Chapter 5 - The project manager, sponsor and other stakeholders

Which guiding principles should be followed by the project manager?

- All decisions should be directed towards achieving the project objectives. - Only the remaining work in the project can be managed (what is already done is done).

Who forms The project board?

A group of people, usually from within the sponsor's organisation, who have been given responsibility for making executive-level decisions on behalf of the sponsor, throughout the project

What are the roles of contractors?

Contractors are external participants doing the work on a project and are commonly referred to as - Contractors - Subcontractors - Sub-subcontractors

Project Management Life Cycle - End Phase

Ensure that closing activities are performed

What are the roles of Senior management?

- Decide whether the project will proceed - Determine the extent of support the project will receive relative to other projects - The project manager needs the participation of senior management

The importance of managing expectations

- Dissatisfied or disillusioned stakeholders can cause a project to fail - Managing stakeholders perceptions and expectations is about generating agreement and harmony between the different views and beliefs they hold - The problem is that the various stakeholders' perspectives and interests are not always obvious - Stakeholder analysis can be useful to overcome this problem

How do we divide the Project Management Life Cycle?

- Early phase - Middle phase - End Phase

A project manager must...

- Ensure that the project gets the necessary attention in the rest of the organization - Meet the needs of the sponsor * Ensure the project's direction is in alignment with the sponsor's intentions. * Together with sponsor: ++ Develop the appropriate organizational structure and approach to stakeholders ** Clarify and assess risks ** Negotiate directly with stakeholders - Meet the needs of the other stakeholders - Manage the project life cycle

Project Management Life Cycle - Middle phase

- Follow-up and control - Create plans for - and effectuate - changes when things do not go as planned - Internal and external communication and reporting

Project Management Life Cycle - Early phase

- In collaboration with sponsor; get commitment from the other stakeholders to support the project - Establish a project organization - Negotiate for necessary resources from the base organization - Estimate costs, time and risks. - Create plan for risk management - Establish methods for communication, control and reporting

What are the roles of The project board?

- Oversees the planning and execution of the project - Meets regularly with the project manager to review project progress and consider issues that cannot be resolved by the project manager - Makes decisions at the decision points between the project phases

Which roles are examined in this chapter?

- Project manager: the individual ultimately responsible for managing and leading the project to its successful conclusion. - Sponsor (or client or owner): the individual, group or organisation that provides the financial resources, in cash or in kind, for the project. - Project board (or steering committee): directs the project on behalf of the sponsor, and makes sure that everything goes according to plan. - Project champion: someone who strongly supports the project and communicates enthusiasm and charisma about it to others - Consultants and contractors: provides specialist advice, information and consulting services for a fee. - Finance providers: provide the finances required by the project over and above that contributed directly by the client - Performing organisation: the organisation or organisations whose employees are most directly involved in doing the work of the project. - Customer, or end user (if separate from sponsor): the individuals or organisation who will use the end product. The terms 'sponsor', 'client' and 'customer' are sometimes used indiscriminately, however, sponsor and client usually refer to whoever is paying for the project, while customer usually means the end user of the project's end products or services

From managing to collaborating with stakeholders

- Stakeholder management emphasises mechanisms of how an organisation can identify, monitor and respond to its stakeholders. -The collaboration approach focuses on building stakeholder relationships that are reciprocal, evolving and mutually defined, and that are a source of opportunity and competitive advantage

What are the Core competencies required by project managers according to IPMA and NFP?

According to IPMA (International Project Management Association) and NFP (Norsk Forening for Prosjektledelse) : - Method skills •Planning •Organizing •Executing project management: Goal setting, scoping, staffing, follow-up, etc.... - Leadership skills •Integrating the project process: Capability to take multiple approaches and assess from multiple viewpoints Structuring •Ensuring progress Demonstrate energy and enthusiasm, effective communication, listening skills, flexibility, assertiveness. •Stimulating to cooperation

What are the Core competencies required by project managers according to PMBOK?

According to PMBOK (Project Management Body of Knowledge), issued by PMI (Project Management Institute): - Hard skills •Planning •Scheduling •Controlling - Soft skills •Leading •Communicating •Negotiating •Problem-solving •Influencing the organisation

What are the roles of consultants?

