Tag Archives: Stakeholders

For Stakeholders, 2×2 Is Not Enough!

The world loves 2×2 matrices – they help make complex issues appear simple.  Unfortunately though, some complex issues are complex and need far more information to support effective decision making and action.  The apparent elegance of a 2×2 view or the world quickly moves from simple to simplistic.

One such situation is managing project and program stakeholders and convincing the stakeholders affected by the resulting organisational change that change is necessary and potentially beneficial.  As a starting point, some stakeholders will be unique to either the project, the overarching program or the organisational change; others will be stakeholders in all three aspects, and their attitude towards one will be influenced by their experiences in another (or what others in their network tell them about ‘the other’).

The problem with a simple 2×2 view of this complex world is the assumption that everyone falls neatly into one of the four options and everyone categorised as belonging in a quadrant can be managed the same way.  A typical example is:


Power tends to be one dimension, and can usually be assessed effectively, the second dimension can include Interest, Influence, or Impact none of which are particularly easy to classify.  A third dimension can be included for very small numbers of stakeholders by colouring the ‘dots’ typically to show either importance or attitude.

The problem is you may have a stakeholder assessed as high power, low interest who opposes your work, who you need to be actively engaged and supportive – ‘keep satisfied’ is a completely inappropriate management strategy.

The Salience Model developed by Mitchell, Agle, and Wood. (1997) introduces the concepts of urgency and legitimacy.


Urgency refers to the degree of effort the stakeholder is expected to expend in creating or defending its ‘stake’ in the project, this is an important concept!  However the concepts of ‘legitimate stakeholders’ and non-stakeholders are inconsistent with stakeholder theory[1] and PMI’s definition of a stakeholder – anyone who believes your project will affect their interests can make themselves a stakeholder (even if their perception is incorrect) and will need managing.  This model also ignores the key dimension of supportive / antagonistic.

The three dimensional Stakeholder Cube is a more sophisticated development of the simple 2×2 chart. The methodology supports the mapping of stakeholders’:

  • Interest (active or passive);
  • Power (influential or insignificant); and
  • Attitude (backer or blocker).


This approach facilitates the development of eight typologies with suggestions on the optimum approach to managing each class of stakeholder (Murray-Webster and Simon, 2008[2]). However, the nature of the chart makes it difficult to draw specific stakeholders in the grid, or show any relationships between stakeholders and the activity. However, as with any of the other approached discussed so far, the classifications can be used to categorise the stakeholders in a spreadsheet or database and most of the key dimensions needed for effective management are present in this model. The two missing elements are any form of prioritisation (to focus effort where it is most needed) and the key question ‘Is the stakeholder in the right place?’ is not answered.

Information needed for a full assessment

The factors needed for effective stakeholder management fall into two general categories, firstly the information you need to prioritise your stakeholder engagement actions; second the information you need to plan your prioritised engagement activities.

The two basic elements needed to identify the important stakeholders at ‘this point in time’ are:

  • Firstly the power the stakeholder has to affect the work of the project. This aspect tends to remain stable over time)
  • Secondly the degree of ‘urgency’ associated with the stakeholder – how intense are the actions of the stakeholder to protect of support its stake? This aspect can change quickly depending on the interactions that have occurred between the project team and the stakeholder.

I include a third element in the Stakeholder Circle® methodology[3], how close is the stakeholder to the work of the project (proximity) – stakeholders actively engaged in the work (eg, team members) tend to be need more management attention than those relatively remote from the work.

The next step is to assess the attitude of the important stakeholders towards the work of the project.  Two assessments are needed, firstly what is the stakeholder’s current attitude towards the project and secondly what is a realistically desirable attitude to expect of the stakeholder that will optimise the chance of project success?

Attitudes can range from actively supportive of the work through to active opposition to the work. The stakeholder may also be willing to engage in communication with you or refuse to communicate[4].  If you need to change the stakeholder’s attitude, you need to be able to communicate!

