Lecture 02

Question 1

Definition stakeholder

Answer 1

• stakeholdes can be individuals, groups or organizations that may affec, be affected by or perceive themselves to be affected by a decision activity or outcome of a portfolio programm or project
• stakeholders also directly or indirectly influence a project , its performance or outcome in either a positive or negative way

Question 2

devide Major project stakeholders into four key categories

Answer 2

1. public stakeholders
2. industrial stakeholders
3. financial stkeholder
4. other stakeholders

Question 3

Define Publich stakeholders

Answer 3

• different levels of government and regulatory bodies or authorities:
  
  1. Government ( government of nations , states, cities ; set the rules of the games; often active stakeholders in major projects ; can be sponsor /financer and /or client and or contractor ; specific responsibilities directly or indirectly through institutions) -→is temporary
  2. Public agency (provide specific services(operater manging hospital, roads…); extension of government -→is permanent
  3. Regulatory body: independent administration specialising in differnet technical issues which affect a project

Question 4

Examples for industrial stakeholders

Answer 4

1. Construction firms(often prime contractor and project manager, sometimes sponsor or investor )
2. Utilities (usually provide services to the public, can be private public or mixture , for example energy water)
3. process and manufacturing corporations (suppliers for major project )
4. service providers(softweare, legal and financial intermediaries)

Question 5

FInancial stakeholders (definition)

Answer 5

1. essential stakeholders in the planning and delivery of major projects “No money-no project”
   
   1. directly(financial institutions finance a major projekt by acting as sponsors or financiers in general)
   2. indirectly (financial sponsors can support other stakeholders involved in the delivery of the project )

Question 6

examples financial stakeholders

Answer 6

• customer equity
• banks
• dept providers
• export credit agencies
• government
• institutional investors
  
  • insurances

Question 7

other stakeholders

Answer 7

• interest groups/pressure groups
• trade associations
• competitors
• citizens
• Land owners
• Industrial Associations
• NGO
• Lobbies

Question 8

What role do stakeholders perform (Client side)?

Answer 8

• Client
  
  • often most influential stakeholder (especially if client=sponsor )
  • sometimes client is a patnership or “Joint Venture”
• sponsor
  
  • secures the funding and owns the business case
  • sometimes sponsor = client
  • often more than one
  • either industrial organisations and /or public institutions
• Operator
  
  • owner of the infrastructure
  • assumes the risk ans responsiabilities for operationg the major project infrastructure→ performs technical and commercial activities

Question 9

what role do stakeholder perform?(Supply side)

Answer 9

• prime/main contractor
  
  • the organisation the client awards the contract to (bidding process)
  • works close to the client
  • undertakes project management activities
  • can be existing firm or brand new organisation
• subcontractor
  
  • involved in production of goods or services for project
  • don’t interact directly with client
• suppliers
  
  • organisations involved in production of goods (don’t work directly at the construction site)
  • roles are common to all major projects (single organisation or distribution among many)

Question 10

Internal Stakeholder

Answer 10

• part of project organisation (top manager, accountant, managers, project team)
• workers and decision makers : sponsor, financiers, client, owner, user costumer
• part of project delivery chain

Question 11

external Stakeholders

Answer 11

• external to the project delivery chain
• for example interest groups, pressure groups citizens, trade associations , clients, competitors, suppliers ,….
• → much more complicaated, don’t know what want

Question 12

how to manage stakeholders(process required to)

Answer 12

1. identify stakeholders: identify stakeholders ( all peaple that get affected by project ) regularly, analyzinfg and documenting information regarding interests, involvement, interdependencies, influence, impact on project success.
2. plan stakeholder Engagement: developing approaches to involve project stakeholders based on needs, expectations interests and impact on the project
3. manage stakeholder engagement: process of communiccation and working with stakeholders, to meet needs and expectations, adress issues and appropriate stakeholder engagement involvement
4. monitor stakeholder engagement: process of monitoring project stakeholders relationships and tailoring strategies for engaging stakeholders through modification of engagement strategies and plans

Question 13

Project stakeholder management (focuse on )