Consultants role is to act on behalf of the client to deliver a service, usually with deliverables in the form of (Turner, 1995): - Advice - Information - Assignments

Who are the projects stakeholders?

Individuals, groups and organisations who are actively involved in the project or whose interests may be positively or negatively affected as a result of the project

What is Stakeholder analysis used for?

It is a technique that can be used to help identify project stakeholders and discern their values, beliefs, assumptions and expectations at the start of a project.

What are the roles of The project champion?

Role is typically non-traditional and often contains one or more of the following elements: - Cheerleader - Visionary - Politician - Risk taker - Ambassador Roles are not always unique - One person might take more than one role (e.g.the project leader might also be a project champion). - Some roles might be taken by more than one person (e.g. there may be more than one project champion. But never more than one project manager!).

Who is The project champion?

Someone who grasps the benefits of and is enthusiastic about the project

Who are ussualy filling the role of sponsors?

Sponsors can be: - Private individuals - Several private individuals - Corporate - Government - Multinational

What is the difference between The project sponsor and the end user?

The project sponsor pays for the project; the end users enjoy the benefits of the project.

What are the resposibilities of a project manager?

The responsibilities of a project manager can be divided in: - Overall responsibility Fulfill the project's goal within the approved schedule, budget and quality as set by the sponsor - Early project responsibilities Goal clarification, scoping, planning, staffing... - Ongoing responsibilities Control and follow-up, decision making, handling stakeholders, communicating....

Which stages involve Stakeholder analysis?

The stages involved are: - Identification and analysis - Mapping stakeholders according to their impact on the project •Interest: How interested are they in the project? •Importance: How important are they for the project? •Position: Do they support the project? •Power: How much power do they have to influence the project? •Predictability: How predictable are they? - Response and resolution of issues

Power vs interest matrix

The third matrix maps stakeholder power against expected interest in the project and helps to determine the best strategy for managing stakeholder expectations. The four possible types of stakeholders are: A Stakeholders with low power and a low level of interest. Response: No immediate action required - monitor carefully in case their position in the matrix changes. B Stakeholders with low power and a high level of interest. Response: No immediate action required - keep informed and monitor carefully in case their position in the matrix changes. C Stakeholders with high power and a low level of interest. Response: These are the most challenging stakeholders to maintain relationships with as, despite their lack of interest in general, such a stakeholder might exercise its power in reaction to a particular project or initiative. D Stakeholders with high power and a high level of interest. Response: These stakeholders are the 'key players', their reaction towards the organisation's projects and initiatives must be given primary consideration.

Position vs importance matrix

This matrix categorises stakeholders according to their level of support or opposition to the project and their relative importance to the project sponsor. A Problematic stakeholders oppose the project, and are relatively unimportant to the organisation. Response: Target moderate stakeholders with educational programmes, adjust project plans to accommodate stakeholders, and prepare defensive plans if coalitions of stakeholders form. B Antagonistic stakeholders oppose or are hostile to the project and are important to the organisation. Response: Identify potential coalitions and take defensive action, prepare for undermining supporters, anticipate nature of objections and develop counterarguments, and engage selected stakeholders in bargaining, and determining planned changes to gain support. C Low priority stakeholders support the project and are relatively unimportant to the organisation. Response: Provide educational programmes and promote involvement with supporters. D Supporter stakeholders support the project and are important to the organisation. Response: Provide information to reinforce position, and ask supporters to influence indifferent stake lolders.

Power vs predictability matrix

This matrix maps stakeholder power against predictability and shows where political efforts are best channelled during the project. As with the position/importance matrix, project managers should develop strategies to influence stakeholders or counter the power of stakeholders. The four possible types of stakeholders are: A Highly predictable stakeholders with low power that present few problems. Response: Not critical, little or no action required. B Unpredictable stakeholders with low power that are manageable. Response: Although not critical, these stakeholders should not be ignored as they might have an influence on the attitude of the more powerful stakeholders. C Powerful stakeholders that are predictable. Response: These stakeholders are problematic but sponsors should attempt to influence their stance by formulating strategies that will address their expectations or demands. D Powerful stakeholders with low predictability that present the greatest danger or opportunity for the organisation. Response: These are the most difficult to manage stakeholders. They are in a position to block or support new strategies or programmes. The sponsor should test out project ideas with this group of stakeholders prior to detailed planning or execution.