Project Management Institute – Baltimore Chapter

1. Project Management Institute – Baltimore Chapter “Managing Your Stakeholders and Their Expectations” Mike Berendt, PMP, RMP February 15, 2012

2. Acknowledgement Thanks to Dr. James T. Brown for his presentation at the PMI Leadership Institute Meeting on 22 October 2012. His treatment of the Art of Stakeholder Management provided the inspiration for my own analysis. Dr. Brown is the President of SEBA Solutions, a Registered Education Provider for PMI.

3. Agenda • What does the PMBOK say? • How do we Manage Stakeholder Expectations? • Identifying Stakeholders • Listening to Stakeholders • Focusing on the Customer • Dealing with Problem Stakeholders • Cultivating the Ideal Stakeholder

4. From the PMBOK PMBOK Process 10.1 Identify Stakeholders “The process of identifying all people or organizations impacted by the project, and documenting relevant information regarding their interests, involvement, and impact on project success” PMBOK Process 10.4 Managing Stakeholder Expectations “The process of communicating and working with stakeholders to meet their needs and addressing issues as they occur” PMBOK, Fourth Edition, pg 243

5. PMBOK Stakeholders • Customers/Users • Sponsor • Portfolio Managers/Portfolio Review Board • Program Managers • Project Management Office • Project Managers • Project Team • Functional Managers • Operations Management • Sellers/Business Partners PMBOK, Fourth Edition, pgs 23-27

6. Power/Interest Grid Used to Classify and Prioritize Stakeholders High Power Low Interest High PMBOK, Fourth Edition, pg 249

7. Tools and Techniques for Managing Stakeholders • Understand Communication Methods • Formal/informal, upward/downward, lateral • Use appropriate method for each stakeholder • Utilize Interpersonal Skills (Appendix G) • Build trust, active listening, • Resolve conflict, overcome resistance to change • Employ Effective Management Skills • Presentation Skills – oral and written • Negotiating with and among stakeholders • Use Issue Logs to document status and outcomes on stakeholder requests PMBOK, Fourth Edition, pg 264

8. Issue Logs • Issue (Urgency/Impact) • Responsible Party (Owner) • Due Date for Resolution • Current Status • Issue Resolution Review the Issue Logs at each Stakeholder meeting PMBOK, Fourth Edition, pg 263

9. Managing Stakeholder Expectations – Other Ideas • Assess Stakeholder Power • Identify Stakeholders • Listen to Stakeholders • Handle the Problem Stakeholders • Build your credibility with the collective group • Minimize distractions to the project • Build Relationships with and between Stakeholders • Cultivate Ideal Stakeholders • Build the cohesive, “Performing” Team

10. Identifying Stakeholders • Follow the Money! (Sponsor) • Who is paying or saving? • How do they feel about cost increases on the project? • Follow the Resources! (Functional Mgrs.) • Who is providing people, equipment, or supplies? External, Internal • What are their pain points? • Follow the Deliverables (Customer/User) • Who is the recipient of the product or services? • Do they need it perfect, on time, or within budget? Where is the greatest risk to the project?

11. Identifying Stakeholders • Review the organizational chart • Ask your team members who they believe carries the most weight on decisionmaking for the project • Look for the unofficial people of influence • Most knowledgeable members of the team • Institutional knowledge (longest tenure) • Hardest, most diligent workers • Informal leaders

12. Listen to Your Stakeholders • Look for their pets: • Pet peeves • Pet projects • Pet people • Determine: • Their pain points • How their performance is evaluated • What they need to accomplish to have their boss give them an “attaboy” or a promotion/raise • How do we make this project a “win” for most of our stakeholders? (NOTE: You can’t please all of the people all of the time!)

13. Listening Tips • Listen through the noise – what is the real issue? • Distinguish between requirements and solutions • Quality vs. quantity • Talking to more people doesn’t always clarify the problem. • Look for the right people who can articulate the issues and understand all viewpoints • Don’t react based on the first report – look for hidden agendas

14. Focus on the Customer Customer Satisfaction* “Understanding, evaluating, defining, and managing expectations so that customer requirements are met. This requires a combination of conformance to requirements (verification) and fitness for use (validation)” • We must not only “build it right”, we must “build the right thing” • The longer the time frame to complete, the more likely that the original customer need will change PMBOK, Fourth Edition, pg 190

15. Customer Knowledge – The Key Variable • “The Customer may not always be right, but they are always the customer! “ USPS • “I have to build this system or deliver this service, but I only have this much money” The Government • “We have to develop it, prototype it, and get it ready for market by 2nd Qtr or the competition will get there first” Industry • “I don’t know what I want but I’ll know it when I see it!” Your Customer

16. How to help your Customer • Let them know what to expect and what is expected of them. • Restate what you heard him say and get the customer to validate that is what he wants • Always take notes and provide minutes of customer meetings (formal or informal) • Look for exceptions, gaps, or holes • Achieve consensus with the customer on capability needs and requirements • Needs beget requirements beget solutions beget deliverables – Requirements Traceability Matrix is KEY!

17. How to help your Customer PMBOK Process 4.5 Perform Integrated Change Control “The process of reviewing all change requests, approving changes, and managing changes to the deliverables…” Establish a Process and Enforce it! Eliminate Scope Creep!

18. Milestone Decisions At each milestone in a project, you have three possible decisions that affect how you deal with the project going forward: • KEEP • MODIFY • CANCEL Consider classifying your stakeholders in the same way

19. Problem Stakeholders • The Meddling Stakeholder • The Overbearing Stakeholder • The Poor Stakeholder • The Untrustworthy Stakeholder • The Indecisive Stakeholder • The Unavailable Stakeholder One or more of these will show up on every project!

