Finance Transformation Gone Wrong - Inadequate Stakeholder Engagement

Note: This post is part of a series on the challenges of transformation and how to overcome them.

Inadequate Stakeholder Engagement

A good way to ensure that a transformation effort will fail is to exclude the stakeholders that will ultimately be impacted by the transformation.  It's rare that stakeholders are completely excluded. It's far more common for there to be token lip service to integrating stakeholders into the project.

An essential act for any engagement is to identify the major stakeholders that are impacted by the proposed change.  Remember that important stakeholders are not only those who have a formal title, but also those individuals who have significant influence on "public opinion" and who can derail a project if their concern are not considered.

The word to remember here is "RACI".  OK, so it's not really a word, but a way of remembering the role of the project stakeholders.  RACI stands for Responsible, Accountable, Consulted and Informed. At the start of a project, the project team should identify the individuals, by name and position, that fall into these four categories.  This will help the team draw the stakeholders into the engagement and ensure that their input is incorporated as the project progresses.

By identifying the significant stakeholders for a project and including them throughout the duration of the project, it's far more likely that the stakeholders will embrace the transformation rather than sabotaging it from the outside.