There are times that project teams will encounter difficult stakeholders and need to effectively deal with them without creating instability surrounding attainment of the project’s objectives. Thus, it is beneficial to have a framework for dealing with stakeholders who don’t readily align themselves with the project.

The Model

For the sake of simplicity, let’s think in two dimensions–attitude toward the project and the impacts of the project upon a stakeholder or group of stakeholders. By comparing these two dimensions, we can create a simple chart around which to frame a discussion.

First, note that the dimensions are spectrums and not absolute values. Thus, a stakeholder’s attitude toward a project can range from very negative, to neutral, to very positive and the same about the impacts of the project to the stakeholder. Also bear in mind that in a project with multiple stakeholders, each group (and each person) can score differently, with different possible corrective actions. The next step is to discuss what may occur in each of the four quadrants.

Better Selling

In this quadrant, the stakeholder likely does not understand that the project is actually going to benefit him. It may be that through gossip, he has heard wrong things about the project, or he may even simply misunderstand certain aspects of the project. There are many possible reasons that can cause misunderstanding or even mistrust.

If a stakeholder falls in this quadrant, consider having a mutually respected third party discuss the project with him. If there is good communication between the person and yourself, talk directly as well. The point is that the person, or group, does not understand (or believe) that the project will ultimately be beneficial.

Be open-minded when you listen. It is possible that the stakeholder knows something that you do not. Never be quick to dismiss concerns without assessing if they are valid.

Paradise

Don’t we all wish we were always in this quadrant? Here, the attitude is positive, plus the outcome of the project is positive. All that is needed is the normal level of communication, both formal and informal.

It needs to be noted that a good relationship can turn bad very quickly over a simple misunderstanding. Be sure that just because all seems well, that regular communication continues.

No-Win

In this quadrant, the attitudes are bad and the impact of the project is bad. Obviously, this is the hard quadrant to deal with, and the goal is to move the stakeholder out of it quickly, if at all possible.

Situations vary and no one solution always works, thus you must determine the exact action needed. Before doing anything, ensure that you communicate and understand concerns. Be sure to analyze the concerns and consider remedies factoring in budget, schedule, risks, etc. For review, the following actions can be reviewed for applicability to your situation:

• Change Deliverables–Review the project’s deliverables. Is there something that can change that will improve the stakeholder’s view of the project? In general, deliverables are something the project team can control. Thus, they are sometimes the easiest things to change.
• Future Deliverables–If this project cannot change, is there something in an upcoming phase of the current project or a new project that can benefit the impacted group such that it offsets the current project? Be very sure that if you promise something, that the commitment can and will be honored.
• Extra-Project Benefits–Can something be done outside of the project to offset the changes? For example, change a budget change, award a bonus, secure training, something in another project, etc. Essentially, you are looking for something outside of the project that will compensate for the change.
• Replace the Stakeholder–If this issue is a personal one, consider seeking the replacement of the stakeholder. If the stakeholder is a representative for a team and the entire team does not share his/her views, then investigate changing who is the stakeholder representative. This can be a very politically sensitive issue. Be sure to understand the political climate before even mentioning this outside of the trusted core team.
• Bypass the Stakeholder–This is risky and should not be pursued lightly. In the event that a stakeholder on a project team cannot be won over and cannot be changed, then build up a power base and bypass the stakeholder. In other words, build up a strong position and then negate the stakeholder. The long-term risk is that you will pretty much destroy any chance of having a working relationship with this person/team in the future.

Expectation Management

This occurs when the stakeholder expects positive benefits and the reality of the project’s impact is the opposite. To be fair to the stakeholder, he/she needs to understand the project’s affect. If the person expects something that will not happen, then future projects could be at risk because this person will likely view the project team with distrust.

There is the possibility that this person recognizes that his/her area will suffer but the overall company will benefit. If this is the case, you have the honor of working with a good person. Literally, thank the person for recognizing the greater good and be sure that management is aware of this person’s/team’s willingness to sacrifice in order to help the company.

Summary

The model is very simplistic and many additional dimensions can be considered. The intent of the model is to look at stakeholder attitude relative to project impact and consider some of the potential issues and optional solutions. In short, it is always better to be prepared for issues ahead of time than to react and attempt damage control. By then, there may be too little time to formulate actions.

Big Enterprise Resource Planning or ERP vendors include companies like SAP, Oracle, and Microsoft. These ERP vendors, specifically Oracle and SAP, are known for their expansive ERP software solutions built with robust functionality for large corporations. However, as the economy changes and technology evolves, ERP vendors change their way of doing things. Today, unlike the past, ERP vendors are focusing on small and medium size business solutions. SAP, Oracle, and Microsoft all have small business Enterprise Resource Planning software solutions. And, these ERP Vendors compete with each other for small business ERP customers. Oracle’s small business Enterprise Resource Planning solution is called Oracle Special Edition. SAP offers two small business Enterprise Resource Planning solutions. These solutions are called SAP Business One and SAP All-in-One. Microsoft’s small business Enterprise Resource Planning solution is called Microsoft Dynamics AX. Before your small business considers any of these solutions, decide where your small business is going. For example, if your small business plans to grow in the future, SAP All-in-One might be the best option as this ERP solution allows for growth and compensates for changing processes. However, if your small business is content with the way it is, SAP Business One might be the better option. If your small business is very unique with complicated processes, Oracle Special Edition and SAP All-in-One has functionality to handle such needs. A less unique small business with simpler processes will be fine with SAP Business One or Microsoft Dynamics AX. Another type of small business Enterprise Resource Planning solution to be considered is a SaaS (Software as a Service) Enterprise Resource Planning solution. Software as a Service ERP solutions can’t be customized, but can be configured. A SaaS ERP solution may be the answer for a small business with simple processes.

Small businesses have many options in today’s market. In fact, some small businesses may find their options overwhelming. With so many Enterprise Resource Planning solutions to be considered, take your time during the selection process. The small business solutions we’ve discussed are only those offered by large vendors. There are plenty of small business solutions out there offered by smaller vendors. There are also open source Enterprise Resource Planning solutions, cloud ERP solutions, on-demand ERP solutions, and the on-site propriety Enterprise Resource Planning solutions.