20. Meddling Stakeholder • Develop “Rules of Engagement” for all stakeholders and enforce them • Written or verbal • Document how often and what format will be used to communicate with stakeholders (Plan Communications, Stakeholder Management Strategy) • Assess the cause for the meddling • Does he not trust the Project Manager? • Will his experience help in any way? • If they insist on being involved, then involve them • Some Stakeholders are just Control Freaks – Keep them informed and let them participate without taking over

21. Meddling Stakeholder • Develop “Rules of Engagement” for all stakeholders and enforce them • Written or verbal • Document how often and what format will be used to communicate with stakeholders (Plan Communications, Stakeholder Management Strategy) • Assess the cause for the meddling • Does he not trust the Project Manager? • Will his experience help in any way? • If they insist on being involved, then involve them • Some Stakeholders are just Control Freaks – Keep them informed and let them participate without taking over MODIFY

22. Overbearing Stakeholder • Because of their position of power or personality, they can be domineering and put the program at risk • Make sure this stakeholder does not destroy other project relationships or teamwork • Seek help with this one – look for another stakeholder of equal power to neutralize this one • Build the team – Build a “Performing” organization that tolerates but largely ignores the overbearing stakeholder – Let them have their say but do what the group decides

23. Overbearing Stakeholder • Because of their position of power or personality, they can be domineering and put the program at risk • Make sure this stakeholder does not destroy other project relationships or teamwork • Seek help with this one – look for another stakeholder of equal power to neutralize this one • Build the team – Build a “Performing” organization that tolerates but largely ignores the overbearing stakeholder – Let them have their say but do what the group decides CANCEL

24. Poor Stakeholder • Has interests and is impacted by the project but has no significant budget authority • May play politics in order to gain influence • Understand his objectives • Do they line up or conflict with more powerful stakeholders? • How do we leverage opportunities with him? • His opinions may be a predictor of future issues

25. Poor Stakeholder • Has interests and is impacted by the project but has no significant budget authority • May play politics in order to gain influence • Understand his objectives • Do they line up or conflict with more powerful stakeholders? • How do we leverage opportunities with him? • His opinions may be a predictor of future issues MODIFY

26. Untrustworthy Stakeholder • Plays both sides, won’t stand by his word, refuses to document anything with a signature • Root cause may be fear of accountability, inexperience, or ignorance • Team must document all important communication • Solid Communication Plan • Document decisions (Minutes and Action Items) • Keep a record of his behavior • Take Proactive action or partner with others • Watch what you say – It may come back to you!

27. Untrustworthy Stakeholder • Plays both sides, won’t stand by his word, refuses to document anything with a signature • Root cause may be fear of accountability, inexperience, or ignorance • Team must document all important communication • Solid Communication Plan • Document decisions (Minutes and Action Items) • Keep a record of his behavior • Take Proactive action or partner with others • Watch what you say – It may come back to you! CANCEL

28. Indecisive Stakeholder • Can never make decisions in a timely manner; does not remain committed to previous decisions • Set up processes and structures that clearly communicate when the decision is required and the impact of delays • Milestones on Schedules • Capture lost time/money due to delayed decisions • Action Logs and suspenses • What would your boss say if he knew that your inaction was the primary reason the project could not deliver?

29. Indecisive Stakeholder • Can never make decisions in a timely manner; does not remain committed to previous decisions • Set up processes and structures that clearly communicate when the decision is required and the impact of delays • Milestones on Schedules • Capture lost time/money due to delayed decisions • Action Logs and suspenses • What would your boss say if he knew that your inaction was the primary reason the project could not deliver? MODIFY

30. Unavailable Stakeholder • Always “too busy” to participate when their input or approval is required • Usually the ones that question decisions or challenge deliverables at pivotal points because they become involved at the last minute • Never available to help but always available to critique the result

31. Unavailable Stakeholder • Always “too busy” to participate when their input or approval is required • Usually the ones that question decisions or challenge deliverables at pivotal points because they become involved at the last minute • Never available to help but always available to critique the result MODIFY

32. Unavailable Stakeholder Strategies • Keep a detailed log of efforts made to communicate with this stakeholder • Get them to delegate authority to someone they trust to represent them • Eliminate the excuses • Maintain scheduled meetings and timeframes that do not conflict with other events • Publish schedules and topics well in advance and follow up with email and phone reminders • Find a way to include them without their physical presence – Telecon, video-conferences, webinars • One-on-one contact for important decisions – visit them personally (respect their power)

33. The Ideal Stakeholder • Shows an interest in the project • Makes themselves available when necessary • Assigns qualified personnel to act on their behalf when they are away • Are willing to be held accountable • Reviews and signs documents in a timely manner

34. The Ideal Stakeholder (cont) • Prioritizes their requirements • Tells you how best to communicate with them • Doesn’t pressure the Project Manager to circumvent the management prcesses • Looks for opportunities to assist the project team • Helps motivate key personnel by showing their appreciation for the project work

35. The Ideal Stakeholder (cont) • Prioritizes their requirements • Tells you how best to communicate with them • Doesn’t pressure the Project Manager to circumvent the management processes • Looks for opportunities to assist the project team • Helps motivate key personnel by showing their appreciation for the project work KEEP

36. Closing Thoughts May all your stakeholders be the Ideal Stakeholder! However, this is the exception and not the rule, so use your Stakeholder Register and Issue Logs to Manage all of your Stakeholders’ expectations, meticulously documenting their concerns and how you addressed them. At the end of the day, we all want to see the project completed on time, on budget, and with the level of quality desired! Or do we………

38. Mike Berendt, PMP, RMP Vice President – Programs 410-908-6777 Mike.Berendt@pmibaltimore.org Questions???