lecture 18: project stakeholder analysis part 2
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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. - PowerPoint PPT PresentationTRANSCRIPT
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 1
LECTURE 18: PROJECT STAKEHOLDER ANALYSIS PART 2
Master of Science inProject Management
PROJECT STAKEHOLDER AND COMMUNICATION
MANAGEMENT
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 2
Key Attributes of Project Stakeholders
Power, Interests, Concerns, Attitudes, Behaviors
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 3
Power
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 4
Power and Project Stakeholder Management
POWERComplex, Multi-Faceted
Concept in Project Stakeholder Management
Formal Authority and Control Over Project
Resources
Spectrum of Abilities (Individual, Group,
Organizational)
Coercion
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 5
Project Stakeholders: The Power Factor
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.
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 6
Project Stakeholders: The Power Factor
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.
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 7
Project Stakeholders: The Power Factor
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).
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 8
Project Stakeholders: The Power Factor
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.
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 9
The “Power” of Project Stakeholders(Manifestations of Project Stakeholders Power)
P Authority of stakeholders, inde-
pendently or jointly with other stakeholders, to make, shape, amend, defer, expedite, prevent, challenge, halt, suspend and/or revoke decisions affecting the project, its phases, activities, processes and/or deliverables.
Delegation of decision-making and control over decision-making processes.
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 10
The “Power” of Project Stakeholders(Manifestations of Project Stakeholders Power)
P Permanent or temporary access
of project stakeholders to (or the control over their access to) in-formational, financial, human, physical (e.g.: facilities, infra-structure), and technological resources as well as all tangible and intangible inputs needed for undertaking the project, its phases, processes and activities, and creating its deliverables.
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 11
The “Power” of Project Stakeholders(Manifestations of Project Stakeholders Power)
P Ability of stakeholders to shape
project contracts with a view to enhancing their interests vis-à-vis other stakeholders.
Authority to formulate and modi-fy policies, rules and processes which govern the conduct of pro-ject stakeholders.
Authority to give, change and re-voke permits, concessions etc.
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 12
The “Power” of Project Stakeholders(Manifestations of Project Stakeholders Power)
P The excercizing by project stake-
holders of a range of options at their disposal to influence the perceptions, attitudes and beha-vior of other stakeholders for or against the project.
Use of administrative, political, legal and/or legislative entities to further stakeholders goals in relation to the project.
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 13
The “Power” of Project Stakeholders(Manifestations of Project Stakeholders Power)
P Possession of specialist know-
ledge, skills and long experience. Personality (charisma, charm),
status, reputation, respect and admiration commanded among project stakeholders.
Inter-personal and leadership skills (e.g.: communication, moti-vation, inspiration, negotiation, persuasion, manipulation).
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 14
The “Power” of Project Stakeholders(Manifestations of Project Stakeholders Power)
P Ability of project stakeholders to
network and form coalitions with other stakeholders, or to prevent the emergence of such networks and coalitions.
Creativity and resourcefulness. Effective use of Information and
Communication Technology - and the media in support of or in opposition to the project.
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 15
The “Power” of Project Stakeholders (How Project Stakeholders Apply Power)
P Authority to compel reluctant
stakeholders to involuntarily pur-sue certain courses of action or to compel them to do likewise by resorting to illicit means such as violence and intimidation.
Control over incentives, rewards and punishments (monetary and non-monetary, hiring and firing, promotion, suspension and tran-sfer of project staff etc).
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 16
Power in Project Stakeholder Networks
Med-
High
Med+
Low+
Low- Low+
High+
Low
Med Low-
Low-
Med
Low
Low+
Low
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.
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 17
Power and Project Stakeholder EngagementPo
wer
of S
take
hold
er
Mod
erat
eH
igh
Low
Importance of Developing and Implementing Effective Project Stakeholder Engagement StrategiesLow High
More time, cost and effort must be expended to keep these stakeholders satis-
fied and supportive
Less need for intensive resource allocation for
stakeholder engagement
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 18
Stakeholder Attribute: Interests
I Stakeholders have by definition
some “interest” in a project.
There are many possible interests, for e.g., economic, financial, social and ecological.
The intensity of interest will vary for different stakeholders as they are affected by the project diffe-rently. Interests can change over time.
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 19
Stakeholder Interests in a Project
Does Stakeholder have an “Interest” in
the Project?YES
No
High Interest?
