Stakeholder Identification OCM 4 ASAP Guide

Stakeholder Management Cycle Identification Stakeholder Analysis Change impact analysis Execution Stakeholder Management Monitoring Who will / might be impacted by the roll-out? Who are the decision makers in that area and who are the subject matter experts? What is the number of identified stakeholders? Where are these people located? What are their expectations to the roll-out and needs? What are previous experiences of identified stakeholder with the projects alike? What is the attitude of the stakeholders to the project / roll-out? What could be the reaction of stakeholder groups according to the planned changes? What are the benefits for these stakeholder groups? What are possible disadvantages for them? What will be the change for the identified stakeholder groups? How intensive will be the change for them? When will the change happen? What are the impacts? When do they occur? How exactly does the impact affect the stakeholder? Plan and perform activities to overcome resistances Manage resistances Coordinate communication and training activities in terms of stakeholders Manage stakeholders’ requirements and manage them through the constraints (time, budget etc.) Checking with the existing stakeholders whether their attitudes have changed. Are there new stakeholders? Have impacts changed? Have priorities changed? How the planned STHM activities can be adjusted to the current situation. The more frequently you are in contact the quicker you will pick these issues up and be able to deal with them. Stakeholders include everyone with a vested interest in the project, whether they are actively participating, supplying resources or being impacted by the project. Ensuring that all of these various groups are supportive or committed and engaged is something that needs to be planned by the project manager. That planning starts with stakeholder analysis and then mapping their relationship to the project, and finishes with defining how and what to communicate and its frequency. The key to stakeholder analysis is to understand the different groups from senior management to the person who needs to use the solution. Understand that these groups need to be defined from an organisational as well as location perspective. More importantly understand: Who are the key opinion leaders within their groups? What are the relationships between the groups? Ideally it is harmonious but at the other extreme there may be real or perceived problems between the different groups What is the benefit [if any] of the project? What is their motivation for contributing to or supporting the project? What are the barriers to this group participating? For example, multiple competing high priority projects.

SAP OCM Analysis Tool Main deliveries Stakeholder Acceptance Group Identification Execution List of measures Change Impact Gather Information Execute Analyze

Stakeholder Management Cycle Stakeholder / User Identification Stakeholder analysis Change impact analysis Execution Stakeholder Management Monitoring Who will / might be impacted by the roll-out? Who are the decision makers in that area and who are the subject matter experts? What is the number of identified stakeholders? Where are these people located? What are their expectations to the roll-out and needs? What are previous experiences of identified stakeholder with the projects alike? What is the attitude of the stakeholders to the project / roll-out? What could be the reaction of stakeholder groups according to the planned changes? What are the benefits for these stakeholder groups? What are possible disadvantages for them? What will be the change for the identified stakeholder groups? How intensive will be the change for them? When will the change happen? What are the impacts? When do they occur? How exactly does the impact affect the stakeholder? Plan and perform activities to overcome resistances Manage resistances Coordinate communication and training activities in terms of stakeholders Manage stakeholders’ requirements and manage them through the constraints (time, budget etc.) Checking with the existing stakeholders whether their attitudes have changed. Are there new stakeholders? Have impacts changed? Have priorities changed? How the planned STHM activities can be adjusted to the current situation. The more frequently you are in contact the quicker you will pick these issues up and be able to deal with them. Stakeholders include everyone with a vested interest in the project, whether they are actively participating, supplying resources or being impacted by the project. Ensuring that all of these various groups are supportive or committed and engaged is something that needs to be planned by the project manager. That planning starts with stakeholder analysis and then mapping their relationship to the project, and finishes with defining how and what to communicate and its frequency. The key to stakeholder analysis is to understand the different groups from senior management to the person who needs to use the solution. Understand that these groups need to be defined from an organisational as well as location perspective. More importantly understand: Who are the key opinion leaders within their groups? What are the relationships between the groups? Ideally it is harmonious but at the other extreme there may be real or perceived problems between the different groups What is the benefit [if any] of the project? What is their motivation for contributing to or supporting the project? What are the barriers to this group participating? For example, multiple competing high priority projects.

