LECTURE 17: PROJECT STAKEHOLDER ANALYSIS PART 1

1. Master of Science in Project Management Project Stakeholder AND COMMUNICATION Management LECTURE 17: PROJECT STAKEHOLDER ANALYSIS PART 1

2. Managing and Engaging Project Stakeholders (The Project Stakeholder Mgmt. & Engt. Process Framework) Project Stakeholder Management Process Framework Stakeholder Management Maturity Levels (Evolution) Understand the Project Context External Factors: Laws, Culture, Politics etc.; Internal Factors: Principles, Policies, Experience, Information, Knowledge Project Complexity, Cost & Time Constraints, Innovation, etc. Process Framework Influencing Factors 1 Identification of All Project Stakeholders 2 (PSIS) Project Stakeholder Information System Stakeholder Analysis & Impact Evaluation MONITORING EVALUATION & CONTROL Periodic Revision and Modification When and Where Appropriate 3 Design Management & Engagement Strategy 4 Implement Management & Engagement Strategy 5 Proactive Focus The Project Life-Cycle (Initiation to Completion)

3. Project Stakeholder Management Process Framework • STEP 3: • Analysis: How Stakeholders Affect the Project

4. Project Stakeholder Management: Stakeholder Analysis Stakeholder Analysis is an indispensable pro-cess used by project managers and team members (and other stakeholders) for under-standing stakeholder interests in a project and is a prerequisite for planning for engaging the project stakeholders with a view to increasing the likelihood of the project „succeeding“ – i.e. at least achieving its goal within the budget and time-frame allocated for it.

5. The Project Stakeholder Analysis Process Context Understanding and Identification of Project Stakeholders PHASE 1: STAKEHOLDER ANALYSIS Systematic Collection of Information on Project Stakeholders PHASE 2: STAKEHOLDER ANALYSIS Project Stakeholder Attributes, Options & SWOT Analysis PHASE 3: STAKEHOLDER ANALYSIS Project Stakeholder Impact Assessment (Positive, Negative) Project Stakeholder Engagement (Strategy Design and Implementation)

6. The Project Stakeholder Analysis Process Context Understanding and Identification of Project Stakeholders What information is required by the analysts in order to conduct an effective Project Stakeholder Analysis? Systematic Collection of Information on Project Stakeholders • What current available sour-ces of (quality) information on the project stakeholders exist and which sources are prioritized? Project Stakeholder Attributes, Options & SWOT Analysis Project Stakeholder Impact Assessment (Positive, Negative) Which tools can/will be used to obtain information on the stakeholders? Project Stakeholder Engagement (Strategy Design and Implementation)

7. The Project Stakeholder Analysis Process Context Understanding and Identification of Project Stakeholders Who will collect the informa-tion needed for the analysis or supervise the information collection activity? Systematic Collection of Information on Project Stakeholders Project Stakeholder Attributes, Options & SWOT Analysis How much time is allocated for developing the stake-holder profiles and when are the periodic review time points in the project life-cycle set for the purpose of repeating and updating the Analysis? Project Stakeholder Impact Assessment (Positive, Negative) Project Stakeholder Engagement (Strategy Design and Implementation)

8. The Project Stakeholder Analysis Process Context Understanding and Identification of Project Stakeholders How is the information’s value (i.e. its quality) and cost-effectiveness assessed? What processes are develop-ed for ensuring the security of the obtained information and its subsequent disposal when the need for it no lon-ger exists? Systematic Collection of Information on Project Stakeholders Project Stakeholder Attributes, Options & SWOT Analysis Update: Project Stakeholder Information System. Project Stakeholder Impact Assessment (Positive, Negative) Constraints: Cost, time, ex-pertise, access to informa-tion and requisite skills. Project Stakeholder Engagement (Strategy Design and Implementation)

9. The Project Stakeholder Analysis Process Context Understanding and Identification of Project Stakeholders • What are, inter alia, the • Interests • Concerns • - Attitudes & Behaviors • - Expectations & Perceptions • - Power • of the stakeholders and to what extent do these attribu-tes change over time? Systematic Collection of Information on Project Stakeholders Project Stakeholder Attributes, Options & SWOT Analysis Project Stakeholder Impact Assessment (Positive, Negative) What licit & illicit options may stakeholders excercise for and against the project, or any of its phases and con-stituent activities? Project Stakeholder Engagement (Strategy Design and Implementation)

