MBA 4001

PROJECT MANAGEMENT
Module 3
 Module 3 : Stakeholder Management
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3.1 Key stakeholders of a Project

3.2 Satisfying stakeholders' interests in a project
3.3 Contractor Management: FIDIC

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3.1 Key Stakeholders

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 Stakeholders
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 A stakeholder is an individual, group, or organization

who may affect, be affected by, or perceive itself to
be affected by a decision, activity, or outcome of a
project.
 Stakeholders may be actively involved in the project or
have interests that may be positively or negatively
affected by the performance or completion of the
project.
 Who are stakeholders in a project? Example?

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 What is a Stakeholder?
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“A stakeholder in an organization is any group or individual

who can affect or is affected by the achievement of the
organization’s objectives. (Freedman, 1984, p. 4)

“An individual, group, or organization who may affect, be

affected by, or perceive itself to be affected by a decision,
activity, or outcome of a project.” (PMI, 2013, p. 563)

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 Typical Stakeholders In A Project
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 Customers / Users
 Sponsor
 Project Manager
 Team Members
 Functional Managers
 Operations
 Government
 Public

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 Typical Stakeholders In A Project
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3.1 Stakeholder Management

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 Project Stakeholder Management Steps
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Knowledge Area Activities Process Groups

Identify Stakeholders Initiating
Plan Stakeholder Management Planning
Manage Stakeholder Engagement Executing

Monitor Stakeholder Management Monitoring and

Controlling

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 Project, Programme & Portfolio
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 The List of Stakeholders Is Huge
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 Project Management
 Sponsor, team, PMO, program managers, portfolio
managers, operations managers, functional managers,
customers/users, procurement, finance, government
regulators, SMEs, consultants, and OTHERS (PMBOK® 5)
 Program Management
 The above PLUS – governance boards, performing
organization, program team members, potential customers,
competitors, affected individuals, consumer groups,
environmental groups, or other interests (PMI, Program
Management Third Edition)
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 In Addition, Remember the ‘Hidden”
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Organization Chart
 The people who are the true drivers (or roadblocks
of progress) . . the less obvious . . with broad
experience . . . key influence. . . and can help
‘connect the dots’ – Amy Baugh, Stakeholder Engagement, p. 33

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 Step # 1 for Stakeholder Management
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Identification Continual
= Analysis = Engagement Engagement Identification
Stakeholder Quadrants Plan Participation and
Map and Engagement
Register

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 Identification Approaches
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 Brainstorming  Interviews
 Focus groups  Questionnaires and
 Reviewing documents surveys
 Lessons learned  Experts
 Charters, WBS  Delphi approach
 Standards/Regulations
 Profile analysis meetings
 Procurements
 Roles, interests,
stakeholder position
 OTHERS??
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 Step #1 Identification - Stakeholder
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Circle Approach
 Purpose  Determine spheres of
 Know who influence
stakeholders are at  Upward: senior
a particular time managers for
 Gather information commitment
about people and  Downward: members of
groups to target the team
communications  Outward: outside of the
project
 Sideward: peers of the
project managers
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 The Stakeholder Register
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Name Position Contact Areas of Portfolio / Portfolio /

Information Influence Program Or Program Or
Project Project
Opinion Impact

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 Step # 2 for Stakeholder Management
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Identification Continual
= Analysis = Engagement Engagement Identification
Stakeholder Quadrants Plan Participation and
Map and Engagement
Register

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 Stakeholder Analysis - Steps
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1) Identify all the stakeholders and their key

information – stakeholder register
2) Classify the stakeholders into groups by analyzing
their impact and support
3) Assess how the stakeholders might respond in
various circumstances

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 Questions to Assess Influence
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 Who are the members  What is their political

of the governing influence?
body?  Is their stakeholder
 Which stakeholders role recognized by the
are thought leaders, organization?
influences, or early  What are their
adopters? interrelationships?
 What is the  Which stakeholders
stakeholder’s level of can influence others?
authority?

