3.1
Major Projects Stakeholders
Identifying stakeholders
In project management terms, key individuals and organisations involved in projects are stakeholders.
Stakeholders
(Project Management Institute, 2013, p.563) 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."
project stakeholders four key categories
public stakeholders
industrial stakeholders
financial stakeholders
other stakeholders.
Government: Executive Power
Government of nations, state, or city
Public Agency
e.g the transportation department
An extension of ministries and gov
Assembly: Legislative Power
e.g Parliament
Regulatory Body: Authority
Technical-administrative institutions, which provide technical expertise
e.g HSE
Construction Firms
Technology Providers
Process and Manufacturing Corporations
Service Provider
Main contractor, sub-contractors
Engineering companies
e.g A nuclear reactor vendor
Suppliers of major projects
Sometimes these suppliers act as an operator
Providers of critical software support, telecom, logistics and financial intermediaries
Special Purpose Entities & Consortiums
There are usually a variety of financial institutions involved in major engineering projects
Commercial Banks, Investment Banks, Multilateral Agencies, Development Banks, Financial Intermediaries, Institutional Investors and Insurance
Interest groups/pressure groups
These groups usually support or oppose a major project.
Citizens
Citizens are key stakeholders because their stance in relation to a major project can influence how politicians and other decision makers behave in relation to a project.
Trade associations (Unions)
powerful organisations protecting the rights of workers
Others
Land Owners
What roles do stakeholders perform?
Sponsor
The sponsoring organisation secures the project’s funding and owns the business case.
Financiers
The financiers are the organisations financing the major project
Sponsors and lenders
Client
The client is the organisation that will receive the asset created by the project from the main contractor/project delivery chain.
Often, the client is also the sponsor
(a company set up to formally institutionalise the project
e.g FDH
Owner
The owner is the organisation owning the asset created by the project.
User/ Consumers
Main Contractor
the contractor who works in close proximity to the project's
client
The main contractor usually undertake the project management activities and act as a system integrator for the project delivery chain.
Subcontractor
An organisation contracted by the main contractor to deliver part of the scope
The contract awarded organisation through bidding
Suppliers
Involved in the production of goods for projects
Suppliers of construction materials (steel, concrete etc)
Suppliers of operation materials (e.g. fuel)
Service providers
Service providers are organisations involved in the production of services, typically away from the construction site.
e.g. organisations devoted to the transportation of construction material to the construction site
Operator
the operator performs all technical and
commercial activities required for running the asset
Regulator
The regulator is an independent administrative body focussing on the regulation of specific aspects of a major project
Functions:
Regulation
Licensing / Approvals
Inspection
Enforcement
Internal and external stakeholders
Internal Stakeholders
External Stakeholders
part of the project organisation
Sponsors, financiers, client, owner, user
Also stakeholders who are part of the delivery chain such as main contractor, subcontractor, suppliers, service providers
The workers and decision makers employed by internal stakeholder organisations are individual internal stakeholders.
Project manager, portfolio manager, middle management and workers
The external stakeholders are external to the project delivery chain
They include regulatory bodies, interest groups, pressure groups, citizens, trade associations and other stakeholders (eg land owners).
What is stakeholder management?
To manage the identified stakeholders in a major project, a stakeholders management approach must be adopted
Stakeholder management is the systematic identification, analysis, planning and implementation of actions designed to engage with stakeholders.
(Association for Project Management, 2017, n.p)
In project management, it is important to appreciate how the interfaces between the key organisations are structured. This is because these interfaces are where you determine how you will manage delegation, decision making (governance) and the transfer of risk.
Stakeholder mapping
Stakeholder Relationship Map (SRP)