Session run at Southampton University Business School Fall 2014

1. MANG6311 Stakeholder Management
Dr. Ian Cammack
i.j.cammack@soton.ac.uk
MSc Project Management
Sources:
http://www.antonioolmos.com/index.php#mi=2&pt=1&pi=10000&s=13&p=7&a=0&at=0
http://mayrsom.com/2013/07/10/stakeholder-orientation/

3. Introduction
• Relatively new concept :
– “70% of people not consulted” (Hutton 1995)
• Successful projects more than ‘time, cost & quality’
– Quantitative and Qualitative success criteria

4. Definition(s)
• “those groups who without whose support the organisation would
cease to exist” (Freeman 1984)
• “the people who have a real interest in the outcomes of the project”
(Lockwood 1996)
• “individuals or groups who can effect, or are affected by the
(project) you are (managing)” (Ryan 1996)
• “a person or group of people who have a vested interest in the
success of an organisation [project] and the environment within
which the organisation [project] exists” (BS6079 1996)

5. A stakeholder management process
Identify project
success criteria
Identify
resource
requirements
Identify
stakeholders
Conduct
stakeholder
analysis
Implement
stakeholder
management
strategy
Monitor
external and
internal change
Monitor
stakeholder
satisfactionSuccessful
project
completion
Source: after McElroy B. & Mills C. (2000) Managing Stakeholders

6. Stakeholder Management
• Satisfaction = perception – expectation
• Hard Metrics:
– Time, Cost & Quality
• Perceived Quality:
– Responsiveness
– Communication
– Competence / Professionalism
– Courtesy
– Accessibility

7. Different perspectives on success
Client
Have the goals been achieved to
a satisfactory degree
Project leader
Has the result been achieved with
respect to the aspects of Time,
Money, Quality, Information &
Organisation
Project employee Is their contribution appreciated?
Financier Is it profitable?
End User Is it usable?
Person with problem Are we any closer to finding a solution
Source: van Well-Stam et al p.31

8. Types of Stakeholder
“Internal”
• Project Manager
• Project Team
• Senior Management
• Project Client
• Competitors (for Project
Resources)
• Suppliers (internal)
• Customers (internal)
• Unions / Staff Associations
“External”
• Government (UK, EU)
• Regulators
• Competitors
• Neighbours
• Suppliers (ext. Supply Chain)
• Customers
• Opinion Formers (Media,
Commentators, Unions)
NB: Not all Stakeholders want the project to succeed

9. A Stakeholder Schematic
Internal
Internal
Internal
INTERNAL
LOCAL
NATIONAL
INTERNATIONAL
Industrial
Customers
Multilateral
investors
National
Media
Customers
International
Media
Local
Media
Think tanks/
research
groups
Academic
institutes Local Interest
groups
Customers
CustomersEmployees
Trade
unions
Contractors
Local
government
Local
NGO’s
Suppliers
Neighbours/
local community
National
NGO’s
Investors
National
Government /
regulators
International
NGO’s
Industry &
business asoc
Hund (2002)

10. What Resources Can Stakeholders
Deploy?
Project
Internal
support Political
attention
Planning
Public
support
Regulatory
Discretion
External
contacts
Knowledge
Emotion
Skills
Project
materials
Finance
Bureaucratic
inertia
Source: McElroy B. & Mills C. (2000) Managing Stakeholders

11. Exercise 1
• Working in a small group
• Consider a project to bring a new
mobile phone to market
• Identify a range of stakeholders and
stakeholder groups
• What resources do they bring to the
project?

12. Stakeholder Analysis:
Factors
• Knowledge
• Power/ influence
• Interest
• Intent
• Trust

13. Stakeholder Analysis
• What is the person or group’s stake in the project?
– Are they needed to resource it?
– Are they directly affected by it?
– Are they indirectly affected by it?
– Are they unaffected, but still have the power to affect it
should they choose?