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 Other Suggestions
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 Power  Urgency
 The power the stakeholder  Time sensitivity
or group has or may have  Criticality
to change or stop the  The value the
initiative stakeholder has on the
 Recognize the extent of the outcome of the
power initiative
 Proximity  The action the

 Involvement the stakeholder may take

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 Classification : Power/Influence Grid
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 Classification : Influence / Impact Grid
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23

https://www.youtube.com/watch?v=w5hSzxG6u-4

https://www.youtube.com/watch?v=ZzqvF9uJ1hA

https://www.youtube.com/watch?v=2QhvKlQhleQ

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 Step # 3 for Stakeholder Management
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Identification Continual
= Analysis = Engagement Engagement Identification
Stakeholder Quadrants Plan Participation and
Map and Engagement
Register

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 Definition
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 Stakeholder Engagement Plan:

A detailed strategy for effective stakeholder
engagement on the program
 Includes stakeholder engagement guidelines

 Provides insight as to how component stakeholders are

engaged
 Defines metrics to measure performance of stakeholder
engagement activities

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 Stakeholder Engagement Planning
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 Purpose: Satisfy how all program stakeholders will be

engaged during the program
 Analyze the stakeholder engagement plan and the:
 Organization’s strategic plan
 Program charter
 Program business case
 Establish a balance between activities needed to mitigate
negative stakeholders and encouraging those who view the
program positively

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Classify Stakeholders - Engagement Levels
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 Unaware = Unaware of the portfolio, program, or

project and potential impacts
 Resistant = Aware but resistant to change
 Neutral = Aware but not supportive
 Supportive = Aware and supports change
 Leading – Actively engaged in supporting the
change

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 Consider a Stakeholder
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Engagement Assessment Matrix
Stakeholders Unaware Resistant Neutral Supportive Leading
P C D
Q C, D
R C D
S C D

C = Current Engagement Level D = Desired Level

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 Stakeholder Engagement Plan
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Contents
 Detailed strategy for
stakeholder engagement
 Stakeholder engagement
guidelines
 Insight as to how
stakeholders in the
components are engaged
 Guidelines for component-
level stakeholder
engagement
 Metrics to measure
performance of
stakeholder engagement
activities
 Participation in meetings
 Participation in
communications
 Effectiveness of engagement
activities in meeting goals
 Use it in communication
planning and ongoing
alignment
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 Have Sign-Offs on the Plan
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 Portfolio, program,
project manager
 Sponsor
 PMO Director
 Governance Board
Chair and Members
 Key Stakeholders !!!

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 Step # 4 for Stakeholder Management
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Identification Continual
= Analysis = Engagement Engagement Identification
Stakeholder Quadrants Plan Participation and
Map and Engagement
Register

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 Building Stakeholder Relationships
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 Consider the following:

 Who is the stakeholder?
 What help do you and your team need from the
stakeholder?
 What does the stakeholder need from the team?

 Are there common objectives between the team and the

stakeholder?
 Are there potential barriers between the team and the
stakeholder? Can they be overcome?
 Which team member will work with each stakeholder?

 What steps can you take for a positive relationship?

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 Develop Stakeholder Profiles
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1) Assess the actual attitude of selected stakeholders

2) Describe the realistic target attitude of the
stakeholders responsible for success
3) Determine the level of support and receptiveness
that would best meet the needs of both the portfolio,
program, or project manager and the stakeholder

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 Value of Stakeholder Engagement (1 / 3)
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 It will be different for each stakeholder group

 Consider if the value is tangible or intangible
 Remember stakeholder engagement is FREE
 Consider the cost of not engaging all stakeholders – it
could lead to :
◼ Lossof assets, loss of shareholder value, loss of reputation,
reduced staff morale, people leaving the organization

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 Value of Stakeholder Engagement (2 / 3)
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 Value to the Organization

 The importance of the program or project for organizational
success and business value
 Assess costs of delays and budget overruns

 Value to the Stakeholders

 Are the stakeholders getting the information they need, are
they consulted, are their concerns addressed?

