WEEK 5 CONSIDER PERSPECTIVES Introduction Stakeholder identification Stakeholder analysis Stakeholder management

INTRODUCTION Stakeholders Individuals and groups with a multitude of interests, expectations, and demands as to what business should provide to society

Origins of the Stakeholder Concept What is a stake? An interest or a share in an undertaking and can be categorized as: InterestRightOwnership Legal Moral

Origins of the Stakeholder Concept What is a stakeholder? An individual who possesses a stake

Who Are Business Stakeholders? GovernmentEmployees Business Community Consumers Owners

INTRODUCTION The BA must work closely with stakeholder in order to have a successful change. Stakeholders can support or resist a change, they can clarify or confuse requirements, and they have knowledge that the analyst needs to acquire. The process for working effectively with stakeholders has three major steps: Stakeholder identification Stakeholder analysis It is the process of identifying how the individuals or groups that are likely to affect or be affected by a proposed action, and sorting them according to their impact on the action and the impact the action will have on them Stakeholder management

Stakeholder Identification This is done in order to identify the stakeholders within these groups who may have working links or interest with the area under investigation. Techniques Stakeholder nomination during interviews or workshops Background research through document analysis The stakeholder wheel

Stakeholder nomination The first nomination is the project sponsor who in turn should be able to specify the key managers and business staff who need to be involved in the business analysis work This approach works in a hierarchical fashion of organization. This approach has the risk of omitting important details because the people nominated are sympathetic to the sponsor or senior managers resulting in limited analysis

Background Research The background research is also known as report analysis or background repot There are many reasons for initiating a business analysis project. These include a change in business strategy, a request from a senior manager, changes to a related business area and legal or regulatory changes, it can also be follow up on feasibility study. Examining such documentation will often provide information that will help the analyst uncover a wide range of stakeholders, including those working outside the area under investigation. Other documents that are often found within organization and can be useful when identifying stakeholders are organization charts or project structures

The stakeholder Wheel The wheel identifies the range of stakeholder groups, and adds structure to the process of identifying them This process make it possible to include both internal and external stakeholder there by making it possible to consider all views.

The Stakeholder wheel

The Stakeholder wheel Cont’d

Using the Stakeholder wheel It helps to include both internal and external stakeholders. It helps to identify external stakeholder example various types of supplies

Stakeholder Analysis Technique: Power/interest grid. Other names for the techniques are the influence/interest grid and the P/I grid. Variant is the power/impact grid

Power/Interest grid

Power/Interest grid Cont’d

Extended power/interest grid

Extended power/interest grid Cont’d

High power/low interest: within organization there are often incidents that bring seemingly minor issues to the attention of the more senior stakeholders, analyst should be aware of the stakeholders in this category Medium power/low high interest: these stakeholders often include middle managers from across the organization, more important customers and supplies, and external regulators

Extended power/interest grid Cont’d Low power/low interest : These are the stakeholders who do not have a direct interest or involvement in the business situation Low power/medium to high interest: these stakeholders are the business staff who will operate any new processes and systems, they need to be kept informed and if possible kept on side.

Using the power/interest grid Manage actively: They need to be closely involved at all stages of the project and any key decisions. They are the high power/high interest stakeholders. Keep satisfied: They need to be kept informed where necessary so that they do not begin to develop an unhelpful interest in aspects of the project and possibly delay or even reverse the progress. They are the high power/medium interest stakeholders Watch: These stakeholder are usually at such a senior level that the business analysts work is of little interest to them, however powerful group could arouse their interest. Eg the media. They are the high power /low interest stakeholders

Using the power/interest grid Cont’d Keep onside: these are the medium power stakeholders with a range of levels of interest from low to high Keep informed: these stakeholders are usually the business staff who will apply the new process and use the new system. Keep them informed to avoid rumors The are low power and medium to high interest category. Ignore: these are the stakeholders with low power and low interest. The change are likely to have little impact on them. Stakeholder analysis need to be carried out throughout the project

Variants Techniques Variants include VOCATE (viewpoint, owner, customer, actor, transformation, and environment), PARADE (perspective or point of view, activity, recipient, actor, decision-maker and environment) and Root definition (in the soft Systems methodology). One of the key reasons for managing relationship with stakeholders is to ensure that we understand their ideas, priorities and wishes before we put forward recommendations, or even worse, implement business changes. Understanding what the key players wants is vital if the work is to go in the right direction. One of the most important feature of stakeholder analysis involve uncovering the direction each stakeholder believes the organization should take.

CATWOE Peter Checkland and his team developed CATWOE approach to understanding what stakeholders value and the impact it will have on the direction of the project.

