Transcript Slide 1

What Makes Project Stakeholders
Supportive and Adversarial?
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
1
Why are Project Stakeholders Supportive?
(Economic Considerations)
Many projects, particularly of
the infrastructure type, require large substantial
amounts of labour. In poorer
communities where job
opportunities are scarce,
unemployment usually high
and the regional economy is
structurally weak, projects
may be the only source of
income for large numbers of
local people.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
2
Why are Project Stakeholders Supportive?
(Economic Considerations)
Projects do not require
human resources only – they
also often require material
resource inputs in the form of
raw materials and semifinished products as well as
services to be provided onsite. Projects can hence
boost local businesses, generating a stream of income
extending over a part or
whole of the project duration.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
3
Why are Project Stakeholders Supportive?
(Financial Considerations)
Some projects have a long
lasting impact on the communities in which they are
undertaken – and, for
projects which are considered
highly desirable such as
theme parks, the locationing
of offices of major corpora-
tions and large shopping
malls, this may reflect in an
increase in property value
over time.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
4
Why are Project Stakeholders Supportive?
(Financial Considerations)
Some projects may have a
long-term desirable impact in
terms of the volume of investment which they attract
to (and generate within) the
community after their completion. For example, a project to set up a vocational
training institute in a town
may prompt prompt small
and medium-sized businesses to settle there.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
5
Why are Project Stakeholders Supportive?
(Business from Tourism)
Tourism is big business – and
tourists like to flock to places
which offer opportunities for
fun, sightseeing and recreation, and which may be unique in some sense.
Tourism is the prime source
of earning for many destinations and projects which can
„facilitate“ it often generate
widespread support.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
6
Why are Project Stakeholders Supportive?
(Standard of Living)
There are many projects
which, on completion, can
offer stakeholders access to
an improved standard of
living in terms of access to a
larger and better range of
goods and services.
Projects which fall under this
category include shopping
malls, commercial plazas,
cinemas and entertainment
halls.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
7
Why are Project Stakeholders Supportive?
(Acknowledgement)
Many projects generate
support among stakeholders
simply because they are considered important for the development of the local community in which they are
undertaken or for the wider
community at large. An
example is the Beijing Olympic Games 2008 which generated tremendous support
among the Chinese people.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
8
Why are Project Stakeholders Adversarial?
(Apprehension)
People oppose projects be-
cause they fear possible confiscation of property and
eviction from ancestral villages, townships and settlements, and forcible relocation
or resettlement in unfamiliar
places which offer relatively
fewer economic opportunities
and where promised compensation is inadequate or
fails to materialize over time.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
9
Why are Project Stakeholders Adversarial?
(Economic Losses)
A major documented cause
for concern among stakeholders in the context of
some projects (such as the
construction of nuclear power
stations and factories) is the
ensuing loss of their property
value caused by the nature of
the projects being undertaken in proximity. Research
studies have determined the
magnitude of loss in cases.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
10
Why are Project Stakeholders Adversarial?
(Perceived Negative Economic Impact)
Stakeholders may oppose a
project because they expect
it to have a negative economic impact on themselves
and/or their community over
time. For example, they may
anticipate an increase in the
prices of goods and services,
and increase in rents which
in particular would affect
economically less well off
persons.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
11
Why are Project Stakeholders Adversarial?
(Pollution)
A review of numerous pro-
jects worldwide reveals a
common issue of great concern – pollution. This can despoil atmospheric, soil, water
and acoustic environments,
resulting in severe health
hazards for individuals and
communities and visual degradation of pristine settings.
Large-scale chopping of trees
is also widely opposed.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
12
Why are Project Stakeholders Adversarial?
(Damage to Ecological Systems)
Many stakeholders are acute-
ly conscious of the adverse
and long-term impact which
projects may have on the
ecological systems (fauna
and flora) of their area or on
a broader scale and oppose
them on this ground. Power-
ful stakeholders include the
globally active environmentalist organizations Greenpeace & Friends of the Earth.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
13
Why are Project Stakeholders Adversarial?
(Traffic Headache)
Projects of the construction
type often cause traffic congestion and a higher risk of
automobile accident and
personal injury as the project
gets underway. Many stakeholders do not want the personal inconvenience, excite-
ment, and stress caused over
a prolonged period of time by
having a construction site in
close proximity.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
14
Why are Project Stakeholders Adversarial?
(Cultural Xenophobia)
Many stakeholders oppose
projects for the simple reason that the project owners
are outsiders to the community. For example, there has
been much criticism of MNCs
projects in some developing
countries, with fears of an
„alienation“ of cultural
values, norms and traditions
being voiced.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
15
Why are Project Stakeholders Adversarial?
