The new Knowledge Area, stakeholder management, was cheerfully welcomed in A Guide to the Project Management Body of Knowledge (PMBOK® Guide)—Fifth Edition.
Figure 1: Lack of stakeholder management leads to poor results. (Trentim, 2013)
Most of us rely on soft skills, communication and leadership to manage stakeholders. But while they’re helpful, interpersonal skills are far from being the sole way to implement stakeholder management. As a matter of fact, there are hard skills in stakeholder management — tools, techniques and methods that should be diligently applied to enhance stakeholder management and improve project success rates.
For example, there are at least 10 different tools for stakeholder identification. Often, project managers rely only on brainstorming to write a stakeholder registry, conforming to the methodology imposed by a project management office (PMO). That’s why I believe we need a paradigm shift.
A project manager’s goal is to add value. Value depends on stakeholder expectations and perception. Consequently, the project manager’s goal is to engage and involve stakeholders in value creation. This is what we call managing for stakeholders.
On the contrary, the term stakeholder management assumes we can manage expectations. This is wrong. We cannot manage people, to paraphrase U.S. author and businessman Stephen Covey. We lead people. We persuade and influence stakeholders.
In 2013, the Project Management Institute published my book, Managing Stakeholders as Clients. It presents a framework with a paradigm shift from traditional stakeholder management by first setting the premise that we can’t manage stakeholders or their expectations — we can only lead, influence and persuade people. To my surprise, I was the recipient of PMI Educational Foundation’s 2014 Kerzner Award* at PMI® Global Congress 2014—North Americafor my results in managing projects and programs. But in particular, the award recognized my creation of this stakeholder management framework and the results of its application.
The main difference between stakeholder management and managing for stakeholders is this: Stakeholder management’s goal is to manage stakeholders’ expectations, enhancing support and reducing negative impacts — a reactive measure. It’s almost as if project managers develop stakeholder management plans to protect themselves from external interference.
Managing for stakeholders means involving and engaging stakeholders in value creation, boosting their support and having them take ownership in a proactive way. Managing for stakeholders embraces change as a learning process.
While stakeholder management is instrumental, employing processes for conformity, managing for stakeholders is results-oriented. In summary, stakeholder management is an attempt to manage stakeholders’ expectations toward the project. On the other hand, managing for stakeholders is clearly oriented to manage the project and its results for the stakeholders, on behalf of their changing needs and expectations.
Now that it’s clear we should start approaching stakeholder management from a different perspective, in my next post I’ll share more tips and details from Managing Stakeholders as Clients. Don’t miss it!
How do you manage for stakeholders?
*The PMI Educational Foundationadministers the prestigious Kerzner Award. The Kerzner Award is sponsored by International Institute for Learning, Inc. (IIL)to recognize a project manager who most emulates the professional dedication and excellence of Dr. Harold Kerzner, PhD, MS, MBA.
Many project professionals find themselves in a position where they need to influence the decisions or actions of others, but lack the authority to impose an outcome. The ability to influence others is particularly important when managing teams in a matrix organization or when working as a consultant or expert advising line management or project management.
A Guide to the Project Management Body of Knowledge (PMBOK® Guide)—Fifth Editionincludes influencing in its list of key interpersonal skills and provides a brief outline in Appendix X3.5. Here are some practical options for building and using influence to benefit a project.
One of the standard references defining the problem and offering practical solutions is Influence Without Authorityby U.S. professors Dr. Allan Cohen and Dr. David Bradford. This book introduces the Cohen-Bradford Influence Without Authority (IWA) model that describes how to influence others through a give-and-take exchange. The model consists of six steps, starting with “Assume all are potential allies.” Then it moves with:
· “Clarify your goals and priorities”
· “Diagnose the world of the other person”
· “Identify relevant currencies, theirs and yours”
· “Dealing with relationships”, and
· Finally at the top, “Influence through give-and-take”
The IWA model is based on creating something of value to “trade” and then obtaining the best return from your investment. It is subtly different to the transactional approach of What’s in it for Me (WIFM).
WIFM focuses on finding a value proposition that provides a direct benefit to the stakeholders you want help from. It is a simple “trade” — if they help you achieve your project outcomes, they benefit from the success. WIFM is effective in situations where a senior stakeholder (e.g., the sponsor) can directly benefit from helping you succeed.
