© Graham M Winch II :Defining the Project Mission1 4 : Managing Stakeholders Taurus meant an awful lot of different things to different people, it was.

II :Defining the Project Mission 1© Graham M Winch

4 : Managing Stakeholders

Taurus meant an awful lot of different things to different people, it was the absolute lack of clarity as to its definition that I think was its Achilles heel

Chief Executive, London Stock Exchange

II :Defining the Project Mission 2© Graham M Winch

Managing Stakeholders

• which are the project stakeholders?• mapping stakeholders• the regulatory context• ethics in project definition• the role of visualisation

II :Defining the Project Mission 3© Graham M Winch

Which are the Project Stakeholders?

• what is a stakeholder?– creating and destroying value

• internal stakeholders– legal contract with the client

• external stakeholders– all others with a direct interest in the project

• project stakeholders

II :Defining the Project Mission 4© Graham M Winch

Project Stakeholders

Internal Stakeholders External Stakeholders Demand Side Supply Side Private Public Client Financiers Client’s employees Client’s customers Client’s tenants Client’s suppliers

Architects Engineers Principal contractors Trade contractors Materials suppliers

Local residents Local landowners Environmentalists Conservationists Archaeologists

Regulatory agencies Local government National government

II :Defining the Project Mission 5© Graham M Winch

Mapping Stakeholders

• stakeholder mapping– the case of Beirut Central District

• the power/interest matrix– the case of Beirut Central District

II :Defining the Project Mission 6© Graham M Winch

Mapping Stakeholders

Solutions

Problem

Opponents

Proponents

ProjectMission

7© Graham M Winch

politicalopposition trade

unions

class Ashareholders

Lebanese orderof Engineers

residents &environment-

alists

government

class Bshare-holders

propertydevelopers

backward-ness of

public sector

lack of public

financialresources

make BCDpublic

projects

politicalinterference

in publicprojects

highpropensityto Import

unemploy-ment rate

nationaleconomy

taxexemption

no privateinvolvement

in publicprojects

ambiguitiesin Articles ofIncorporation

specula-tion

violation ofproperty

ownershiplaw

underestimat-ion of property

values

BCDprojects

assumed risky

BeirutCentralDistrict

Public / PrivatePartnership

SpecialProject Vehiclefor public policyimplementation

publicly fundedprojects

amendment to Articles

of Incorporationamendment to

Law 117/91

investments inprofitable infrastructure

projects

amendments to themasterplan

adequate publictransport system

stronger awareness of

archaeological heritage

amendments to theArticles of

Incorporationarchaeologists

airpollution

seapollution

suffocation of

neighbour-hood

lack of co-operation

II :Defining the Project Mission 8© Graham M Winch

The Power/Interest Matrix

Aminimal effort

Dkey players

Ckeep satisfied

Bkeep informed

Level of interest

Powerto

influence

high

low

low high

II :Defining the Project Mission 9© Graham M Winch

A : minimal effortlocal banks,internationalcommunity

D : key playersclass B s/holders,

Lebanese government,

property developers,

C : keep satisfiedinternational banks

B : keep informedclass A s/holders,trade unions, LOE,political opposition,

archaeologists,residents,

environmentalists

Level of Interest

Powerto

Influence

high

low

low high

The Power/Interest Matrix

II :Defining the Project Mission 10© Graham M Winch

The Regulatory Context

• the voice of the low power stakeholders• managing consent• project ethics• stakeholder voices

II :Defining the Project Mission 11© Graham M Winch

Managing Consent

• define and enquire• consult and refine• bribe and ignore

II :Defining the Project Mission 12© Graham M Winch

Ethics in Project Definition

Project Social Responsibility“the extent to which the project definition exceeds the minima established in the NPV calculation and those require to obtain regulatory consent”.

II :Defining the Project Mission 13© Graham M Winch

Stakeholder Voices

• environmental impact – environmental lobby

– Environmental Impact Assessment

• zoning – zoning regulations

– NIMBYs and local interests

• quality of specification – product users

• sustainability – future generations

II :Defining the Project Mission 14© Graham M Winch

Construction Sustainability Targets

• operational energy - day-to-day use– KWh or CO2 per m2

• embodied energy of materials used in construction– Gj or CO2 per m2

• transport energy delivering materials and staff– CO2 per m2

• waste during construction– m3 per m2

• water use during construction– m3 per m2

• biodiversity of site– species index per hectare

source : DTI

II :Defining the Project Mission 15© Graham M Winch

The Role of Visualisation

• fly-thrus and montages• obtaining regulatory approval• convincing stakeholders• the Centuria building

– convincing funders– consulting with users

II :Defining the Project Mission 16© Graham M Winch