(Suspicions About Need for Project)
Some stakeholders may be of
the opinion that there is no
genuine need for undertaking
a project - in other words they sincerely believe that
the project serves no purpose and is in effect a waste
of resources, or that it is
based on a „contrived“ need
and is actually designed to
benefit the project owners at
their expense.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
16
Why are Project Stakeholders Adversarial?
(Frustration Over Lack of Consultation)
Many projects are underta-
ken without thoroughly analyzing the stakeholder community and engaging them
with respect to their concerns. Some stakeholders
may resent not having been
adequately consulted and/or
informed prior to the project‘s initiation and hence
may not endorse it as they
may have otherwise done.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
17
Why are Project Stakeholders Adversarial?
(Use of Strong-Arm Tactics)
Occasionally the media re-
ports about heavy-handed
methods used by project
owners and allies to get the
project done. This may entail verbally or physically
intimidating stakeholders
who oppose the project, and
in some documented cases
can include more serious
forms of violence like abduction and murder.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
18
Why are Project Stakeholders Adversarial?
(Concern For Cultural Assets)
Some projects such as dam
and road construction extend
over a large space and may
cause damage to precious
cultural or archeological
assets at places which were
once of historical significance
and happen to be located at
or in proximity of the project
construction sites. Stakeholders have documented many
such cases worldwide.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
19
Why are Project Stakeholders Adversarial?
(Crime Fear)
Large projects may require
the influx of project employees from outside the community. Ocasionally, tensions
between the „imported“
stakeholders working on the
project and the community
where the project is located
may arise over diverse
issues, one of which are
incidents of crime committed
by the outsiders.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
20
Why are Project Stakeholders Adversarial?
(Image of the Project Owner)
It has been observed on
many projects that stakeholders are put off by the
reputation, policies and practices of the organization(s)
which are undertaking the
project. This is especially
true, for example, on pro-
jects in which large oil and
mining companies are involved in developing countries.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
21
Why are Project Stakeholders Adversarial?
(Negative Publicity)
Some projects which gene-
rate considerable opposition
may find it difficult to find a
place where they can be implemented. Some stakeholders may be concerned that
allowing controversial projects to be set up in their
community may tarnish their
reputation in other communities given the negative publicity about the projects.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
22
Why are Project Stakeholders Adversarial?
(Attitude to Change)
Most people tend to be con-
tent with their way of life as
long as it meets all their
basic needs and wants and
offers a comfortable environment. As projects go hand in
hand with change, and because the consequences of
the change cannot always be
accurately envisioned, stakeholders may be hesitant to
support the project.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
23
Why are Project Stakeholders Adversarial?
(Security Concerns)
9/11 changed our world,
pushing security to the forefront of our concerns. Stakeholders may apprehend with
increasing intensity the
potential dangers inherent in
the pursuit of certain project
such as nuclear power sta-
tions, chemical factories and
even infrastructure projects
stemming from the threat of
terrorism (or just accident).
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
24
Why are Project Stakeholders Adversarial?
(Civil Strife Situations)
Numerous intra- as well as
interstate conflicts plague our
world. In war-ravaged countries such as Aghanistan and
Iraq, relief and reconstruction projects are underway
on a grand scale. Many of the
projects and their staff have
over time been targetted by
insurgents who are opposing
and seeking to destabilise the
state.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
25
Video Case Study: Chad-Cameroon Pipeline
(Review of Project Stakeholder Issues and Concerns)
This insightful 25 minute
video made by the environmentalist organization
Friends of the Earth documents the ‚broken promises‘ by the oil companies
implementing the project,
the project financers and
governments of Cameroon
and Chad toward the external stakeholders of this
project which is one of
largest infrastructure projects undertaken to date in
Africa.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
26
Project Stakeholder Options
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
27
Influencing Projects: Stakeholder Options
(Institutional, Political and Legal Options)
Non-cooperation
Enlisting media support to generate negative
publicity)
Exerting pressure on other stakeholders to oppose
the project
Boycotts
Lobbying politicians and legislators
Petitioning
Litigation
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
28
Influencing Projects: Stakeholder Options
(Non-Cooperation)
At the very least an actively
adversarial stakeholder can
be expected to adopt a noncooperative stance towards
the projects, for example, by
refusing to sell goods and
services to the project implementors, refusing to work on
the project, not providing in-
formation which could facilitate it and withholding needed support for the project in
the relevant forums.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
29
Influencing Projects: Stakeholder Options
(Enlisting Media Support)
The Media is a powerful
opinion-shaper – and a convenient means for mobilizing
support for or against a project if a convincing case can
be made. Adverse media
coverage – even if based on
misinformation - can cause
serious complications for the
project, making it (at the
very least) expend resources
unnecessarily on correcting
stakeholder perceptions.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
30
Influencing Projects: Stakeholder Options
(Influencing Other Stakeholders)
Stakeholders are not isolated
entities but can under circumstances form „alliances“
with other stakeholders to
promote their objectives
which may include opposing
a project or some aspects of
it.
