WEEK 5

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WEEK 5

• CONSIDER PERSPECTIVES
• Introduction
• Stakeholder identification
• Stakeholder analysis
• Stakeholder management

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INTRODUCTION

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

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Origins of the Stakeholder Concept

• What is a stake?
• An interest or a share in an undertaking and can
  be categorized as
• Interest Right Ownership
• Legal
• Moral

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Origins of the Stakeholder Concept

• What is a stakeholder?
• An individual who possesses a stake

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Who Are Business Stakeholders?

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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

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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

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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

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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

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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.

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The Stakeholder wheel
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The Stakeholder wheel Contd
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The Stakeholder wheel Contd
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Using the Stakeholder wheel

• It helps to include both internal and external
  stakeholders.
• It helps to identify external stakeholder example
  various types of supplies

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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

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Power/Interest grid
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Power/Interest grid
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Power/Interest grid Contd
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Extended power/interest grid
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Extended power/interest grid Contd
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Extended power/interest grid Contd

• 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

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Extended power/interest grid Contd

• 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.

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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

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Using the power/interest grid Contd

• 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

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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.

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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.

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The acronym CATWOE represents the following
elements
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Example of documentation using CATWOE structure
is as follows
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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

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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

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Five types of business activity contd

• 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

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Five types of business activity contd

• 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

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Five types of business activity contd

• 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

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Five types of business activity contd

• 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 organizations
  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.

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RASCI charts

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

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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.

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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?

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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?

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The stakeholder management plan consist of an
assessment for each one and the areas to be
included in each assessment are as follows
Contd
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The stakeholder management plan consist of an
assessment for each one and the areas to be
included in each assessment are as follows
Contd
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The Thomas-Kilmann conflict mode instrument
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• 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

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• 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.

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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

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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.

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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

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Positive basis for negotiation
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Using the stakeholder management technique