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Sustainable Support
Decision Making
Stakeholder Estimation
C8. Assessing attributes (power
Information Inputs
Article Focus
This article centres on the application of stakeholder analysis -
quotes and references
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.
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
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
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
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)
International Journal of Strategic Communication Publication details, including instructions for authors and subscription information: http://www.tandfonline.com/loi/hstc20 Towards a More Holistic Stakeholder Analysis Approach. Mapping Known and Undiscovered Stakeholders from Social Media
Effect of organisational position and network centrality on project coordination by: Liaquat Hossain International Journal of Project Management, Vol. 27, No. 7. (06 October 2009), pp. 680-68
Main thesis: Network analysis tools can be used to find agents with high levels of network centrality. These agents are then more likely to be salient stakeholders, as they are more able to coordinate the actions of others.
A person in such a position [betweenness] can influence the group by withholding or distorting information in transmission.
Problems:
Data Completeness -
Just asking people who they talk to can result in an inadequate assessment of social networks.
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.
Explores whether centrally located agents are better able to coordinate their connections.
Although many organisations are based on a heirarchical structure, in reality communication occurs through free-forming dynamic networks.
Manageing Stakeholders for projrct managment success:
Methods in the PMBoK can help identify and prioritise stakeholders
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
Method:
Social networking software can then analyse the changing interactions to provide a model for stakeholder evolution in projects of a similar type.
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.
The determine the salience of stakeholders, examine at each phase:
Who will be spoken to for information regarding theproject
Those asked for input into the project (the workflow network)
Those affected by the project outcomes and process;
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.
Social Network Theory
Can help determine who central players are - who can be used to gain leverage with other stakeholders.
Identifies the emergence of salient stakeholders
Iterative and periodic re-assesment of project stakeholders throguhout the life cycle
distinguishes between 'emergent' and 'deliberate' project forms.
R&D and information system projects tend to be more emergent
Construction projects tend to be more 'deliberate'
look other methods in pmbok
stakeholder infuence grid
Power/interest grid
a key issue in stakeholder theory is identifying the SALIENT stakeholders - who really counts.
Stakeholder theory is good for identifying stakeholders. Social network theory examines the interaction among stakeholders at various phases of the project. compliments stakeholder theory.
'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
BOURNE(2006) suggest a 'circle of influence' - article above witrh two australian examples...
The dynamics of project management have become more complex. success is now measured on multiple parameters
Uses social network and stakeholder theory to integrate and extend current theory.
A comparative study of factors affecting the external stakeholder management process
Three Component Stakeholder analysis
Proejct stakeholder management, karlsen, jan terje
A sTakeholder network perspecitve on unexplained events and their management in international projects
Stakeholder Networks
S. Olander, A. Landin A comparative study of factors affecting the external stakeholder management process Construction Management and Economics, 26 (6) (2008), p. 553
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
Tools:
The Stakeholder Circle Tool
Bourne, L., 2005. Project relationship management and the Stakeholder Circle™. PhD Thesis, RMIT University, Australia.
VISUALIZING STAKEHOLDER INFLUENCE--TWO AUSTRALIAN EXAMPLES. Authors: Bourne, Lynda1 Walker, Derek H. T.2 Source: Project Management Journal; Mar2006, Vol. 37 Issue 1, p5-21, 17p
Considers SNA to be useful, but has not made any empirical study regarding
Hidden Stakeholders
Visualisation tool likely to become less accurate as complexity increases, due to still favouring dyadic approach
'Weak' Stakeholders with Infuence on other stakeholders
R. Newcombe From client to project stakeholders: a stakeholder mapping approach Construction Management and Economics, 22 (9/10) (2003), pp. 762–784
Construction has traditionally focussed on 'The Client' and only relatively recently has the concept of 'stakeholders' beyond the client been given a strong focus.
Moving beyond the Dyadic Ties: A Network Theory of Stakeholder InfluencesTimothy J Rowley Academy of Management Review 1997
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?
The studiy examines how the centrality of the organisation and the density of the network effect resistance to stakeholder pressures.