As individuals, stakeholders
may be in a position to exert
little influence but, collectively, they may be a powerful
force to be reckoned with.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
31
Influencing Projects: Stakeholder Options
(Lobbying Politicians and Legislators)
Politicians and legislators are
powerful forces which can
obstruct the course of projects.
In many documented cases,
stakeholders have successfully mobilized political and
legislative support to oppose
projects.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
32
Influencing Projects: Stakeholder Options
(Boycotts)
Among the many options
stakeholders have at their
disposal to influence the
course of a project is the use
of boycotts. These may take
the form of refusing to supply
inputs for the project during
the implementation phase or
refusal to purchase the goods
and services which will be
available once the project is
completed and enters its
operational phase.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
33
Influencing Projects: Stakeholder Options
(Petitions)
Petitions are an active and
highly overt means of showing public opinion against a
project.
Petitions have been used in a
number of different contexts,
such as infrastructure projects and projects where the
private-sector wants to de-
velop schemes in localities.
In some instances, petitions
have prevented the implementation of projects.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
34
Influencing Projects: Stakeholder Options
(Litigation)
Litigation is a powerful tool
which stakeholders can use
to influence projects.
As all projects function in a
legal environment, litigation
is especially useful when the
law leaves room for discretionary interpretation and
where projects exhibit notice-
able shortcomings in regard
to the implementation of the
laws which they are required
to follow.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
35
Influencing Projects: Stakeholder Options
(Withdrawal of Recognition)
In some instances, project
stakeholders can resort to
the option of denying official
recognition for a project or
its owner as a means of
modifying it or causing its
abandonment. A recent
example in this regard was
UNESCO‘s threat to strike the
German city of Dresden off
its heritage list to prevent
the construction of a bridge
across the River Elbe.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
36
Influencing Projects: Stakeholder Options
(The Resort to Illegal Options)
Verbal threats against project personnel
Blockading project construction sites, facilities and
logistic supply routes
Violent rallies and demonstrations, and strikes
against the project
Acts of Violence: Rioting, arson, targeted sabotage,
vandalism and other scare tactics
Criminal Acts: Abduction, assault, injuring and
murder of project personnel
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
37
Influencing Projects: Stakeholder Options
(Verbal Threats)
One of the „milder“ illegal
options which stakeholders
have at their disposal for influencing projects is to direct
verbal threats against project
personell. The threats may
hint, directly or indirectly, at
some action that may happen at a future point in time
and which may result in physical and/or material damage
to the project and the people
working for it.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
38
Influencing Projects: Stakeholder Options
(Rallies and Demonstrations)
Another highly overt means
of showing opposition towards (or support for) a project is to organize public
rallies and demonstrations
with large media coverage.
Through such events, a common sentiment is conveyed
which other external forces –
for example, political forces may seek to exploit for selfbenefit at the expense of the
project.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
39
Influencing Projects: Stakeholder Options
(Blockades)
Project construction sites,
facilities and supply routes
are often subject to physical
blockades by project stakeholders with a view to pre-
venting supplies from reaching them and consequently
causing both a delay as well
as increase in cost to the
project, besides intimidating
the project personell. Violent
clashes and injuries and
deaths may occur as a result.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
40
Influencing Projects: Stakeholder Options
(Violent Acts Against Property)
Criminal acts may assume
many different forms, including violence which is directed against property, such as,
the systematic sabotage of
project sites, facilities and
machinery, rioting with the
intention of vandalizing and
pilferage of project resour-
ces, and arson attacks. Such
actions can delay the project
and frighten the owners into
abandoning it completely.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
41
Influencing Projects: Stakeholder Options
(Violent Acts Against People)
Stakeholders may, in some circumstances,
indulge in criminal acts such as assaulting,
injuring, abducting or even murdering
project personnel in order to prevent the
implementation of certain projects.
Stakeholders may resort to such extreme
measures because they perceive the
project as representing the interests of the
state, with which they may be in prolonged armed conflict, or out of desperation
because they have no other option to
prevent the project which they perceive as
an existential threat.
Several incidents of premeditated and recurring violence against project staff
have been documented in crisis regions around the world in recent years, for
example, in energy projects undertaken in the Nigerian Oil Delta, in (re-)
construction and social development projects in Afghanistan, Pakistan and
Iraq, and in the strife-torn island of Jolo in the Phillippines.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
42
Case Studies:
Use of Options by Project
Stakeholders on Projects
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
43
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
44
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
45
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
46
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
47
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
48
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
49
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
50
The Houston Chronicle, 9th February 2008
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
51
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
52
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
53
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
54
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
55
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
56