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 Value of Stakeholder Engagement (3 / 3)
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 Value of the Program or Project
 Determine who is important and
how best to deliver information
to stakeholders to engage them
 Provide feedback on the work
that is being dome –
communication from the
stakeholder
 Obtain early warning about
events that may impede success
- communication from the
stakeholders
 Target communications
 Value to the Team
 The team can operate more
effectively
 They gain a sense of
achievement with
communications and engaging
with stakeholders
 They learn more about working
together and working with
stakeholders – knowing the
politics and the environment
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 Considerations
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 Capture questions and answers to them raised by stakeholders

and publish them
 Set up a log of communication to and from stakeholders
 Set up an issue log to track issues to resolution
 Use impact analysis to determine urgency and probability of issues –
goal is to avoid issues becoming risks
 Review metrics for stakeholder engagement
 Positive contributions to the program’s objectives and benefits
 Participation in the program
◼ Identify risks from lack of participation
◼ Analyze participation trends
◼ Perform root-cause analysis
 Communications with the team
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 Stakeholder Communications
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Strategy Matrix
Setting Stakeholder Communications Strategy

Level of Interest
Low High
Level of Low Apply Minimal Keep Informed
Influence Effort
High Active Active
Communications Communications
and Engagement

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 Set Expectations with Stakeholders
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 Have additional meetings with the powerful,

influential stakeholders after identifying them
 Strive to avoid making assumptions!
 Determine how people want to receive information
 Building strong relationships involves building trust
 It takes time!

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Building Relationships - Five Key Principles
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Create a Remember
Do what Try to make business executives Always
you say you sure there relationship and show
are going are no that is customers respect
to do surprises mutually are
beneficial PEOPLE!

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 Ask Some Leading Questions!
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 I am struggling to recognize how my project

contributes to our organization’s vision when I talk with
people – can you help me?
 I am new here and managing this major program.
How do you suggest I build my network? Whom do I
need to contact?
 I just reviewed the benefits the previous program
manager listed – I really do not see the value of
some of them. Can you help me figure out which ones
are the most important?
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 Step # 5 for Stakeholder Management
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Identification
= Continual
Stakeholder Analysis = Engagement Engagement Identification
Map and Quadrants Plan Participation and
Engagement
Register

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 Stakeholder Engagement is Ongoing!
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 Remember
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 Continually engage with stakeholders

 Communication requirements may change
 Ensure communications needs are met

 Ensure needs align with the stakeholder engagement plan

 Obtain feedback on the plan

 Use interviews, questionnaires/surveys, meetings,

lesson learned sessions, brainstorming

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 Close the Expectations Gap
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Expected Value
Stakeholder Engagement Expectations Gap

$
Delivered Value

TIME
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 Continue to Provide Input to Stakeholders
But . . .
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 Ask questions  Watch for these types

 Push gently
 But be ready to alter
your approach with
key stakeholders and
of stakeholder
responses:
 Avoiding direct contact
 Shifting uncomfortably

stakeholder groups  Being defensive

 Raising one’s tone of

voice
 Giving a vague
response
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 Effective Stakeholder Engagement
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 Build relationships outside of  Enhance your

your normal network – and negotiating skills!
keep them up!
 Determine those who are the  Clarify why something
most politically connected is important to a
 Recognize some are always stakeholder
going to want to raise an
 Actively listen
objection
 Have some options
 Determine who they are and
how to best respond ready
 Address your concerns directly  Strive to avoid saying
NO!
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 Engagement is Continuous
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 Especially as a portfolio manager but also for

program and project managers
 Benefit sustainment
 Build lasting relationships
 Thank people for their help
 Re-examine what worked well and what could have
been done differently
 Remember – Continuous Improvement Not Business As
Usual is Required for Success!

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 Why Is This Hard??
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Did we really want to No one is responsible The CEO has
reach out to negative left – who
people? cares if we did
not talk with
some key
people?

