Master of Science in Project Management. Project Stakeholder AND COMMUNICATION Management. LECTURE 18: PROJECT STAKEHOLDER ANALYSIS PART 2 . Key Attributes of Project Stakeholders. Power, Interests, Concerns, Attitudes, Behaviors. Power. Power and Project Stakeholder Management.
Master of Science in
AND COMMUNICATION Management
LECTURE 18: PROJECT STAKEHOLDER ANALYSIS PART 2
Power, Interests, Concerns,
Formal Authority and Control Over Project Resources
Complex, Multi-Faceted Concept in Project Stakeholder Management
Spectrum of Abilities (Individual, Group, Organizational)
Power in the context of project management may be broadly defined as the degree to which project stakeholders can excercize authority, influence and /or coercion with a consequent (positive, negative) impact on a project‘s (managerial, technical) pro-cesses and work activities, and its deliverables.
A project‘s cost, time, quality, risk and other para-meters can be affected, sometimes profoundly, by the application of stakeholder power.
The power of some stakeholders may be transitory (i.e., it applies only at a certain point in time in the project life-cycle or over a short period of time in one or more project phases), while the power of other stakeholders may be non-transitory (i.e., it may apply over one or more phases of a project or even extend over the entire project life-cycle).
The intensity of stakeholder power may change (increase, decrease) over the project life-cycle.
Some stakeholders may have a narrow power focus which is confined to one or a few specialized project areas and activities (such as, an external quality consultant who advises the project team on quality issues), others may have a very broad power focus which can determine the course of the whole project (such as, the project steering committee or senior management which can authorize the premature termination of the project under certain conditions).
On a project, powerful „supportive“ stakeholders may intervene in it positively as facilitators by providing resources, support and encouragement to the project while powerful „adversarial“ stake-holders‘ may intervene in it negatively as obstructers causing an increase in the cost of the project, schedule slippage, undesired changes in the project scope or (in the very worst case) its eventual abandonment or premature termination.
Managing stakeholder relationships and networks can be an especially complex and challenging task for the project manager and team.
Even identifying and evaluating relation-ships between stakeholders can be very difficult, especially when there is a large and heterogenous (external) stakeholder community. Considerable skill, experience and resources may be needed to perform a satisfactory analysis.
Some project stakeholders may appear relatively “powerless” and, hence, “un-important” but in fact they may be able to influence powerful stakeholders for or against the project.
More time, cost and effort must be expended to keep these stakeholders satis-fied and supportive
Power of Stakeholder
Less need for intensive resource allocation for stakeholder engagement
Importance of Developing and Implementing Effective Project Stakeholder Engagement Strategies
Interest-Precipitating Issues and Concerns
have an “Interest” in the Project?
Abraham Maslow (1908-70) was an American psychologist and Professor at Brandeis University. His pyramid of needs was first proposed in his paper A Theory of Human Motivation dating from 1943 and subsequently modified.
As part of an acquisition project, a large IT software developer will be taking over one its smaller com-petitors.
Identify as many concerns as you can which an em-ployee in the smaller orga-nization may have in con-nection with this project.
Family, Peers, Community, Society, Nation
Culture, Tradition, Religion, Value System
Needs, Wants and Desires, Goals, Concerns
Knowledge, Intelligence, Personal Experiences
Access to Information and Knowledge
Systems (Education, Administrative, Political, Legal etc.)
Attributes of the Attitude-Shaping Entity (Time Factor)
(Individual, Neighborhood, Community, Organizational)
(Neighborhood and Community Cohesion and Spirit, Cultural and Religious Perspective, National Sensitivities)
(Physical, Psychological, Emotional)
(Air, Water, Land, Acoustics, Aesthetics)
(Bio-/Ecosystems (Fauna, Flora))
(Cultural Assets, Archeological and Historical Heritage)
(Personal Ideology, Local, Regional and National Outlook)
(Life Style, Sentiments, Anticipated Opportunities for Personal and Organizational Development etc.)
(Individual, Group, Organizational)
(Project Owners / Developers)
Perceptoion of Net Gain
Perceptoion of Net Loss
Strongly - Marginally
PROJECT STAKEHOLDER MANAGEMENT
AND ENGAGEMENT STRATEGIES
Strongly - Marginally
(economic, financial, social, ecological , security, etc.)
Rational Behavior, Access to Informa-tion, Long-Term Per-spective, Relational Constellations
Level of Interest
Concerns and Motivations
Expectations and Perceptions
Attitude and Behavior
Power / Influence
(What Outcomes Will Project Bring?)
(What Outcomes Is Project Bringing?)
Information * Observation * Experience * Interaction With Other Stakeholders * Attitude
Cognitive & Intuitive Process
The intensity of stakeholder supportiveness, indif-ference or adversity towards a project is determined primarily by the nature of the project and the per-ceptions which the stakeholders develop about it based on the information they have and, possibly their previous experience with similar projects
A project to develop a Walt Disney Theme Park near a township would probably generate more support among stakeholders than a project for construction of a nuclear power station because of the stigma which is attached to the nuclear power industry.
Project stakeholders who „behave rationally“ will try to maximize their „quality of life“
In evaluating a project, stakeholders will carefully consider its respective pros and cons. To do this they must have access to all the requisite information they require in order to carefully analyze the project‘s potential impact on them over time, which includes the period of time both before as well as after the project‘s completion.
Is the stakeholder’s perceived gain from the project greater than (>), equal (=) to or less than (<) its perceived loss from the project?
Project Gain > Project Loss
When the Perceived Gain from the Pro-ject [i.e. Improvement in the Stakehol-der‘s Quality of Life] >the Perceived Lossfrom the Project [i.e. Reduction in the Stakeholder‘s Quality of Life]:
Stakeholders will Support the Project!
Project Gain = Project Loss
When the Perceived Gain from the Pro-ject [i.e. Improvement in the Stakehol-der‘s Quality of Life] = the Perceived Lossfrom the Project [i.e. Reduction in the Stakeholder‘s Quality of Life]:
Stakeholders will be Indifferent!
Project Gain < Project Loss
When the Perceived Gain from the Pro-ject [i.e. Improvement in the Stakehol-der‘s Quality of Life] < the Perceived Lossfrom the Project [i.e. Reduction in the Stakeholder‘s Quality of Life]:
Stakeholders will Oppose the Project!