3/7/2020

Project
Stakeholder
Management

PROJECT
Stakeholder
• Management
§ The Stakeholder Management process is required to identify
the people, groups, or organisations that could impact or be
impacted by the project.
§ It is to analyse stakeholder expectations and their
impact on the project.

§ It is to develop appropriate management strategies

for effectively engaging stakeholders in project
decisions and execution.

1
 3/7/2020

PROJECT
Stakeholder Management

Plan Manage Control

Identify
Stakeholder Stakeholder Stakeholder
Stakeholders
Management Engagement Engagement

Identify (Early) Developing Communicating Monitoring

all stakeholders, appropriate and workingwith overall project
determine all management stakeholders stakeholder
requirements, strategies to
expectations, effectively engage
interests, level stakeholders
of influence. throughout the
Stakeholder project lifecycle.
Register Stakeholder
Management Plan

What is a stakeholder?
An individual or group with an interest in the
project

• May affect or be affected by it

• Can exert influence over it
• Can be primary or secondary

2
 3/7/2020

PROJECT
Stakeholder
s
Individuals and organizations who are actively
involved in the project, or whose interests may be
positively or negatively affected as a result of project
execution or successful project completions.

Types of ProjectStakeholders:
§ Internal Stakeholders
§ External Stakeholders

Stakeholders

Primary stakeholders
• Formal, official or contractual relationship
with the project

Secondary stakeholders
• Informal interest in the project

3
 3/7/2020

PROJECT
Stakeholder
s

Primary stakeholders
• Contractual or legal obligation to the project
• Direct strategic or operational roles
• Responsibilities:
• Leading the project team members
• Allocating resources to be used in the project
• Building and maintaining relationships with all stakeholders
• Oversight of the project’s progress (schedule, cost and technical
performance)
• Periodically assessing the efficiency and effectiveness of the
project team

4
 3/7/2020

Primary stakeholders
Sponsors • Provides financial resources for the project
Customers / Users • Persons or organisations that will use the project’s
outcomes
Functional • Key individuals in administrative or functional areas
managers (e.g. human resources, finance, accounting,
procurement)
Operational • Key individuals in core business areas (e.g. R&D,
managers design, manufacturing, maintenance)
Contractors • Workforce outside the organisation to carry out a
specified scope of work (e.g. training, installation)
Suppliers • Within a contractual agreement to provide
components or services for the project

Secondary stakeholders
• No legal authority or contractual relationship with the
project
• Can exert extraordinary influence over the project -
supporting or working against it
• Forms how they exercise power over the project:
Political influence
Legal actions
Media support
Social pressure
Local community resistance

Source: http://www.theguardian.com/environment/2008/feb/25/climatechange.transport

5
 3/7/2020

Project stakeholders’ model

Source: Cleland DI (1998). “Stakeholder Management” in Project Management Handbook. Pinto JK (editor),
Chapter 4, Project Management Institute, Jossey-Bass Publishers, California, U.S.A., p.61.

Stakeholders in development projects

• Beneficiaries: those who are positively benefited by
the project
• Target Group: directly positively affected at the project
level.
 Households with improved and safe cookstoves
• Final beneficiaries: those benefited in the long term at the
society or sector level.
 Consumers benefiting from improved agricultural markets
• Prejudiced stakeholders: those who can be
negatively affected by the project
 Informal “waste pickers” in a waste management project

6
 3/7/2020

Understanding stakeholders’ needs and

requirements

• Who are the most relevant stakeholders?

• Which are the main characteristics of these
stakeholders?
• Which would be their main interests from the project?
• What are the main problems that they identify?
• Is there a relationship between the stakeholders?
• What can be the role of the stakeholders in different
project phases?

Stakeholders’ influence
We also need to identify:
• Who are the most influential stakeholders?

• Who will have or require direct or indirect involvement?

• Who has the power to support or hinder the project?

• Who may require more or less information or

involvement than others?

7
 3/7/2020

Stakeholders analysis

Stake in
the project? Impact?

What do we Perceived
need from risks?
them?

Stakeholder Management
Stakeholders are all individuals or groups who have an active stake in the
project and can potentially impact, either positively or negatively, its
development.
Sets of project stakeholders could include:

Internal Stakeholders External Stakeholders

• Senior management • Clients
• Accountants • Competitors
• Other functional managers • Suppliers
• Project team members • Environmental, political, consumer,
and other intervenor groups

8
 3/7/2020

Project Stakeholder Relationships

Parent
Organization
Suppliers Sponsor

Project
Customers Regulatory
Manager Agencies

Project
Users Team

Stakeholder Analysis
The Stakeholder
Analysis is a method
for identifying
internal and external
stakeholders, their
concern and
objectives, their
potential influence,
and how to deal with
them.