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.
Network centralisty implies power.
Centrality increases the ability to resist stakeholder infuences.
a few forms of centrality
'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!)
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.
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.
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.
Examines two network variables: Network density, and the centrality of the focus organisation to the network
"Social Network Analyisi offers scholars valuable insights for developing stakeholde rtheories" p894
"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 theory is being used extensively outside stakeholder mangagment to study behavioural patterns
Provides an example: 1968, McDonnel Douglas awarded the contract to build fuselages and cargo doors for the DC-10 to Convair. McDonnel Douglas proposed a locking mechanism for the doors which Convair tested and found to be unsafe. Convair's contract prevented them from reporting directly to the FAA, so the regulator never received the report on the unsafe part, and six months after the DC-10 was certified by the FAA, one crashed because of a fault in the locking mechanism. Is this really a good example?
Stakeholder rel,ationships do not occur in a vacuum - rather, they occur in a network. p890
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.
Non-project based
Theorises the influence of interdependent stakeholder demands
Stakeholder management in construction: An empirical study to address research gaps in previous studies Jing Yangc, , Geoffrey Qiping Shena, , , Manfong Hoa, , Derek S. Drewa, , Xiaolong Xueb,
few studies exist on how to analyse the impact resulting from stakeholder relationship networks (Aaltonen and Sivonen, 2009).
K. Aaltonen, R. Sivonen Response strategies to stakeholder pressures in global projects International Journal of Project Management, 27 (2009), pp. 131–141
response strategy is not formed in the dyadic interaction between the organization and the stakeholder exerting pressures on it, but emerges through the interaction of multiple project network actors.
Project stakeholder management research that explores how stakeholder related events are actually dealt with as they occur is rather limited
stakeholder related conflicts and incidents are among the most significant unforeseen risks in projects implemented in challenging environments.
This is a study of responses to stakeholder issues that have been implemented in 4 case studies, where the focal organisation is in a different position regarding the project network.
Isolator Case: The focal company suffered because it had not adequately considered interactions between its stakeholders - namely a chinese supplier, a local chinese subsidiary, local authorities and the local community.
A network analysis of this situation, using the technique described in "Managing stakeholders for project success" could have prevented these problems. In this case, the community infuenced the authorities who in turn infuenced the fabricators to shut down their operation, resulting in serious delays to the project.
In the 'compromiser' case-study, the focal organisation had given opponents to the project a low priority - however, after consultation with other stakeholders, their influence was realised and they were given more prominence and the strategy for dealing with them was changed.
Relationship management is well researched, being the subject of a large number of studies that have contributed to successful projects in construction.
There needs to be a recognition of the fact that 'Hidden' stakeholders, and seemingly weak stakeholders, can have a strong influence on intermediary stakeholders, who in turn can influence the project
Tools such as the Stakeholder Circle are still essentially dyadic in their approach, and are limited in their analysis by the cognition of developers. Accuracy of this method is also likely to decrease with an increase in complexity.
Newcombe (2003) emphasizes that project managers should not look down on those stakeholders who have little obvious power and consider them as weak, because these stakeholders may have a strong influence on the attitudes of the more powerful stakeholders
Newcombe, 2003 R. Newcombe From client to project stakeholders: a stakeholder mapping approach Construction Management and Economics, 22 (9/10) (2003), pp. 762–784
examines the power/interest and the power/predictability matrices
But, these studies have tended towards the analysis of Dyadic relationships.
Social Network Analysis used to determine infuence of stakeholders on decision making.
In this study, stakeholders were identified through traditional methods, then each was surveyed to determine interconnections between them, with responses giving either no connection, a strong connection or a weaker connection. This data was then processed using SNA software to determine out-status centrality, and stakeholders ranked accordingly.
The results of this process were similar to those obtained throguh the stakeholder circle technique, but significant differences in the rank of certain key stakeholders were confirmed as prudent after closer examination by the project team.