Moderate Interest?
Low Interest?
Interest-Precipitating Issues and Concerns
TIME
FACTOR
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 20
Stakeholder Attribute: Concerns
C A concern is a feeling or emotion
which a stakeholder has towards an issue (economic, financial, eco-logical, and so forth) associated with a project.
A stakeholder may have several concerns of varying priority which influence his/her/its attitude and behavior towards the project. Concerns are not static – they may change over time.
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 21
Abraham Maslow’s Pyramid of Needs
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.
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 22
Class Discussion
? 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.
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 23
The Complexity and Multifacetedness of Project Stakeholder Concerns (Acquisition Project)
? A multitude of questions about the pro-posed corporate acquisition project would probably be floating in the mind of the affected employee of the to-be-acquired firm. These evolve against the backdrop of his individual concerns which are derived from his needs, desires, ambitions, hopes and fears.
If the employee feels he will benefit over-all significantly, then he is more likely to support the project. An effective informa-tion strategy of the project planners /im- plementers would focus on this.
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 24
? Job Security Income Monetary and Non-Monetary Incen-
tives and Fringe Benefits Promotional Prospects Interesting, Exciting and Challenging
Work Environment Knowledge, Skills and Experience Additional Responsibilities (Desired,
Undesired)
Possible Stakeholder Concerns (Acquisition Project)
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 25
? Authority, Status and Privileges Travelling, Training and Professional
Development Utilization of Creative Potential Adaptation to New Work Environ. Workload Stress Level Health and Emotional Well-Being Aggregate Working Hours Flexible Working Hours
Possible Stakeholder Concerns (Acquisition Project)
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 26
? Formal and Informal Monitoring, Assessment and Control
Organization‘s Culture, Policies, Rules, Standards and Processes
Competition for Work Resources Conflicts at Work Conformance and Performance
Pressure Exposure of Concealed Deficiences Recognition and Respect
Possible Stakeholder Concerns (Acquisition Project)
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 27
? Relocation Modification of Work Routine Benefits to Colleagues Office Space Compulsion to Work With or Under
Unliked Persons Current Work Assignments Disruption of Social Networks Creation of New Social Networks Time for Family and Friends
Possible Stakeholder Concerns (Acquisition Project)
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 28
? Impact on Organization‘s Image Consultation About the Acquisition Understanding of the Need for the
Acquisition Follow-On Projects in Future
Possible Stakeholder Concerns (Acquisition Project)
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 29
Stakeholder Attribute: Attitude
Attitude is the feeling of like, dis-like or indifference stakeholders exhibit towards a project or parts thereof (for e.g. other project stakeholders, project events).
Attitudes are determined by many factors and can change over time. Good stakeholder engage-ment strategies seek to influence attitudes in favor of the project.
A
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 30
Stakeholder Attribute: Attitude(Key Determinants of Stakeholder Attitudes)
AFamily, Peers, Community, Society, Nation
Culture, Tradition, Religion, Value System
Knowledge, Intelligence, Personal Experiences
Systems (Education, Administrative, Political, Legal etc.)
Attributes of the Attitude-Shaping Entity (Time Factor)
Access to Information and Knowledge
Needs, Wants and Desires, Goals, Concerns
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 31
Stakeholder Attribute: Behavior
B Behavior is the conduct of a
stakeholder towards a project. It is usually – but not always – a re-flection of the stakeholder’s atti-tude towards the project.
Stakeholders may exhibit sup-portive, indifferent or adversarial behavior towards a project with varying intensities. Behavior can change over time.
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 32
Stakeholder Attributes: Consistency and Inconsistency of Attitude and Behavior
BAttitude and Behavior of Project Stakeholders are Consistent (i.e. behavior reflects attitude)A→
BA→XAttitude and Behavior of Project Stakeholders are Inconsistent (i.e. behavior does not reflect attitude)
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 33
Stakeholder Attributes: Consistency and Inconsistency of Attitude and Behavior
B Attitude and Behavior of Project Stakeholders are Consistent (i.e. behavior reflects attitude)A→
Example 1: (A) Stakeholder X is passionate about preserving old colonial era buildings (B) Stakeholder X will (possibly fiercely) oppose projects to construct commercial plazas in the old part of his/her town.
