Analyzing Stakeholder Interests

Stakeholder analysis is the process of discovering who has a stake in your project and identifying their interests. To perform stakeholder analysis, you must identify the stakeholders, their roles and primary interests in the project. Then you must analyze the relationships between stakeholders, looking to capitalize on similarities and resolving differences.

• Step 1: Identify the stakeholders.
  Stakeholders can be internal or external. Internal stakeholders are the people directly involved in the functioning of your project. They include project managers, performing organizations, and project team members. External stakeholders are outside your organization. External stakeholders for your project may include sponsors, customers, suppliers, financial backers, special interest groups, the media and the public.
  

• Step 2: Identify their roles.
  You can enhance the usefulness of your list of stakeholders by determining the role each stakeholder plays in your project. Stakeholders may manage the project, provide financial or human resources, or provide supplies. Viewing stakeholders within the context of their roles is necessary to accomplish the rest of your stakeholder analysis.
  

• Step 3: Identify their primary interests.
  Once you know the roles of stakeholders, you can discover the interests they have. The interests of your stakeholders are the outcome of the roles they play in your project. The logical conclusion of what stakeholders do for your project is what they want from your project. It is important for you to know what they want from your project.
  

• Step 4: Analyze the relationships between stakeholders.
  Evaluating conflicting project desires is part of the fourth step of a stakeholder analysis. Once you have listed the stakeholders, their roles and interests, you can analyze the relationship between all the diverse interests in your project.
  

To properly analyze your stakeholders, you need to ask yourself:

1. How will each group respond to project decisions?
2. What effect will their reactions have?
3. How will their interaction with each other affect the project?

LUXX Corporation, an appliance manufacturer, is creating a new toaster for the market. Jodi is in charge of the project. She must determine how to prioritize the four departments' wishes, while demonstrating that she has taken everyone's requests into consideration. Jodi has identified the stakeholders and their competing interests in this project.

The research and development department wants more time to come up with the best toaster possible. It also wants to use its capabilities to the fullest by providing as many features as possible.

The marketing department wants to make this toaster attractive to the general public. This means promoting as many features as possible and having an early market release date, while keeping the price to a minimum.

The accounting department wants to keep costs low while charging the public as much as possible. It also wants this toaster to be on the market as soon as possible. Driving these desires is the interest in the margin of profit.

The quality assurance department wants a trouble-free toaster. The quality assurance department wants well-designed features, that work well, and plenty of time to complete proper testing procedures.

As you can see, many of these wishes conflict with one another.

The steps involved in stakeholder analysis are designed to reveal the conflicting interests among stakeholders so that these differences may be managed. Ultimately, stakeholder analysis helps you to gain the support of all your stakeholders and ensures that everyone involved in a project is directed toward the same project goals.

Identifying Project Constraints

Everyone has constraints on decision-making and action. During project organizational planning, there are many constraints to consider. Some of the most common constraints on decision-making are the organizational structure, collective bargaining agreements, the preferences of the project management team, and expected staff assignments.

Organizational structure
Organizational structure can be a constraint. The level of authority given to a project manager is largely dependent on the organizational structure, which may be functional, matrix, or fully projectized.

• Functional structure - In a functional structure, personnel are grouped hierarchically by speciality.
• Matrix structure - In a matrix structure, project managers share responsibility with functional managers.
• Fully projectized structure - In a fully projectized structure, project managers have total authority.

Collective bargaining agreements
Collective bargaining agreements are another potential constraint. Written agreements with unions or other employee groups ensure that you don't ask anything of your team that goes beyond what the union has agreed is appropriate. For example, a union may require that certain employees be hired, or it may set boundaries concerning work done by members of the union. Union contracts may also limit work hours and travel and time away from an employee's designated job.

The preferences of the project management team
Team preferences may also be a constraint. A team may be used to functioning independently, and individual team members may resist the changes brought about by interdepartmental interaction.

Expected staff assignments
Expected staff assignments are constraints placed on you and your team from the larger organization. When someone above you expects you to use certain people on your team, you then have the constraint of a pre-selected team. A pre-selected team limits a project manager in a variety of ways. Expected staff assignments can hinder a project when tasks are assigned based on criteria other than competency, the required competencies of the project team are changed, and the chemistry of the project team is altered.

It may seem logical that competency should be the overriding factor in team selection. Unfortunately, organizations themselves are under the constraint of staff availability. There may be redundant employees who have not yet been reassigned to a new full-time position. Projects end at different times. If one ends just as yours is beginning, your project is a convenient new placement for these employees.

Overcoming project constraints resulting from organizational structure, collective bargaining agreements, team preferences, and expected staff assignments is possible when you learn to view constraints as a challenge. When you understand the constraints placed on you, you can plan your strategy to take advantage of the human and material resources at your disposal.

Identifying Your Project Staffing Needs

People make or break a project. That's why, as a project manager, it is important to carefully plan your project staffing needs. You need to choose people with the right competencies and personalities if you want your project team to work well together and to be capable of getting the job done.

