project management
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344SAMLecture5-StakeholderManagement.pptx344SAM Project Management L5: Stakeholder Management
Learning Outcomes
By the end of this lecture you should:
Understand the role of stakeholder management on projects
Consider the importance of identifying stakeholders
Understand the different techniques and principles of managing stakeholders
“Stakeholders are individuals or organizations that can be favourably or unfavourably impacted by the project. As such, project managers must interface with these stakeholders, and many of the stakeholders can exert their influence or pressure over the direction of the project.”
(Kerzner, 2009: 6)
“
Project stakeholders
Individuals, groups and organisations involved in or affected by the project
Can positively or negatively impact on the project
Stakeholder management is a key activity in managing projects
Understand perceptions and manage expectations
Who are they?
Organisational stakeholders (internal)
External stakeholders
Most obviously, the client (whether internal or external)
Example
If our project was to organise and host an end of year party for 500 3rd year Coventry University students in the local park, who might some of the stakeholders be?
Example – The Shard
1016 ft, 72 storeys
Employment for over 12,000
Hotel, offices, restaurants, viewing gallery
“Vertical city”
The ‘Shard’ Stakeholders
Local authority
Local residents
Major suppliers
Designers
Contractors
LBQ Limited (State of Qatar)
Noise Abatement Society
Investors
Managers
Media groups
Environmental Management Agency
Public – global
Agencies (Sales, Lettings)
Different stakeholders have differing....
Objectives
Values
Priorities
Interests
“Stakeholder management is the systematic identification, analysis, planning and implementation of actions designed to engage with stakeholders.”
APM (2012)
“
Outline process
Identify
During the project, the plans devised above are implemented and stakeholder interaction is tracked
Identification of stakeholders occurs early in the project lifecycle – informs definition and planning of project
Analyse
Stakeholder interaction with the project is analysed to assess level and nature of engagement
Plan
Ways of ‘managing’ each stakeholder/stakeholder group are developed and resourced
Manage
Stakeholder Analysis – example tool
Using the list of potential stakeholders, the position/importance matrix maps their impact upon the project
(Maylor 2010)
Stakeholder management
After identification and analysis, the project team can determine the most effective ways of managing the stakeholders
Plans are developed for engaging stakeholders
The management stage involves implementing the plans and monitoring stakeholder engagement
Collaboration and partnering
Managing
Partnering
Collaborating
One best approach?
When/why might you want to:
…manage?
…collaborate?
…partner?
Stakeholder Management Cycle
Project Management Team
Identify Stakeholders
Gather Information on Stakeholders
Determine Stakeholder Strengths & Weaknesses
Implement Stakeholder Management Strategy
Identify Stakeholders’ Mission
Predict Stakeholder Behaviour
Identify Stakeholder Strategy
(Cleland, 1998)
17
Strategies for management
Understand your stakeholders through questioning.
What motivates them?
What are their opinions on your project?
Fully engage/monitor/satisfy
Communicate (meetings, telephone calls, newsletters etc)
PMs need to be able to….
Deal with & anticipate customers’ concerns
Sustain internal & external support for projects
Identify problems
Defend the integrity of the project & individuals ...without the authority to demand co-operation.
Law of Reciprocity
PMs need a network of allies
PMs often ‘trade favours’
You scratch my back, I’ll scratch yours
Can be:
Task related (e.g. sharing resources)
Position related (e.g. introducing people to others)
Relationship related (e.g. giving personal support)
Personal related (e.g. opportunities for learning and development)
Social Networks
Whose co-operation will we need?
Whose agreement or approval will we need?
Whose opposition would prevent us from accomplishing the project?
Who has power?
On whom do we depend?
(Larsen & Gray, 2011)
Further Reading
Maylor, H (2010) Project Management 4th ed. Essex: Prentice Hall (Chapter 4)
References
APM (2012) APM Body of Knowledge. 6th ed. Bucks: APM
Cleland, D. I. (1998) Project Stakeholder Management in D. I. Cleland and W. R. King (Eds), Project Management Handbook, 2nd Ed, pp. 275 – 301. New York: Van Nostrand in Reinhold.
Kerzner, H (2009) Project Management: A Systems Approach to Planning, Scheduling and Controlling: 10th ed. New Jersey: John Wiley & Sons
Larson, E. W. And Gray, C. F. (2011) Project Management: The Managerial Process. 5th Edition. New York: McGraw-Hill.
Maylor, H (2010) Project Management 4th ed. Essex: Prentice Hall
Pinto, J. K. (2010) Project Management: Achieving Competitive Advantage. 2nd Ed. New Jersey: Pearson Education Ltd.
Thanks!
Any questions?
