Stakeholder Skills And Knowledge

Every important decision during the initiation, planning, and execution stages of a project is made by stakeholders in the organization.

very important decision during the initiation, planning, and execution stages of a project is made by stakeholders in the organization.

As a result, stakeholders can contribute valuable knowledge and skills to the development of a business case.

Different stakeholders in an organization make different contributions.

USERS AND OWNMERS

These are the stakeholders who will use and own the new product or service that the project will create. The users and owners detail the needs and specifications necessary to develop the business case.

Sales and marketing staff

Sales and marketing staff promote, price, market, and distribute the idea.

FINANCE STAFF

Finance staff coordinate financial data on sales, expenses, and budgets in the organization. Accounting services can analyze the costs and benefits of developing the idea.

IT STAFF

IT staff can provide information on the technology alternatives or implications of a new product or service.

LEGAL STAFF

A company's Legal Department can take care of patent rights and possible liabilities that may arise.

HUMAN RESOURCES STAFF

The Human Resources Department can allocate the personnel, training, and support necessary to develop the new product or idea.

RESEARCH AND DEVELOPMENT STAFF

The R&D Department can provide staff, time, equipment, and materials necessary to design, test, and modify the idea.

FACILITIES AND EQUIPMENT STAFF

The facilities and equipment staff ensure that space, energy, and equipment are available.

QUESTION 1

Which of these internal stakeholders can contribute valuable information necessary to develop a new product or idea?

1. Users and owners
2. Marketing staff
3. Legal services staff
4. Human Resources staff
5. Research and development staff
6. Regulatory authorities
7. Finance staff
8. IT staff
9. Facilities and equipment staff

Users and owners detail the needs and specifications necessary to develop the business case.

Marketing staff is invaluable for promoting, pricing, marketing, and distributing the idea.

Legal services staff can deal with the patent rights and possible liabilities that may arise.

Human Resources staff provide the personnel, training, and support necessary to develop the new product or idea.

Research and development staff supply the staff, time, equipment, and materials necessary to design, test, and modify the idea.

Regulatory authorities may be able to supply information about pertinent legislation, but they are not considered an internal stakeholder.

Finance staff coordinate financial data about the organization, provide accounting services, and can analyze the costs and benefits of developing the idea.

IT staffprovide information on the technology alternatives or implications of a proposed project.

The facilities and equipment staff ensure that the requisite space, energy, and equipment are made available for the project.

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George is conducting a meeting with several people who will be working with him on a business case to develop a new information system in a pharmaceutical supplier company.

The new system will integrate sales order entry, inventory management, credit control, production scheduling, and transport scheduling.

George has invited the stakeholders to introduce themselves and explain their involvement in the business case.

As George conducts the meeting, he invites Lauren to speak first.

Lauren: I'm Lauren from Accounting. As the new information system has minimal financial accounting implications, I'm here to make sure the project stays within budget.

This will involve estimating introduction and continuing costs of implementing the system and figuring out where we can make some savings.

Kenneth: I'm Kenneth from the Sales Department. The idea to implement the new information system came from my department. We are currently using a number of separate mainframe systems and some standalone personal computers.

This system is out of date and leaves us at a competitive disadvantage. We are losing business to competitors who can deliver faster. We need to modernize our systems. Otherwise we will lose 2% to 3% of our turnover per year.

Archie: I'm Archie from the IT Department. I'm going to be working closely with the Sales Department to establish and document the end-user requirements of the new system.

We need to analyze how the existing system works and identify limitations, problems, and opportunities with it. Together we'll need to establish the business objectives that will serve as criteria for the IT team to develop alternative IT solutions.

Mandy: I'm Mandy from the Human Resources Department. If the new information system is introduced, it means better client service and staff reduction in the sales order processing offices.

I'm here to advise on how we should handle relocation of staff and layoffs, if necessary.

In the previous scenario, George listened carefully to how the key stakeholders think they will impact the business case. George analyzes what their contribution to the business case will be.

Lauren

"I'm going to need Lauren's help to obtain financial information about the company, such as the hurdle rate and the rate of return the company requires to fund the project. With Lauren's expertise I'll be able to build a rational cost-benefit picture and also make sure the project stays within the budget."

Kenneth

"Kenneth seems like he will really motivate the team. He's really enthusiastic about implementing the new system and is convinced that it will improve the sales process and increase sales. His vast knowledge of the existing sales system will help determine the needs and specifications of the new information system."

Archie

"Archie's knowledge of business systems and their development is going to be crucial for developing the business case. I'll use Archie's input to write the project scope definition, which clearly defines what the information system will mean for the company and clients."