Selecting the right people for your project begins with a staffing requirement plan. Staffing requirements are created using the project's Work Breakdown Structure (WBS) and Skills Inventory Matrix.

Work Breakdown Structure (WBS)
The first step in determining your staffing requirements is to choose people with the right competencies. The WBS details the competencies you need to complete your project. A WBS is the organization of a project into a group of deliverables that defines the project scope.

Project managers complete all phases of the WBS. These phases are:

• identifying the major work assignments for the project
• breaking down each work assignment into tasks
• matching competencies to tasks.

When it comes to matching competencies to tasks, you need to consider both objective and subjective criteria. Objective criteria may include: technical ability, level of proficiency, project management skills, and previous experience as a leader.
Subjective criteria may include: social skills, opinions of fellow project managers, and opinions of co-workers.

Skills Inventory Matrix
After using the WBS, objective and subjective criteria to select the members of your team, you need to assign tasks based on team member competencies. A Skills Inventory Matrix is ideal for this purpose.

A Skills Inventory Matrix allows you to see all the competencies within the project team. The matrix can be created using a simple table. In the first column on the left, list each team member. In the columns to the right, list the competencies required to complete the project. If an employee has a particular competency, place a checkmark in the table cell corresponding to their name and the competency.

A WBS and a Skills Inventory Matrix help you to determine your staffing needs. These inputs ensure that you know which competencies and people you need, as well as what the time frames are for your project.

To ensure the timely completion of your project, you need to match people to competencies and competencies to tasks. A project manager is more likely to have success when all of these staffing requirements are in place.

Understanding Conflict

Conflicts among employees occur in every organization.

As an effective leader you need to know how to deal with conflict.

Understanding conflict means examining:

• the concept of conflict
• constructive conflict
• the escalation of conflict
• the psychological changes that accompany conflict
• the two primary reasons for conflict.

Constructive conflict
While we all know conflict when we feel it, most of us don't work with it well because we don't understand its dynamics. What are the inner workings of conflict?

Conflict is an everyday, naturally occurring fact of life. Without it, there is no progress, evolution, or art. Don't fear it; learn how to face it and work with it. It occurs when you believe that in order to get what you want, someone else won't be able to get what he or she wants.

The concept of conflict
The resolution of a problem can show the three ways conflict can be constructive. These are:

• when it leads to unity of purpose and collaboration
• when it leads to better decision making
• when it produces change.

The escalation of conflict
Many conflicts, however, turn destructive because they escalate out of control. Consider the following reasons that conflict escalates:

• Cooperation turns into accusations and threats.
• One issue becomes many.
• A specific issue gives way to general complaints.
• Consideration turns to getting even.
• More people begin to get involved.

The psychological changes that accompany conflict
There are a number of psychological changes that happen to people when they get involved in conflicts. These are explained in detail below:

• When you are in conflict, you develop selective perception, only seeing your own side of the story. You begin to look for evidence to prove you're right.
• Conflict can also cause you to create a self-fulfilling prophecy, where you create a worst-case scenario, and then get what you expect by acting as if it's going to happen.
• When conflict is played out, a complete communication breakdown occurs. Trust is rarely reestablished, and any polite conversation that follows is filled with tension and bitterness.

The two primary reasons for conflict
There are two primary reasons for conflict. One primary reason for conflict is that two people have different interests; they want different things. Another primary reason for conflict is two people have the same interests, which are in conflict; they believe only one of them can have what they want.

Exploring conflict resolution within your organization can improve the atmosphere in the workplace and lead to greater creativity and collaboration.

Understanding Group Communications

Group communications are essential to successful organizations.

Leaders can improve group communication by:

1. increasing team communication
2. improving organizational communication
3. using informal communication networks.

Increasing team communication
There are a number of things you can do to improve the way your group shares information. Some of these are shown below:

• Use a variety of formats to get the team together to talk, including team meetings, informal chats, and scheduled informational discussions.
• Ensure everyone understands the purpose of these sessions.
• Ensure that the group understands how proud you are of their work.
• Some people in a group can be bashful about raising questions, so you could attempt to anticipate their needs when responding to others' questions.
• You could use newsletters, bulletin boards, and e-mail to communicate with your team.

Improving organizational communication
In addition to improving communications, it is important to contribute to the communications of the larger organization. The following are examples of how contributions to organizational communications could be made:

• Every organization needs a dependable internal communications program. In larger companies, someone is usually in charge of this. In smaller companies, it can be a collective function of leaders at all levels.
• Good organizational communication means that the members are well informed on all significant issues which affect them, including business challenges, policy changes, and operational and strategic issues.
• Other issues which are included in organizational communications include organizational structure, customer service, workplace improvements, and the use of information technology.
• Leaders should always be searching for ways to improve communications outside of their immediate realms. You are also responsible for correcting any misinformation about your subordinates or department.
• It's also necessary for a leader to actively communicate with other departments to discover information that you need but has not been given to you.
• Another way of improving communications among different groups is to suggest a shared function such as a potluck lunch or weekend social activity.

