Stakeholders and their values

GilbFest 2017Tom@Gilb.com

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Agenda Stakeholder Value: Why we persistently fail to deliver value for money, how to avoid failure; risk management, case studies in persistent real value success.

In any domain, not just IT, especially if IT might learn from the ideas.

Historical and cultural ideas welcome. • As usual, this is intended as an umbrella theme, to give

interesting people scope to discuss their special interest, in this light.

• Your talk must stay within the broad theme of STAKEHOLDER VALUE: case studies, theories, practices, personal experiences, not just about IT, but of any systems, cultures, nature, history, business management, charity management, education etc.

• We encourage as usual colourful imaginative, fun, challenging, innovative presentations.

• They do not have to be your personal experiences. They can be analysis of other exciting innovation ideas and experiences.

• The main thing is that participants are thrilled and deeply impressed by your depth and clarity, and innovation. Think TED Talk (see below)

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Concept *269

ValueValue is perceived benefit:

that is, the benefit we think we will get from something. Notes:

1. Value is the potential consequence of system attributes, for one or more

stakeholders.

2. Value is not linearly related to a system improvement: for example, a

small change in an attribute level could add immense perceived value

for one group of stakeholders for relatively low cost.

3. Value is the perceived usefulness, worth, utility or importance of a defined system component or system state, for defined stakeholders,

under specified conditions.

‘‘One man’s meat is another man’s poison.’’ Old proverb

4. ‘Benefit’ is when some perceived value is actually produced by a defined system.

5. Value is relative to a stakeholder: it is not absolute. Quality, for example, is stated in terms of the objective level of ‘how well’ a system performs, irrespective of how

this level is appreciated by any stake- holders. Some defined levels of quality only have a value to some stakeholders. The same is true for all attributes. There are

many Planguage ways of indicating that a stakeholder values an attribute. These include using Value, Stakeholder, Authority, Impacts, and Source parameters.

‘‘Nowadays, people know the cost of everything and the value of nothing.’’

Oscar Wilde.

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Stakeholder Attributes

• Some attributes of stakeholders

• which can be defined in more detail,

• and can be quantified

• status estimated

• and potentially improved

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Planguage Definition

A stakeholder is any person, group or object,

which has some direct or indirect interest

in a defined system. Stakeholders can exercise control over

• both the immediate system operational characteristics, • as well as over long-term system lifecycle considerations

• (such as portability, lifecycle costs, environmental considerations, and decommissioning of the system).

Notice:‘or object’.

This includes laws, regulations, plans, policies, customs, culture, standards. Inanimate.

• you cannot ask them or discuss with them. • But you can analyze them, their priority, the degree of relevance. • They can determine if your system is illegal, or acceptable. • Determine success or failure.

Icon O<- (Source of requirement)

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3 Basic Stakeholder

Types

Groups Inanimate Individual

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Gilb’s Stakeholder Principles.1. Some stakeholders are more critical to your system than others.

2. Some stakeholder needs are more critical to your system than others.

3. Stakeholders are undisciplined: they may not know all their needs, or know them precisely, or know their value. But they can be analyzed, coached, and helped to get the best possible deal.

4. Stakeholders may be inaccessible, unwilling, inanimate, oppositional, and worse: but we need to deal with them intelligently.

5. Stakeholders might well ask for the wrong thing, a ‘means’ rather than their real ‘ends’. But they can be guided to understand that. Or their requests can be interpreted in their own real best interests.

6. Stakeholders do not want to wait years, get delays, invest shitloads of money, and then little or no value. They want as much ‘value improvement’ of their current situation, as they can get, as fast as they can get it. For as little cost as possible,

7. Stakeholders cannot have any realistic idea of what their needs and demands will cost to satisfy. So their adopted requirements need to be based on value for costs, not on value alone. Delivering small increments, based on high value-to-cost, is one smart way to deal with this.

8. If you think you have found ‘all critical stakeholders’, I think you should assume there is at least one more, and when you find that one, …. They will emerge, and they are not all there at the beginning.

