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MANG6311 Stakeholder Management
Dr. Ian [email protected]
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