From this information you can start to plan your communication. Important stakeholders whose attitude is less supportive than needed require carefully directed communication. Others may simply require routine engagement or simple reporting[5].

If this all sounds like hard work it is! But it’s far less work then struggling to revive a failed project. This theme is central to my new book, Making Projects Work, Effective stakeholder and communication management[6]. You generally only get one chance to create a first impression with your stakeholders – it helps to make it a good one.

Making Projects Work

[1] For more on ‘stakeholder theory’ see:

[2] For more information see www.lucidusconsulting.com

[3] For more on stakeholder prioritisation see: http://www.stakeholder-management.com/shopcontent.asp?type=help-4

[4] For more on assessing stakeholder attitudes see: http://www.stakeholder-management.com/shopcontent.asp?type=help-6

[5] For more on the ‘three types of stakeholder communication’ see: http://www.mosaicprojects.com.au/Mag_Articles/SA1020_Three_types_stakeholder_communication.pdf

[6] For more on the book see: http://www.mosaicprojects.com.au/Book_Sales.html#MPW

Two new papers on the web

BeaverWe presented papers at the Engineers Australia MCPC14 conference late last year. They are now available on our website.

Understanding Design – The challenge of informed consent looks at the problem of communicating complex project information to stakeholders in a way they can understand.

Scheduling Complexity discusses the challenges of managing time in complex projects and the need for qualified schedulers.

For more of our papers and articles see: http://www.mosaicprojects.com.au/PM-Knowledge_Index.html

Lessons from manufacturing

In much of the developed world, and particularly Australia, small to medium sized manufacturing businesses are in decline.  However, the manufacturing landscape is not all ‘doom and gloom’ there are always a few organisations that are developing and performing well above the trend. This blog will suggest the ‘high performance work practices’ used in many of these high performance manufacturing businesses are directly transferrable to project teams.

Research has shown a correlation between High Performance Work Practices (HPWPs) and ways high performing manufacturing SMEs tend to operate.  HPWPs are a set of management tools and practices that help get the best out of an organisation and its employees, creating business success. The practices are divided into three broad areas, developing and encouraging:

  • Knowledge, skills and abilities;
  • Motivation and effort; and
  • Opportunities to contribute.

HPWPs manifest in five interlinked organisational outcomes:

  1. Self-managed work teams.
  2. Employee involvement, participation and empowerment.
  3. Total quality management.
  4. Integrated production technologies.
  5. The learning organisation.

Whilst some of the specific tools are unlikely to be directly translatable to many project teams, the key practices are.  High performance organisations are focused on motivating their team members (employees), building their knowledge and giving them opportunities to contribute to the success of the organisation.  If your team is happy, safe and efficient, you maximise the opportunity for success (see more on team motivation).

HPWPs are not ‘rocket science’; most of the individual concepts are well established in management theory, what’s new is a clear demonstration of the advantages gained by integrating the elements in a coordinated and planned way to drive high performance. (See more on HPWPs).

Achieving this is partially governance, partially organisational management, ensuring the team has the tools and skills to succeed, and that the work environment allows then to work efficiently.  The rest is attitudinal, ensuring the team are happy and feel valued, and employing team members that have a positive, collaborative and supportive attitude; leadership is the key, but so is ensuring you have ‘the right people on the bus’ (see more on leadership). It is much easier to teach a person new skills than it is to change their attitude.

Achieving a ‘high performance’ culture is a journey that needs planning; successful manufactures built their HPWP structure incrementally starting small and adding to the practices over time, ensuring all of the elements work together; a similar approach should work for project teams.

The trigger for this post was a recent survey by the University of Melbourne’s Centre for Workplace Leadership that has clearly demonstrated the value of HPWPs in SME manufacturing sector (see: http://www.workplaceleadership.com.au/projects/high-performance-manufacturing-workplaces-study/ ), and as the title suggests, we believe translating these concepts into practical project team management should drive similar successes.