Mandy

"Mandy will really help with the issue of staff relocation and layoffs. It is estimated that, after the introduction of the new information system, the five sales offices throughout the organization would need 20 to 25 fewer people. The Human Resources Department will estimate the number of these people who will leave the firm due to the normal staff movement, could be used in other departments, or will be laid off. In addition, they will calculate layoff packages and the costs to train those members of staff who would remain in the sales office."

Part of planning a business case involves creating an environment in which Lauren, Kenneth, Archie, and Mandy can contribute their skills and abilities. Feedback and information from these stakeholders will avoid surprises and play an integral role in the development of a successful business case.

Stakeholder Questionnaire

The following list contains questions to ask about stakeholders:

• Who has most to gain from the success or failure of the project?
• What capacity does each stakeholder have to help or hinder the project?
• Whose attitude do you most want to change and why?
• Which stakeholder should you most concentrate your efforts on?
• What action are you going to take with respect to each of the key stakeholders?

QUESTION 2

Scenario

Darren works at Earthfarm, a food manufacturing company. He is writing a business case to develop a specialized organic food supplement for the growing health food market.

Darren is now going to talk to members of his team to decide on the scope of the business case.

Help Darren decide how each stakeholder can assist him with the project.

Darren consults the Research and Development Department. He will require its assistance in a number of areas of the project.

Select the actions where the Research and Development Department can contribute to the project.

Options:

1. Apply food processing and safety procedures for product development
2. Conduct testing
3. Establish the property right of the new supplement
4. Evaluate products against quality standards

The Research and Development Department will understand the appropriate guidelines.

The Research and Development Department supplies the staff, time, equipment, and materials necessary to conduct product testing.

Establishing property rights for a new product is outside the scope of the Research and Development Department's role.

The Research and Development Department will have the expertise in this area and will be aware of the relevant quality standards.

QUESTION 3

Scenario

Darren works at Earthfarm, a food manufacturing company. He is writing a business case to develop a specialized organic food supplement for the growing health food market.

Darren is now going to talk to members of his team to decide on the scope of the business case.

Help Darren decide how each stakeholder can assist him with the project.

Darren consults the Legal Department.

Select the area where the Legal Department can contribute to the project.

1. The Legal Department will not have any contribution to the project
2. Dealing with the procedure and terms required to establish the property rights of the new health food
3. Auditing the cost and benefit analysis of the project

The Legal Department is essential to securing the property rights for the new product.

The Legal Department will deal with patent rights and possible liabilities that may arise

This type of financial analysis is outside the scope of the Legal Department.

QUESTION 4

Scenario

Darren works at Earthfarm, a food manufacturing company. He is writing a business case to develop a specialized organic food supplement for the growing health food market.

Darren is now going to talk to members of his team to decide on the scope of the business case.

Hhelp Darren decide how each stakeholder can assist him with the project.

Darren knows that the Marketing Department can contribute to the project in a number of areas.

Select the ways in which Marketing can help the project.

1. Researching concepts, texture issues, appropriate sweetness, flavors, and aromas
2. Conducting taste panel testing and getting feedback from clients
3. Conducting interviews for research and development vacancies

The Marketing Department is responsible for carrying out research into consumer preferences.

The Marketing Department will liaise with the clients and customers in order to get their views on the new product.

This is not the responsibility of the Marketing Department. Marketing is responsible for promoting, pricing, marketing, and distributing the idea.

QUESTION 5

Scenario

Darren works at Earthfarm, a food manufacturing company. He is writing a business case to develop a specialized organic food supplement for the growing health food market.

Darren is now going to talk to members of his team to decide on the scope of the business case.

Help Darren decide how each stakeholder can assist him with the project.

How will Darren utilize the Human Resources Department?

What contributions will it make to the project?

1. Supplying information on how to obtain patents
2. Supplying specifications for new personnel and training that may be required to develop the new health food
3. Supplying the details on available existing personnel

This is not the responsibility of the Human Resources Department.

The Human Resources Department has the expertise required to draw up the specifications for the new staff that the company will need for the project.

The Human Resources Department will have access to information about all the staff in the company.

In this topic you have learned the benefits of correctly identifying the stakeholders for a project of a business case, and the methods you should use to manage the project stakeholders

I have been teaching and training agents, team leaders, supervisors, managers and admins of call centers and other businesses in BPO related fields. This series, comes as a result of that experience. I have more than 4,000 modules that I plan on sharing here. This is # 006-12

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