Transcript Slide 1

Primary Stakeholders: The Contractor
The Project Contractor is a key stakeholder who
undertakes the bulk of physical work on civil engineering projects.
Project Contractors
often have to
contend with many
challenges and
unforeseen
problems in the
course of project
implementation!
Some of the Contractor‘s major responsibilities
include ensuring that the construction schedule
as laid down in the project plan is kept, that the
work undertaken is consistent with the project
requirements and specifications and approved
changes to the project scope are incorprated into
the construction plan, that quality standards are
not compromised, that laws and regulations are
followed and licenses and permits from the
authorities concerned are obtained, that construction progress is regularly monitored and
communicated to the project team, that problems
are resolved and a line of communication to other
stakeholders is kept, and that close coordination
with the Project Suppliers and Project Subcontractors is maintained.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
1
Primary Stakeholders: The Supplier
Like the Project Contractor, the Project Supplier is a
key stakeholder in civil engineering and other categories of projects. Often, Suppliers have a network
of Subsuppliers.
The Project
Supplier is the
prime source of
inputs which are
used on large
projects.
The Supplier is responsible for ensuring that all the
material inputs of the agreed specification and
quality are delivered to the project site(s) in the required quantity at the time they are needed. This
may be on a regular or periodic basis. The concept
of „Just in Time“ (JIT) delivery by Suppliers has
gained popularity in organizations in recent years,
also for project managers as JIT brings some noteworthy benefits in the project management context.
Delays in the supply of inputs to project sites may
delay the project schedule. Hence, it is imperative
that the Supplier closely coordinates with the Contractor, Project Manager and Project Team,
especially during the project implementation phase.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
2
Primary Stakeholders: The Consultant
The Project Consultant can be an individual performing a few specialized tasks on a project – it
can also be a organization which is concurrently
working on several diverse projects and is
involved in the project throughout its life-cycle.
Project
Consultants are
indispensable
for many
projects.
Consultants offer all kinds of services – for e.g.,
undertaking pre-feasibility and feasibility studies,
contract management, project planning, architectural and engineering design, cost estimation,
scheduling, quality assurance, risk assessment,
data management, monitoring, auditing, report
evaluation, training (skill development, team
building, communication etc.), liaising with other
project stakeholders and trouble-shooting.
Consultants bring specialized expertise to the
project and often have extensive project experience. Project consultancy is a challenging and
innovative field of work.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
3
Primary Stakeholders: The Project Customer
The customer‘s responsibility is to clearly indicate
to the project manager and team the needs and
requirements that must be met by the project,
review and approve the project charter and
project plan, and closely interact with the project
manager and team during the project‘s planning
and implementation.
The responsibility also lies with the customer to inform the project manager of any changes in the
project environment that can or will effect the project deliverables, request and approve changes to
the project when needed, provide regular feedback to the project manager, review project status
reports and the final project status report, verify
that the project scope has been completed according to agreement and evaluate the final project
deliverables at the end of the project.
Also called the
“Project Owner”, the
customer is the
ultimate recipient of
the project output or
result.
Customer satisfaction
is a measure of the
project’s success.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
4
Secondary Stakeholders: Families
Most families share similar desires – primarily to
live in a comfortable, peaceful, clean, secure and
child-friendly environment. However, projects
which are being undertaken in close proximity to
families often conflict to some extent therewith.
Road and building construction projects, in
particular, can be a source of considerable and
enduring nuisance and inconvenience for families
due to the noise, dust and dirt, pollution and the
diversion of road traffic they cause.
By comparison other projects - for example, the
creation of playgrounds, parks, day care centers,
sport and recreational facilities, nurseries and
schools – would usually generate a higher level of
interest and support among families who would
probably count among their main users on
completion.
Families are very
concerned about
the impact of
projects on them
and their neighbourhoods.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
5
Secondary Stakeholders: Tourists
The tourist industry ranks for years amongst the
fastest growing sectors of the global economy.
People are taking to the roads and skies in ever
increasing numbers to visit destinations within and
beyond their national borders whereby their interests seem as varied as the places they visit.
