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MANG6311-Week5-StakeholderManagement-02Nov21-Classroom-Final.pdf

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Week 5

Project Stakeholder Management

Where? Who? Why? What? When? How?

Southampton

Business SchoolMANG6311 Project Management

People & Organizations

Dr Ramesh Vahidi [email protected]

02 Nov 21

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People at

Projects, Organisations,

Societies…

Case study, project/personal examples, reflections, …

M A

N G

6 3

1 1

@ R

a m

e sh

V a

h id

i 2 0

2 1

-2 2

What does impact your speed and your next move?

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In each of these cases, we play at a

speed and make move after move!

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1) Which one of these are more

similar to project environments?

1. Individual competitive sports

2. Group competitive sports

3. Exercising for own

development and health

4. I have a different opinion.

MANG6311 –

Context and

Stakeholders

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Orgs & projects need to:

Understand,

Describe,

Explain,

Analyse/Synthesis,

React/Engage/Monitor

their

External Environment 6

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Political Economic Socio-cultural

Technological Environmental Legal

A Tool for Project context/External Environment Analysis

PEST EL

Project navigation system: Should be used for the past, on-going and future analysis

One of the primary

sources of identifying

stakeholders.

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PESTEL Analysis Elements - 1

• Political Influence: may be Political or political! It has to do with power, relations, etc. This might affect funding and support for the project.

In building a large Dam

• Economics: influence of general or local economics. This might affect financial resources, available options, etc.

In building a large Dam

• Social: social environment and social changes might affect the relations and communications in the project.

In building a large Dam 8MANG6311@Ramesh Vahidi 2021-22

PESTEL Analysis Elements - 2

• Technical: technology changes might affect the project’s feasibility, requirements and methods.

In building a large Dam

• Environmental: depending on the project content this might largely affect the potential methods, material, services provided throughout the project.

In building a large Dam

• Legal: the regulations can put restrictions on the services, work relations and methods of the project.

In building a large Dam

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Initial PESTEL Analysis

Project name

Project Manager

….

…..

External Factors Implication for

project Time Span

Type

(+ or -)

Political

Economic

Social

Technological

Legal

Environmental

Factors’ Categorization

+ -

Factors with positive

impact on the project.

Factors with negative

impact on the project.

Time span of the impact

L Long term

M Medium term

S Short term

Brainstorming, data

collection, interviews,

focus groups, etc.

A key tool for introducing a project and analysing it!

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CW: why choosing a country

project

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2. National Covid

Vaccination Project:

Suggest the main PESTEL

factor affecting such a

project in your country

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Context and

Stakeholders

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More details on PESETL Analysis

A few slides at the end will give you some ideas on the types of information or topics related to PESTEL elements (i.e., Political, Economics, Social, Technological, Environmental and Legal). It also suggests some questions you could ask yourselves about each of these items. (Note: there could be more items/questions.)

You can read more on PESTEL in:

Turner et al. (2010) Perspective on Projects.

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Stakeholders:

Who? Why?

How? When?

Southampton

Business School

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• Where?

• Who?

• Why?

• What?

• When?

• How?

The Essence of Modern PM ‘Research on ‘Rethinking PM’ (2005-6)

Some Outcomes’

Larger scope and timeline ➔ more interaction with external

environment and more complexity.

One of the most significant elements in projects was (and still is):

“Social complexity in project environments”

One of the main criticisms of traditional (old) PM: ignoring these in

its theories and practice!

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(Maylor, 2010, pp. 12-17)

Project Stakeholders

• “Project stakeholders are individuals, groups and organizations who are actively involved in the projects, or whose interests may be positively or negatively affected as a result of the project”*. (Gardiner, 2005)

• Does a project always have

the same stakeholders?

• You have a project to expand

your processed food market to another

country. And suddenly →

• Who will become your new stakeholder?

• Add to the above definition: ‘they might become actively involved in or important to a project in the future and they may positively or negatively affect the results of the project’. (RV)

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3. Covid Vaccine

Development Project:

Suggest some of the

main stakeholders

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Context and

Stakeholders

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4. Covid Vaccine

Development Project:

Who could become an

emerging stakeholder

and why?

MANG6311 –

Context and

Stakeholders

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Managing Project Stakeholders

• Has become one of the key areas of PM and one of the key skills for

Project Managers.

• If done well → increases the chances of project success.

• Is/should be one of the very starting points in analysing projects.

• Facilitates predicting and identifying the potential conflicts.

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Classification (or Sieving!) Stakeholders

Internal team

The central

Core externals

Crucial for Success

Rest of the world

Monitoring to make sure they haven’t become core

Maylor (2010, p.78)

Different sources may ‘offer different classifications and use different titles to refer to each group.

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Classification of Stakeholders Other Views

Internal External

• Top management • Accountant • Other functional managers • Project team members

• Clients • Competitors • Suppliers • Environmental, political, consumer,

and other intervener groups

Internal Local National International

• Project team • Project

manager • Operational

departments

• Trade unions • Media • Government • Competitors • Interest groups • Client • Investors

• Media • Government • Competitors • Interest groups • Client • Investors

• Media • International

Pinto (2007, p.45)

Coursework: Use classification models in the analysis!

