Stakeholder Management Dr. Yeffry Handoko Putra, M.T (yeffryhp@unikom.ac.id) Magister Sistem Informasi Universitas Komputer Indonesia

Background and Problem Many IT project depend on skill person, and He may sign out in the tight schedule project (Risk Problem) Communication and sharing knowledge is success key in IT project The expectation and responsibility is dynamically change along the project Philanthropy is a good reason to make solid team Business Value can be made effectively in good stakeholder engagement (knowing external stakeholder) Team Experience can be achieve by good engagement (knowing internal stakeholder)

Lecture Plan

What is Stakeholder?

Stakeholder Theory Can business leaders make decisions about the conduct of the business without considering the impact of these decisions on (all) those who will be affected by the decisions? Is it possible to separate “business” decisions from the ethical considerations of their impact? (Freeman et al., 2010:5)

What is Stakeholder? defined (http://www.dictionary.com) The holder of the stakes of a wager (this was the original meaning of the word). A person or group that has an investment, share, or interest in something, such as a business or industry. (This is now the generally accepted usage in the English-speaking business world.) Law: A person holding money or property for two or more persons making rival claims.

What is Stakeholder? A Guide to the Project Management Body of Knowledge (PMBOK® Guide) (Project Management Institute [PMI], 2012:563): Stakeholders are individuals, groups, or organizations who may affect, be affected by, or perceive themselves to be affected by a decision, activity, or outcome of a project, program, or portfolio

Who is Stakeholder?

Who are stakeholders? Company External Stakeholder Society Employee Internal Stakeholder Supplier/ Vendor Programmer Society IT Manager Employee Operation Manag Company Goverment Manager Creditors Owner Shareholder Customer

Example: Who are stakeholders?

Example: Who are stakeholders?

How to define Stakeholder? customer care, public relations, supplier relations, and regulatory and government relations Functional (external) engagements: reporting and assurance; management accounting; human resource (HR) management Organization-wide (internal) engagements human rights; heritage and environmental moral rights; and philanthropic activities Issue-based engagement

Stakeholder indentification

A Stakeholder Has a “Stake” (kepentingan) Interest (I): Financial advantage or profit, Pastimes or a hobby, or Significance or relevance Rights (R) Legal rights Moral rights CSR Ownership (O) A worker’s right to earn a living from his or her knowledge, Shareholders’ ownership of a portion of an organization’s assets Intellectual property resulting from the exploitation of an idea, or Legal title to an asset or a property. I R O N C

A Stakeholder Has a “Stake” (kepentingan) Support in the form of knowledge (N) Impact or Influence (I) Impacted by the activity or its outcomes: Staff, customers, shareholders Impact (or influence) on the activity or its outcomes: Sponsor, governments (legislation, regulation), the public contribution (C) Allocation of resources—people or materials, Provision of funds—either the initial approval or ongoing assurance of continued funding, and Provision of “political support” within the organization’s hierarchy or the wider community. I R O N C

Do You Really Know Your Stakeholder? Investor Owners Goverment Business Stakeholders Employee Families Customers Employee Comunity

Stakeholder Register Stakeholder register for project name Prepared by : Date : Name Position Internal/external Project Role Contact Information

Sample Stakeholder Register Stakeholder register for project name Prepared by : Date : Name Position Internal/external Project Role Contact Information Ayutingting Vice president of HR Internal Project Champion ayu@project.com Lusi Training Director Project Sponsor Lusi@cipta.co.id Bayu Kusumah Senior HR Staff Member Led the phase I Project Bayu_kh@project.com Nur Cahyo Project Legal External Consultant legal office Nur_kocak@bgsj.co.id

Stakeholder Identification Matrix SPECIALITS Inform VIPs Engage Deeply High Level of Interest Of stake BYSTANDERS Monitors INFLUENCES Consults Low Dimana posisi owner, staff ahli, auditor, konsultant IT, Manager IT? Pada engagement pertama kotak yang mana yg ada? Dan pada enggagment ke dua dan seterusnya? Low Degree of Influence High

Stakeholder Management Strategy Stakeholder Management Strategy for Project Name : Prepared by Date: Name Level of Interest Level of Influence Potential management Strategy

Sample of Stakeholder Management Strategy Stakeholder Management Strategy for Project Name : Prepared by Date: Name Level of Interest Level of Influence Potential management Strategy Ayu Tinting High Ayu is very outgoing and visionary . Great trait for project champion. She concerned about financial and has MSi. Keep her informed and ask her for adcvised if needed Lusi Lusi has PhD in education and knows training at this company . She is very professional and easy to work with. Bayu Medium Bayu led the phase I project and is upset that he was not asked to lead phase II . He was been with company over 20 years

STAKEHOLDER “ENGAGEMENT” Definition Enggagement Involvement or commitment, both emotional and physical, to a cause or an idea Participation in the actions of a group, Intervention, intercession, or conflict, such as military battles or fights, Obligations or agreements, either social or financial, such as a promise to marry or other types of contractual arrangements, or Employment, especially for a specified time.

