Human Factors in Project Management: Stakeholder Management

MANG6311 Stakeholder Management

Dr. Ian Cammacki.j.cammack@soton.ac.uk

MSc Project Management

Sources:http://www.antonioolmos.com/index.php#mi=2&pt=1&pi=10000&s=13&p=7&a=0&at=0http://mayrsom.com/2013/07/10/stakeholder-orientation/

Introduction• Relatively new concept :

– “70% of people not consulted” (Hutton 1995)

• Successful projects more than ‘time, cost & quality’

– Quantitative and Qualitative success criteria

Definition(s)• “those groups who without whose support the

organisation would cease to exist” (Freeman 1984)

• “the people who have a real interest in the outcomes of the project” (Lockwood 1996)

• “individuals or groups who can effect, or are affected by the (project) you are (managing)” (Ryan 1996)

• “a person or group of people who have a vested interest in the success of an organisation [project] and the environment within which the organisation [project] exists” (BS6079 1996)

A stakeholder management process

Identify project success criteria

Identify resource

requirements

Identify stakeholders

Conduct stakeholder

analysis

Implement stakeholder

management strategy

Monitor external and

internal change

Monitor stakeholder satisfactionSuccessful

projectcompletion

Source: after McElroy B. & Mills C. (2000) Managing Stakeholders

Stakeholder Management• Satisfaction = perception – expectation

• Hard Metrics:

– Time, Cost & Quality

• Perceived Quality:

– Responsiveness– Communication– Competence / Professionalism– Courtesy– Accessibility

Different perspectives on success

Client Have the goals been achieved to a satisfactory degree

Project leader

Has the result been achieved with respect to the aspects of Time, Money, Quality, Information & Organisation

Project employee Is their contribution appreciated?

Financier Is it profitable?

End User Is it usable?

Person with problem Are we any closer to finding a solution

Source: van Well-Stam et al p.31

Types of Stakeholder “Internal”

• Project Manager

• Project Team

• Senior Management

• Project Client

• Competitors (for Project Resources)

• Suppliers (internal)

• Customers (internal)

• Unions / Staff Associations

“External”

• Government (UK, EU)

• Regulators

• Competitors

• Neighbours

• Suppliers (ext. Supply Chain)

• Customers

• Opinion Formers (Media, Commentators, Unions)

NB: Not all Stakeholders want the project to succeed

A Stakeholder Schematic

Internal

Internal

Internal

INTERNAL

LOCAL

NATIONAL

INTERNATIONAL

Industrial Customers

Multilateral investors

National Media

Customers

International Media

Local Media

Think tanks/ research groups

Academic institutes Local Interest

groups

Customers

CustomersEmployees

Trade unions

Contractors

Local government

Local NGO’s

Suppliers

Neighbours/ local community

NationalNGO’s

Investors

National Government /

regulators

International NGO’s

Industry & business asoc

Hund (2002)

What Resources Can Stakeholders Deploy?

Project

Internalsupport Political

attention

Planning

Publicsupport

Regulatory

DiscretionExternalcontacts

Knowledge

Emotion

Skills

Projectmaterials

Finance

Bureaucraticinertia

Source: McElroy B. & Mills C. (2000) Managing Stakeholders

Exercise 1

• Working in a small group

• Consider a project to bring a new mobile phone to market

• Identify a range of stakeholders and stakeholder groups

• What resources do they bring to the project?

Stakeholder Analysis:Factors

• Knowledge

• Power/ influence

• Interest

• Intent

• Trust

Stakeholder Analysis• What is the person or group’s stake in the project?

– Are they needed to resource it?

– Are they directly affected by it?

– Are they indirectly affected by it?

– Are they unaffected, but still have the power to affect it should they choose?

Don’t take for granted

Assure that projectmeets their objectives

Difficult to manage

Basing their opposition on knowledge

Vulnerable;could easily be lost

Protect andreinforce support

Key target area

Fill gaps in knowledgewith positive messages

Stakeholder Analysis & Mapping #1

Kn

ow

led

ge

Attitude/ Intent

Source: McElroy B. & Mills C. (2000) Managing Stakeholders

Support

Aw

are

Oppose

Ign

ora

nt

Minimal effortdirection

Low

Low Keep informed

education/ communication

High

Keep satisfiedinterventionH

igh

Key playersparticipation

Stakeholder Analysis: Stakeholder mapping #2

Source: Mendelow, A,(1991) Proceedings of 2nd International Conference on Information Systems, Cambridge, Mass.

