Stakeholder Relationship Management and System Governance

Adapted from Chapter 5 of Management Areas of Performance – available as a free PDF here

My intent here is to give you a taste of how my book is laid out – in terms of how it addresses each of the Management AoPs – Areas of Performance. An AoP is a chunk of work, a component of Enterprise Process Performance. I’ve added some graphics and some new content.

The Stakeholder Relationship Management and System Governance Area of Performance involves leaders and managers in gathering “Voice of the various Stakeholders” and then determining, collaboratively or not, what to do about the messages in the voices.

 

The stakeholder voices will provide

– Requests for products/services and specific requirements for that stakeholder

– Feedback on how well you are doing (or not) in meeting those requests

Stakeholders of yours may have the following typical needs/issues for you to deal with:

– Government Stakeholders

  • Providing laws and regulations that must be complied with under the threat of financial penalty or jail time for non-compliance

– Owner/Shareholder Stakeholders

  • With expectations of a financial nature and/or social issues/demands

– Executive/Management Stakeholders

  • With a fiduciary responsibility to the owners, compliance responsibilities to the governments, service responsibilities to the customers, leadership responsibilities to the employees, fairness responsibilities to the suppliers, and various social responsibilities to the communities in which the business operates

– Customer Stakeholders

  • Value for the products/services rendered, in the manner in which both the customers have defined value, and which the enterprise has committed to deliver

– Employee Stakeholders

  • A safe workplace and fair wages for performance and equal opportunity under the law

– Industry Group Stakeholders

  • Compliance with Industry norms and standards, as agreed to by the suppliers, customers and perhaps government/regulators in the marketplace

– Supplier Stakeholders

  • Fairness in terms of payments for supplies delivered

– Community Stakeholders

  • Various social issues and needs that may or may not find their way into law/regulations/codes

 

Typical Outputs

The leader/manager “outputs” of this Area of Performance typically include: 

– Governance: decisions based on the balancing of the many stakeholder voices and clear, specific directives to all other enterprise functions, systems/processes and people throughout their “sphere of responsibility/accountability”

 Examples include marching orders for the rest of the enterprise that are long-term, medium-term, and/or short-term, such as:

– Let’s not go into that market now (or ever)

– Let’s extend the life of that product

– Let’s sell that business unit

– Hire her

– Fire him

– Promote them

– Find a new supplier or broaden (or narrow) our supplier base

– Change/improve this process but not that one

Typical Tasks

The “tasks” of this Area of Performance, related to the outputs above, typically include:

– Meeting with appropriate stakeholders (depending on your and others’ levels and responsibilities/accountabilities) or others in your enterprise with the responsibility to gather from certain groups (it wouldn’t do to have every enterprise manager interacting with the regulatory agencies of the governments)

– Making business decisions, either in conjunction with or collaboratively with some or all stakeholder groups

– Communicating clear, specific messages to the appropriate group(s) through the appropriate channel(s)

Knowledge/Skill & Competency Enablers

The key “knowledge and skills” required for this Area of Performance typically include

Compliance-related Knowledge

– Current and future laws/regulations/codes/contracts/agreements

– Current and future enterprise policies/procedures

– Current and future Industry Standards

Marketplace-related Knowledge

– Current and future customer needs and situations

– Current and future Competitive product/services, reputation, pricing, delivery performance, how they compare with us

– Current and future industry trends

– Current and future supplier capabilities and weaknesses

– Current and future technologies and their impact in the marketplace

Enterprise-related Knowledge

– Current and future products/services offerings and our reputation regarding pricing, delivery performance, how our competitors really compare with us

– Current and future internal capabilities and weaknesses

Business-related Knowledge

– Current and future projections for economics/financials

Interpersonal Knowledge/Skills

– Communications

– Active listening

– Negotiations/persuasion

– Problem solving

– Decision making

– Planning

– Budgeting

– Visioning

– Demonstrating empathy

– Demonstrating openness

– Demonstrating conviction

– Keyboard/typing

– Computer applications

– Interviewing

– Coaching

– Training

– Counseling

– Project management

Professional/Technical Knowledge/Skills

– Understanding of various industry/enterprise concepts/models/methods and techniques