Tourists bring in immense sums of money and in
many regions are the primal source of economic
prosperity.
Thousands of projects across the globe in countries as diverse as Egypt and Thailand, Turkey and
the Maldive Islands, Spain and the UAE are being
undertaken by governments and the private sector
specifically to cater to the needs of tourists. Other
projects – usually in the superlative category– can
generate considerable interest among tourists as
can projects to improve infrastructure and cultural
facilities in towns, cities and localities.
Tourists are a
force to be
reckoned with.
There’s hardly a
place on Earth
they haven’t
discovered.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
6
Secondary Stakeholders: Media
The media in its print, broadcast and web-based
forms is a (very) powerful force.
Through its news and event reporting, the media
shapes public opinions. In the case of projects, the
media has on numerous occasions strongly influenced people‘s perceptions, sometimes in
favour of and sometimes against a project, by respectively focussing more on the project‘s positive
or negative points.
The first exposure most people have to a project
in which they are not directly or indirectly involved
is through media coverage. The exposure may be
„objective“ or „biased“ depending on the ideological underpinnings of the media source. By systematically mustering media support, Project
Owners and Managers would put themselves in a
better position to manage their stakeholders.
The print media may
have an economic
interest in projects,
for e.g., when they
are paid to print tender notices, RFPs and
job advertisements
for needed project
staff. The media also
makes documentaries
on major projects.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
7
Secondary Stakeholders: Academia
Academic has an interest in on-going and completed projects as well as projects planned for the
future.
Projects can yield valuable data and information
which could be used for undertaking research
studies and as case studies in class. A project
management researcher, for example, may be interested in the methodology, processes and tools
which were used in planning an implementing a
large construction project. A researcher with a
background in civil engineering may, on the other
hand, be more concerned with the technical
aspects of the project and the use of innovative
materials and substances while a researcher with
a background in social sciences may want to learn
about the performance of the project team and
level of interaction and communication between
the project stakeholders.
Professors and
researchers are
always keen to
study how things
they teach in class
are done in the
“real world”.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
8
Secondary Stakeholders: Countries
Countries too can, on occasions, be stakeholders
to a project.
All projects have an impact. In the case of large
projects, these impacts sometimes do not halt at
national borders but transcend them and effect
surrounding countries–possibly negatively – as
well.
A case in point are water management projects at
major rivers. Since rivers usually flow through
more than one country, a project to store or divert
river water in one upstream country may consequently result in a reduction of water flows to its
downstream neighbours. Reduced water flows may
damage their agriculture and economies besides
having a social fall-out. If uncontrolled, a situation
may arise whereby countries are willing to engage
in armed conflict.
Turkey almost went to
war with its neighbours Iraq and Syria
several years back.
The cause for this
near conflict was
Turkey’s construction
of a series of dams on
a river shared by all
three countries.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
9
Secondary Stakeholders: Competitors
Companies clearly have a stake in projects which
their competitors are undertaking as they stand to
lose out heavily in certain situations.
The field of software development is a case in
point. Suppose, for example, that there are four
competitors on the market for image editing software. The programmes they offer are high class
and comparable to each other in quality. One of
the four companies initiates a project to develop a
new editing software with greatly enhanced functionality which it intends to market at a price marginally higher than the one it is presently offering.
Its three competitors learn about the project and
are concerned because if the project is successful,
they may lose heavily in lost sales and market
share given the anticipated diversion of demand to
the new software. This reasoning applies to other
competitive sectors as well.
Competitors are
always keeping a
watch on their cocompetitors –
because they don’t
want a nasty
surprise!
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
10
Secondary Stakeholders: Environmentalists
Since the 1960s, the environmentalist movement
has emerged on the global scene as a highly vocal
and influential entity. Some of the more prominent
organizations like Greenpeace periodically make
world headlines with their practical measures aimed at generating public awareness against actions
ranging from the cruel practice of whaling in the
world‘s oceans to the plans of the nuclear industry
to construct new power stations.