Stakeholders generate profits for shareholders

A few months ago I posted on the concept of Understanding stakeholder theory and suggested organisations that focus on providing value to stakeholders do better than those focused on short term rewards for shareholders and the associated benefits flowing to executive bonuses.

A new report: From the stockholder to the stakeholder by Arabseque Asset Management and Oxford University supports this contention. The report reviews existing research on environmental, social and governance (ESG) issues. It is a meta-study of over 190 different sources the authors have demonstrated a strong correlation between organizations that take ESG seriously and economic performance. For example:

  • 90% of relevant studies show that sound sustainability standards lower the cost of capital;
  • 88% of relevant studies show a positive correlation between sustainability and operational performance;
  • 80% of relevant studies show a positive correlation between sustainability and financial market performance.

However, to translate superior ESG quality into competitive advantage, sustainability must be deeply rooted in an organisation’s culture and values. The consequences of failing to take ESG seriously continues to be demonstrated by another of my regular topics, BP. The report contains a plot of oil company share prices from 2009 (pre the Deepwater horizon disaster) through to 2014. BP’s share price continues to suffer the consequences of the short sighted cost cutting that precipitated the Gulf of Mexico disaster.


The report concludes that it is in the best economic interests of corporate managers and investors to incorporate ESG considerations into decision-making processes starting at the governance level right down the organisation hierarchy.

The full report can be downloaded from  http://www.mosaicprojects.com.au/pdf/Stockholder_to_Stakeholder.pdf.

Opportunity Lost

RICSThe first edition of the RICS / APM guidance note on Stakeholder Engagement is a missed opportunity. Hopefully the second edition will plug many of the glaring gaps.

The guide is built around ten principles:

  • Principle 1: Communicate
  • Principle 2: Consult early and often
  • Principle 3: Remember they’re only human
  • Principle 4: Plan it
  • Principle 5: Relationships are key
  • Principle 6: Simple, but not easy
  • Principle 7: Just part of managing risk
  • Principle 8: Compromise
  • Principle 9: Understand what success is
  • Principle 10: Take responsibility

All sound principles but in a strange order

Any complex endeavour needs a clear understanding of its objectives and then a plan to achieve the objectives before starting work, but ‘Understand what success is’, is at #9 and ‘Plan it’ at #4.  Surly the whole point of engaging stakeholder is to enhance the probability of success. Which means #1 understand what success is, #2 plan how to achieve success and then move into implementation.

But implementation needs focus, completely missing from the guide is any practical guidance on ways to understand the stakeholder community, prioritising the stakeholders so the communication effort is focused where needed and then managing the overall engagement effort for maximum effect. The best the guide can offer is a simplistic 2×2 matrix. My methodology, the Stakeholder Circle® is one of several that recognise the multiplicity of dimensions needed to understand a stakeholder, the outline is available free of charge from http://www.stakeholdermapping.com/stakeholder-circle-methodology/

The last omission is considering the path to stakeholder management maturity. The path to maturity is mapped at: http://www.stakeholdermapping.com/srmm-maturity-model/

I had hoped stakeholder engagement was moving beyond the soft ‘fluffy’ platitudes of the past into a pragmatic management process, allied to risk management, focused on maximising the aggregate benefit from a project to all of its stakeholders.  These ideas are in the RICS Stakeholder Engagement guide but unfortunately the guide lacks any guidance on how to achieve these objectives, with the exception of the CASE model in Appendix 3.

Hopefully the 2nd Edition will not be too far away.

The 1st Edition is available from http://www.rics.org/shop

Mind your language

Communicating ideas effectively to another person needs a common language, and a common understanding of the meaning of the symbols used in the language. While this sounds simple, language can take many forms including images, sounds and writing. This post is going to focus on the design and use of images as the language for communication.

The use of images as a language stretches back to the Ancient Egyptians. They developed a written language based on stylised pictures whereas the civilisations in the ‘fertile crescent’ developed cuneiform text.