14. Don’t take for granted
Assure that project
meets their objectives
Difficult to manage
Basing their opposition on
knowledge
Vulnerable;
could easily be lost
Protect and
reinforce support
Key target area
Fill gaps in knowledge
with positive messages
Stakeholder Analysis & Mapping #1
Knowledge
Attitude/ Intent
Source: McElroy B. & Mills C. (2000) Managing Stakeholders
Support
Aware
Oppose
Ignorant

15. Minimal effort
direction
Low
Low
Keep informed
education/ communication
High
Keep satisfied
intervention
High
Key players
participation
Stakeholder Analysis:
Stakeholder mapping #2
Source: Mendelow, A,(1991) Proceedings of 2nd International Conference on Information Systems, Cambridge, Mass.
Interest
A B
C D
Power

16. Assessing power/ influence
Internal stakeholders
• Status
– position in hierarchy
– Salary/ grade indicators
• Claim on resources
– Number of staff
– Budget as % of total
• Representation
– Number/ influence of
directors
• Symbols
– Quality of accommodation
– Support services
External stakeholders
• Status
– Speed of your reaction
– Level of influence
• Resource dependence
– Degree of involvement in
strategy implementation
– Degree of control over
strategic resources
• Negotiating arrangements
– Standard prices versus
individual negotiations
• Symbols
– Access and invitations
If I were to pursue this project…would/could they stop me?

17. Stakeholder Mapping: Stage 2
Active
Opposition
Passive
Opposition
No
Commitment
Passive
Support
Active
Support
A B
A B
A B
A B
A B
A B
Managing
Director
Users
Regulator
Media
Suppliers
Key Customers
Finance
Director
AB
Key
A= Current
B = Required
Role of
Stakeholder
Decision
Maker
Consent
Influencer
Influencer
Player
Consent
Influencer
Attitude of Stakeholder

18. Stakeholder Mapping: Step 3
Engineers
Key
Customer
Staff
Assoc.
Users
Sales
Director
Line
Manager
PR
Agency
MediaMarket-
ing
Training
Suppliers
Agents
Regulator
Venture
CapitalMD
Finance
Director
PM
DM +ve?
P -ve?
I ?
I +ve?
C –ve?
C -ve
I +ve
Key:
DM = decision maker
I = influencer
P = player
C = consult
–ve / -ve? / ? / +ve? / +ve

19. Example of Stakeholder Mapping 1 (part A)
Football
Association
LeagueFederation of Stadium
Communities
PFA
Football Foundation
Media
Local Authority
Football in the Community
Local Businesses
Supporters Trust
Supporters Groups
The Co-operative Group
Supports Direct
Football Supporters
Federation
Independent Football
Commission
Shareholders
Sponsors
Source: Holt et al 2005 p.70
Football Club

20. Example of Stakeholder Mapping 1 (part B)
Football Club
Football Association
League
Federation of Stadium
Communities
PFA
Football Foundation
Media
Local Authority
Football in the Community
Local BusinessesSupporters TrustSupporters Groups
The Co-operative Group
Supports Direct
Football Supporters
Federation
Independent Football
Commission
Shareholders
Sponsors
Source: Holt et al 2005 p.71

21. Example of Stakeholder Mapping 2
Euro2000
(Executor)
UEFA
(principal) KBVB,
KNVB
Sponsors
ISL
Stadiums
FORTO
2000
EBU
Media
The public
Government Bodies:
•Local
•Regional
•National
•International
Contract
Informal
Obligation (delivery)
Approval
KEY:
Source: van Well-Stam et al p.31

22. Example of Stakeholder Mapping 3

23. Stages to Committment
Ignorance : Do Nothing Awareness : Newsletters
Memos
Briefing Papers
Understanding : Discussions
Team Meetings
Roadshows
Support : Consultation
Debate
Feedback
Involvement : Early Incorporation
Show Compromise
Share Confidences
Collective Problem Solving

24. Stakeholder Mapping: Stage 4
Managing
Director
Users
Regulator
Media
Suppliers
Key Customers
Finance
Director
Decision
Maker
Consent
Influencer
Influencer
Player
Consent
Influencer
Stakeholder Category Influencing Strategy Information Required
Comms
Medium
Resp.A B

25. Reading
Essential Reading:
• Karlsen J.T. “Project Stakeholder Management” Engineering Management Journal Vol. 14
No. 4 December 2002
• McElroy B. & Mills C. (2000) “Managing Stakeholders” in Turner J.R. & Simister S.J.
Handbook of Project Management 3rd Edition
Additional Reading:
• Malvey D. Fottler M.D. & Slovensky D.J. “Evaluating Stakeholder Management Performance
Using a Stakeholder Report Card” Health Care Management Review 2002, 27(2), 66-79
• Kumar K. & Subramanian R. (1998) Meeting the Expectations of Key Stakeholders:
Stakeholder Management in the Health Care Industry
• Useful proforma for stakeholder management
http://www.adams12.org/Quality/documents/ProjectStakeholderAnalysis.pdf