Stakeholder and User identification Objective Identification and grouping of people who are (A.) influencing the project and (B.) Groups and employees impacted by it. The purpose is to identify the level of “Buy-in” and Risk for each Stakeholder group & in some cases important individuals. Setting the basis for change management activity planning. Input conditions Deliverables Clear definition of the project scope High level project plan Availability of internal documents, i.e. organizational chart; roles description, etc. Description of all the project related stakeholders / stakeholder groups High level description of stakeholder groups What are we looking for? Stakeholder Type Level of Influence Description of the identified stakeholders (groups) in terms of their personal features, job locations, etc. Grouping of employees who meet similar criteria, i.e. end users with the same tasks, etc. Benefit One stakeholder group includes more then one person, who have similar expectations and needs within the given project. Customer Business Needs: Understanding of baseline environment and current performance level Overview of cost and value drivers to discover potential improvement areas Screening of affected process owners and business units Check of existing IT capabilities and future requirements Prioritization of activities correlating with potential benefit effects Trust and commitment from the user departments and board. Clarification of competitive advantage offered by IT solution. Benefits: Impact of the planned SAP project on the customer business Decision-making support for the first step of selecting the solution for the defined areas. Customer-specific qualitative value analysis to show the benefit structure for getting awareness and commitment of all involved decision-makers Deliverables: High level analysis of strengths, weaknesses, opportunities and threats. Identification of strategic action areas. Outline of issues and challenges in these action areas. Initial creation of action items to address the problems in the action areas. Qualitative potential for cost reduction and growth. Identification of qualitative benefits. Initial transformation plan. Business management presentation All groups are identified and managers are aware of the people that they should work together with and how best to approach them. The headcounts are identified

Identification of relevant stakeholder groups – criteria Three main questions help to identify the relevant groups. 1 Who is directly impacted by the project? (The groups that are strongly impacted by the project.) Analysis of the organizational structure Analysis of the processes 2 Who has an interest in promoting or delaying the project because of personal agendas or fear etc? Analysis of the stakeholder Other questions that may help you: Who is participating in the project? Who uses the system? Who benefits from using the system? Who wishes to benefit but is unable to do so? Who impacts the project, whether positively or negatively? Who has rights and responsibilities over the use of the system? Who would be affected by a change in status, regime or management output? Who makes decisions that affect the use and status of the resources, and who does not? 3 Who is indirectly impacted by the project? (The groups that will have changes in their own daily process activities.) Analysis of the organizational structure Analysis of the processes

Possible sources of information for stakeholder identification There are many sources of information you might use to identify your stakeholders. Here are some examples: Client’s organizational chart Project’s organizational chart Leadership alignment interviews Meetings with SME’s and experienced employees Conversations / interviews with Client’s management (include different levels) Brainstorms with your project colleagues and other experienced consultants Field observations Personal experience Workshops in which matrices, diagrams and other instruments of analysis are developed collaboratively Note 1 If in doubt – include! If you have any doubts if you should include the stakeholder or not, DO include him/her. Rather than just listing user groups and other stakeholders, identification should start from an examination of the functions of the resource (e.g. Beaches: recreation, tourism, region). Using each of the functions of the resources and identifying who uses, has an impact on, and benefits from those resource functions, a list of stakeholders can be developed (see Table 1 pg 9). To help to identify the stakeholders, some simple questions can be used. These questions help to draw a list of stakeholders that should include the obvious as well as the marginal, and the powerless who have a stake in the use of the resource and a role in the decision–making about how the resource is used. Stakeholder identification is a critical part of the participatory planning process because it is a precondition of inclusion. There may be instances, however, where it would be preferable to conduct the analysis of stakeholders as a purely technical exercise, without direct involvement from the various parties. This is particularly true when there are acute conflicts or significant patterns of inequity among stakeholders, and where the analysis is therefore needed by the facilitators to allow them to guide a phased and sensitive process of conflict management and empowerment. There are situations where a transparent and participatory process of stakeholder analysis will only serve to exacerbate tensions and to oppress further the poor and the marginalised. Facilitation can therefore bring legitimacy and expertise to the process. Stakeholder Theory has been extended to address moral issues and values to the temporary project organizations (Phillips, Freeman and Wicks, 2003) and to include the concept of the organization with interlocking relationships, and a focus on management doing the “right thing” (Simmers, 2004). The need to balance the conflicting interests of the organization and stakeholder interests will be inevitable (Frooman, 1999) Stakeholder theory attempts to identify the fundamental question of which groups of stakeholders deserve or require attention. This is termed “salience” salience сущ. | Вебстер | фразы |  g-sort   общ.  выступающая вперёд часть; выступ; клин; видное место; заметное положение  кино.  Предрасположенность , and refers to how managers prioritize competing stakeholder demands. An additional focus is on the relationships dynamics between stakeholders and the organization as well as between stakeholders. Stakeholder relationships have been described as a “network of influences” where stakeholders are likely to have relationships with one another, as well as the “dyadic ties” dyadic сущ. | Вебстер | фразы |  g-sort   греч.  состоящий из двух элементов between the organization and each of the stakeholder. New stakeholders can enter a resource management system, while others may lose their role or interest. For example, changes in the local economy and society, or in the status of resources, will inevitably provoke changes in the ways people use, and relate to, natural resources. Stakeholder identification is therefore an ongoing process, and it is one that must incorporate a historical dimension. Note 2 Review Note that stakeholders change over time, so review your documents as the project changes phases.