Whist we may not be able to read the Egyptian script, many of these hieroglyphs are easily understandable.


Whereas the cuneiform script is completely indecipherable. However, just because we can identify a goose at the top of the third column of the hieroglyphs, it does not mean we understand its meaning!

A simplified graphical language can provide a really useful way of communicating complex information but when you use the language, you need to be sure the people you are communicating with have the same level of understanding you do and ‘see’ the same message.

One of the first attempts to stylise complex information and to make it accessible and easy to understand was the development of the London Underground map.

The London Underground Map

The London Underground is one of the most complicated systems in the world.  By the middle of the 20th century the map was becoming too complicated for easy use.

1930 Underground Map.

1930 Underground Map.

The concept of the topological map we all know and use was developed by Henry Charles Beck. ‘Harry’ Beck was an English engineering draftsman at the London Underground Signals Office. He developed the first ‘topological map’ in his spare time, based on an electrical wiring diagram.

London Underground was initially sceptical of Beck’s radical proposal and tentatively introduced to the public in a small pamphlet in 1933. It immediately became popular, and the Underground has used topological maps to illustrate the network ever since. There is even a book on the map: Ken Garland’s, Mr Beck’s Underground Map (Capital Transport Publishing 1994). The book describes the enormous care, craft, thought, and hard work of Harry Beck that went on for decades (exactly what it takes to do great information design).

4.underground_london_Beck original-drawing1

Beck’s version of the 1930 Map.

This style of communication has carried through to modern times but is not without its problems – you can easily get to the station you want, but there is no indication of how close or how far apart different stations are ‘on the surface’ – particularly if the stations are on different lines.

The current London Underground Map.

The current London Underground Map.

Success is contagious; most transport maps world-wide follow Henry Beck’s lead and a new universal language has been created.

Part of the new Melbourne Tram Map, using a version of Beck’s language.

Part of the new Melbourne Tram Map, using a version of Beck’s language.

The Melbourne map uses the same style as the underground map – lines are vertical horizontal or at 45 degrees, but unlike the underground stations, tram stops are not shown; the designers believe the street names and route numbers are more important.

Part of the Stuttgart Metro map.

Part of the Stuttgart Metro map.

Based on your knowledge of the London or Melbourne maps, you do not need to be able to read German to have a good idea how to navigate the Stuttgart metro from the Hauptbahnhof to the Zoo. The language of transport maps has become fairly standard world-wide.

However, design of the communication is still important; the designers of each map need to decide what is important (eg, the route numbers on the tram map), what is emphasised, what is suppressed, and what is left out – bad design can reduce the elegance of the communication and block understanding. Whereas innovation can enhance it – the Tokyo train system has its trains painted the same colour as the line used on the transport map – the orange trains follow the orange route and you get to the right platform by following the orange signs!

A similar convergence of communication style has occurred with in-car road maps. Most books and electronic sat-nav systems use a stylised language similar to the map of North Sydney (below) – another language designed for a specific purpose.

North Sydney

North Sydney

For the purpose of navigating a car to the ‘Aiki Kunren Dojo’, this ‘simplified road map’ is far more useful than the 100% accurate photograph of the same location!

North Sydney

North Sydney

The style of the road map above has been taken ‘virtual’ and global by several organisations including Tomtom. You do not need to be able to read the street names or understand the spoken advice ‘turn left in ……’ to follow the map – the pictures say it all and are just as effective in Shanghai and Munich as Sydney or Melbourne.


When designing a graphical communication language, useful, accurate and fully detailed are not synonymous! Both of the mapping languages discussed so far are really simple to use provided you have learned to ‘read the language’ and interpret them correctly. But as we all know North Sydney looks like the Google Earth photograph (not the map) and Melbourne’s geography only has a passing resemblance to the tram map – but we have learned how to read the ‘language’ and can then use that knowledge of the language to understand similar maps in different cities.

