First and foremost, it’s critical to define who a key stakeholder is in a project context. According to the Project Management Institute (PMI), a stakeholder in business is “an individual, group, or organization, who may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project.” Hence, a key stakeholder could be anyone from a high-level executive to an end-user who will be affected by the project output.
In Agile project management, stakeholder relationships are especially vital because these methods prioritize collaboration and direct communication. As iterated in the Agile Manifesto, “customer collaboration over contract negotiation” is a value inherent to Agile practices. As a central component of obtaining the PMI Agile Certified Practitioner (PMI-ACP) certification, knowing how to develop effective working relationships between key stakeholders is a must.
The Role of a Working Agreement
The working agreement serves as the bedrock of collaboration among team members and stakeholders. Essentially, it consists of rules, expectations, and mutual understanding that all participants agree to uphold religiously. This agreement aims to establish a framework that promotes respectful dialogue, efficient problem-solving, and proactive participation.
Forming a Working Agreement: An Outline
The following steps provide an outline on how to create a working agreement:
- Identify Key Stakeholders: The first step in creating a working agreement is defining who the key stakeholders are for your specific project. This group could include project managers, team members, clients, executives, and even end-users.
- Initial Discussion: Next, arrange a meeting with the identified stakeholders to discuss the project, its objectives, its risks, and each stakeholder’s expectations.
- Define Roles and Responsibilities: To avoid confusion and potential disagreements down the line, clearly define each stakeholder’s role and responsibilities at the start of the project. This also includes defining who has the authority to make decisions.
- Establish Communication Channels: With the diversity of technology available, establish the most efficient and effective communication method for the team. Some stakeholders might prefer email, while others might prefer a digital collaboration platform like Slack.
- Agree on Conflict Resolution: Conflicts will inevitably arise during the project. Having a pre-defined conflict resolution strategy is key to ensuring these issues don’t stall the project.
- Review and Agree: Finally, once the working agreement has been drafted, review it with all stakeholders. Ensure that everyone agrees and commits to the terms defined in the working agreement.
Example of a Simple Working Agreement
Here is an example of what a simple working agreement might look like in a software development project:
- All stakeholders agree to maintain open and respectful communication.
- Stakeholders meet every Tuesday for a status update meeting.
- The Project Manager is responsible for maintaining the project timeline.
- The development team is responsible for delivering software iterations.
- The client is responsible for providing feedback on software iterations within 48 hours.
- Conflicts will be addressed in a meeting facilitated by the Project Manager and resolved through a majority vote.
- All stakeholders agree to communicate primarily via Slack for ongoing project discussion and email for formal communication.
The result of successfully forming a working agreement among key stakeholders is effective collaboration. This can lead to fewer misunderstandings and conflicts, risk mitigation, and a productive work environment. Remember, the goal is to help all stakeholders feel valued and heard. The working agreement will aid in establishing clarity, managing expectations, and ultimately driving project success. Review and refine the agreement periodically to make it more effective and relevant.
Practice Test
True or False: All stakeholders have the same role in a working agreement.
- True
- False
Answer: False.
Explanation: Different stakeholders hold different roles and responsibilities in a project, and this diversity should be captured in a working agreement.
How can a working agreement help key stakeholders effectively collaborate in an Agile project?
- A) Brings transparency and common understanding.
- B) Ensures shared responsibilities.
- C) Acts as a legal contract for project completion.
- D) Provides a hierarchical structure of project management.
Answer: A) Brings transparency and common understanding. B) Ensures shared responsibilities.
Explanation: A working agreement sets expectations, clarifies responsibilities and encourages open communication among stakeholders. It’s not a legal contract and it does not establish a strict hierarchy.
True or False: Regular, open communication is not necessary once a working agreement has been established among key stakeholders.
- True
- False
Answer: False.
Explanation: Even after a working agreement is in place, regular open communication is important to manage expectations, adapt to changes, and foster collaboration.
You as a PMI-ACP are setting up a working agreement. What should you prioritize?
- A) Establishing firm deadlines for each stakeholder to meet
- B) Assigning all project decisions to the project manager
- C) Listening to and addressing stakeholder concerns and expectations
- D) Making the agreement as complex as possible
Answer: C) Listening to and addressing stakeholder concerns and expectations.
Explanation: Key to a successful working agreement is the understanding and incorporation of stakeholder concerns and expectations, as it helps in promoting participation and effective collaboration.
In developing a working agreement, whose perspectives should be considered?
- A) Only the project manager
- B) The Sponsor, Customer, and key stakeholders
- C) Only the team members
- D) Only external stakeholders
Answer: B) The Sponsor, Customer, and key stakeholders.
Explanation: A comprehensive working agreement takes into perspective all primary stakeholders involved in the project, including sponsor, customer and key stakeholders.
True or False: The development of a working agreement is a one-time process.
