Stakeholder management

Stakeholder management Plan

• Planning components
• Controlling components
• Identify Stakeholders: The process of identifying people, group
or organizations that could impact or be impacted by a decision, • Control stakeholder
activity, or outcome of the project and analyzing and documenting
relevant information regarding their interest, involvement, engagement : Process of
interdependencies, influence & potential impact on project success. monitoring overall project
• Plan Stakeholder management : The process of developing stakeholders' relationships and
appropriate management strategies to effectively engage adjusting strategies and plans for
stakeholders throughout the project life cycle based on the analysis
of their needs, interests, and potential impact on project success engaging stakeholders
• Manage stakeholder engagement : The process of
communicating and working with stakeholders to meet their
needs/expectations, address issues, and foster appropriate
stakeholder engagement in project activities
• When do you think stakeholder
identification should start ?
 Stakeholder management Plan
High Low Interest & High Power
:
Need your investment of time.
Keep them satisfied even if
Power
High Interest & High Power :
Need substantial investment of
time. Have biggest impact on
success of the project, closely
manage their expectations
Class discussion: Identify and Map stakeholders
of Mumbai Metro project in this matrix.
a) CIO
b) Finance Team member
c) Construction Manager

they aren’t interested in your d) IT Project Manager of this IT project

project e) Procurement Manager

Low Interest & Low Power
: Need lesser investment of
time and attention
Low
Low
High Interest & Low Power :
Need to keep them in the loop as
Project progresses. Keep them
informed
Interest High
Project Identification, evaluation and site
selection
 Search for project Ideas
A Project refers to an investment opportunity which can be analysed and appraised
independently. It refers to a series of activities whose goal is to bring into existence, a
business based on a viable economic within an established cost and time framework.

The basic characteristics of a Project are:

• It involves a Current Capital Investment, .
• It ensures a yield of benefits in the future,
• It has a specific life span, and
• It calls for team work, the members of the team drawn from various disciplines of
Management.
 Search for project Ideas
An entrepreneur has a vast choice of investment opportunities. The ability to identify an
Investment Opportunity which can be converted into a viable business proposition (after
careful and systematic consideration) ensures entrepreneurial success.

Sources for project ideas

• A study of the performance of existing units – e.g. profitability, capacity utilization etc
• Study of projects being encouraged by financial institutions typically are deemed viable
• Study of economic trends and consumption patterns
• Enquiry into Social and Cultural Trends
• An investigation into locally available resources and, raw materials and skills
 Search for project Ideas
Sources for project ideas – contd…
• A study of developments in Technology
• A constant search for needs of the market & development of product/services
 Screening of project Ideas
It is essential for corporates to short list the project ideas to be taken to next level. Some
of the criterions could be
• Organization Strengths and Weaknesses : Project ideas must be compatible with
the organization
• Adequate Market
• Availability of Infrastructure
• Availability of Essential Inputs and Labour
• Cost Constraints
• Risk Consideration
 Project Report
A Project Report is a document setting out in detail the nature of the activity proposed
and the justification for Selection and Commitment of resources (men, materials, money)
to the activity.
Contents of the project report
• Details of organization
• Details of the project
• Technology and Technical Arrangements. b) Location and Land Buildings. c) Plant and Machinery.
• d) Raw Materials. e) Utilities like Water Supply, Transportation, etc. Labour. g) Schedule of Implementation. h)
Cost of the Ptoject. Means of Financing. j) Marketing and Selling Arrangements. k) Profitability and Cash
Flow. 1) Economic Considerations. m) Government Consent.
 Location Selection

Importance of Selecting appropriate location

1. To operate smoothly, efficiently.
2. Wrong location leads to wastage in efforts and talents
3. Decides success or failure esp very critical for small scale units
4. Impacts logistics – inbound ( raw material ) and outbound ( Finish Products)
5. Adherence to govt policies ( e.g. SEZ locations)
 Factors affecting Location Selection
Selection of Region Selection of community Selection of site

Availability of raw materials Labour availability Soil , Size, topography

Nearness to market Civic amenities for employees like Disposal of Waste

public transport

Availability of power and fuel Existence of Complementary Land price, land title, future
industries/Education institutes expansion potential

Transport Finance & Research facilities Health of locality, flood and

draught experience

Climate Local Taxes Attitude of local people

Govt Policy Culture , social , religious factors State assistance

Political stability