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II :Defining the Project Mission 1© Graham M Winch
4 : Managing Stakeholders
Taurus meant an awful lot of different things to different people, it was the absolute lack of clarity as to its definition that I think was its Achilles heel
Chief Executive, London Stock Exchange
II :Defining the Project Mission 2© Graham M Winch
Managing Stakeholders
• which are the project stakeholders?• mapping stakeholders• the regulatory context• ethics in project definition• the role of visualisation
II :Defining the Project Mission 3© Graham M Winch
Which are the Project Stakeholders?
• what is a stakeholder?– creating and destroying value
• internal stakeholders– legal contract with the client
• external stakeholders– all others with a direct interest in the project
• project stakeholders
II :Defining the Project Mission 4© Graham M Winch
Project Stakeholders
Internal Stakeholders External Stakeholders Demand Side Supply Side Private Public Client Financiers Client’s employees Client’s customers Client’s tenants Client’s suppliers
Architects Engineers Principal contractors Trade contractors Materials suppliers
Local residents Local landowners Environmentalists Conservationists Archaeologists
Regulatory agencies Local government National government
II :Defining the Project Mission 5© Graham M Winch
Mapping Stakeholders
• stakeholder mapping– the case of Beirut Central District
• the power/interest matrix– the case of Beirut Central District
II :Defining the Project Mission 6© Graham M Winch
Mapping Stakeholders
Solutions
Problem
Opponents
Proponents
ProjectMission
7© Graham M Winch
politicalopposition trade
unions
class Ashareholders
Lebanese orderof Engineers
residents &environment-
alists
government
class Bshare-holders
propertydevelopers
backward-ness of
public sector
lack of public
financialresources
make BCDpublic
projects
politicalinterference
in publicprojects
highpropensityto Import
unemploy-ment rate
nationaleconomy
taxexemption
no privateinvolvement
in publicprojects
ambiguitiesin Articles ofIncorporation
specula-tion
violation ofproperty
ownershiplaw
underestimat-ion of property
values
BCDprojects
assumed risky
BeirutCentralDistrict
Public / PrivatePartnership
SpecialProject Vehiclefor public policyimplementation
publicly fundedprojects
amendment to Articles
of Incorporationamendment to
Law 117/91
investments inprofitable infrastructure
projects
amendments to themasterplan
adequate publictransport system
stronger awareness of
archaeological heritage
amendments to theArticles of
Incorporationarchaeologists
airpollution
seapollution
suffocation of
neighbour-hood
lack of co-operation
II :Defining the Project Mission 8© Graham M Winch
The Power/Interest Matrix
Aminimal effort
Dkey players
Ckeep satisfied
Bkeep informed
Level of interest
Powerto
influence
high
low
low high
II :Defining the Project Mission 9© Graham M Winch
A : minimal effortlocal banks,internationalcommunity
D : key playersclass B s/holders,
Lebanese government,
property developers,
C : keep satisfiedinternational banks
B : keep informedclass A s/holders,trade unions, LOE,political opposition,
archaeologists,residents,
environmentalists
Level of Interest
Powerto
Influence
high
low
low high
The Power/Interest Matrix
II :Defining the Project Mission 10© Graham M Winch
The Regulatory Context
• the voice of the low power stakeholders• managing consent• project ethics• stakeholder voices
II :Defining the Project Mission 11© Graham M Winch
Managing Consent
• define and enquire• consult and refine• bribe and ignore
II :Defining the Project Mission 12© Graham M Winch
Ethics in Project Definition
Project Social Responsibility“the extent to which the project definition exceeds the minima established in the NPV calculation and those require to obtain regulatory consent”.
II :Defining the Project Mission 13© Graham M Winch
Stakeholder Voices
• environmental impact – environmental lobby
– Environmental Impact Assessment
• zoning – zoning regulations
– NIMBYs and local interests
• quality of specification – product users
• sustainability – future generations
II :Defining the Project Mission 14© Graham M Winch
Construction Sustainability Targets
• operational energy - day-to-day use– KWh or CO2 per m2
• embodied energy of materials used in construction– Gj or CO2 per m2
• transport energy delivering materials and staff– CO2 per m2
• waste during construction– m3 per m2
• water use during construction– m3 per m2
• biodiversity of site– species index per hectare
source : DTI
II :Defining the Project Mission 15© Graham M Winch
The Role of Visualisation
• fly-thrus and montages• obtaining regulatory approval• convincing stakeholders• the Centuria building
– convincing funders– consulting with users
II :Defining the Project Mission 16© Graham M Winch