Know Your Customer's CustomerSTAKEHOLDER MANAGEMENT AND COMMUNICATIONP R E S E N T E D BY: N E I L M U R RAY , P M PP M I A L A S KA C H A P T E R , S E P T E M B E R 9 , 2 0 1 5

A little bit about me Neil Murray, PMP (hey, that’s me!)

Graduated in 2006 from Texas A&M University – B.S. in Engineering Technology

Nine years experience in Oil and Gas project management – mostly upstream and pipelines

Project Manager with aeSolutions from Aug 2010 – Aug 2015, now pursuing new, exciting opportunities (astronaut, professional golfer, trapeze artist, etc.)

◦ Specialized in Risk Management and Process Safety Lifecycle projects◦ First “Project Manager” at aeSolutions and helped develop their

methodologies and grow a PM culture◦ Helped grow and establish an "Operations and Maintenance" line of business

A little bit about this presentation

Case studies and lessons learned from a consultant’s point of view

◦ "Small fish in a big pond"

Working with EPCs, owner companies, other contractors, procurement, etc.

Key question: Who is your customer, and who is their customer? And how do you manage them?

Don’t be shy, ask questions!

What is a stakeholder and what do they want?

What is a stakeholder? "An individual, group, or organization who may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project."

◦ PMBOK 5th edition

My favorite: “A person, group, or authority who is involved in or may be affected by project activities and who could act against the project if their needs are not considered.” (Wideman, 2002)

Stakeholder influence can change over the course of a project

A key source of conflict, but also a key ally

Don't forget that your team members are stakeholders, too!

Project and Stakeholder RelationshipPMI's definition of the relationship between the project and the project stakeholders

PMBOK 5th Edition, 2013, pg. 31

Real world example of project/stakeholder relationships

It's all about TRUST There are different kinds of trust

Analysis will help determine your management strategies

Strategies are constantly analyzed and updated

The 4 kinds of trust Deterrence-based

◦ Fragile, one violation can erode the relationship

Role-based◦ Based on the other party's role and what you expect of them◦ often because there is limited time to develop a relationship with the other party

Knowledge-based◦ Based on your knowledge of and experience with the other party

Identification-based◦ Thickest form of trust◦ Based on an emotional connection; each party understands the other

Planning your strategy Stakeholder identification happens throughout the project Early identification and planning are critical, but usually imperfect and tough to do

Distinguish between internal/external and positive/negative stakeholders

Basic idea is to influence stakeholders to ensure project success

Plan, plan, and plan some more

Categorize your relationship with the stakeholder early in the project

Focus on stakeholders with high harm or high help potential Collaboration and Involvement Critical to project success:

◦ Contribution from stakeholders with high help potential◦ Mitigation of stakeholders with high harm potential

Stakeholder management strategiesPlanning is great, but now what?

Stakeholder management strategies

Keep your eyes peeled for changes! ◦ Key element of project risk management (risk management never stops)

Focus on creating a “win-win”

Gain alignment with all stakeholders (not always possible)

Strategy overview Kick off meeting

Well defined work-flow (swim lane diagram, etc.) and work boundaries

Formalize reporting guidelines

Actions/Issues Lists

Project kick off meeting Preparation is key! Make sure everyone’s expectations are set appropriately and define the key assumptions Establish the communication plan and reporting schedule Define the key success factors Review and sign off on the project plan, including a RACI and integrated schedule

Well defined work-flow I like using a “swim lane” diagram Clearly illustrate responsibilities of and dependencies between each functional area

◦ Who is doing what, to whom, and when◦ Not just a network diagram of the project schedule

Effectively communicate on a high level to all stakeholders Also useful as a “sales” tool to help get a project sanctioned and funded

Example swim lane diagram

Formalize reporting guidelines

What kind of communication structure is needed? Formal reporting meetings on a set schedule

◦ Minimal interaction outside of formal channels

Informal reporting across all levels of the project organization◦ Initiate meetings when needed, don’t wait for the formal scheduled meetings

Combination of the above Whatever it is, it needs to be documented in the communication plan

◦ When formal meetings are held, who to involve in informal meetings, who takes/issues meeting notes, decision register, etc.

Formal reporting meetings

Create a project-wide actions/issues list

Give a short update to the sponsor or client PM

Don’t shy away from problems and challenges

Review issues and risks

Actions/Issues list Issues are items for management attention (should be monitored or acted upon immediately)

Action items are used to track/manage items that may not appear in the project plans

Reviewed regularly Don’t assign these blindly; ensure everyone knows what is assigned to whom

◦ Are actions assigned to the right people who can actually get it done?

In summary It’s all about trust

Identification and planning never stops

Have a strategy

Communicate, communicate, communicate

Questions?

Any additional questions or feedback? Let me know:

www.linkedin.com/in/namurray

Sources Stakeholder Management Strategies and Practices During a Project Course

Pernille Eskerod, University of Southern Denmark, Denmark and Anne Live Vaagaasar, BI Norwegian Business School, Norway

http://www.pmi.org/learning/stakeholder-management-strategies-9419

Stakeholder Management

Pedro Serrador, MBA, PMP, Peng

http://www.pmi.org/learning/stakeholder-management-keeping-stakeholders-happy-6697

Savage, G. T., Nix, T. W., Whithead, C. J., & Blair, J. D. (1991). Strategies for assessing and managing organizational stakeholders. Academy of Management Executives, 5(2), 61–75

http://www.slideshare.net/orlandomoreno/effective-project-kickoff-meeting-2731780

http://www.brighthubpm.com/monitoring-projects/85265-illustrate-workflow-process-with-a-swim-lane-diagram/

https://mosaicprojects.wordpress.com/2014/05/17/effective-communication-effective-project-stakeholder-management/

Dilberts:

Stakeholders: http://dilbert.com/strip/2010-07-01

Strategy: http://dilbert.com/strip/1999-12-27

Questions: http://dilbert.com/strip/2015-08-06