How to success in Stakeholder Engagement? provision (or withholding) of funds, support, or resources such as materials or people with the essential skills, they should be identified by the project team as stakeholders effective communication (delegate, asking) Relationships Knowing the expectations of important stakeholders Documentation Survey provision (or withholding) of funds, support, or resources such as materials or people with the essential skills, they should be identified by the project team as stakeholders effective communication (delegate, asking) Relationships Knowing the expectations of important stakeholders Documentation Survey

State of Stakeholder Engagement

Mulai dari think Saling memahami, belajar bersama, cerdas bersama, sepakat dan berkolaborasi How to engagement? (knowing, learning, increase level, arrange, do)

Stakeholder Engagement Bagaimana mengubah customer yang low influence, low interest menjadi low influence high interest marketing selling multi interest (jualan kukis dgn sejarah inggris) Supplier itu high influence and low interest, berbahaya kalau supplier high influence and high interest  monopoly hulu hingga hilir

Stakeholder Engagement Spectrum Dipaksa, bisa dan terbiasa (WIKA) untuk warna kuning ke merah Dijelaskan, terformalisasi, berkembang dan seragam (kuning ke hijau)

Standard for Stakeholder Engagement (The Institute of Social and Ethical Accountability 2006, 2011) Functional (external) engagements: customer care, public relations, supplier relations, and regulatory and government relations Organization-wide (internal) engagements: reporting and assurance; management accounting; human resource (HR) management Issue-based engagement: human rights; heritage and environmental moral rights; and philanthropic activities

Stakeholder Engagement Matrix Example from Hongkong Architecture Service Department http://www.archsd.gov.hk/

Stakeholder Engagement Matrix

Understanding stakeholders’ expectations Ask the stakeholder or stakeholder’s colleagues, Research project documentation, form a perspective of what expectations may be, and offer some ideas to help the stakeholder formulate his or her own, or Use surveys, use customer satisfaction surveys (CSSs)

Understanding stakeholders’ expectations

Stakeholder Relationship Management

ORGANIZATION ACTIVITIES AND STAKEHOLDER COMMUNITIES CSR activities Achievement of competitive advantage and improvement of the bottom line Business change Mergers and acquisitions (M&A) Projects and programs of work

Petal Diagram of Governance

Circle of Stakeholder The Project Current stakeholder community Project team The Project

There are five steps to the methodology of Circle Stakeholder: Step 1: identification of all stakeholders. Step 2: prioritization to determine who is important. Step 3: visualization to understand the overall stakeholder community. Step 4: engagement through effective communications. Step 5: monitoring the effect of the engagement.

Step 1: identification of all stakeholders : Direction of Influence

Step 1: identification of all stakeholders : Stakeholder Analysis

Step 2: Prioritize: How to Understand Who Is Important Power: the power an individual or group may have to permanently change or stop the project. Proximity: the degree of involvement that the individual or group has in the work of the team. Urgency: the importance of the work or its outcomes, whether positive or negative, to certain stakeholders (their stake) and how prepared they are to act to achieve these outcomes.

Step 3: Visualization: Presentation of Complex Data Graphical or pictorial views, Tables or sorted lists, Written explanations, Discussions.

Step 3: Visualization: Presentation of Complex Data

Step 4: Engage

Step 5: Monitor the Effectiveness of the Communication Deming cycle of plan, do, check, act

Stakeholder Engagement with PDCA

THE VALUE OF EFFECTIVE STAKEHOLDER ENGAGEMENT

THE VALUE OF EFFECTIVE STAKEHOLDER ENGAGEMENT Zero Cost of Quality Quality is free (Crosby, 1979:1)—what really costs an organization is failure to do things right the first time More important, costs are also intangible:

THE VALUE OF EFFECTIVE STAKEHOLDER ENGAGEMENT On Time/On Budget Delivery