1. 1 www.utdallas.edu How to Increase Project Success using Proven Stakeholder Management Techniques Laszlo A. Retfalvi P.Eng. PMP PMI-RMP General Manager Retfalvi and Associates www.retfalviandassociates.com

2. 2 Copyright Notice The contents of this presentation are Copyright © 2013 by the presenter and PMI OVOC. Permission is granted for participants to print the presentation handouts for use during the conference and later personal reference. PMI OVOC reserves the right to store this content for archival purposes as a record of conference proceedings and to publish this content electronically for the purpose of disseminating conference proceedings to conference participants. All other use, storage, retrievable, distribution, or reproduction must be authorized in advance, in writing. 2013 National Capital Project Management Symposium

3. 3 Agenda of Session Key Take Aways Background The Challenge of Managing Stakeholders Event Based Stakeholder Risk Management The Benefits Review of Key Take Aways Summary Contact Information

4. 4 Ensure project stakeholders focus on goals and deadlines while ensuring overall acceptable risk Include Event Based Stakeholder Risk Management (EBSRM) technique as part of a sound stakeholder management approach Select and communicate important project information to stakeholders Project planning should include risk simulation to help engage stakeholders Key Take Aways

5. 5 Background Effective management of medium to large, complex procurement and integration projects is a difficult challenge The identification and management of project stakeholders is a critical success factor to project success The Project Manager’s ability to seek agreement on the goals of the project among the key project stakeholders plays a large part in the project’s success Failure to do so may expose the project to unnecessary delays, missed opportunities, negative financial impacts, and potential damage to the organization’s reputation

6. 6 Question Time Take a few moments and ask yourself the following: –Q1: Do you have a single page easily understood view of your current project? –Q2: Do you have a clear list of major stakeholders and their expectations on your current project? –Q3: Do they know your major project risks and agree with your planned responses?

7. 7 The Challenge of Managing Project Stakeholders Project stakeholders generally have their own expectations, biases, and tolerances – The larger the number of stakeholders, the more varied these parameters are From experience, project stakeholders tend to delay admitting that their project contains major issues and risks – Delay communicating risk and how to deal with the risk – Accountability – Overall result is a situation worse than when it started Project Managers must be able to understand what the key project risk and issue areas are and always be in a position to communicate these effectively to stakeholders

8. 8 Best Method to Manage Stakeholders ? 2013 National Capital Project Management Symposium

9. 9 Event Based Stakeholder Risk Management 7 Key Attributes 1.Top-down Approach “Bottom-up” tendency may miss Big Picture 2. Event-centric Focuses on key events 3.Execution Based Uses risk as a common thread 4.Stakeholder-centric Increases engagement and accountability 5. Inherent Schedule and Cost Analysis Increases stakeholder confidence 6.Key Artifacts Significantly improves communications 7. Consultative Leverages input from others

10. 10 Event Based Stakeholder Risk Management

11. 11 Step 1: Executive Project Summary High-level Single-page view Swim Lanes Milestones Key activities Stakeholders Business-oriented Clearly shows end dates and time remaining

12. 12 Executive Project Summary – A Closer Look Key Stakeholders and their activities are included in the EPS

13. 13 Which View is Easier to Understand ? The EPS is a very useful tool in the Project Manager’s toolkit

14. 14 Step 2 – Identify Stakeholders A challenge encountered by many Project Managers is to properly identify and prioritize those stakeholders which are directly and indirectly affected by the project The Executive Project Summary is a powerful method by which to identify and engage project stakeholders –By focusing on key events, we can also focus on who is affected by these events and what engagement is expected –Engagement is improved by clear visual identification of events Powerful method by which to establish and improve stakeholder accountability, as stakeholders cannot easily “hide” and state they did not understand their expected involvement

15. 15 Step 3: Critical Event Tree Top 20-25 key project events Completion date for each event Team agrees to critical events before proceeding If the events in the Critical Event Tree are under control, the Project Manager and stakeholders can be assured that the project is generally in good shape