Example 2: (A) Stakeholder Y is a local government official who desires to alleviate poverty in his/her provincial district (B) Stakeholder Y will support a project by a large foreign development-implementing agency to provide training to local youths in developing technical skills.
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 34
B→XAttitude and Behavior of Project Stakeholders are Inconsistent (i.e. behavior does not reflect attitude)
Stakeholder Attributes: Consistency and Inconsistency of Attitude and Behavior
Example 1: (A) Stakeholder D strongly believes the rights of minorities must be respected (B) Stakeholder D pickets the construction site of a planned counseling center for immigrants.
Example 2: (A) Stakeholder F is a devoted environmentalist (B) Stake-holder F votes in a community referendum to support a large copper mining project in close proximity which has been proposed by a foreign company.
A
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 35
Economic and Financial Gains and Losses(Individual, Neighborhood, Community, Organizational)
Impact on Society(Neighborhood and Community Cohesion and Spirit, Cultural and Religious Perspective, National Sensitivities)
Impact on Health(Physical, Psychological, Emotional)
Impact on the Physical Environment (Air, Water, Land, Acoustics, Aesthetics)
Impact on Ecology(Bio-/Ecosystems (Fauna, Flora))
Project Stakeholders‘ Attitude and Behavior (Key Determining Factors)
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 36
Conservation (Cultural Assets, Archeological and Historical Heritage)
Political Dimension(Personal Ideology, Local, Regional and National Outlook)
Attitude To Change (Life Style, Sentiments, Anticipated Opportunities for Personal and Organizational Development etc.)
Security (Individual, Group, Organizational)
Reputation(Project Owners / Developers)
Project Stakeholders‘ Attitude and Behavior (Key Determining Factors)
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 37
Supportive
Indifferent
Adversarial
Strongly
Moderately
Marginally
Marginally
Moderately
Strongly
Perceptoion of Net Gain
Perc
epto
ion
of N
et Lo
ss
Passive
Active
Passive
Active
STA
KEHO
LDER
C
OM
MU
NIT
Y PROJECT STAKEHO
LDER MAN
AGEMEN
T AN
D ENGAGEM
ENT STRATEGIES
Strongly - Marginally
Strongly - Marginally
Managing and Engaging Project Stakeholders (Attitude and Behavior Patterns)
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 38
Project Impact on Stakeholders
Project Phase
Post-Project Phase
Pre-Project Phase Project’s Change Impact(economic, financial,
social, ecological , security, etc.)
Level of Interest
Concerns and Motivations
Expectations and Perceptions
Attitude and Behavior
Power / Influence
CONSIDERATIONS
Rational Behavior, Access to Informa-
tion, Long-Term Per-spective, Relational
Constellations
Stakeholder Engagement
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 39
Managing and Engaging Project Stakeholders(Stakeholder Expectations and Perceptions)
PROJECT STAKEHOLDERS
Expectations (What Outcomes Will Project Bring?)
Perceptions (What Outcomes Is Project Bringing?)
Information * Observation * Experience * Interaction With Other Stakeholders * Attitude
Cognitive & Intuitive Process
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 40
Stakeholder Perceptions Of 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.
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
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 41
Stakeholder Perceptions of Projects: The Concept of Rational Behavior
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?
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 42
Stakeholder Perceptions of Projects: The „Quality of Life“ Dimension
When the Perceived Gain from the Pro-ject [i.e. Improvement in the Stakehol-
der‘s Quality of Life] > the Perceived Loss from the Project [i.e. Reduction in the
Stakeholder‘s Quality of Life]: Stakeholders will Support the Project!
Project Gain > Project Loss
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 43
Stakeholder Perceptions of Projects: The „Quality of Life“ Dimension
When the Perceived Gain from the Pro-ject [i.e. Improvement in the Stakehol-
der‘s Quality of Life] = the Perceived Loss from the Project [i.e. Reduction in the
Stakeholder‘s Quality of Life]: Stakeholders will be Indifferent!
Project Gain = Project Loss
Assistant Professor Dr. Aurangzeb Zulfiqar KhanDepartment of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 44
Stakeholder Perceptions of Projects: The „Quality of Life“ Dimension
When the Perceived Gain from the Pro-ject [i.e. Improvement in the Stakehol-
der‘s Quality of Life] < the Perceived Loss from the Project [i.e. Reduction in the
Stakeholder‘s Quality of Life]: Stakeholders will Oppose the Project!
Project Gain < Project Loss