Project Maps

The same challenge applies to project dashboards, reports, and artefacts such as bar charts and CPM diagrams. Creating an appropriate level of understanding in a person’s mind about the true situation of the project and your intended work plans requires appropriate information to be communicated in a language that is understandable to the stakeholder. In this context, ‘appropriate’ does not mean complete or fully detailed; selecting the right level of detail is in itself an art form.  The bar chart below may be fully detailed and precise but it is not a good communication tool!


And while preferred by many project controls professionals, the CPM logic diagram below is even less likely to work as a communication tool for stakeholders.


These specialist languages are useful to trained project controls professionals and some experienced project management professionals but are too complex for most communication needs.

As suggested above, effective communication does not need fully detailed or accurate representation. What is needed is ‘useful’ information that can be used!  You do not need to be an expert in directional boring to understand the plan for this project (all that is missing is the timing for each stage):


Simple is good, simplistic is dangerous! One of the popular options for reporting project status is using simplistic ‘red-amber-green’ (RAG) traffic lights such as these:

14.RAG health_image

We know there is a scope problem but there is no real indication of the seriousness of the situation or how far into the ‘red zone’ the project actually is.  Rather than the simplistic 3 point RAG scale, the same information can be displayed using more insightful tools:

15.Beter option

Any of the ‘gauges’ will tell you where within each band the project is situated, add in a simple ‘change’ report and the trend becomes apparent as well. The art is knowing how much information is enough.


From the hieroglyphs of the Ancient Egyptians to the Tomtom road map, the art of using pictures for effective communication is creating a set of symbols that communicate your ideas and information simply and accurately, and then taking the time to teach your stakeholders how to read the language.

Effective communication, focused on obtaining the understanding and buy-in from a stakeholder needed to deliver a successful project requires:

  • Understanding who are the key stakeholders at ‘this point in time’ that you need to influence;
  • Understanding their needs and the best way to communicate with them (the Stakeholder Circle® methodology is designed for this purpose);
  • Communicating the appropriate amount of information in a way that can be understood by the stakeholder; and then,
  • Taking the time to help the person reach a proper understanding.

The communication challenge is recognising that some concepts will be easy to communicate in some communities of stakeholders, others will be more difficult; and people are frightened of things they don’t understand.

Designing an effective communication strategy requires the project team and project leaders to firstly derive a common understanding between themselves, then determine what the key stakeholders actually understand, then determine how to communicate effectively with the key stakeholders to build their understanding to the level needed to get the ‘buy-in’ required to make the project successful.

Effective communication is the tool that builds understanding, reduces opposition based in ‘fear of the unknown’ and generates a framework for success – for more on effective communication see: http://www.mosaicprojects.com.au/PM-Knowledge_Index.html#PPM07

What is your personal brand?

BrandingIf you want a stakeholder to ‘buy into’ your ideas, believe your communication or take action on your recommendations they need to recognise you as a credible messenger. Whilst you can build credibility over time, you only ever get one chance to make a good first impression and your personal brand will be a major contributor to the impression created in the mind of the person you are interacting with.

Credibility is a vital element in communication, particularly when delivering bad news, and your credibility is closely linked to a person’s perception of you, which is in part driven by your ‘personal branding’, reinforced by your actions and behaviour. So what is personal branding? And how do you create yours??

The concept of a personal brand was first raised by Tom Peters in 1997, and is defined as the process by which we market or position ourselves to others. As with commercial brands, it defines and creates a perception of who we are in the minds of anyone exposed to the ‘branding’.

In the past, ‘personal brands’ were reserved for celebrities and ‘important people’. However, the rise of social media has levelled the playing field and made branding not only more available, but also a key to achieving your objectives. If your next meeting is important, most people will ‘Google’ you before they meet with you, and develop their vital ‘first impression’ of who you are before you even get a chance to speak with them.

From corporate brands to product brands and down to your personal brand, branding is a critical component in a customer’s buying decision – will they ‘buy’ what you have to say or ignore you; will they agree to meet with you or refuse; this decision will be influenced in part by their perception of your ‘brand’. The question is what sort of brand do you want to create and is it authentic?

