Overcoming Complexities in Stakeholder Management

By: Bilikisu Aderinto, MSc, IIBA

Head, Solutions development, GICL

WHY COMPLEXITY IN STAKEHOLDER MANAGEMENT?

The ability to manage varying stakeholders from different organizational sector having different interest, goal and commitment to a business

initiative, is creating a lot of impending factors to the success of several business initiative

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WHY COMPLEXITY IN STAKEHOLDER MANAGEMENT?Business Initiatives (or Projects as you may choose) basically involve more than the delivery of a product, service or result: they create change.

More than anything, they are about managing relationships both within and around the activities and products of the project initiative. The challenge for different organizational sector is to deliver successful projects in an environment surrounded by uncertainty by ensuring that all those groups and individuals affected by the change - stakeholders, are engaged in a way that enhances their collaboration.

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WHO IS A STAKEHOLDER?“A group or person who has interests that may be affected by an initiative or influence over it.” (IIBA)

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BUSINESS STAKEHOLDERS

Business Initiative

Business Owner/Spo

nsor

Business Manager

Direct User

Indirect User

Financial Department

Project Manager

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STAKEHOLDERS WITHIN THE SECTORS• Private Sector Stakeholders

• Public Sector Stakeholders

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COMMON GROUNDS

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LeadershipGoals &

ObjectivesEmployee Attitude

Communication Funding

PRIVATE/PUBLIC SECTOR STAKEHOLDERS

THE BIG DIFFERENCE BETWEEN PRIVATE AND PUBLIC SECTOR STAKEHOLDERS

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Differences Private Sector Public Sector

LEADERSHIP Define clear set of goals

and objectives and a

shared vision of how to

achieve them

Define goals and objectives

based on Government

Policies

GOALS AND OBJECTIVES Well defined, shared and

understood

Documented, but rarely

shared and understood

EMPLOYEE ATTITUDE Driven by Leadership and

Organizational Goals and

objectives

Driven by Government

policies and standards

COMMUNICATION Two-way communication

within the organization

One-way communication

within the organization

FUNDING Business Government

IDENTIFY STAKEHOLDERS

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•Departments

•Customer group

Groups

•Subject Matter Expert

•Direct UserIndividual

•Partner Organizations

•Partner Government Agencies

External Organization

ANALYSE STAKEHOLDER

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• Identify decision-makers within the organization

• Identify principal stakeholders

• Understand stakeholder interests

• Identify patterns and contexts of interaction between stakeholders

• Define options for stakeholder management

STAKEHOLDER MAPPING MATRIX

Influe

nce o

f Stak

ehold

er

Interest of StakeholderLow High

High

LOWMonitor & keep

informed as needed

MEDIUMKeep informed & involve as needed

CRITICALManage closely,

involve in decision making, engage & consult regularly

HIGHEngage & consult on

interest area

Stakeholder Mapping Matrix

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COMMUNICATE AND ENGAGE WITH STAKEHOLDERS

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• What do the team need to achieve through the communication - to meet the

expectations and requirements of the stakeholder;

• Which means of communication best suits the stakeholder?• What is the most effective message format and delivery method is preferred

by the stakeholder?

OVERCOMING THE STAKEHOLDER COMPLEXITY1. By understanding which stakeholders are important and how best to provide the

information that meets their needs and the needs of the organization it is possible to

reduce the difficulty experienced during communication and stakeholder

engagement.

2. Stakeholder management is difficult because it involves different people with

different expectations and different information needs.

3. Engaging stakeholders for collaboration involves constant vigilance in a constantly

changing landscape of relationships with stakeholders whose support, interests and

influence fluctuates unpredictably.

4. Building a good and efficient Communication plan is very important as

Communication is a human endeavor, and the complex communication that may

be necessary for managing stakeholder relationships within an different organization

requires planning, monitoring and also leadership.

5. Applying best competency in analysis skills and experience is key to success in

engaging stakeholders.

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CAUTION

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• Be authentic and honest, BUT DON’T

EXAGGERATE

• Empathise BUT DON’T SYMPATHISE

• Respect your stakeholders’ experience and

knowledge BUT DON’T SHOW TOO MUCH OF

YOUR EXPERTISE

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Comments, Questions.

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ReferenceOmar Muhammad, 2003, COMPLEX PROJECTS AND THE POLITICS STAKEHOLDER MANAGEMENT. [online] Project Management Times, Available at: http://www.projecttimes.com/articles/complex-projects-and-the-politics-stakeholder-management.html [Accessed: 11 March 2015].

Raj Sharma, 2008, The 6 Principles of Stakeholder Engagement, [online] Supply Chain Management Review, Available at: http://www.censeoconsulting.com/media/pnc/2/media.12.pdf [Accessed: 11 March 2015]

Ipsos MORI Social Research Institute, 2009, Understanding your stakeholders A best practice guide for the public sector, [online] Available at: http://www.ipsos.com/public-affairs/sites/www.ipsos.com.public-affairs/files/documents/understanding-stakeholders.pdf [Accessed: 11 March 2015]

Lynda Bourne, 2010, WHY IS STAKEHOLDER MANAGEMENT SO DIFFICULT? [online] Stakeholder management Pty Ltd, Available at: http://www.mosaicprojects.com.au/PDF_Papers/P123_Why_is_Stakeholder_Management_so_difficult.pdf [Accessed: 11 March 2015]

Aniket Sharma, 2013, STAKEHOLDER ANALYSIS AND MANAGEMENT, [online] Available at: http://expertbusinessanalyst.com/stakeholder-analysis-and-management/ [Accessed: 11 March 2015]

Lynda Bourne, Stakeholders and Complexity, 2012, [online] Available at: http://www.projectaccelerator.co.uk/stakeholders-and-complexity/2647 [Accessed: 11 March 2015]

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