9. If you think you have found all critical needs of a stakeholder, there will always be at least one more need ‘hiding’.

10. If you do not understand, and act on the principles above; you might blame your failure on ‘system complexity’, and the unexpected and wicked problems. But in reality, it is your own fault and responsibility; deal with it - up front and constantly.

•SOURCE, 2016 Paper“Stakeholder Power:The Key to Project Failure or Success”including 10 Stakeholder Principleshttp://concepts.gilb.com/dl880 (COPY FEB 2017)http://concepts.gilb.com/dl872 (FEB 2016) 7

Stakeholder Costs

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Stakeholder Costs

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Adding Strategies for Improving Stakeholder Attributes

Stakeholder Ends and Meansthe ???? signifies that we did not yet estimate the

effectiveness of the ideas for getting better11

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‘Accessibility’ defined quantitatively

‘Adaptability’ Value defined

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Known Unknowns

SLIDES GIVING ROUGH DRAFT OF SUBJECTS

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Priorities•Stakeholder priorities (which one gets

current attention and resources)

• depend on their multiple attributes, evaluated in real time

• like power, fragility, value produced

• & also depends on their set of critical requirements

• and their costs and current satisfaction

• and depends on OUR chosen priority policy

• like value/costs and risks

• See ‘Value Planning’, Chapter 6 Prioritization Evaluation

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Tools• Tools for dealing with Stakeholders

• Planguage

• Needsand Means

• stakeholder.com

• Lack of Decent Tools

• Agile/Scrum

• Enterprise Architecture

• Lean?

• Decent tools

• allow many stakeholders

• quantify stakeholder needs

• directly relate needs:stakeholders

• can update complex sets 50+ each.

• Stakeholder explicitly in the dev. cycle

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Processes

• Stakeholder driven development cycle

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Stakeholders

Values

Solutions

DecomposeDevelop

Deliver

Measure

Learn

Value Management Learning Process

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Stakeholders

Values

Solutions

DecomposeDevelop

Deliver

Measure

Learn

Identify Stakeholders Who and what cares about the outcome of our project?

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Stakeholders

Values

Solutions

DecomposeDevelop

Deliver

Measure

Learn

Value Capturing Find & specify quantitatively Stakeholder Values, Product Qualities & Resource improvements.

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Stakeholders

Values

Solutions

DecomposeDevelop

Deliver

Measure

Learn

Solution Prioritization Find, Evaluate & Prioritize Solutions to satisfy Requirements.

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Stakeholders

Values

Solutions

DecomposeDevelop

Deliver

Measure

Learn

Evo Cycles Decompose the winning Solutions down into smaller entities, then package them so they deliver maximum Value.

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Stakeholders

Values

Solutions

DecomposeDevelop

Deliver

Measure

Learn

Develop Develop the packages that deliver the Value.

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Stakeholders

Values

Solutions

DecomposeDevelop

Deliver

Measure

Learn

Deliver Deliver to Stakeholders improved Value. (not always a thing or code)

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Stakeholders

Values

Solutions

DecomposeDevelop

Deliver

Measure

Learn

Measure Change Measure how much the Values changed.

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Stakeholders

Values

Solutions

DecomposeDevelop

Deliver

Measure

Learn

Learn & Change Learning is defined as a change in behavior.

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Stakeholders

Values

Solutions

DecomposeDevelop

Deliver

Measure

Learn

Value Management Learning Process

© 2008 Kai Gilb © Kai@Gilb.com

Stakeholders

ValuesMeasure

Learn

Value Management Learning Process

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Solutions

DecomposeDevelop

DeliverEvo Development / Scrum

Architecture / Engineering

Business AnalystReali

ty

(Bus

iness/

Archit

ectu

re/En

ginee

ring/

Develo

pmen

t)

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Stakeholders

ValuesMeasure

Learn

Value Management Learning Process

Solutions

DecomposeDevelop

Deliver

Scrum

Eternal Cycles: Stakeholder Competition

• Deming:

• ‘as long as there is competition’

• PDSA

• and Kai’s Value Delivery cycle

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The Basic Design Steps Logic: a summary1. Environment Scope helps identify stakeholders.