IWA is more effective when there is no direct benefit for the stakeholder you need help from and is based on “trading favors” or, more simply, the “you scratch my back and I’ll scratch yours” approach. We can and often do intuitively understand the give-and-take in a transaction for small things, such as sharing the effort to pick up the morning coffee. However, for large complex transactions, we need to be more methodical and think through our processes, goals and interests, those of our allies and those of the stakeholders we need to influence.
For starters, project managers who use IWA effectively know they get work done by working well within their peer network. If someone does something for the project manager, there’s a good chance the project manager will do something for him or her in return. It’s a two-way trade that benefits everyone. But even so, influencing without authority isn’t an easy task. The key to IWA is creating and banking “organizational currency” in advance of the time you need to use it.
Organizational currency comes in many formats:
· The ability to highlight and publicize good performance
· The ability to make useful connections for the person
· Useful or valuable information (for the stakeholder)
· Developing a good relationship that both people value
· Providing help or assistance needed by the other person
· Personal support, coaching or mentoring
Keep in mind you need to invest your time and effort to earn organizational currency with your stakeholders before you can “spend” it. Time isn’t a luxury many project managers can afford, but investing in relationship-building will ultimately help you to be more productive and generate quicker consensus with project team members, peers in the organization and senior managers.
The two key takeways for successful IWA? First, recognize that “give” comes before “take” in “give-and-take,” and second, make sure what you give is of value to the people you are engaging within their world. You need to understand what is important or useful to them.
What’s your number-one tip for influencing without authority?
As much as we wish these things didn’t occur, we sometimes find ourselves having to leave a project early or terminate a business engagement. This is always difficult to do, and how you do it can help you maintain your integrity and credibility throughout the transition.
Recently, I had to terminate a business relationship myself. Here are a few lessons that I learned that you can apply the next time you are in a similar situation.
1. Place the blame on yourself. I know you wouldn’t be leaving a project or quitting a business relationship if it were all your fault, but the key thing here is that you need to buck up and take responsibility for the business arrangement ending. There are several ways you can frame it to take the emphasis for the decision away from the other party. For example: “I’m sorry, but I just don’t have the ability to deliver the work to you in a manner that you have grown accustomed to” or “I find myself at a point where I don’t feel my presence best serves the project, and I think a new set of eyes is going to be helpful to getting things back on track.” Or, you can come up with your own. The point is that you take a little of the emphasis off the party that you are ending the relationship with and place it on yourself. This will lessen any bad blood or negativity from the decision. It is important to note that you must cast the decision in terms of your inability to continue to serve the client in a manner that he or she deserves.
2. If possible, present options for replacements.If you find yourself at a point of no return and need out of a business relationship, you can soften the blow even more if you provide alternatives. The question you are probably asking yourself is, “If I can’t work with this person or on this project, why would I refer them to someone else?” But the truth is, we are all in different businesses and at different stages of our career — and while your threshold for some clients may be zero, someone just starting out or looking to find a different focus may be more than willing to accept a challenge that you consider unnecessary. This goes back to the first point: If you can’t serve the client in the way that he or she deserves, you are doing the client a favor by removing yourself from the project and helping him or her find someone who can do better.
3. Be prepared for blowback.Even when these things go great, there will be some sort of blowback or negative impact. You might have spelled everything out with as much tact as a veteran diplomat, but you are still leaving the business relationship with a jilted partner who may lash out to other members of your organization or other potential business partners. In this instance, you can try to contain any negative feedback or impact on you and your career by preparing a standard statement that you give to everyone that explains your role in the dissolution of the relationship. It should cast a bad situation in the most favorable light for you. One I have used is: “I am sorry the project didn’t work out, but I made a series of unwise choices that made my effectiveness impossible, and to best serve the project, I felt it was best for me to step away.” That’s it — it isn’t perfect, but neither is the situation you find yourself in.
How have you found success in ending business relationships?
Join meon December 4, 2014, in my upcoming seminar on leadership in project management.
When you have to deliver bad news, the processes you use are at least as important as the decision you've made.
Take this example: The car manufacturing industry in my hometown of Melbourne, Australia is in the process of ceasing manufacturing and moving to an importing business. Over the next few years, thousands of jobs will be lost or transformed. Progress and change are inevitable, and the transition has been reluctantly accepted by most people. However, I was really surprised--when the first major round of layoffs occurred a few weeks ago at a manufacturer--to hear the local trades union representative complimenting the factory management on the way it had handled the decision of who should go now, who had a job for a few more months and who would be relocated into the new import business.