- True
- False
Answer: False.
Explanation: In agile, everything is iterative and incremental, including the working agreement. It needs frequent reviewing and adjusting for effective collaboration.
What is the primary purpose of a working agreement in an Agile project?
- A) To hold stakeholders legally accountable if they don’t carry out their responsibilities
- B) To provide a clear picture of project progress to executives
- C) To enforce strict hierarchies and decision-making structures
- D) To establish expectations and norms among stakeholders to foster effective collaboration
Answer: D) To establish expectations and norms among stakeholders to foster effective collaboration.
Explanation: The working agreements’ main focus is establishing norms and expectations that facilitate the mutual understanding and collaboration amongst the project’s stakeholders.
True or False: Stakeholders’ personal interests should be ignored while forming the working agreement.
- True
- False
Answer: False.
Explanation: Stakeholders’ concerns, needs, and personal interests are an integral part of forming a mutually beneficial working agreement, to encourage their active participation in the project.
What should a working agreement include to ensure participation and effective collaboration?
- A) Enforcement of strict penalties
- B) A way to measure work productivity
- C) A process for resolving conflicts
- D) All of the above
Answer: C) A process for resolving conflicts.
Explanation: Having an agreed-upon process for resolving conflicts is key in enabling collaboration and effective participation.
True or False: For an Agile Practitioner, managing stakeholder expectations in a working agreement is unnecessary.
- True
- False
Answer: False.
Explanation: As an Agile Practitioner, managing stakeholder expectations is key to promoting participation and enhancing collaboration among stakeholders. It helps to align everyone’s efforts toward a common objective.
Interview Questions
What is the primary purpose of establishing stakeholder relationships by forming a working agreement in Agile practices?
The primary purpose is to define the rules and expectations for stakeholder behavior to foster a culture of transparency, respect, and collaboration which in turn promotes productivity.
What are some common elements included in a working agreement?
Common elements include guidelines for effective communication, decision-making processes, conflict resolution plans, stakeholder responsibilities and expectations, and procedures for dealing with changes.
Why is it important to achieve stakeholder buy-in on the working agreement?
Achieving stakeholder buy-in ensures that all parties understand and accept the working agreement, increasing the likelihood of adherence, accountability, mutual respect, and effective collaboration.
How can agile teams ensure that the working agreement is adhered to?
Through regular reviews and retrospectives at the end of iterations or sprints, Agile teams can reflect on how well they are adhering to the agreement and make necessary amendments accordingly.
What are the steps to create a working agreement?
The steps include defining project objectives and desired outcomes, identifying the key stakeholders, conducting stakeholder analysis, negotiating expectations and responsibilities, and documenting the agreement in a formalized contract.
Why is it important to involve all key stakeholders while forming a working agreement?
Involving all key stakeholders while forming the working agreement ensures comprehensive input, greater acceptance of the resulting agreement, and therefore an increased likelihood of successful project outcomes.
Can the working agreement be modified during the course of the project?
Yes, Agile encourages flexibility and learning, and the working agreement can be regularly reviewed and adapted to adequately respond to changed circumstances or unforeseen challenges.
How does forming a working agreement among key stakeholders promote participation?
Forming a working agreement helps align stakeholders to common goals and establishes a set of acceptable behaviors, which encourages participation by creating an environment that is collaborative and respectful.
What is the role of the Project Manager in forming a working agreement?
The Project Manager facilitates the negotiation of the working agreement, ensures all voices are heard, and guides the group to consensus, while also managing any conflicts that might arise during this process.
How can conflicts be addressed during the formation of a working agreement?
Conflicts can be managed by fostering open communication, using mediation strategies, applying negotiation techniques, and by creating a conflict resolution process as part of the working agreement.
What is the benefit of documenting the working agreement?
Documenting the working agreement ensures that stakeholders have a reference point for their responsibilities, promotes accountability, clarifies understanding, and serves as an important project artifact.
How does establishing a working agreement among key stakeholders help in risk management?
By clearly defining stakeholder expectations and processes, a working agreement can help identify potential areas of risk and aid in establishing mitigation strategies.
What is the relationship between stakeholder management and the working agreement in Agile projects?
The working agreement is a core tool in stakeholder management. It helps in managing expectations, ensuring alignment with project objectives, fostering collaboration, and managing conflict, thus promoting effective stakeholder management in Agile projects.
Why is flexibility important in a working agreement within agile project management?
Flexibility is important as Agile projects often deal with change and uncertainty. A flexible working agreement allows adaptability, encourages continuous improvement, and promotes a positive team culture.
How should an Agile team deal with stakeholders who do not adhere to the terms of the working agreement?
Challenges with stakeholder adherence should be addressed through open communication, revisiting the agreement in project retrospectives, or possibly involving the project manager or a third-party for conflict resolution if necessary.
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