long-Term Planning

- The secret to a CEO’s ability to create a clear vision is for the CEO to be able to think long-term.
- This means that the CEO needs to dream big in the visioning role, the CEO should also have a
level-headed grasp of reality in order to understand how difficult the ambition might be.
- The CEO needs to know the difference between what is achievable and what is merely a pipe
dream (dream and not to be true), and just how much time, resources, and effort may be
needed to get there.

The CEO’s Strategy Process

1. Vision Formulation – What do we want to be?

2. Long-term Planning – How do we get there?

3. Capacity Building – How do we get the resources to get there?

Capacity Building

The following definitions for the most commonly used terms when addressing capacity building issues:

• Competencies: the energies, skills, and abilities of individuals

• Capabilities: the collective ability of a group or a system to do something either inside or

outside the system

• Capacity: the overall ability of an organization or system to create value for others

10 Lessons for CEO Succession Planning

1. Proactively plan for future leadership

2. Put the plan into action
3. Look for the right time
4. Allow time. lots of it
5. Ensure Continuity
6. Establish a committee (or leader) to oversee the transition process
7. Create a defined set of deliverables
 8. Communicate often and honestly
9. Exit (or transition to a new role) like you mean it
10. Remember it’s about more than you

Chapter 9: Macro-Environment
Two Classifications of Environment

a. Macro

b. Micro

What is a Macro-Environment?

It refers to the external environment at large, featuring elements that are beyond the power
and influence of a firm and which reflect the realities of the outside world.

Elements of Macro-Environment

PESTLE Framework

1. Political

2. Economic

3. Socio-Cultural

4. Technological

5. Legal

6. Environmental

Importance of Macro-Environment Scanning

Macro-Environmental scanning is necessary because there are rapid changes taking place in
the environment that has a great impact on the working of the business firm. Analysis of
business environment helps to identify strength weakness, opportunities and threats.

Eight (8) Importance of Environmental Scanning

1. Identification of strength:

Strength of the business firm means capacity of the firm to gain advantage over its competitors.
Analysis of internal business environment helps to identify strength of the firm. After identifying the
strength, the firm must try to consolidate or maximise its strength by further improvement in its existing
plans, policies and resources.

2. Identification of weakness:
 Weakness of the firm means limitations of the firm. Monitoring internal environment helps to
identify not only the strength but also the weakness of the firm. A firm may be strong in certain areas
but may be weak in some other areas. For further growth and expansion, the weakness should be
identified so as to correct them as soon as possible.

3. Identification of opportunities:

Environmental analyses helps to identify the opportunities in the market. The firm should make
every possible effort to grab the opportunities as and when they come.

4. Identification of threat:

Business is subject to threat from competitors and various factors. Environmental analyses help
them to identify threat from the external environment. Early identification of threat is always beneficial
as it helps to diffuse off some threat.

5. Optimum use of resources:

Proper environmental assessment helps to make optimum utilisation of scare human, natural and
capital resources. Systematic analyses of business environment helps the firm to reduce wastage and
make optimum use of available resources, without understanding the internal and external environment
resources cannot be used in an effective manner.

6. Survival and growth:

Systematic analyses of business environment help the firm to maximise their strength, minimise the
weakness, grab the opportunities and diffuse threats. This enables the firm to survive and grow in the
competitive business world.

7. To plan long-term business strategy:

A business organisation has short term and long-term objectives. Proper analyses of environmental
factors help the business firm to frame plans and policies that could help in easy accomplishment of
those organisational objectives. Without undertaking environmental scanning, the firm cannot develop
a strategy for business success.

8. Environmental scanning aids decision-making:

Decision-making is a process of selecting the best alternative from among various available
alternatives. An environmental analysis is an extremely important tool in understanding and decision
making in all situation of the business. Success of the firm depends upon the precise decision making
ability. Study of environmental analyses enables the firm to select the best option for the success and
growth of the firm.