Thie use of SNA in stakeholder management was first proposed by Rowley (1997) in the field of stakeholder research
Found 4 gaps in stakeholder management thoery
Methods for Stakeholder Management
Stakeholder Management Process
Critical Success Factor
Influence of the public as stakeholders
S. Olander, A. Landin A comparative study of factors affecting the external stakeholder management process Construction Management and Economics, 26 (6) (2008), p. 553
customer-supplier chain. External stakeholder groups can be treated as customers in a quality management context. One customer then ecomes the next supplier. This is still essentially dyadic, but recognises ripple effects.
This relationship effects the attitudes of stakeholders towards the project and towards each other.
success depends on the presentation of advantages/disadvantages
Behaviour of internal stakeholders in project portfolio management and its impact on success
examines Intensity of Engagement and its effects on projects. IoE can be equated with proximity in social network theory.
S. Rowlinson, Y.K.F. Cheung Stakeholder management through empowerment: modelling project success Construction Management and Economics, 26 (6) (2008), pp. 611–623
H. Smyth The credibility gap in stakeholder management: ethics and evidence of relationship management Construction Management and Economics, 26 (6) (2008), pp. 633–643
K. Aaltonen, J. Kujala, T. Oijala Stakeholder salience in global projects International Journal of Project Management, 26 (2008), pp. 509–516
H.J. Smyth, T. Fitch Relationship management: a case study of key account management in a large contractor Paper presented at CME25: Construction Management and Economics: Past, Present and Future. University of Reading, Reading (2007), pp. 16–18
M. Skitmore, H.J. Smyth Pricing construction work: a marketing viewpoint Construction Management and Economics, 25 (6) (2007), pp. 619–630
H. Smyth Competencies for improving construction performance: theories and practice for developing capacity International Journal of Construction Management, 4 (1) (2004), pp. 41–56
G.E. Jergeas, E. Williamson, G.J. Skulmoski, J.L. Thomas Stakeholder management on construction projects AACE International Transactions, 12 (2000), pp. 1–5
Status Review Meetings
Need to be controlled and monitored so that conflict remains constructive.
Can become 'battlegrounds' where conflics are aired.
Organisational Process Asset updates
Forecasts
Can use quanititative data, eg. SPI, EV, etc.
Shows expectations for budget, schedule etc.
Performance Reports
Progress Reports
Changes to the project
Issues
Work planned for the following period
Work completed within the time period
Status 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.
Expectations Manangement Matrix Example on p 397
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.
Project document updates
Project Management Plan updates
Change Requests
Updating Organisational Process Assets, according to CMP and SMS Includes both formal and informal methods
Organizational process assets include fomal and informal plans, policies, procedures , guidelines, information syslems, financial systems, management systems, lessons learned, and historical information that can be used to influence a project's success. Eg. Lessons learned from previous projects; templates;
Updates to other Documents
Etc.
Charter
WBS
Communications Management Plan- part of project management plan For small projects can be part of the team contract. There is an example on p387
Good ideas:
Get the analysis approved by stakeholders to ensure information is correct.
Include a notes column
Another, similar table, detailing which meetings stakeholders should attend
Stakeholder communications analysis. Must Include:
A glossary
Revision procedures
Escalation procedures
Frequency
Suggested methods and technologies for dissemination
Who produces the info, and who recieves it.
What will be communicated, including format, content and level of detail.
Stakeholder communications needs
Stakeholder Analysis and expert judgment
Stakeholder Management Strategy- This is a CONFIDENTIAL document, showing basic stakeholder information, level of interest and infuence, and strategy for fostering the support or reducing the impediment that a stakeholder has on a project. Example on p386
Can be built from various matrices
ergent
infuence-impact
power-influence
power-interest
Can include
rumours
past experiences
hunches
Personality profiling info
Stakeholder Register- This is a PUBLIC document, showing the position, role and contact details. It should not include sensitive information, such as the level of support for the project. Example in ch3.
Stakeholder Classification
Internal/external
Supportive/resistant
Assessment Information
phase of interest
Expectations
Major requirements
Identification Information