Many are the projects across the globe which
come under the critical scrutiny of the environmentalists. High-profile cases are large projects
such as dam, road and airport construction, oil
and gas projects and projects to construct
thermal, hydro and nuclear power stations, all of
which involve the clearing of large tracts of land
with consequent damage to the fauna and flora,
and perceived soil, air and water pollution.
Environmentalists
will fight to the end
for their cause.
Always try to keep
them happy!
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
11
Secondary Stakeholders: General Public
Most projects will have a limited stakeholder outreach. There are some however, that, because of
their enormous magnitude may effect and interest
the general public in some way or the other.
The construction of a highway directly linking all
major cities in a country would make traveling
more convenient for the public. The construction
of a power station to overcome chronic electricity
shortfalls would effect everyone. Building large
new food and beverage factories would also interest the general public who can access a broader
(and possibly cheaper) selection of products.
Some projects can be a source of concern for the
general public. For example, proposals to establish
databases to store information on every citizen
have been vehemently opposed by the public in
some countries.
The general public
wants to be assured that a project
will not cause
enduring problems
for it.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
12
Secondary Stakeholders: Local Communities
Like the families which form their basis, local
communities have an interest in, and are affected
by, the projects which are being implemented in
their respective localities.
Projects can, depending on circumstances, bring
numerous benefits for local communities. For
example, they can generate employment for local
people, boost local businesses, cause property
prices and rents to rise, allow access to more
products and services, draw attention to the
community and make life more interesting for its
residents.
The downside is that some projects, especially of
the construction type, can have a nuisance effect
in terms of the noise, dust and dirt, pollution and
hazards caused by the implementation of the construction activities.
Local communities
are in favour of
change as long as
it doesn’t come at
their expense.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
13
Secondary Stakeholders:
Diverse Organizations
Economies and societies are extremely complex
entities. Countless organizations and institutions
operating in diverse fields exist and interact in a
dynamic manner.
Many organizations are affected by projects in
some way or the other – educational and medical
establishments, training institutes, consumer
interest groups, trade and manufacturers
associations, chambers of industry and commerce,
government departments, non-governmental
organizations – to name but a few of the myriad
players.
Organizations are
as diverse as
people and so are
there interests as
far as projects are
concerned.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
14
Managing Project Stakeholders Professionally
Project Stakeholder Management Process
1
Understand the Project Context
2
Identify All Project Stakeholders
update
3
Analyze and Map the Project Stakeholders
revise
4
Design Stakeholders Engagement Strategy
revise
5
Implement Stakeholders Engagement Strategy
Project
Stakeholder
Information
System
Project Completion
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
15
Functions of the Project Stakeholder
Management Process
• Minimize the risk to the project stemming from possible
negative intervention actions by the project stakeholders
• Maximize the positive contributions of the project
stakeholders
• Manage complexity when many different project stakeholders are involved
• Awareness of the project stakeholder situation at any
point in time in the project life-cycle
• Proactive project stakeholder management
• Improve management of project stakeholders in future
• Professional approach and a good practice to follow
• Basis for undertaking research on project stakeholders
• Accountabilty
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
16
Understand the Project Context
The first task in „managing“ project stakeholders
is to identify, study and understand the context
in which the project is taking place – in other
words, look at the project‘s „broader picture“.
Projects come in all shapes and sizes and their
change impact varies enormously. And, as all
projects are unique, even if two projects are
similar, they may require different approaches to
managing stakeholders.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
17
Understand the Project Context
(Importance of Project)
Project Importance
High
On projects, the attention
given to managing the
stakeholders will vary,
depending on the type of
stakeholder.
It is reasonable to assume that as
a project’s importance increases,
more care needs to be excercized
by the project implementors in
“managing” the project stakeholders otherwise the project goal and
the project investment may be
jeopardized.
Low
Low
Focus on Effectively Managing the Project Stakeholders
High
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
18
Understand the Project Context
(Project Category)
Projects come in many categories and each may
have different implications for the way project
stakeholders are managed. For example, stakeholder
management on a corporation‘s project to introduce a computerized human resource information
system would be quite different (and usually far less
complex) than the stakeholder management
required on a project for constructing a large dam.
