Project Management Stakeholder Analysis N. Agilan.

Project Management

Stakeholder Analysis

N. Agilan

Content of the presentation

• Project, Project Management, Significance

• Project life cycle

• Project constraints

• Feasibility analysis

• Stakeholders and Stakeholder Management

• Stakeholder Mapping

Road Network Improvement Projects – Sri Lanka

Before Construction After Completion

Katunayake Expressway Project

Mattala Rajapakse International Airport Project

What is a Project?

‘ A project is a temporary endeavour undertaken to

create a unique product, service, or result.’

Project Management Institute (2008)

‘ A project is a complex, nonroutine, one-time effort

limited by time, budget, resources, and performance

specifications designed to meet customer needs’.

Gray et al (2010: 3)

Characteristics of a project

• An established objective

• A defined life span with a beginning and an end

• The involvement of several departments and

professionals

• Typically, doing something that has never been

done before

• Specific time, cost, and performance requirements

Gray et al (2010: 3)

Project Vs Routine Activities

How do you differentiate a project from a routine

activity? Explain using appropriate examples.

• Taking class notes and Writing an end semester

examination paper

• Entering sales receipts into the accounting ledger

and Setting up an accounting information system

Project Management

‘A systematic process used to initiate, plan,

execute, control, and close a project to meet

defined objectives.’

‘ A Science and an Art’

Mulcahy (2006: 9)

Importance of Project Management

• Compression of product life cycle (high-tech product

development)

• Global competition (Demand for cheaper and better

products)

• Knowledge explosion

• Increased customer focus (Development of

customized products and services)

Impact of variables on project

Project Time

Deg

ree

Low

High

Cost of Changes

Stakeholder influence, Risk, Uncertainty

Pro

ject

Man

agem

ent

Inst

itute

(20

08)

Project Life Cycle - Stages

1. Project Initiation

2. Project Planning

3. Project Execution

4. Project Monitoring & Controlling

5. Project Closing

Initiation Phase

• Select a project manager

• Collect procedures and historical information

• Identify stakeholders

• Document business need

• Determine project objectives

• Develop project charter

• Develop preliminary project scope statement

Planning Phase

• Create project scope statement

• Determine Team

• Create Work Breakdown Structure (WBS)

• Create activity list

• Create Network diagram

• Estimate resource requirements, time, cost

• Risk identification

• Determine performance measurement baselines

Executing Phase

• Acquire final team

• Execute the PM plan

• Send and receive information

• Continuous improvement

• Follow processes

• Team building

• Hold progress meetings

• Give recognition and rewards

Monitoring and Controlling phase

• Measure against the performance measurement

baselines

• Measure according to the management plans

• Determine variances

• Scope verification

• Recommend changes

• Risk audits

• Measure team member performance

Closing Phase

• Develop closure procedures

• Complete contract closure

• Confirm work is done to requirements

• Final performance reporting

• Update lessons learned (knowledge base)

• Hand off completed product

Triple Constraint

Cost

ScopeQ

uality

Customer Satisfaction

Risk

Tim

e

Adap

ted

from

: Mul

cahy

(200

6: 1

5)

Triple Constraint

• Scope – Scope describes what the organization

expects to deliver to the customer/client when

the project is complete.

• Risk – Events that can affect the project for better

or worse (Opportunities or Threats)

Importance of Feasibility Analysis

Financial Feasibility (Cost- Benefit

Analysis)Ecological Feasibility

Social Feasibility Technical Feasibility

Stakeholders

Fre

eman

(19

84)

Stakeholders

‘Stakeholders are persons or organizations who

are actively involved in the project or whose

interests may be positively or negatively affected

by the performance or completion of the project.’

Project Management Institute (2008)

Discussion

‘Identifying stakeholders and understanding their

relative degree of influence on a project is critical

to minimize adverse impact on the project

objectives.’ Discuss

Customers and Users

• Customers – Customers refer to the entity

acquiring the project’s product

• Users – Users refer to those who will directly

utilize the project’s product.

• Customers/users may be internal and/or external

to the performing organization.

Project Management Institute (2008)

Project Sponsor

‘A sponsor is the person or group that provides

the financial resources, in cash or in kind, for the

project. When the project is first conceived, the

sponsor champions the project’.

Project Management Institute (2008)

Stakeholder Theory

• Wealth is created, captured and distributed by a

variety of stakeholders.

• Managing the expectations and needs of diverse

stakeholders is of paramount importance

• Organizations should not try to fulfill only the

expectations of ‘shareholders’ alone.

Stakeholder Management

Identify All Possible Stakeholders

Prioritize Stakeholders (Stakeholder Matrix)

Develop Stakeholder Engagement Strategy

Bo

urn

e a

nd

Wal

ker

(200

6)

Stakeholder Analysis: Stakeholder Mapping

A B

CD

Minimal Effort Keep Informed

Key PlayersKeep Satisfied

Level of InterestLow High

Po

we

r

Low

High

Me

nd

elo

w (

199

1)

Stakeholder Management using the Stakeholder Mapping Process

Step 01: Identify all possible stakeholders

Step 02: Locate each stakeholder in the appropriate

quadrant (The current situation)

Step 03: Rearrange the stakeholders in the matrix the

way organization prefers them to be and develop

strategies to address each (The preferred situation).

Summary

• Project and its characteristics

• Projects Vs routine activities

• Project Management & Cycle

• Stakeholders and Stakeholder Management