10. The Project Stakeholder Analysis Process Context Understanding and Identification of Project Stakeholders SWOT (Strength, Weakness, Opportunities, Threats) Ana-lysis of the project from the perspective of the project owners/planners/implementers and project stakeholders. Systematic Collection of Information on Project Stakeholders Project Stakeholder Attributes, Options & SWOT Analysis Update: Project Stakeholder Information System. Project Stakeholder Impact Assessment (Positive, Negative) Constraints: Cost, time, com-plexity of the stakeholder context, analytical skills and experience. Project Stakeholder Engagement (Strategy Design and Implementation)

11. The Project Stakeholder Analysis Process Context Understanding and Identification of Project Stakeholders Which Models, Simulations & Scenarios are applied to de-termine the extent and range of possible pos. and neg. effects on the project and its key variables which result from stakeholder action for or against the project? Systematic Collection of Information on Project Stakeholders Project Stakeholder Attributes, Options & SWOT Analysis Update: Project Stakeholder Information System. Project Stakeholder Impact Assessment (Positive, Negative) Constraints: Limitations in Models etc. Project Stakeholder Engagement (Strategy Design and Implementation)

12. Finding Information on Project Stakeholders Information is the key input in the process of analyzing the project stakeholders. The effectiveness of stakeholder en-gagement strategies hinges, there-fore, primarily on obtaining “quality information”. In obtaining, processing and distribu-ting information on project stakehol-ders, the highest standards of ethics and professionalism must be upheld.

13. Finding Information on Project Stakeholders There are several ways and means –overt and covert - of finding informa-tion on project stakeholders. Sometimes the information needed to undertake a stakeholder analysis can be “easy” to obtain, for e.g., on the (in-ternal) stakeholders of an ERP project in a corporation. Finding information on stakeholders may also be a challen-ging task on occasions, for e.g., on pro-jects where they include local commu-nities and interest groups.

14. Finding Information on Project Stakeholders The informational needs of the stakeholder analysts will change in the course of the project life-cycle as stakeholders adapt to changes in the focus and intensity of the project activities. Therefore, gathering information on stakeholders is not a one-time event but a periodic undertaking. Licit means should always be used to gather information on stakeholders!

15. Finding Information on Project Stakeholders (Quantity Vs. Quality) Information in abundance does not mean that the information is appropriate for a rigorous stakeholder analysis and for de-signing and implementing effective stake-holder engagement strategies! Before collecting information on project stakeholders, the stakeholder analysts must have a clear idea exactly what infor-mation is required to avoid wasting time, cost and effort on amassing and process-ing“redundant” information.

16. Updating Information on Project Stakeholders Project Stakeholders who are not involved in the project contractually or through legal obligation but are affected by it and may intervene in it at some point in time Local Community (for certain projects), Diverse Professional Organizations, Environmentalists, NGOs, Media etc. Project Stakeholders who are required by mission or law to provide support to the project but are not directly involved in the activities mentioned above Local Administration, Government Agencies and other Public-Sector Organizations Increasing Need for Periodic Updates Project Stakeholders who are directly involved in financing, planning, implementing or overseeing the project Project Owner, Customer, Users, Financers, Sponsor, Manager and Team Members

17. Information on Project Stakeholders(Ask Other Project Managers) When looking for information on pro-ject stakeholders, it can be helpful to consult with other stakeholders (for e.g. project managers) who are inter-acting (or in the past interacted) with the stakeholders who are the focus of current interest. By adopting this simple, direct and cost-effective approach, the stakehol-der analysts can discretely acquire good first-hand information for their analysis.

18. Information on Project Stakeholders(Ask the Stakeholders Directly) Information on (ext.) stakeholders such as individuals and local com-munities can be got by approaching them directly. The interaction may leave a good im-pression of the project and project staff but sometimes, it may arouse distrust of the project. The stakeholder analysts are advised to ensure that information about the project is provided judiciously and selectively.