There is no stakeholder management model that fits
all projects. Each project must be considered in its
own merit.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
19
Understand the Project Context
(Complexity Involved in Managing Project Stakeholders)
No. of Project Stakeholders
High
New Product
Development projects
Complex, capitalintensive and highvisibility projects such
as dams, roads, power
stations and pipelines.
Projects being implemented in and for
individual departments
of organizations.
Some social
development projects
undertaken by NGO’s
Low
Low
Level of Heterogenity of the Project Stakeholders and
Complexity of Managing Them
High
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
20
Understand the Project Context
(Previous Experience with Similar Project)
A significant benefit of projects are the valuable
insights they often yield and which can be used in
planning and implementing future projects.
It is advisable for project managers to study the
stakeholder management experiences from previous
„similar projects“and see if the strategies which
were employed on those projects can be used again
or appropriately modified to fit the current project‘s
requirements. A knowledge documentation or information system can help in this regard.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
21
Understand the Project Context
(Possible Stakeholder Concerns)
The concerns of project stakeholders can be very
diverse and, particularly on large complex projects,
whose stakeholders are spread out, difficult to
document comprehensively.
Still, these concerns must be addressed systematically and effectively by the project manager and
team in order to prevent them from causing problems for the project which can prove costly,
especially if the project already finds itself in an
advanced stage of implementation.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
22
Understand the Project Context
(Back-Up Resources)
Many organizations which continuously implement a
stream of projects have developed a support infrastructure in the form of project management offices
and units, information databases, well-defined project management methodology and processes, tools
etc.
Project Managers and Project Teams can, hence, call
upon diverse existing informational assets as a backup for managing their project stakeholders.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
23
Identification of All Project Stakeholders
(Some Questions for Consideration)
• How will the project stakeholders be categorized?
• Can (and how) will the comprehensiveness of the identification be assured?
• Who will identify the project stakeholders?
• Which methods and tools will be used to identify project
stakeholders?
• What will the identification of the stakeholders cost and
how long will it take?
• What steps will be taken to ensure the accuracy of the
information gathered?
• How often will the stakeholder directory be updated and
who bears responsibility for updating / revising the
stakeholder directory?
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
24
Identification of All Project Stakeholders
(Tool 01: Brainstorming)
Brainstorming is a
popular and effective
group-based tool for
generating creative
ideas and solving
problems. It has many
applications in project
management.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
25
Identification of All Project Stakeholders
(Tool 02: Surveying)
Surveying is a useful informationgathering tool with
which the Project
Team can determine who the project stakeholders
and what their interests are.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
26
Identification of All Project Stakeholders
(Tool 03: Ask the Consultants)
Project Consultants
have considerable
exposure to projects and, based on
past experience,
can advise the Project Manager and
Team who the
Stakeholders are.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
27
Identification of All Project Stakeholders
(Tool 04: Ask Other Project Managers and Team Members)
Project Managers and
Team members who
have already undertaken similar projects
in the past can be a
valuable source of
information for identifying project stakeholders.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
28
Identification of All Project Stakeholders
(Tool 05: Organization‘s Existing Documentation)
Organizations undertaking projects would
usually have much
documentation on
project stakeholders,
including stakeholder
registers from their
previous projects.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
29
Identification of All Project Stakeholders
(Tool 06: Case Studies)
Case Studies of
similar projects can
be a useful source of
information for identifying stakeholders
in a current project.
The context must be
kept in mind.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
30
The Project Stakeholder Directory
(Identification Only)
Name
Office or Residential
Addresse
Organization
Office or Residential
Telephone Number
Department
Fax & Cell Phone Number
Designation
eMail Addresse
Role in Project
Website
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
31
WEEKLY ASSIGNMENT #02
Does your organization have a Project Stakeholder
Management Process similar to the one which we
discussed in today’s class? How is it structured?
What method(s) does your organization follow for
identifying its project stakeholders? Review and discuss them.
Assistant Professor Dr. Aurangzeb Zulfiqar Khan
Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan
32