I am the
program
manager – I
lack the time to The program is over
work with all of – and I really do not
my care if some key
stakeholders stakeholders still had
Since we now follow Agile, concerns – I got my
do we need to engage our bonus
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stakeholders?
 Remember! Often the Problem is a Lack of Information
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Only a few people

People are taken by surprise are in the know

There is no advance
The decision has been warning of the new
made, Resist program or project
Resist Change!
we then must accept it Change! or the move to
portfolio
management

We lack information as to
how to best work to engage
stakeholders as before we
Limited, if any, meetings are held
worked in silos
to describe why we are pursuing
the new initiative and its benefits
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 Stakeholder Management
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 Management Guideline #1
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 Recognize who the stakeholders are that have the

power, interest, or influence to stop or even cancel
your work
 Ifthese stakeholders are not engaged, you may not
even know why it happened
 Therefore, spend time identifying stakeholders and
keep doing it!

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 Management Guideline #2
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 Use a model and classify stakeholders into groups

 Letthe model serve as the basis for focusing
communications and your own time
 Use stakeholders to help shape strategy from the
beginning
 Remember: You need to keep the proponents as
active supporters so focus as much or more attention
on them as you do on the resistors

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 Management Guideline # 3
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 Work to assume trust from the beginning

 But have a contingency plan if the trust is broken
 One negative person on a team can de-motivate the
rest of the team
 Recognize what is working well with stakeholders
and areas of improvement
 Discussengagement at various meetings
 Sincerely solicit stakeholder feedback and ask if things
have improved; if not – change!

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55 Contractor Management: FIDIC

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 Definition
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 Contractor management is the managing of outsourced work

performed for an individual company
 Contractor management implements a system that manages
contractors' health and safety information, insurance
information, training programs and specific documents that
pertain to the contractor and the owner client.
 Most modern contracts require the effective use of standards
and contract management software to aid administration
between multiple parties.

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 What contracts to use
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 FIDIC
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 The International Federation of Consulting Engineers

(commonly known as FIDIC, acronym for its French
name Fédération Internationale Des Ingénieurs-
Conseils) is an international standards organization
for the consulting engineering & construction best
known for the FIDIC family of contract templates.
 Foundation in 1913 by 3 countries, Belgium, France
and Switzerland.
 Today FIDIC has members in 104 countries
 FIDIC
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 FIDIC is best known for its range of contracts that includes the:
Short Form of Contract; Construction Contract; Plant & DB
Contract; DBO Contract; and EPC/Turnkey Contract.
(a contract in which a company is given full responsibility to plan
and build something that the client must be able to use as soon
as it is finished without needing to do any further work on it
themselves)
 FIDIC also publishes the Client/Consultant Model Services
Agreement together with the Sub-Consultancy Agreement and
the Joint Venture Agreement.
 FIDIC publishes the MDB Harmonised Edition of the Construction
Contract that is used by Multilateral Development Banks
including the World Bank for their projects.
 Historical Overview of the
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Formation FIDIC
The FIDIC was founded in 1913 by engineering in France, France,
Belgium and Switzerland
– The UK did not join until 1949 .
• FIDIC often describes its Contract as prepared “by engineers
for engineers”
• FIDIC is best suited for civil engineering infrastructure projects :
Roads, Bridges, Dams, Tunnels, and Water and Sewage facilities.
• FIDIC Contract published in 13 Languages and is used in both
Common Law and Civil Law countries .

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 FIDIC Contracts Explained - YouTube

 FIDIC Suite of Contracts (Different types of FIDIC
Contracts) – YouTube
 Yellow Book Explained | FIDIC Contracts – YouTube
 Red Book Explained | FIDIC Contracts – YouTube
 (118) FIDIC 2017 Overview Comparison to the 1st
Edition – YouTube

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 FIDIC Forms
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 Condition of Contract : FIDIC
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 FIDIC Forms ( dredger – a boat designed
for cleaning harbours)
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 FIDIC forms
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 Delivery Methods
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 Delivery Methods
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 Legal System
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 Contract Types
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 Lump Sum Contract
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 Unit Price Contract
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 Cost Plus Contract
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 Design Build Contract
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 Negotiated Contracting
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 Turn Key Contract
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 Responsibilities
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