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Stakeholder Engagement Dysfunction Case Study

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Client / Vendor Engagement Breakdown

Scenario: The working relationship between two internal divisions and a number of local government customers had broken down to an…

“intractable position of mutual distrust”

The internal divisions were conducting themselves as separate entities inside the customer and failing to deliver on contract.

Published in: Business
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Stakeholder Engagement Dysfunction Case Study

  1. 1. STAKEHOLDER ENGAGEMENT a case study dysfunction
  2. 2. STAKEHOLDER DYSFUNCTION 1) 2) 3) 4) 5) 6) CLIENT ISSUES GAP ANALYSIS APPLIED SOLUTIONS FOOD FOR THOUGHT RESULTS CLIENT TESTIMONIAL
  3. 3. 1) CLIENT ISSUES 1) 2) 3) 4) 5) 6) Client / Vendor Engagement Breakdown Scenario: The working relationship between two internal divisions and a number of local government customers had broken down to an… “intractable position of mutual distrust” The internal divisions were conducting themselves as separate entities inside the customer and failing to deliver on contract.
  4. 4. 1) CLIENT ISSUES 1) 2) 3) 4) 5) 6) The risk to their brand and reputation was heightened as there were a number of legal moves being made by their customers for failure to deliver on contract.
  5. 5. 2) GAP ANALYSIS 1) 2) 3) 4) 5) 6) Process and Cultural Alignment Required Our client had undertaken a number of projects for delivery of services. We discovered major gaps in process and culture both internally and externally with their customers, these included: ‣ No leadership governance framework for the internal divisions to partner on the contracted projects ‣ No project performance structure to deal with the contract requirements ‣ No stakeholder risk analysis done
  6. 6. 2) GAP ANALYSIS 1) 2) 3) 4) 5) 6) ‣ No systemised engagement process for all stakeholders ‣ No defined and shared project process to complete contracts ‣ No formal contract management process or systems ‣ Different divisions had different cultural approaches to customer complaints and issues ‣ Lack of formalised internal and external communication process
  7. 7. 1) 3) APPLIED SOLUTIONS 2) 3) 4) 5) 6) Performance Improvement on Contracts A stakeholder change management program was developed and implemented for both divisions. We applied our stakeholder methodology across three key components of the client/vendor engagement process.
  8. 8. 1) 3) APPLIED SOLUTIONS 2) 3) 4) 5) 6) We established a Steering Committee for the purpose of implementing the program, provide governance and mitigate risk. We had a range of internal stakeholders who included communication & PR, legal counsel, project directors, general managers and key project team members.
  9. 9. 1) 3) APPLIED SOLUTIONS 2) 3) 4) 5) 6) We workshopped a range of internal change projects based on a completed stakeholder risk analysis. We worked with the Steering Committee in developing and implementing 14 projects to improve the cultural realignment and process improvement.
  10. 10. 4) RESULTS 1) 2) 3) 4) 5) 6) Re-engagement of Stakeholders We delivered 14 projects across the three key components contained within the change management program.
  11. 11. 4) RESULTS 1) 2) 3) 4) 5) 6) Re-engagement of Stakeholders Navig8 also successfully implemented a range of stakeholder engagement processes which enabled the divisions to work together harmoniously understanding the importance of the commitment each department must have . These engagement processes were mirrored with the client to enable the re-engagement of all internal parties within the client and as a result the contracts were put back on track.
  12. 12. “At the time of engaging the Navig8 team, SITA’s relationship with our customer was dysfunctional and at risk of disintegrating into a contractual war. The Navig8 team was briefed to facilitate a relationship review with three parties; two internal and our customer. Ben Connell, SUEZ 1) 2) 3) 4) 5) 6) 5) CLIENT TESTIMONIAL
  13. 13. “SITA has been particularly pleased with the team’s ability to quickly mobilize and execute the brief. The project timeline has been met and the level of expert advice provided by the Navig8 team has been exceptional… 1) 2) 3) 4) 5) 6) 5) CLIENT TESTIMONIAL Ben Connell, SUEZ
  14. 14. “At the time of writing, SITA has reorganized and is progressing well in the reparation of our previously damaged relationship and is enjoying a strengthened ‘partnership’ approach to the contract management process. “ 1) 2) 3) 4) 5) 6) 5) CLIENT TESTIMONIAL Ben Connell, SUEZ
  15. 15. 1) 2) 3) 4) 5) 6) Driving New Behaviours in Projects The project landscape is littered with failures. The risk of not managing the change and stakeholder engagement component significantly damages brand and erodes reputation. Some interesting statistics to consider on your next complex stakeholder project The major cost components of large projects are: ‣ 50% - Reorganisation ‣ 30% - Management ‣ 20% - R&D 6) FOOD FOR THOUGHT
  16. 16. 1) 2) 3) 4) 5) 6) 6) FOOD FOR THOUGHT Top 3 Reasons for Project Failure 58% FAIL TO SHIFT MINDSETS & ATTITUDES 49% FAIL TO SHIFT CULTURE 32% LACK LEADERSHIP SUPPORT
  17. 17. 168  Kent  St   Millers  Point    NSW    2000   +61  2  9233  8878   www.navig8.com.au

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