Module 4 Analyzing the Project Context Session 4.1: Actors and Factors

1. Module 4Analyzing the Project ContextSession 4.1: Actors and Factors

2. Instructional Objectives At the end of this module, you should be able to: • Define: environmental scan (context analysis), actor, factor, stakeholder, informal linkage, and formal linkage • Use three environmental scanning tools to identify potentially relevant actors and factors • Evaluate potentially relevant actors and factors in terms of dependency, risk, and control • Determine which actors and factors need special attention from management • Proactively manage key actors and factors (or their effects on the project)

3. A Project as a System • The Environment The Project Inputs Processes Outputs Boundary

4. The Environment The Project Organization Inputs The Project Inputs Processes Outputs Outputs Customers or Beneficiaries The Project as a System within a System

5. The Environment Inputs Outputs The Project Organization Supplies School Facilities Reports The Project Accounting Improved instruction Money Improved economic growth Labor Government agencies Actors and Factors as Inputs and Outputs

6. Actors (Stakeholders) and Factors as Inputs and Outputs Outside Environment (outside of parent organization) • Actors • people • institutions • ... Actors Project Inputs Outputs Factors • Factors • climate • inflation • ... Stakeholders: Actors with an interest in or who could be impacted by the project

7. Five-Step Process for Environmental Analysis 1. Scan environment and identify actors/factors 2. Screen in terms of dependency, risk, and power 3. Identify problem and beneficial actors and factors 4. Develop strategies and act 5. Repeat throughout implementation

8. Step 1: Scan and Identify Relevant Actors and Factors in the Environment • Make a list • Use three tools • systems model • geo/political • sector analysis

9. Project Inputs Outputs Conditions Scan the Environmentin Terms of Inputs and Outputs

10. Scan the Environment Geo/politically Region World Nation State (province) Local

11. infrastructure technological - commercial - financial - economic project physical - cultural - social - psychological - political - legal Scan the Project Environment by Sector

12. Step 2: Screen Actors and Factors • Rate in terms of • Dependency: How important? • Risk: Likelihood something will go wrong • Power: Degree of control or influence • Assign High, Low, or Medium rating to each

13. Identifying Problem Actors and Factor

14. Degree of dependency high low high low low high Cement Plant actor 2 actor 3 factor 1 factor 2 factor 3 Estimate the Degree of Dependency • Definition of dependency • How important is the actor or factor to the successful completion of the project? Degree of Dependency (High, Medium, Low)

15. Degree of Risk (High, Medium, Low) Cement Plant actor 2 actor 3 factor 1 factor 2 factor 3 Degree of risk high medium low medium high high Evaluate Degree of Risk • Definition of risk • the chance that something will go wrong (hinder the completion of the project in a significant way)

16. Appreciation Influence Control Power: Ability to Make Something Occur POWER: High = control Medium = influence Low (none) = appreciation

17. Power: The ability to get someone to do something one wants done Degree of Power (High, Medium, Low) Degree of power low low high low low low Cement Plant actor 2 actor 3 factor 1 factor 2 factor 3 Dependency Risk

18. Degree of risk high Degree of problem high Degree of dependency high Degree of power low Cement Plant actor 2 actor 3 factor 1 factor 2 factor 3 Step 3: Identify Problem Actors and Factors Look for High/High/Low pattern

19. Step 4: Develop Strategies and Act • Use general strategies • Reduce dependency • Reduce risk • Increase power • Capitalize on beneficial actors and factors Formulate Specific Actions ? ? ? ?

20. Use Linkages to Increase Influence • Informal • meetings • plans • teambuilding • personality • rewards • Formal • committees • project coordinator • task forces • incorporation or merger

21. Agriculture Project: Actors and Factors Grid Actors Degree of dependency Degree of risk Degree of power Degree of problem Ministry of Finance High High Low High Factors Rainfall (water) High Low (storage dam) High (irrigation) Low

22. Step 5: Continuously Scan • Scanning is not a one-time event • Circumstances change • Keep current • list of problem actors and factors • strategies • contingency plans

23. Worksheet 1: Sector Analysis Project: Sectors Actors Factors Infrastructure Technology Commercial/Financial/Economic Cultural/Social/Psychological Political/Legal Physical

24. Worksheet 2: Actors and Factors Grid H=High M=Medium L=Low Project:___________________________________ Degree of dependency Degree of risk Degree of power Degree of problem Actors Factors

25. Worksheet 3: Managing Problem Actors & Factors Project:___________________________________ Decreasingdegree ofdependency Decreasingdegree ofrisk Increasingdegree ofpower LinkagesFormal/Informal Actors Factors