16. 16 Step 4 – Risk Event Tree Focused on the risks associated with the project’s critical events Break the Cult of Optimism: Assume critical events will not occur Each risk event includes key risk information Excellent communication tool

17. 17 Step 5 – Risk Register Ensure that the project has a properly developed risk register The project risk register is a key artifact where the risk events and associated parameters are documented and maintained Each risk event is included in the risk register and the result of any risk analysis and associated responses The risk register is made available to all project stakeholders to ensure transparency and is reviewed regularly. The project risk register is an ideal method by which to increase stakeholder accountability by assigning stakeholders as risk owners as appropriate

18. 18 Step 6 – High Level Schedule Project Managers need to properly understand the implementation and use of proper scheduling methods as a tool to plan, coordinate and schedule the execution of projects –Proper scheduling is difficult and not well understood by most Project Managers or staff A clear and agreed to high level project schedule is required first –Tendency is to force a deep dive too early because scheduling tools make it easy to do so –Use the Executive Project Summary as a guide Schedule or cost risk analysis is performed on the high level schedule

19. 19 Step 7 – Schedule and Cost Risk Analysis Many Project Managers rely too heavily on the Critical Path Method (CPM) to provide the most likely completion date –This results in schedules dates which most of the time are inaccurate and optimistic Further, Project Managers simply add up estimates as a way to build up a project cost estimate –This results in cost estimates which are inaccurate and optimistic resulting in projects overrunning their cost estimates. End result is project stakeholders do not feel confident in schedule and cost targets

20. 20 Schedule and Cost Risk Analysis - A True Friend Project File: Apr 4 2016 (S) Oct 11 2016 (F) $ 776,660 K

21. 21 Schedule and Cost Risk Analysis The advantage is that schedule/cost targets and probability of success in meeting these targets are identified and communicated to all project stakeholders. This ensures everyone is on “the same page” and further assists in ensuring stakeholders understand the challenges associated with the project and their potential outcomes.

22. 22 Step 8 – Consult and Brief Regularly Communication is key to success There is a very good chance that someone has previously experienced the risk or issue currently being addressed – A key element of the approach is to leverage previous experience and lessons learned Project stakeholders may be involved in more than one project at a time and as a result, they may “drift” – Briefing the Executive Project Summary, Critical Event Tree, and Risk Event Tree at project meetings brings focus back to project stakeholders to remind them of the specifics of the project Review and emphasize project goals and key events frequently to the project team and stakeholders

23. 23 Recap of EBSRM

24. 24 One of the main objectives of EBSRM is the establishment of open and timely exchange of project information among all project stakeholders while addressing project risk as an added inherent benefit The Bottom Line

25. 25 Ensure project stakeholders focus on goals and deadlines while ensuring overall acceptable risk Include Event Based Stakeholder Risk Management (EBSRM) technique as part of a sound stakeholder management approach Select and communicate important project information to stakeholders Project planning should include risk simulation to help engage stakeholders Key Take Aways

26. 26 Let’s Review Our Questions Take a few moments and ask yourself the following: –Q1: Do you have a single page easily understood view of your current project? –Q2: Do you have a clear list of major stakeholders and their expectations on your current project? –Q3: Do they know your major project risks and agree with your planned responses?

27. 27 Summary EBSRM is an valuable management technique EBSRM is effective in keeping stakeholders: – Aligned – Focused on the right things – Realistic in project expectations Promotes accountability – difficult to “hide” Project Managers must focus stakeholders on: What is important to control vs. What is easy to control

28. 28 Questions ?

29. 29 Contact Information Name: Laszlo A. Retfalvi P.Eng. PMP PMI-RMP Organization: Retfalvi and Associates Inc. Position: General Manager Web: www.retfalviandassociates.com Email: laszlo@retfalviandassociates.com Phone: 613.883.9044 Skype: LRetfalvi “Trusted Partners Helping Our Clients Succeed”