2. Stakeholders have values and priorities

3. Values have many dimensions

4. Stakeholders determine value levels

5. Design hypotheses should be powerful and efficient ideas, for satisfying stakeholder

needs

6. Design hypotheses can be evaluated quantitatively, with respect to all quantified

objectives and resources

7. Designs can be decomposed, to find more efficient design subsets, that can be

implemented early

8. Designs can be implemented sequentially, and their value-delivery, and resource costs,

measured

9. Designs that unexpectedly threaten achievement of objectives, or excessive use of

resources, can be removed or modified.

10. Designs that have the best set of effects on objectives, for the least consumption of

limited resources, should generally be selected for early implementation.

11. A design increment can have unacceptable results, in combination with previous

increments, and they, or it, might need removal or modification

12. When all objectives are reached, the process of design is complete: except for possible

optimization of operational resources, by even-better design.

13. When deadlined and budgeted implementation-resources are used up, it might be

reasonable to negotiate additional resources; especially if the incremental values are

worth the additional resources.

14. When deadlined and budgeted implementation-resources are used up, it might be

reasonable to negotiate additional resources; especially if the incremental values are

worth the additional resources.

The Logic of Design: Design Process Principles. Tom Gilb, 2016, Paper.

http://www.gilb.com/dl857

Requirements

Design

Deploy

Re-design

Critical ={Stakeholders, Requirements}

• prioritization tactic

• Critical Factor Concept *036• A critical factor is an attribute level or condition in

a system, • which can on its own, • determine the success or failure of the system • under specified conditions.

• We prioritize critical factors like critical stakeholders and their critical requirements

• until all are satisfied • then we should probably stop

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Stakeholder Rights• Stakeholders should have the

• Right to have a voice

• Right to be consulted

• Right to be warned

• Right to suggest

• Right to review

• Right to measure

• Right to complain

• Right to be informed

• Right to change their mind

• Right to understand costs

• Right to understand value/resources

• Right to understand risks

• Right to set their priorities

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Stakeholder Power

• Stakeholder power is rarely absolute

• Stakeholder power needs to be balanced with all other stakeholders

• Stakeholder power will vary through time

• Stakeholder power is less relevant when their needs are satisfied

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Stakeholder Ethics

• Stakeholders will have highly varied ethics, and motivations

• We can influence stakeholder ethics by a variety of actions

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Stakeholder Feedback Types

• Stakeholders have a variety of ways to feedback, react, and influence the process

• gradual measurement of value delivered versus value expected

• complaints

• Sensemaker feedback

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Stakeholder-Driven Value Delivery

• all projects are about delivering values to stakeholders

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Dynamic Priority• selecting next actions….

• the next strategy implementations with stakeholders… to deliver value

• depend on

• the degree of value delivery

• the depletion of limited resources

• new emerging requirements

• which are not very predictable

• so, it is hard to know what you will prioritize doing, in advance

• but you can ‘compute’ it logically step by step

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Sensemaker: Stakeholders

• stakeholder crowds are analyzed to find ‘requirements’

• designs that work well show up in crowd chatter

• Dave Snowdon

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Fail or Succeed Role, of Stakeholder

• stakeholders can,

• depending on their value satisfaction

• refuse to buy or pay

• give bad reviews

• declare a system to be illegal

• give rave reviews

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Stakeholder Education, Training, Coaching

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Stakeholder in other cultures

• Scrum

• Product Owner, User

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Structures

• Hierarchies

• Dependencies

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Sensing Stakeholders

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Rejecting Stakeholders

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Rejecting Some Needs

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Decomposition

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Stakeholder Risks

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slides needing placement

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Defining a list of stakeholders which are related to an Objective

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The Scale definition, scale ‘parameters’ - give additional information regarding stakeholders: such as where, when, which type, under what circumstances