Stakeholders? What stakeholders?

Introduction

Photo by airfocus on Unsplash

Stakeholders refer to individuals who are impacted by a change. Stakeholder management encompasses four key components, including stakeholder identification, stakeholder analysis, development of stakeholder management strategies, and evaluation of those strategies.

Techniques used to identify stakeholders

Unhappy Bank used three techniques to identify stakeholders, the stakeholder wheel, a RASCI analysis and a power/interest grid. An alternative technique not used by the Bank is the rich picture method that can provide a snapshot of the current situation. Let’s see each technique separately.

Rich Picture

A rich picture is a tool that can be used in projects to help understand complex situations and communicate ideas. Some benefits of using a rich picture in a project include improved understanding, enhanced communication since it’s easier to communicate complex ideas and increased creativity since rich pictures are often visual representations that allow for creative exploration of different ideas and solutions. Andrii Rusakov has a very interesting article regarding rich pictures.

Stakeholder Wheel

The stakeholder wheel is a visual representation that helps project teams to identify and prioritize stakeholders based on their level of interest and influence. By utilizing the stakeholder wheel, business analysts can develop targeted communication strategies and ensure that stakeholder needs are addressed throughout the project lifecycle.

Below is the stakeholder wheel that was implemented for Unhappy Bank.

Stakeholder wheel of a Bank

RASCI Analysis

After creating the stakeholder wheel, Unhappy Bank tried a different approach using a RASCI analysis that provided a different perspective.

By using a RASCI analysis, the bank ensured that all necessary roles and responsibilities were clearly defined and understood. This helped to improve collaboration, avoid duplication of effort, and ensured that the project was completed on time and within budget.

Responsible

Accountable

Supporting

Consulted

Informed

| Project Activity - Stakeholder | Business Analyst | Software Vendor | Bank Employees | Project Sponsor |
|--------------------------------|------------------|-----------------|----------------|-----------------|
| Define functional needs        | R                | C               | I              | I               |
| Assess risk                    | R                | C               | I              | A               |
| Create Design                  | S                | R               | C              | I               |
| Implementation                 | C                | R               | I              | I               |
| Approve work                   | C                | I               | A              | I               |

Power / Interest Grid

The power/interest grid is a commonly used tool in stakeholder analysis, which helps to assess and classify stakeholders based on their level of power and interest in a particular project or initiative.

The grid consists of four quadrants, with the level of power plotted on the X-axis and the level of interest plotted on the Y-axis. The four quadrants are as follows:

1. High power, high interest: These stakeholders are the most important and require the most attention. They have high levels of both power and interest and can significantly impact the success of the project.
2. High power, low interest: These stakeholders may have the ability to disrupt the project, but may not be directly affected by it. They should be monitored, but may not require significant engagement.
3. Some power, some interest: These stakeholders have to be kept on side since they do have some power and some interest.
4. Low power, high interest: These stakeholders may be interested in the project but do not have significant power to influence it. They should be kept informed and engaged to maintain their support.
5. Low power, low interest: These stakeholders are the least important and require the least attention. They may not have much interest in the project and may not be impacted significantly by it.

Below is the power/interest grid that was done for Unhappy Bank.

Although general public should not be ignored totally

By using the power/interest grid, stakeholders can be prioritized and engaged in a way that is appropriate for their level of importance and influence on the project.

Soft Systems Methodology (SSM)

SSM can be used for unstructured problem or complex situations. The steps can be the following:

1. The situation is identified
2. Stakeholder views
3. From each stakeholder’s perspective, a conceptual model is created to show what the organisation should do to fulfill the perspective.
4. These models are compared with real-world situation and one model is created
5. Actions are defined to address the situation by implementing the model

Soft System Methodology (SSM) used for Unhappy Bank

One of the problem that was raised was that the bank noticed a decline in customer satisfaction levels and wanted to identify and address the underlying issues.

To understand customers perspective the soft system methodology was used. Below are the steps.

Step 1: Identify the relevant stakeholders

The stakeholders were the bank’s customers, customer service team, marketing team, regulators and managers.

Step 2: RASCI analysis to get stakeholders views

• Responsible: The customer service team is responsible for addressing customer complaints and resolving issues.
• Accountable: The bank manager is accountable for ensuring that customer service processes are effective and efficient.
• Supporting: The IT team is in charge of the infrastructure that supports all systems.
• Consulted: The marketing team is consulted when developing new promotions or campaigns to attract customers.
• Informed: The regulatory compliance team is informed of any changes to policies or procedures.

Step 3: Identify the relevant systems

The relevant systems included the bank’s customer service processes, employee training programs, IT systems, and marketing strategies.

Step 4: Develop conceptual models

A conceptual model for the bank’s customer service processes might included steps like greeting the customer, identifying their needs, recommending appropriate products, and following up on their feedback.

Step 5: Compare models to reality

The bank collected data on customer satisfaction levels, employee performance metrics, and financial outcomes to see if the models accurately reflected the current situation.

Step 6: Identify feasible changes

The bank invested in additional customer service training for employees, streamlined its IT systems to reduce wait times, or developed new marketing strategies to attract more customers.

Conclusion

In conclusion, stakeholders often have differing perspectives. It is important to gain a comprehensive understanding of these perspectives to effectively manage stakeholder relationships. The Soft Systems Methodology is a valuable tool that can be used to analyse stakeholder perspectives and help identify potential conflicts or areas of agreement. By using this approach, organizations can work to create more inclusive and effective solutions that meet the needs of all stakeholders involved.