Stakeholder Management Theory

Stakeholder Analysis and expert judgment

Identification Information

Assessment Information

Major requirements

Expectations

phase of interest

Stakeholder Classification

Supportive/resistant

Internal/external

Can include

Personality profiling info

hunches

past experiences

rumours

Can be built from various matrices

power-interest

power-influence

infuence-impact

ergent

Stakeholder communications analysis. Must Include:

Stakeholder communications needs

What will be communicated, including format, content and level of detail.

Who produces the info, and who recieves it.

Suggested methods and technologies for dissemination

Frequency

Escalation procedures

Revision procedures

A glossary

Good ideas:

Include a notes column

Get the analysis approved by stakeholders to ensure information is correct.

Updating Organisational Process Assets, according to CMP and SMS
Includes both formal and informal methods

A matrix which shows the balance of constraints as expected by the project sponsor [or other stakeholders...].

Gives a priority order of various constrains, what the expected result for each constraint is, and further guidelines for meeting the constraints.

Performance Reports

Shows where the project stands in terms of the balance of constraints. What have various tasks cost so far? will the project be completed on time? etc.

Work completed within the time period

Work planned for the following period

Issues

Changes to the project

Shows expectations for budget, schedule etc.

Can use quanititative data, eg. SPI, EV, etc.

Can become 'battlegrounds' where conflics are aired.

Need to be controlled and monitored so that conflict remains constructive.

Influence of the public as stakeholders

Theorises the influence of interdependent stakeholder demands

Non-project based

Current theories are focussed on Dyadic ralationships between the stakeholder and the focal organisation

Common to all of these categorizations is a focus on individual stakeholder influences and the dyadic ties between an organization and each of its stakeholders.

Stakeholder rel,ationships do not occur in a vacuum - rather, they occur in a network. p890

Social network theory is being used extensively outside stakeholder mangagment to study behavioural patterns

"The primary focus of social network analysis is the interdependence of actors and how their positions in networks influence their opportunities, constraints, and behaviours" p 894

"Social Network Analyisi offers scholars valuable insights for developing stakeholde rtheories" p894

Examines two network variables: Network density, and the centrality of the focus organisation to the network

The studiy examines how the centrality of the organisation and the density of the network effect resistance to stakeholder pressures.

High density networks are characterised by ease of information exchange between stakeholders, high potential for coalition formation, and shared expectations between stakeholders. This trengthens the infuence of stakeholders on the focal organisation.

Network centralisty implies power.

a few forms of centrality

degree: The number of direct ties. Actors who are well connected in this way have access to a large range of opinions, resources, information etc.

Closeness: independent access to other actors. The minimum number of steps, or intermediaries, needed to travel thorugh to reach other members of the network. Gives the ability to quickly spread information through the network.

'betweenness': Control over other actors. Other actors need to pass throguh the focus in order to reach a third actor. an example is the mcdonnel douglas case. (abused then, and built in to contracts!)

Centrality increases the ability to resist stakeholder infuences.

The study produces predictions about the behaviour of a focal organisation according to its position within a network. This same theory could be used to predict the bahaviour of stakeholders withiin a project context, and be used to make descisions regarding stakeholder management.

The theory's logic is derived from Oliver's (1991) examination of organizational responses to external influences and addresses this question: How does the structure of an organization's stakeholder relationships affect its response to stakeholder pressures?

'Weak' Stakeholders with Infuence on other stakeholders

Construction has traditionally focussed on 'The Client' and only relatively recently has the concept of 'stakeholders' beyond the client been given a strong focus.

Tools:

The Stakeholder Circle Tool

Visualisation tool likely to become less accurate as complexity increases, due to still favouring dyadic approach

Hidden Stakeholders

Considers SNA to be useful, but has not made any empirical study regarding

change propogation

Research in Engineering Design
October 2012, Volume 23, Issue 4, pp 305-328
Multilayer network model for analysis and management of change propagation
Michael C. Pasqual, Olivier L. de Weck

S. Olander, A. Landin
A comparative study of factors affecting the external stakeholder management process
Construction Management and Economics, 26 (6) (2008), p. 553

Stakeholder Networks

A sTakeholder network perspecitve on unexplained events and their management in international projects

Proejct stakeholder management, karlsen, jan terje

Three Component Stakeholder analysis

A comparative study of factors affecting the external stakeholder management process

Uses social network and stakeholder theory to integrate and extend current theory.

The dynamics of project management have become more complex. success is now measured on multiple parameters

BOURNE(2006) suggest a 'circle of influence' - article above witrh two australian examples...

'the literature reckognises that identifying changes in the salience of stakeholders... little attention to given to the dynamic nature of stakeholder management in project managment

Stakeholder theory is good for identifying stakeholders. Social network theory examines the interaction among stakeholders at various phases of the project. compliments stakeholder theory.

a key issue in stakeholder theory is identifying the SALIENT stakeholders - who really counts.

Methods in the PMBoK can help identify and prioritise stakeholders

Power/interest grid

stakeholder infuence grid

look other methods in pmbok

Also outside of pmbok - stakeholder circle, stakeholder infuence grid (MILOSEVIC, 2003), stakeholder/project success grid (YOUNG,BRADY and NAGLE, 2009)

But, these methods are largely static, and methods are needed to address the dynamic nature of stakeholder relationships throguht the project life cycle.

An Emergent model of stakeholder analysis

distinguishes between 'emergent' and 'deliberate' project forms.

Construction projects tend to be more 'deliberate'

R&D and information system projects tend to be more emergent

Iterative and periodic re-assesment of project stakeholders throguhout the life cycle

Social Network Theory

Identifies the emergence of salient stakeholders

Can help determine who central players are - who can be used to gain leverage with other stakeholders.