– Using various industry/enterprise tools/equipment/machinery/vehicles

Attribute/Value & Competency Enablers

The “attributes and values” required for this Area of Performance typically include:

Physical Attributes

– NA – Not Applicable

Psychological Attributes

– Collaborative

– Team orientation

– Trusting

– Openness

– Optimistic/Positive

– Cheerfulness/Friendliness

– Empathy

– Enthusiasm

– Risk tolerance

– Stress Tolerance

– Ambiguity tolerance

– Creative

Intellectual Attributes

– Visionary

– Logical

– Intuitive

– Insightful

– Imaginative

– Organized

– Analytical

– Integrator

– Detail orientation

– Conceptual

– Strategic

– Tactical

– Structured

– Planner

Personal Values

– Ethics

– Morals

– Stakeholder orientation

– Customer orientation

Chapter 5 Summary

The Stakeholder Relationship Management and System Governance Area of Performance is about gathering “Voice of the various Stakeholders” and then determining, collaboratively or not, what to do about the messages in the voices.

*** *** *** *** ***

From Chapter 1

I wrote this book to give people who are or need to be “process and performance-oriented,” a framework to help them systematically determine the “specific managerial performance competencies” of their job and/or enterprise. 

And to do that so that they might systematically derive the enabling competencies, among other human attributes and values that are required for performance…so they wouldn’t have to rely on generic competencies to guide their succession, selection, development, assessment and compensation approaches and systems addressing their managerial talent.

And, even more importantly, I wrote it to help others determine both the common and unique competencies within their enterprise that will help them achieve peak performance. Generic competency models and approaches won’t and don’t do that.

The appeal of the generic competency models and approaches that are so popular is that they make the job “easier” for structuring our internal systems and processes talent management around a common set of competencies.

That is unfortunate…for all of the enterprise stakeholders. Easier isn’t better when ineffective.

What I hope that you will get from this book varies by audience. Some readers may wish to skip certain sections, while others will want to read them all. Each section will begin with some guidelines to help you, the reader, decide.

I have three audiences in mind for this book:

–  Individual Managers

–  HR Leaders (of various disciplines)

–  Performance Improvement Professionals

Individual Managers can get a better understanding of their own jobs and/or those management jobs that report to them, as well as a better understanding of the enabling competencies and attributes so that they might self-assess themselves and others and develop plans for managerial improvement.

HR Leaders can use the template of Areas of Performance to gain a better understanding of the specific jobs of management across the enterprise, and of the enabling competencies and attributes required, so that they might plan HR efforts to better integrate all of their systems to more effectively and efficiently develop the enterprise’s managerial talent. Within HR…

Organization Design leaders and staff can get a better understanding of the jobs of management across the enterprise, and the enabling competencies required so that they might provide better management job design systems and services to the enterprise.

Staffing & Succession leaders and staff can get a better understanding of the jobs of management across the enterprise, and the enabling competencies required so that they might provide better management staff planning and succession planning systems and services to the enterprise.

Recruiting & Selection leaders and staff can get a better understanding of the jobs of management across the enterprise, and the enabling competencies required so that they might provide better management recruitment and selection systems and services to the enterprise.

Training & development leaders and staff can get a better understanding of the jobs of management across the enterprise, and the enabling competencies required so that they might provide better Management Development programs and initiatives.

Performance Appraisal & Management leaders and staff can get a better understanding of the jobs of management across the enterprise, and the enabling competencies required so that they might provide better management Performance appraisal and Management systems and services to the enterprise.

Compensation & Benefits leaders and staff can get a better understanding of the jobs of management across the enterprise, and the enabling competencies required so that they might provide better management compensation and benefit programs and services to the enterprise.

 

Performance Improvement Professionals can use the model and methods to help them better understand what the job performance requirements of management across their enterprise are, and what enabling competencies and attributes are required, so that they might plan performance improvement efforts to better integrate all of systems and processes of the enterprise that acquire, develop and retain managerial talent, as well as define the enterprise infrastructure necessary to enable management to achieve peak performance.