Using informal communication networks
Another means used to communicate is to use informal networks. This is not much different than what is commonly called the grapevine. Leaders can use this type of communication in the following ways:

• An informal network, or grapevine, can complement or detract from other group communications.
• Accept the fact that grapevines can't be eliminated and are very difficult to control. They are, however, easy to use.
• Talking informally or casually with your subordinates and others can provide you with a vast amount of information about your organization.
• As a leader, it's your responsibility to correct and dispel any incorrect information that you discover in the grapevine.

You can use a variety of methods to improve communications among your group and between your group and the rest of the organization. How can these techniques improve your own group communications?

Improving Personal Communication Skills

Improving leadership abilities is intrinsically connected to improving communication skills.

Factors that improve personal communications include the following:

• face-to-face communicating
• listening to others
• speaking well
• presenting effectively
• writing clearly

Most staff interactions, like most business communications, occur one-on-one and in small groups. You should try to increase the quality and quantity of these small encounters because they are the most effective means of delivering his message.

The following four suggestions can be used in this setting:

1. One key in getting people to come to you when they need your help is to be approachable. Do this by adjusting your speaking style to more closely resemble those to whom you're speaking.
2. Be understanding and sincere. Being empathetic towards others and trying to understand their motivations and concerns helps create a two-way relationship.
3. Consistency in the way you communicate to others improves communication. If your approach to others is erratic, this sends confusing and conflicting messages.
4. It's also valuable to repeat your important messages from time to time to make sure that they are received and understood. Also, having your instructions mirrored back to you helps when you're having a difficult time communicating with certain people.

In addition to the face-to-face communication skills, there are other skills that would improve communication abilities:

• Leaders should aim to spend more time listening than talking. This is an active, not passive process in which you try to understand the other person's perspective. Let your ears be the gateway to others' strengths and concerns.
• Leaders need to communicate clearly. Proper speech and grammar, along with easy-to-follow points are vital to your effectiveness. Seek help if this is a problem for you.
• Making presentations is part of being a leader. Being natural, using visual aids, and including humor are all part of good presentations. Rehearse with someone whose criticism you value.

Writing skills are another area that should be considered important to your development as a leader. Learning to write correctly takes time, effort, and a real commitment. The following are tips to improve your writing:

• Visit a library or bookstore to see the resources available. In addition, write whenever possible.
• Make note of the purpose and main points of your document before you begin to write it.
• Consider who will be reading what you write, what they know about the subject, and what you want them to do after they read the document.
• Avoid using phrases that make excuses, lack confidence, or suggest incompetence.
• Keep your language simple, use a minimum of jargon, or specialized words, and be as brief as possible.
• Reread what you've written at least twice and make whatever corrections or improvements you can.
• Have an assistant or associate review the document for effectiveness, clarity, and correctness before you send it.

Finally, you should learn to improve your awareness of what you communicate nonverbally.
People are naturally aware of your physical actions when they are contradicting or working against what you're saying. Tapping your pen out of nervousness, avoiding eye contact, or looking bored all work against effective communications.

On the other hand, you can use nonverbal communications to your advantage by relaxing, maintaining good posture, staying energetic, and directly addressing others. Videotaping one of your presentations can help you correct bad habits.

The continued success of your company is due, in part, to the effectiveness of your personal communication skills. Consider which of these skills would improve your abilities.

Retaining IT Project Professionals

Did you know that the average employee turnover rate in the IT sector is approximately 12.5 percent, and that it can run as high as 40 percent in the most severe cases? This high turnover rate can have an impact on the success of your IT project.

There are three main reasons why your company should implement plans to retain its IT professionals—in particular, those who work on your IT project. These three reasons are explored below.

1. IT professional shortage
Today's organizations are depending more and more on the qualified employees of their IT departments to help sustain growth and develop new products or services. Managers need to know how to acquire and retain these qualified IT employees.

With a continuing shortage of qualified IT professionals, and recruiters aggressively pursuing these individuals, it is becoming more and more important for IT managers to develop employee retention plans.

2. Project delay prevention
The loss of an IT project team member can cause serious project delays. It may take the organization months to replace the skilled employee, and then another several months to bring the new IT professional up to speed on the core aspects of the project he or she will be working on.

The loss of knowledge and experience that the IT professional brought to the organization can be especially relevant in the middle of a project. Time needed to train a replacement will put the project behind schedule, and products or services may not get delivered to customers as promised.

The time delay caused by employee loss also will negatively affect project plans, cost estimates, and deliverables. This could result in poor relations with the customer, something an organization needs to avoid.

3. Staff replacement cost
Staff replacement cost is another major factor in the quest for employee retention. The financial and psychological costs related to staff turnover can include:

• costs such as advertising, sign-on incentives, relocation, training, and recruitment fees
• daily cost of production losses for training that may take three to six months
• decreased morale and productivity of project team members due to excessive work hours while a new employee is trained.
  

With a shortage of IT professionals in today's global economy, the possibility of project delays, and the high cost of replacing employees, a plan to retain IT professionals and reduce attrition is essential to ensuring the success of your project.