Useful when projects are emergent in their nature, are complex, or when projects are dispersed across time and space. This is when stakeholders are likely to change in their level of salience, and will need to be re-assessed.

Method:

The determine the salience of stakeholders, examine at each phase:

Those affected by the project outcomes and process;

Those asked for input into the project (the workflow network)

Who will be spoken to for information regarding theproject

This will produce the raw data needed to determine who the central players are in that phase, how this has changed from previous phases, and how stakeholders are inter-related.

Social networking software can then analyse the changing interactions to provide a model for stakeholder evolution in projects of a similar type.

Although many organisations are based on a heirarchical structure, in reality communication occurs through free-forming dynamic networks.

Explores whether centrally located agents are better able to coordinate their connections.

The validity of a social network analysis is highly dependent on having complete data. This reliance is due to the whole network structure of the study. In the event that data from a central node is missing, the entire data can be heavily skewed, resulting in misaligned conclusions.

Problems:

Data Completeness -

Local

Global

Just asking people who they talk to can result in an inadequate assessment of social networks.

A person in such a position [betweenness] can influence the group by withholding or distorting information in transmission.

quotes and references

Freeman introduced the concept in his very much quoted book “Strategic Management: A Stakeholder Approach” from 1984 [1]

E.R. Freeman
Strategic management. A stakeholder approach
Pitman, Boston, Mass (1984)

Therefore, identification of the stakeholders and their necessary contributions is an important issue

M.C. Achterkamp, J.F.J. Vos
Investigating the use of the stakeholder notion in project management literature, a meta-analysis
Int J Project Manage, 26 (2008), pp. 749–757

Mitchell et al. [2] suggest that stakeholders should be categorized based on their possession of three attributes: Power, legitimacy, and urgency, and receive different amounts of attention based on the categorization

R.K. Mitchell, B.R. Agle, D.J. Wood
Toward a theory of stakeholder identification and salience: defining the principle of who and what really counts
Acad Manage Rev, 22 (4) (1997), pp. 853–886

stakeholder analysis in projects requires the following activities:

(1)
Identification of the (important) stakeholders.
(2)
Characterization of the stakeholders pointing out their
(a)
needed contributions,
(b)
expectations concerning rewards for contributions,
(c)
power in relation to the project.
(3)
Decision about which strategy to use to influence each stakeholder

Cites articles with various innovative approches, techniques and templates, such as the 'stakeholder commitment matrix, whixh shows the current and desired attitude of the stakeholder to the project, along a spectrum of active opposition, passive opposition, neutral, passive support and active support.

Article Focus

This article centres on the application of stakeholder analysis -

Table 4. Ranking of the 15 CSFs.

C5. Exploring stakeholder needs to projects 4.26 2

C15. Communicating with and engaging stakeholders properly and frequently 4.26 2

C4. Understanding area of stakeholder interest 4.22 4

C3. Properly identifying stakeholders 4.21 5

C11. Keeping and promoting a good relationship 4.17 6

C9. Analyzing conflicts and coalitions among stakeholders 4.04 7

C7. Accurately predicting the influence of stakeholders 4.02 8

C12. Formulating appropriate strategies for the management of stakeholders 3.97 9

C8. Assessing attributes (power, urgency, and proximity) of stakeholders 3.91 10

C10. Effectively resolving conflicts between stakeholders 3.88 11

C2. Formulating a clear statement of project mission 3.87 12

C13. Predicting stakeholder reactions to implementation of the strategies 3.83 13

C14. Analyzing the changes in stakeholder influences and relationships 3.83 13

C6. Assessing stakeholder behaviour 3.8 15

C2. Formulating a clear statement of project mission 3.87 12

C3. Properly identifying stakeholders 4.21 5

C4. Understanding area of stakeholder interest 4.22 4

C5. Exploring stakeholder needs to projects 4.26 2

C8. Assessing attributes (power<comma> urgency<comma> and proximity) of stakeholders 3.91 10

C6. Assessing stakeholder behaviour 3.8 15

C7. Accurately predicting the influence of stakeholders 4.02 8

C9. Analyzing conflicts and coalitions among stakeholders 4.04 7

C13. Predicting stakeholder reactions to implementation of the strategies 3.83 13

C10. Effectively resolving conflicts between stakeholders 3.88 11

C12. Formulating appropriate strategies for the management of stakeholders 3.97 9

C15. Communicating with and engaging stakeholders properly and frequently 4.26 2

C14. Analyzing the changes in stakeholder influences and relationships 3.83 13

C11. Keeping and promoting a good relationship 4.17 6

An Extended Stakeholder Matrix:

This is the creation of a predicted stakeholder matrix from the point of view of each of the stakeholders, showing how they would view and act in regards to each of the other stakeholders... pors - could help predict stakeholder infuence, and stakeholder behaviour. cons - would get very big and complicated very quickly

E. Chinyio, A. Akintoye
Practical approaches for engaging stakeholders: findings from the UK
Construction Management and Economics, 26 (6) (2008), pp. 591–599

State the importance of stakeholder management on project success

PM time is valuable, and should be targetted towards stakeholders that have a strong continuing or emerging connection to the project.

Show the lack of non-dyadic theory in PM stakeholder management

and some research that sits between?

3

Explain what SNA is

Show how other fields have taken advantage of social network theory.

Influence of secondary, or hidden, stakeholders

Benefits to be gained from network theory.

Can help determine who emergent stakeholders are

who the central players are that infuence other stakeholders

How to position yourself to be in a position of power within a network.

Nurturing social networks increases information sharing and collaboration.

This can be good for internal stakeholders, or trusted stakeholders. This knowledge can also be used when dealing with externals.

Closeness, degree, and betweenness

Could be used to change a number of PMBoK procedures

organisational charts

stakeholder management plans

Risk management

What methods have been proposed to address this?