The model and book are intended to provide you with a tool that is useful, that provides utility. The specific “utilities” to be addressed within this book are overviewed next.

Utility 1 – Defining Managerial Performance

The first utility that this book provides is an organized approach for systematically but quickly gaining a clear understanding of what the management job is specifically about and what is common or similar and what is unique and different about the enablers.

This can be done for an individual management job or for all managers across an enterprise. Of course, going across the entire enterprise poses some unique challenges, but it can be done. The goal is not to define a management job in terms of their attitudes, behaviors, knowledge, or skills. Those are simply a few of the enablers. Those enabling competencies, attributes and value are important, but they aren’t the “end game goals.” Peak performance of the enterprise is the end game goal.

This book approaches management in terms of its performance expectations, their deliverables, and the processes, tasks and practices necessary to produce those deliverables. This book provides a methodology to determine the outputs of managerial performance, so that it can be better defined, communicated, measured, rewarded and developed. For a performance-based approach to talent management of managerial talent.

The Management AoP Framework, is the device that organizes the performance data that will be used throughout this book.

Accomplishing this first utility is a prerequisite to accomplishing the second, third and fourth.

Utility 2 – Deriving the Enabling Competencies & Attributes

The second utility is a proven approach for the systematic derivation of the enablers, in terms of human competencies and human attributes.

Performance Competency Enablers

Using the Management AoP Framework and the details of their performance requirements allows one to identify the enabling “key awareness, knowledge and skills” (by category) that are necessary for a leader/manager to perform their assigned roles at a level of peak performance.

 

These awareness, knowledge and skills are organized by 17 different K/S categories (see my book lean-ISD here for details on those 17 K/S Categories) but can also be “banded” into the following six sets:

  1. Compliance-related Knowledge
  2. Marketplace-related Knowledge
  3. Enterprise-related Knowledge
  4. Business-related Knowledge
  5. Interpersonal Skills
  6. Professional/Technical Skills

 

But human competence and peak performance is about more than the awareness, knowledge and skills of the individual, team or the managerial populations of the enterprise. It also includes other enablers.

Performance Attribute/Value Enablers

Those other enablers include the “attributes and values” that are necessary for the performance. They include the following four sets:

  1. Physical Attributes
  2. Psychological Attributes
  3. Intellectual Attributes
  4. Personal Values

 

Together, the human competencies and attributes and values represent the “things” that the individuals, teams and managers “bring to” their work performance. They either have the “right stuff” or they do not. If what is missing is critical, it’ll have a negative impact to the enterprise processes.

Some of these “things” can be developed via education, training, and/or coaching and some are improved more easily than others; some of these “competency-attribute-value things” are better recognized for what they are and are not, and dealt with by careful job selection/placement versus training and/or development.

Utility 3 – Self-Development Planning for Managers

The third utility for readers is an approach for assessing their own jobs, their own levels of performance, and the identification of gaps in their repertoire of competencies, attributes and values. This will then allow them to develop plans for addressing their own development needs or look for a better job fit for themselves elsewhere.

Utility 4 – Integrating Human Resource Systems Addressing Management

The fourth utility is to provide an approach for integrating all of the human resource systems/processes across an enterprise, that address management, with a common data framework.

All of this is intended to bring the reality of the performance context to Competency Models to better impact and help steer the effort so that these systems and the investments made in them have worthy returns for enterprise shareholders/owners and all other stakeholders of the enterprise.

Those HR systems used to better develop the competence of leaders, managers and non-managers alike can include “systems” that approximate the following:

– Job & Organization Design

– Staff Planning Systems

– Succession Planning Systems

– Recruiting Systems

– Selection Systems

– High-potential Leadership Systems

– Leadership and Management Development Systems

– Performance Appraisal and Scorecard-type Systems

– Leader and Management Compensation Systems

 

There are many varied “configurations” for these HR systems from one enterprise to the next. Please adapt my model to your needs if you cannot adopt this view.

*** *** *** ***

# # #

Advertisements

One comment on “Stakeholder Relationship Management and System Governance

  1. Pingback: Latest project management methodologies news – Stakeholder Relationship Management and System Governance « EPPIC …

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.