Fundamentally, as with every successful brand, your brand needs to be focused on value as opposed to features (previous roles, education, etc) and reflect your credibility, your value proposition and what differentiates you from others. This means:

  • Making sure your digital footprint is integrated. For example, your Twitter and LinkedIn persona should reflect each other. While you may choose to use Facebook for personal connections, you still need to ensure there’s nothing that could damage your professional profile.
  • Use sites like LinkedIn to stay in touch with colleagues, alumni, suppliers and other contacts, but avoid requesting contacts with people you don’t know. In such cases, a personal introduction from a shared contact (which you can find on LinkedIn) is better. You can also ask them to provide a “recommendation” for you on your profile.
  • Include your career summary (short and sweet) in all of your online bios.
  • You may not be ready to start blogging yourself, but you can still add comments and feedback to other commentators in your field of interest. This is the first step in understanding and engaging with your audience.
  • Keep your online profiles up-to-date. This includes job moves, but you can also share content, such as interesting articles and links, to keep your online profile fresh and dynamic. These “shares” should reflect your fields of interest and expertise, and help build a picture of your brand.
  • Blogs, posts and tweets should be professional, interesting and add value to the reader. Don’t use social media to simply advertise your business. For longer posts, ensure someone else proofs your work; otherwise poor expression could make it counter-productive.
  • If you are employed by an organisation, ensure you are familiar with its social media policy and follow it. If it doesn’t have one, it’s something you should suggest as a risk-management tool.
  • Remember, once something is online, it’s often there forever. So be sensible about your personal information, monitor your privacy settings and use common sense about what you do and don’t post. And if in doubt, don’t post it!

Whilst your on-line presence should emphasise your strengths and values, it needs to be ‘you’ or your hard work will come undone as soon as someone meets you face-to-face; authenticity is critical.

The next step in building your brand is meeting an important ‘contact’ for the first time. You need to either make a good ‘first impression’, or if the other person has done their homework, support the brand image created by your on-line presence. The common sense things to do before any initial meeting with an important person is some simple research, this may include:

  • Starting with their company’s website, Google the person you are meeting; look up the person’s bio and also Google the person to get other bios or profiles. With the person’s bio in hand, you should lock in your mind the following facts: where they grew up, where they last worked, and where they went to school. Make sure it is the bio of the person you are meeting; there are a lot of Chris Smith’s out there and sometimes they even work within the same company!
  • Find an online image of the person. It is always more comfortable (not to mention easier to spot the person) when you know what he or she looks like before the meeting. Having seen the person’s face lets you go into a meeting feeling like you have met the person before and be more at ease. This is also helpful to do for phone calls.
  • Get the latest news or analysis on the company.
  • Find out who is connected to the person or firm you are meeting and ask him or her to share as much background as possible.
  • Know your top objectives for the meeting and the top one to two questions you would like answered.

Knowing this information is important, but don’t show off. Be armed with the data so that you can answer or direct the conversation appropriately; your goal is not to demonstrate what you know of the person or company but to achieve what you had in mind when you first set up the meeting.

The last element in building your brand is your appearance – you need to look the part and dress appropriately. There is no ‘one right answer’ here, but it never hurts to be a little conservative in both dress and demeanour (unless you are selling wild creativity). Do your research and balance conforming to the other person’s norms of dress and behaviour and staying true to your ‘brand’.

Putting it all together.
In any sales situation you have to sell yourself first and then you can sell your time (work of consulting), product, or ideas (communication). But remember the ‘sale’ only occurs when the other person decides to buy. The objective of ‘branding’ is to make the process easier.

Once the other person has decided you are someone they can ‘do business with’, the quality of the message you are communicating cuts in, effective writing skills and presentation skills are still critically important, but they cannot come into play until the ‘other person’ has decided to take the time to read or listen to your message.