03.stakeholders and communication PMI-RMP Risk Management Professional
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- 1. RISK MANAGEMENT STAKEHOLDERS & COMMUNICATION
- 2. Objectives After completing this lesson, you will be able to: Explain individual and overall project risk Identify stakeholder risk attitudes Explain iterative process Define communication Describe responsibility for Project Risk Management Recognize the role of project manager
- 3. Individual and Overall Project Risks The project risk is an uncertain event or a condition that has a positive or a negative effect on the project objectives. Project risk is classified into two levels: 1. Individual risk 2. Overall project risk Understanding individual risk helps in overcoming the project-related risks and increases the probability of project success. The overall project risk represents the effect of uncertainty on the project as a whole. The assessment of project risk helps in decision-making at strategic level and in turn at program, portfolio, and project governance levels to decide priorities.
- 4. Stakeholders Stakeholders are entities who have interests in your project, such as the project team, sponsor, the public, governmental authorities, the client, subcontractor, etc. The project sponsor is one of the most important stakeholders, because the sponsor is the one who provides the financial resources. Stakeholders can affect the project and the project can affect them as well. These effects can be positive or negative. The project team is responsible for identifying the stakeholders and their requirements. Stakeholders too have responsibilities; the most important of which are to participate in the project meetings and communicate their concerns in a timely manner.
- 5. How NOT to go Wrong with Stakeholders? Be active not reactive (you invite them, call them and reach out to them) You need to identify them Rank their level of power and interest to influence the project Collect their requirements Invite them to participate in meetings, brainstorming sessions, etc. Give attention to them and incorporate their requirements in line with project objectives
- 6. How NOT to go Wrong with Stakeholders? Make sure that you include them in the communication plan and share information with them Look into their issues (dont ignore them) Adopt a win-win strategy Understand that they have different interests and what might be important to one might be trivial to another
- 7. Stakeholder Risk Attitudes It is important for a project or a risk manager to understand stakeholders risk attitudes. The risk attitudes of the project stakeholders determine the extent to which an individual risk or overall project risk matters. It usually result in a desire for increased certainty in project outcomes and it may express a preference for one project objective over the other. Understanding stakeholders attitudes towards risk is an important component of risk management planning. The priority of the risk depends upon the risk attitudes and tolerance levels of the stakeholders.
- 8. Stakeholder Risk Attitudes Stakeholders are risk seeking in nature. Risk seeker Stakeholders are neither risk averse nor risk seeking. Risk neutral Stakeholders who does not take risks. Risk averse
- 9. Communication Communication is essential while conducting Project Risk Management. Important points to be kept in mind to make the risk management informative or to create awareness are as follows: Project Risk Management cannot be conducted in siloes. Risk identification and analysis depends on stakeholders input. Effective and honest communication among the stakeholders. The result of the communication should meet the need of each stakeholder as well as the overall project objectives.
- 10. Communication. To have effective communication in your project, you need a plan called a communication plan. This plan will include what will be communicated, to whom it will be communicated and when it will be communicated. Communication is the process of sending information between two or more people. Communication is quite often infected with misunderstandings. Lets draw a communication model and see the possible causes of misunderstandings. The model consists of:
- 11. Communication Sender The person initiating the communication by sending a message Receiver The person or people receiving the message Message Usually verbal, but can also be in the form of signs and gestures or be written Medium The way a message is being sent and with what technology (e.g. voice, picture, advertisement, phone, internet, etc.)
- 12. Communication Methods These methods are: Interactive Method This is the best way to communicate because both parties are sending and receiving information, thus allowing opportunities for clarification. Interactive communication is usually done face-to-face but also can be done via video conferencing and telephones. Pull Method The project manager makes all information available and accessible in a designated resource center or venue and the stakeholder(s) pull the data as needed. For example, the project manager might make the information available via a server or a secretariat. Can you think of risks associated with this method? Will all stakeholders be motivated to make the effort to get the information? Push Method This is the opposite of the pull method. In this method, the project team pushes (sends) information onto the stakeholders. This is often done via email attachments and memos. Here, you have the risk of information being lost in transition; however, you can make a system to track delivery.
- 13. Manage Communications is the process of creating, collecting, distributing, storing, retrieving, and the ultimate disposition of project information in accordance to the communications management plan. The key benefit of this process is that it enables an efficient and effective communications flow between project stakeholders Definition Communication
- 14. It also provides opportunities for stakeholders to make requests for further information, clarification, and discussion. Techniques and considerations for effective communications management include, but are not limited to, the following: 1. Sender-receiver models. Incorporating feedback loops to provide opportunities for interaction/ participation and remove barriers to communication. Overview
- 15. 2. Choice of media. Situation specifics as to when to communicate in writing versus orally, when to prepare an informal memo versus a formal report, and when to communicate face to face versus by e-mail. 3. Writing style. Appropriate use of active versus passive voice, sentence structure, and word choice. 4. Meeting management techniques. Preparing an agenda and dealing with conflicts. 5. Presentation techniques. Awareness of the impact of body language and design of visual aids. 6. Facilitation techniques. Building consensus and overcoming obstacles. 7. Listening techniques. Listening actively (acknowledging, clarifying, and confirming understanding) and removal of barriers that adversely affect comprehension.
- 16. Communication Project managers spend the majority of their time to communicate. Some potential dimensions of communication activity: Internal external Formal informal Vertical horizontal Official unofficial Written oral Verbal non-verbal
- 17. Communication Oral/Verbal Personal contact Group meetings (presentations, teleconferencing) Telephone Audio Non-Verbal Body language Charts and graphs Written Correspondence (letters / memos / reports / emails)
- 18. The Project Sponsor, Functional Managers And Team Members Other Stakeholders Other ProjectsOther Project Managers 10.1 Plan Communication: Tools & Techniques Who needs project information?
- 19. Communication network models have been devised to try to explain the relationships between people and the number or type of interactions needed between project participants. What you need to know is that network models consist of nodes with lines connecting the nodes that indicate the number of communication channels, also known as lines of communication. 10.1 Plan Communication: Tools & Techniques Communication Channels
- 20. Communication channels grow at a greater than a linear rate and are represented by the following formula: Example: If a team of 6 people adds two more persons, how may more communication channels are there? (6X5)/2 = 15 and (8X7)/2 = 28 so the answer is 28-15 = 13 10.1 Plan Communication: Tools & Techniques Communication Channels.. N (N-1)/2 where N equals the number of people
- 21. Includes communicating in all directions Determine and limit who will communicate with whom and who will receive what information. Customer, sponsor, Functional managers, and Team Members Other Project Managers Other Projects Other Stakeholders The Project 2 )1( NN Consider the number of potential communication channels or paths Formula: Communication Requirement Analysis
- 22. Communication Method When Used Formal Written Complex problems, project plans, project charter, communicating over long distance, contract Formal Verbal Presentations, speeches, negotiations Informal Written Memos, e-mail, notes Informal Verbal Meetings, conversations, initial conversations about performance To have clear, concise communications, the project manager must handle communications in a structured manner by selecting the form of communication that is best for the situation. Communications occur internal and external to the core project team and vertical and horizontal within the organization. A decision regarding whether the communication needs to be formal or informal, written or verbal, needs to be made for each instance of communication. Additional Notes
- 23. Communication Methods Exercise Situ