Answer 13

• conitnius communication with stakeholders
• managing conflicts interests
• fostering appropriate satkeholder engagement in project decisions and activities(Co-creation means including stakeholders who are most affected by outcome of project as partners in the team )

→ stakeholder satisfaction should be one of the keyproject objective

Question 14

pos and neg value of effective stakeholder management

Answer 14

+ consideration of benefits derived from higher levels of active support fro stakeholders(particulary powerful)

-derived by measuring the true costs of not engaging stakeholders effectively, leading to product recalls or loss of organizational or project reputation

Question 15

Evolution project organizational governance structure (picture)

Answer 15

Question 16

3 types of Power

Answer 16

1. coercive power: based on physical resources of force, violance or restraint
2. utilitarian power: based on material or financial resources
3. normative power: based on symbolic resources (law, rules, regulations)

Question 17

Power: stakeholder - manager relationship

Answer 17

• power is transitory: can be aquired or lost
• a company may posses power to impose its will upon a firm, but unless it is aware of its power and willing to exercise it on the firm, it is not a stakeholder wit a high salience for managers

→ power not gurantee gigh salience in stakeholder manager relationship

→ power gains authority through legitimacy and gains exercise through urgency

Question 18

Legitimacy - what does it means

Answer 18

• more variable than a steady state dynamic attribute of the stakeholder manager relationship
• legitimacy gains through power and voice through urgency

Question 19

Urgency-what does it emans

Answer 19

• definition online: calling for immediate attention or pressing
• urgency is the degree to which stakeholder claims call for immediate attention
• 2 conditions for urgency:

1. relationship or claim has time sensitive nature
2. relationship or claim is important or critical to the stakeholder

• 2 attributes for urgency

1. time sensitivity: the degree to which managerial delay in attending to the claim or relationships is unacceptable to the stakeholder
2. criticality: the importance of the claim or the raltionship to the stakeholdero

Question 20

Summarize

Answer 20

Question 21

important points about stakeholders

Answer 21

• stakeholders attributes are variable not steady state
• stakeholders attributes are socially constructed, not objective reality
• consciousness and willful exercise may or may not be present

Question 22

manager’s role due to stakeholders

Answer 22

• respnsiability to reconcile divergent interests by making strategic and allocating stratgic ressources in a manner that is most consitent with the claims of the other stakeholder groups
• it is the firms manager who determine which stakeholders are slient and therefore will receive management attention

Question 23

stake holders typologies

Answer 23

• latent stakeholders ( only one of three attributs)

1. dormant
2. discretionary
3. demanding

• expectant stakeholders (possessing two attributes)

1. dominant
2. dependent
3. dangerous

• definitive stakeholders possessing all three attributes
• individuals or possessings who none of the attributes are non stakeholders or potential stakeholders

Question 24

Stakeholder engagement assessment matrix

Answer 24

• unaware: (unaware of project an potential impact)
• resistant:(aware of the project and potential impacts but resistant to any changes that may occure as a result of the work or outccomes of the project → will be unsupportive of the work or outcome of the project )
• neutral:(aware of project but neither supportive or uns)
• supportive:(aware of the project and potential impacts and suppoertive of the work and its outcome )
• leading:(aware of project and potential impact and actively engaged in ensuring that the project )

1. C: represents the current engagement level of each stakeholder
2. D: indicates the level the project team assessed as essential to ensure project success (desired)

Question 25

Power vs interest Matrix

Answer 25

Question 26

RACI - model

Answer 26

* RACI model is a responsibility assignment matrix 1. **Responsible** (carrying out the task or activity, not necessary held accountable in the case of success or failure) 2. **accountable**(has ownership for the task, activity, outcome or makes the final decision,case of a mistake or error, the person or organisation who is accountable for this element takes ownership of the mistake, should be one person with sufficient expertise and authority) 3. **consulted**(provide information to the project, or whose input is required before a decision can be made. Subject matter experts could be an example of this, and they could be internal or external to the project) 4. **informed** (need to be informed of progress or outcomes. These could be internal or external to the project)