The key factor was not the decision or its fairness. The key was the empathy and consideration shown to each of the laid-off workers by their management, and the fact that the members of the management team (most of whom would be losing their jobs as well) had taken the time to speak with each worker and appreciate his or her input to the business over many years.
By applying "process fairness" and giving everyone a chance to be heard, what could have been a very angry and disruptive event was transformed into a wake to remember the good times and the contributions made by the industry. It was still a sad and stressful time, but far less so than it might otherwise have been.
So what is process fairness and why is it important?
Process fairness is quite distinct from outcome fairness. Outcome fairness refers to judgments made about the final outcome. In this case, it is unfair to lose your job after 20 or 30 years due to a combination of factors largely outside of anyone's control. Process fairness is aligned with the concepts of procedural fairness and natural justice, and particularly applies to decisions affecting the team leader/team member (or manager/employee) relationship. Broadly speaking, there are three intertwined components of process fairness:
Process fairness makes a big difference! A study of nearly 1,000 people--led by U.S. researchers E. Allan Lind and Jerald Greenberg (and cited in the book Manager's Desktop Consultant)--found that a major determinant of whether employees sue for wrongful termination is their perception of how fairly the termination process was carried out. Only 1 percent of ex-employees who felt they were treated with a high degree of process fairness filed a wrongful termination lawsuit, versus 17 percent of those who believed they were treated with a low degree of process fairness. Similar results can be found for patients suing doctors and customers suing businesses.
Process fairness doesn't ensure team members will always get what they want or that the final decision is "fair"--but it does ensure they will have a chance to be heard. It is also highly likely that a decision-maker who follows a fair process will reach a fair and correct decision.
Fairness demands that the affected people are told about the impending decision and are given the chance to reply before a decision that negatively affects their existing interest or legitimate expectations is made. Put simply, hearing both sides of the story is critical to good decision-making and happier team members.
There are six rules that apply to procedural justice (or natural justice), and they equally affect procedural fairness:
Process fairness in the workplace and in communication simply requires fairness to everyone--that is, when something is applied, it has to be applied to everyone and procedures need to be consistent with moral and ethical values.
So next time you have to make a decision that affects your team, rather than trying to make the best decision on your own, tell the members about the decision and the reasons it needs to be made, ask for their input and take the time to listen. Once you have reached your decision, explain the reasons clearly and leave space for feedback, particularly from anyone the decision will hurt. You may be surprised by the support you get from everyone.
Do you think your decision-making process is fair?
Problems, Conflicts and Decisions
While frequently treated as separate topics, conflict management, problem-solving and decision-making are interrelated and all are focused on achieving the best possible outcome.
In an ideal world, there would always be sufficient information and rational maturity to allow you to treat everything as a problem and apply the following problem-solving steps to reach the optimum solution:
The trouble with this process is that problem-solving assumes there is a best answer -- that the information needed to determine the answer is available and that the people involved in the process are acting rationally. These circumstances are relatively rare!
Many of the problems that require solving are rooted in emotions. At its center, every conflict has people acting (or reacting) emotionally, and conflict management is focused on reducing the effect of emotions to allow the people in conflict to start acting rationally. Any effective solution to a conflict involves defining the problem, defining a solution space (e.g., a formal mediation), understanding the options, choosing a solution and then implementing the solution. The only difference is how these steps are implemented or imposed. The standard solution options are:
Different conflict-management processes are appropriate at different times. The primary focus is on reducing or managing the level of conflict, but eventually someone has to decide on the solution to the underlying problems.
Problem-solving and decision-making are also closely aligned. But the weakness of the problem-solving concept is the assumption that there is sufficient data to make the "right decision." Unfortunately, many decisions are not that simple!
The types of decisions you will be required to make range from "simple problems" through to "wicked problems":
The challenge of decision-making is to understand and balance the following:
Ultimately, good decision-making is firstly getting most decisions reasonably correct (luck plays a part) and then continually reviewing the consequences of your decisions to adapt, adjust and correct the suboptimal ones as quickly as possible. Generally, any considered decision made in the appropriate time frame is better than no decision or an unnecessarily delayed one.
How do you make your decisions when confronted with a problem?