When planning for a business change  (ie any business project), it is easier to divide the scan 
into parts:  

1. Context 
 2. Competition 

3. Markets 

4. Technology 

5. Communications 

6. Resources 

7. Regulatory 

8. Global Issues 

9. Human Resources 

Some business analysts prefer to use the six environmental factors of the PESTEL analysis: 

1. Political factors 

2. Taxation Policy 

3. Trade regulations 

4. Governmental stability 

5. Unemployment Policy, etc. 

Economical factors 

1. Interest rate 

2. Inflation rate 

3. Growth in spending power 

4. Rate of people in a pensionable age 

5. Recession or Boom 

6. Customer liquidations 

7. Balances of Sharing 

Socio‐cultural 

1. Values, beliefs 

2. Language 

3. Religion 

4. Education 
 5. Literacy 

6. Time orientation 

7. Lifestyle 

Technological factors 

1. Internet 

2. E‐commerce 

3. Social Media 

4. Electronic Media 

5. Research and Development 

6. Rate of technological change 

Environmental factors 

1. Competitive advantage 

2. Waste disposal 

3. Energy consumption 

4. Pollution monitoring, etc. 

Legal factors 

1. Employment law 

2. Health and safety 

3. Product safety 

4. Advertising regulations 

5. Product labelling 

6. Labour laws, etc.

How to conduct Macro-Environment Scanning?

Scanning the environment is the initial step that needs to be conducted when any organisation or busin
ess undertakes a planning process.  There are formal techniques that can be used to conduct a scan but 
at the very least this needs to be done on a systematic basis
either as a discrete activity in its own right or undertaken as part of a SWOT analysis. Also, this can be un
dertaken on an individual or group basis, but experience indicates that maximum benefits are gained wh
en undertaken as a group activity.
Chapter 10: Value Chain Analysis
Porter’s Value Chain Diagram

Support Activities

Firm Infrastructure: Management, Finance, Legal planning

Human Resource Management: Professional development, employee relations, performance

appraisals, recruiting, competitive wages, training programs

Technology Development: Integrated supply chain system, real-time sales information

Procurement: Real-time inventory, Communication with suppliers, Purchase supplies and materials

Inbound Logistics

- Real-time inbound inventory data

- Location of distribution facilities
- Trucks
- Material Hardling
- Warehouse

Operations

- Standardized model
- Access to real-time sales and inventory system

Outbound Logistics

- Order processing
- Full delivery trucks

Marketing and Sales

- Pricing
- Communication
- Promotion
- Product based on community needs
- Low prices

Service

- Delivery
- Installation
- Repair
 - Greeters
- Customer service focus

Primary Activities

Refer to the organizational processes that directly add value to a firm’s products and services.

Primary are composed of the following activities:

1. Inbound Logistics - this pertains to the logistics that allows the firm to get the needed supplies
and raw materials.

2. Operations – this pertains to the actual production or processes that a firm performs in order to
directly transform inputs into marketable outputs.

3. Outbound Logistics – this pertains to the systems and channels that the firm uses to bring its
products and services to its customers.

4. Marketing and Sales – this pertains to the activities that communicate, inform and educate the
consumers about the value of the firm’s products and services.

Secondary Activities or Support Activities

Refer to the organizational activities that, while not directly adding value to the products and services,
add value to the management and coordination of primary processes.

Secondary Activities

1. Firm Infrastructure – this refers to the organizational structure, operating policies,

compensation and penalties systems, hierarchy and accountability, and management styles.

2. Human Resource Management – this pertains to the activities involved in hiring, training,
developing, and motivating personnel for the organizations.

3. Technology – this refers to the tools that the firm uses to produce its products and services
including equipment, software, technical knowledge, procedures, and protocols.

4. Procurement – this pertains to the ability of the firm to find the best possible suppliers, with the
best quality supplies and raw materials, for its operations.

Value Analysis along the Value Chain

In order to understand better value analysis along the value chain, please watch this:

https://www.youtube.com/watch?v=OaJFJ4vxt2M

CHAPTER 12: BUSINESS MODELING AND STRATEGY MAPS

Business Model

This refers to the most essential premises behind a firm’s existence, how does I plan to earn
revenues, who is its target market, what are it’s product offerings, how are these differentiated, and
how will the business be financed?

Business models can be as simple as those seen in traditional businesses, such as the following:

1. Retail stores

2. Restaurant

3. Magazines

Other examples of business models

1. Franchising

2. Licensing

3. Freemiums

4. Optional Features

What is a Strategy Map?

A strategy map is a diagram that shows your organization's strategy on a single page. It’s great for
quickly communicating big-picture objectives to everyone in the company.

With a well-designed strategy map, every employee can know your overall strategy and where they fit
in. It helps keep everyone on the same page, and it allows people to see how their jobs affect the
company’s strategic objectives.

If you’re using balanced scorecard software, your strategy map will also show how your organization is
performing at a glance. Each bubble is automatically colored red, yellow, or green based on your actual
measures and the goals you set for them.