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Potential Tools for Stakeholders Identification

Interviews,

Brainstorming,

Lessons learned,

PESTEL Analysis,

Organizational documents,

Organization and/or project website(s) …

Media reports, news, …,

International sources if relevant,

PM or other Professional Bodies websites,

Research.

You will be practicing

these in an exercise

that will posted on

the Bb

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Managing Stakeholders:

How? When?

Southampton

Business School

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Time for Reflection …

Could you ‘please’ all the stakeholders all the time?

“You can’t please all of the people, all of the time . . .”

(Maylor, 2010, p.82)

Who should/would we try to please most?

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5. Which stakeholders

we should try to please

most in a project?

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Context and

Stakeholders

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Stakeholders Map

Keep Satisfied

- Moderate Priority group

- Need to keep this group sufficiently involved

Manage Closely

- Highest priority for the project manager

- Manage through active engagement

Monitor Only

- Lowest priority for the project manager

- Don’t overload them with communication

- Keep an eye!

Keep informed

- Moderate priority group

- Objective is to sustain their interest and leverage when useful to project

High

Low

Low High

Power or Influence

Interest or Impact

Maylor (2010, p.83)

A rough guide about the significance or position of each stakeholder and on how to ‘manage’ particular stakeholder groups.

Use this Model in analysis!

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We will look at a recent large infrastructure project in next week

Seminar

Instruction for preparation will be posted on the Bb

Tyne Pedestrian and Cyclist Tunnels

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Stakeholder Management …

“Evolution”

Southampton

Business School

Role of Business in Society

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6. What is the main

purpose of an

organization?

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Context and

Stakeholders

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Role of Business in Society

The Friedmanite position:

“There is only one social responsibility of business – to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition, without deception or fraud” Milton Friedman, US Economist, 1962, p.133

Source: via Boddy (2008, p.156)

The Board of Directors should concentrate on making profits!

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Perspectives on Corporate Responsibilities

Economic

Legal

Make a profit (shareholders)

Obey the law

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Who benefits from the company? What kind of benefit they get?

• Org’s main purpose → Max ROI (Return on Investment)

• Requires: Contracts, Processes, Policies

• Focus: $$$ and short term.

Worst companies in their industry!

Shareholder Theories

(Muller, 2017)

Perspectives on Corporate Responsibilities

Economic

Legal

Ethical

Discretionary

Make a profit (shareholders)

Obey the law

Do what is right, avoid harm (Stakeholders – grey areas)

Contribute to community, be philanthropic

Source Boddy: Adapted from Carroll (1979)

Social Contract

The mutual

obligations of

society & business

to each other.

Entirely voluntary,

independent of

economic, legal or

ethical considerations.

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Evolution of Project/Stakeholders Relationship

Approaches to

Stakeholders

Managing: Identify, Monitor, Control, Respond → just seen as a formal, administrative process

Collaborating and Engaging: Building, Maintaining & Enhancing relationships. Mutual benefits → Increase organizational stability and control the changing environment

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“Stakeholder management is the

systematic identification, analysis,

planning and implementation of

actions designed to engage with

stakeholders.” (APM, 2012)

“Stakeholder engagement is the

systematic identification, analysis,

planning and implementation of

actions designed to influence

stakeholders.” (APM, 2019)

Gardiner (2005, p.123)

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Who benefits from the company? What kind of benefit they get?

• Org’s main purpose → Max ROI (Return on Investment)

• Requires: Contracts, Processes, Policies)

• Focus: $$$ and short term.

• Worst companies in their industry!

Shareholder Theories

• Org’s main purpose → Social Responsibility besides financial gains

• Focus: Good-will from society, long term, relation-oriented, balance of financial gain

Stakeholder Theories

One way or another in

orgs?!

(Muller, 2017)

- Read the case example in Maylor (2010, p.

91-2):

‘Opening of the New Campus in Splot’

Read about PESTEL as well.

Essential Reading & Exercise on Stakeholders Analysis

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Traditional Focus of Academia & Practice of PM: Solely

Internal Aspects of the Project

Project

Investigating project Internal Dynamics

Essay 1 of the

coursework examines

your knowledge of

these areas!

Project

Investigate Project’s External

Environment

Investigate project Internal Dynamics

Contemporary Focus of Academia & Practice of PM:

External and Internal Aspects of

the Project

Emergent areas:

Stakeholder Management & Governance

Essay 2 of the

coursework examines

your knowledge of

these areas!

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Readings/References Boddy, D. (2014) Management: an introduction. 5th ed. Imprint: Harlow : Financial Times Prentice Hall. [electronic resource via the Library]. Chapter 3.

Combe, C. (2014) Introduction to Management. Oxford: Oxford University Press.

Maylor, H. (2010) Project management. 4th ed. [electronic resource]. Pearson education/Financial Times Prentice Hall. Chapter 3. (Abbey Bank Case, page 56)

*Turner, R. (ed.) (2014) Gower handbook of project management. 5th Ed. Farnham: Gower. Chapter 3. 2010 Edition has more or less the same content on this particular topic but always try using the most recent versions.

Patanakul, P. & Shenhar, A.J. (2012) ‘What Project Strategy Really Is: The Fundamental Building Block in Strategic Project Management’. Project Management Journal. pp.4-20.