Overview of some standard stakeholder groups CEO Works council Head of branch End user Group leader Business partners Customer Supplier Head of department Board members … Each situation is unique though, and requires an understanding of local conditions and realities.

Identification of user and stakeholder groups Other organizations Name (headcount) Info User Groups Employees Highly impacted Medium impacted Partners Slightly impacted Managers Name (headcount) Info Stakeholder Groups 3 2 1 Owners Low importance Press Medium importance Customers High importance Suppliers Name (headcount) Info When identifying stakeholders it is not enough to focus on the formal structure of the organization. Rather it is necessary to have a look at informal and indirect relationships too. A useful model for this purpose is to visualize the stakeholder environment as a set of inner and outer circles. The inner circles stand for the most important stakeholders who have the highest influence. Government Public authorities Local communities

Some challenges you might face during stakeholder identification Some stakeholders always stay on the side, to “hide” from the stakeholder identification process. Many people simply do not feel part of formal institutions. Many projects are large and complex, so it’s better to take time and identify your stakeholder properly. Employees often belong to various groups, so avoid putting people into simple “boxes”. The project needs a strong effort from key stakeholders. Every stakeholder constructs his/her own understanding of the reality. The following are a number of important points that natural resource managers, planners and development workers will need to respect and be sensitive to when undertaking stakeholder based approaches to planning and management: 􀂃 Some stakeholders always stay on the side, to “hide” from the stakeholder identification process, or to conceal their real stakes in a management process. Historically, this ‘self-exclusion’ has been one of the most common forms of popular resistance by Caribbean people against oppressive and unjust systems. 􀂃 Many people do not trust governments and their agencies, because they have often been deceived by broken promises and commitments, or because they simply do not feel part of formal institutions. 􀂃 Stakeholder identification and analysis aims at informing management processes by extracting significant facts and can therefore simplify social realities. It must be remembered that these realities are extremely complex, and that there are many forces and factors that determine the extent and conditions of natural resource use and management in any context. 􀂃 People always belong to several various groups, and all societies and communities are structured along multiple networks and institutions. The exercises of stakeholder identification and analysis should therefore not try to put people in simple “boxes”. They must also understand that people who may have similar interests (and thus belong to the same “stakeholder group”) in the use of a particular resource may at the same time have conflicting interests in another sector or activity. 􀂃 Management objectives must be very clear before undertaking a stakeholder analysis, and must be developed in consultation with key management partners. This is why the behavioral models of stakeholders/stakeholder groups have to be analyzed and proper measures must be assigned to each of them in order to have the stakeholders “buy-in” for the project

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