26

9
 3/7/2020

Steps to analysing a set of stakeholders

Who are the stakeholders for your project?
– Do they work within the organisation? Are they external?
What are the interests of the particular stakeholder?
– Do they have a specific agenda? Do they have existing commitments that may affect
their ability to operate?
How much impact could they have on the project?
– Could the stakeholder cause the project to begin or stop operation?
What are the stakeholders’ attitudes towards the project?
– Are they in favour of the development or against?
How will the process of engagement be managed
properly?
– How do you plan to involve the stakeholders in your project’s operation?

Stakeholder Analysis and Management

Stakeholde Their goals Past reactions Reactions Impact on Possible Ideas to
r expected stakeholder: future ensure
negative/positiv reactions support
e
Production Keep Sceptical of Likely to Could be Could refuse Keep them
managers production benefits of be furious negative if things to switch to abreast with
on change, if things go go wrong; should new system progress;
schedule worried about wrong at be very positive if they involve them
problems change- if things work remain in trial runs
with new over well sceptical of and testing
systems success of new
system

Production Remain in Contact Likely to Should be Could refuse Explain

operatives paid unions if the be positive if the to operate benefits of
employ- change is obstructiv new system the new the new
ment likely to have e if the improves system if system; offer
a detrimental change is productivity and they feel bonuses for
effect on their seen as brings in more watched or increased
jobs negative customers (and their jobs are productivity
jobs) threatened

10
 3/7/2020

0 - Low 5 - Medium 10 - High

0 - Low
Maintain regular

Potential power of stakeholders

contact – but not
vital to project

Maintain contact
5 - Medium

– may impact
project

Keep actively
consulting
Require high level
of communication
10 - High

– key to project

Involve in key
decisions

Interest of stakeholders

11
 3/7/2020

Stakeholder Strategy Matrix

High Power High Power

Low Level of Interest High Level of Interest

Low Power Low Power

Low Level of Interest High Level of Interest

• Helps to prioritise needs and expectations of stakeholders

12
 3/7/2020

Stakeholder Communications Plan

Stakeholder Stakeholder Stakeholder Communicat Timing Communicat
Priority Analysis -ion Content -ion Medium

Derived from How the What needs When are How will
Stakeholder stakeholder to be communicati communicati
Power/Intere could help or communicat ons required ons be done?
st Grid hinder the ed by this (e.g. email or
project group? (e.g. meeting)
at start of
project
planning
phase, or
daily, weekly
etc.

Stakeholder mapping
High

Keep satisfied Manage closely

Power

Monitor Keep informed

Low
Low High
Level of interest

13
 3/7/2020

Stakeholder analysis
Identification (example)
Project: Implement a new e-procurement system in the University
Stakeholder Stake in the project What do we Perceived Risks if they are
need from attitudes / risks not engaged
them?
Procurement • Determine • Experienced • Lack of clarity of • Significant
and financial institutional policy staff involved in the preferred scope change
office and procedures user groups and approach • Close down the
acceptance test project
Faculty and • Manage admin staff • Commitment to • Lack of interest • Barriers to
line managers that will operate new implementing the in the project adoption of the
system change system
Admin staff • Will operate the • Contribute to the • Concern about • Become
new system system process increased blockers to
design and workload effective use of
testing • Training the new system

14
 3/7/2020

Section
Introduction Constraints

Within a project there may be certain conditions which we may

need to align the project’s goals to, this section explores how such
constraints may be identified and managed

Types of Constraints
Any Internal or External restrictions that
may affect project outcomes.

– Internal project constraints.

– Internal corporate constraints based on
organisational objectives.
– External constraints exposed by outside
parties.

15
 3/7/2020

Internal Project Constraints

• Can the product be made? Can the company meet the specifications?
• Does the company have the technology? If not, can the technology be
acquired?
• Is the new technology component greater than 10%? Practitioners
recommend the amount of innovation should be kept below 10% to
reduce risk and uncertainty.
• Are the resources available? With the right skills?
• Are there any special design requirements? Or equipment required?
• Can the project be completed within the budget?
• What is the quality assurance requirement? For example, is accreditation
to ISO 9000 required? Is the present quality management system
sufficient?
• Can the project meet the client's completion date and any intermediate
key dates?
• Can the company accept the time penalties?
• Are the project risks and uncertainties acceptable?

Corporate Project Constraints

Financial Objectives:
– project net present value (NPV).
– The company may wish the project to maintain a
positive cash-flow.
– The company's share price may have an effect on the
project's ability to borrow.
Marketing:
– 'foot in the door‘?
– keep the workforce intact? Bid strategy.
– Partner strategy.

16
 3/7/2020

External Constraints
• National and international laws and
regulations.
• Material and component delivery lead times.
• Environmental issues. Government legislation
and pressure group activities
• Market forces, supply and demand curve.
• Political unrest.
• Construction site in a residential area - may not
be allowed to work a night shift
• Planning permission, licenses, permits,
clearances, right of way, insurance.

17
 3/7/2020

Case Study – Rolls-Royce – pg 87-88

18