Interest

A B

C D

Pow

er

Assessing power/ influence

Internal stakeholders

• Status

– position in hierarchy– Salary/ grade indicators

• Claim on resources

– Number of staff– Budget as % of total

• Representation

– Number/ influence of directors

• Symbols

– Quality of accommodation

– Support services

External stakeholders

• Status

– Speed of your reaction– Level of influence

• Resource dependence

– Degree of involvement in strategy implementation

– Degree of control over strategic resources

• Negotiating arrangements

– Standard prices versus individual negotiations

• Symbols

– Access and invitations

If I were to pursue this project…would/could they stop me?

Stakeholder Mapping: Stage 2Active

OppositionPassive

OppositionNo

CommitmentPassiveSupport

ActiveSupport

A B

A B

A B

A B

A B

A B

ManagingDirector

Users

Regulator

Media

Suppliers

Key Customers

FinanceDirector

AB

Key

A= Current

B = Required

Role ofStakeholder

DecisionMaker

Consent

Influencer

Influencer

Player

Consent

Influencer

Attitude of Stakeholder

Stakeholder Mapping: Step 3Engineers

KeyCustomer

StaffAssoc.

Users

SalesDirector

Line Manager

PRAgency

MediaMarket-ing

Training

Suppliers

Agents

Regulator

VentureCapitalMD

FinanceDirector

PM

DM +ve?

P -ve?

I ?

I +ve?

C –ve?C -ve

I +ve

Key:DM = decision makerI = influencerP = playerC = consult

–ve / -ve? / ? / +ve? / +ve

Example of Stakeholder Mapping 1 (part A)

Football Association

LeagueFederation of StadiumCommunities

PFA

Football Foundation

Media

Local Authority

Football in the Community

Local Businesses

Supporters Trust

Supporters Groups

The Co-operative Group

Supports Direct

Football SupportersFederation

Independent FootballCommission

Shareholders

Sponsors

Source: Holt et al 2005 p.70

Football Club

Example of Stakeholder Mapping 1 (part B)

Football Club

Football Association

League

Federation of StadiumCommunities

PFA

Football Foundation

Media

Local Authority

Football in the Community

Local BusinessesSupporters TrustSupporters Groups

The Co-operative Group

Supports Direct

Football SupportersFederation

Independent FootballCommission

Shareholders

Sponsors

Source: Holt et al 2005 p.71

Example of Stakeholder Mapping 2

Euro2000(Executor)

UEFA(principal) KBVB,

KNVB

Sponsors

ISL

Stadiums

FORTO2000

EBU

Media

The public

Government Bodies:• Local• Regional• National• International

Contract

Informal

Obligation (delivery)

Approval

KEY:

Source: van Well-Stam et al p.31

Example of Stakeholder Mapping 3

Stages to Committment

Ignorance : Do NothingAwareness : NewslettersMemosBriefing Papers

Understanding : DiscussionsTeam MeetingsRoadshows

Support : ConsultationDebateFeedback

Involvement : Early IncorporationShow CompromiseShare ConfidencesCollective Problem Solving

Stakeholder Mapping: Stage 4

ManagingDirector

Users

Regulator

Media

Suppliers

Key Customers

FinanceDirector

DecisionMaker

Consent

Influencer

Influencer

Player

Consent

Influencer

Stakeholder Category Influencing Strategy Information RequiredComms Medium

Resp.A B

ReadingEssential Reading:

• Karlsen J.T. “Project Stakeholder Management” Engineering Management Journal Vol. 14 No. 4 December 2002

• McElroy B. & Mills C. (2000) “Managing Stakeholders” in Turner J.R. & Simister

S.J. Handbook of Project Management 3rd Edition

Additional Reading:

• Malvey D. Fottler M.D. & Slovensky D.J. “Evaluating Stakeholder Management Performance Using a Stakeholder Report Card” Health Care Management Review 2002, 27(2), 66-79

• Kumar K. & Subramanian R. (1998) Meeting the Expectations of Key Stakeholders: Stakeholder Management in the Health Care Industry

• Useful proforma for stakeholder management http://www.adams12.org/Quality/documents/ProjectStakeholderAnalysis.pdf