The acronym CATWOE represents the following elements:

Example of documentation using CATWOE structure is as follows :

Business activity modeling This is also known as BAM, related terms include the conceptual model and the logical activity model. The BAM is build at the level of what the organization does, not how it does it. It is more province of business process models

Five types of business activity Do: these are the primary task of the organization. The things that is has been set up to do. Eg training and consultancy firm might have deliver training and provide consultancy as its doing Resources are not the same for all organizations Examples of resources are: Staff Suppliers Production and services Production and processes Delivery processes Premises Infrastructure Marketing channels Distribution channels finance

Five types of business activity cont’d Enable: these activities obtain and where relevant, replenish the resources needed to perform the primary task. Resource include people, materials, customers, etc There may be several connected enables associated with each resources. Example with staff enabling activities might be: Recruit staff Train staff

Five types of business activity cont’d Plan: In building BAM it is assumed that the basic strategic planning has already taken place. The planning activities on BAM are the more detailed ones associated with putting the strategy into effect. Technique Plan numbers and types of staff required Plan recruitment methods Plan training

Five types of business activity cont’d Monitor: these activities monitor the achievement of the performance measures that have been set during the planning activities Technique: appraise staff performance Monitor staff satisfaction

Five types of business activity cont’d Control: There are two ways of showing control activities on a BAM. Either a control activity is associated with each monitoring activity or all monitoring activities feed into one control activity One or more control activities can be put in place to take action if the organization’s performance as measured by the monitoring activities falls short of the targets set in the planning activities. BAM is a conceptual model of activities the BA would expect of see in place. BAM is to find out if there are gaps between what should be happening and what is happening now.

RASCI charts Variants are RACI ( responsible, accountable, consulted, informed) or ARCI ( accountable, responsible, consulted, informed).

Stakeholder management A stakeholder management plan provide a means of capturing all of the information, and setting out the actions to be taken with regards to each stakeholder.

Effective Stakeholder Management Careful assessment of the five core questions: Who are our stakeholders? What are our stakeholders’ stakes? What opportunities and challenges do stakeholders present? What economic, legal, ethical, and philanthropic responsibilities does our firm have? What strategies or actions should our firm take to best manage stakeholder challenges and opportunities?

Key Questions In Stakeholder Management What strategies or actions should our firm take to best manage stakeholder challenges and opportunities? Should we deal directly or indirectly with stakeholders? Should we take the offense or the defense in dealing with stakeholders? Should we accommodate, negotiate, manipulate or resist stakeholder overtures? Should we employ a combination of the above strategies or pursue a singular course of action?

The stakeholder management plan consist of an assessment for each one and the areas to be included in each assessment are as follows: Cont’d

The Thomas-Kilmann conflict mode instrument

The Thomas –Kilmann conflict mode instrument sets out five positions that may be adopted by people in a conflict or negotiation situation Assertive Avoiding: Unassertive and uncooperative. This stance is based upon a refusal to acknowledge that conflict exists often in the hope that is ignored the situation will resolve itself. Can build resentments Accommodating: Unassertive and cooperative. In this position stakeholders have acknowledge their concerns and the existence of the conflict, but have decided to give way to the ideas or request from other parties. Usually those that are habitually ignored by the other stakeholders

Competing: Assertive and uncooperative. Stakeholders who adopt competing position are keen to focus on their own ideas and concerns and may pay little attention to the other stakeholders’ needs. Compromising: Moderately assertive and moderately cooperative. This is often the approach that people recommend. Meeting all parties in the middle. Collaborating: Assertive and cooperative. Sometimes known as win - win scenario, collaboration is the ideal outcome go a situation, since all the participants feel that the result is beneficial for them.

Principled Negotiation The principled negotiation technique was developed by William Ury and Roger Fisher. There are four main points that define this approach: People : consider the people and separate them from the problem Interest: Focus on the stakeholders’ interest and priorities rather than their positions. Option: Consider a variety of options before making any decisions. Criteria: Set criteria upon which the decision will be based

Using principled negotiation Failing to consider the people and to appreciate the part that emotions and beliefs play in a negotiation, can be disastrous. Where there is a conflict situation the first step is often to blame the people involved rather than finding the root of the problem and sorting it out.

Three aspects to consider about people Perception: How do they view the situation? This involves trying to understand the stakeholders’ emotions and beliefs about the situation. You can use the CATWOE techniques in this situation Emotion: the way that people feel during negotiation can often be as relevant as what they say. It can be vey valuable to acknowledge those feelings and recognize that they are important. Communication: effective communication is very important in negotiations. This means using clear language that will encourage everyone to contribute

Positive basis for negotiation

Using the stakeholder management technique