19. Information on Project Stakeholders(Use Internal Information Sources) For projects undertaken in-house, information on stakeholders can (usually) easily be got from sources inside the organization. Information on ext. stakeholders such as customers, competitors, con-tractors, suppliers, consultants, regu-lators etc. with which the organiza-tion has interacted with previously on its projects may be obtained from the organization’s documentation and databases.

20. Information on Project Stakeholders(Use Existing Project Documentation) Projects usually generate mountains of documents over their life-cycles which can be very useful sources of information for project managers and the project team. The documentation may reveal much about the stakeholders - how infor-mation on them was obtained, how the stakeholder analysis was conduc-ted, and how successful or unsuc-cessful the stakeholder engagement strategies were.

21. Information on Project Stakeholders(Newspapers & Magazines) Newspapers and magazines are often valuable sources of general and/or sometimes specific information on project stakeholders. Back issues of newspapers, maga-zines and other printed (and some-times videographic) material deposi-ted in newspaper or library archives can be systematically analyzed to de-termine trends in stakeholder atti-tudes and behaviour over the course of time.

22. Information on Project Stakeholders(Case Studies) Like newspapers and magazines, case studies too can constitute valuable sources of information on project stakeholders. Case Studies can usually be easily (though not always cheaply) obtain-ed from a library, university, research center, consultant or other source. Case Studies may provide detailed in-sight into stakeholder issues in speci-fic project contexts.

23. Information on Project Stakeholders(Printed Material of Stakeholders) Stakeholder entities such as contrac-tors/sub-contractors, consultants, traders, importers and exporters, manufacturers, NGOs and commu-nity groups publish and distribute material (for e.g. reports, brochures, newsletters, white papers, leaflets, videos etc.) in printed or electronic form on a regular, periodic or one-time basis to inform the public about their objectives, interests and activi-ties.

24. Information on Project Stakeholders(The Internet) The internet is the defining symbol of the information age. From its humble beginnings it has grown over the past fifteen years at a phenomenal rate to encompass billions of webpages from across the globe which are accessible from the comfort of our homes and offices at a mouse-click. Through the use of search engines, the Internet offers a wealth of pro-ject-relevant relevant information on project stakeholders.

25. Information on Project Stakeholders(The Internet) Much of the information is available free of cost. For stakeholder analysts, the internet is probably the quickest, most anony-mous and cost-effective way of find-ing information on stakeholders as individuals as well as groups, associa-tions and organizations. A note of caution: The information may not always be accurate and must not be trusted blindly.

26. Information on Project Stakeholders(Government Sources) Government agencies collect vast amounts of inform. on individuals and organizations. Much non-confidential information is available on demand may prove use-ful for the stakeholder analysts in preparing their analysis. Government also undertakes a lot of research and this material may also be valueable for the stakeholder analysts.

27. Information on Project Stakeholders(Private Investigator) Sometimes, information on some key stakeholders cannot be acquired through conventional means. In such cases, a “private investiga-tor” who can discretely collect infor-mation on the stakeholders may be the solution. When availing the services of a pri-vate investigator, it is essential that legal and ethical boundaries are not overstepped.

28. Access to Project Stakeholder Information In principle, full access to the available information on the project stakeholders should be confined to those persons (for e.g.: the project manager, team members, consultants) tasked with analyzing, monitoring and /or evaluating their actual or potential impact on the project and devising and implementing (and periodically revising) stra-tegies for effectively managing and engaging them. Care must be taken to ensure the security of information stored in electronic and/or file-based systems in order to avoid any complications for the project which unintended disclosure to project stakehol-ders may cause.

29. Project Stakeholder Information Systems Modern and increasingly popular way of storing, processing and distributing pro-ject information. Has several significant advantages over the paper-based method but also several inherent drawbacks. Electronic (PC, Software, Databases, Networking Infrastructure) PMIS Project Management Information System PSIS Project Stakeholder Information System Paper-Based (Filing Cabinets, Achives, Cataloguing Systems) Traditional but still widely used way of storing project information. Many paper documents, e.g. feasibility study, project charter, contracts and various reports are generated by a project.