Dec-

Case
Five Major Questions Five Major Questions
Who are our stakeholders? Who are our stakeholders?
What is their stake? What is their stake?
What responsibilities do we have to them? What responsibilities do we have to them?
What strategies, actions or decisions should What strategies, actions or decisions should
we take to best deal with those we take to best deal with those
responsibilities? responsibilities?
Stakeholder theory Stakeholder theory
Stakeholders a definition Stakeholders a definition
A stakeholder is any individual or group who can A stakeholder is any individual or group who can
affect or is affected by the actions decisions, affect or is affected by the actions decisions,
policies and practices, or goals of the policies and practices, or goals of the
organisation organisation
Freeman 1984 Freeman 1984
Stakeholders are all the people and groups Stakeholders are all the people and groups
affected by, or that can affect, an organisations affected by, or that can affect, an organisations
decisions, policies and operations. decisions, policies and operations.
Post Lawrence and Weber 1999 Post Lawrence and Weber 1999
Stakeholder Management Stakeholder Management
Classification Classification
Primary Primary
Secondary Secondary
--Internal Internal
--External External
Factors to consider in Factors to consider in
Stakeholder Management Stakeholder Management
Dynamic in nature Dynamic in nature
Power Power
Interdependence Interdependence
Conflict Conflict
Mapping Mapping
Influence on
Project
Engagement with Project
Lo
Lo
Hi
Hi
Stakeholder Management Stakeholder Management
Make sure there is a process where you can Make sure there is a process where you can
assess priorities between the assess priorities between the project needs project needs and and
the the stakeholders demands stakeholders demands / requests / requests
Look for Look for common ground common ground with your stakeholders with your stakeholders
Stakeholder Management Stakeholder Management
Build partnerships such that everyone can benefit Build partnerships such that everyone can benefit
Be flexible, very few things are absolutely set in Be flexible, very few things are absolutely set in
concrete, power of imaginative thinking concrete, power of imaginative thinking
Sometimes you just cannot agree Sometimes you just cannot agree an ability to an ability to
disagree without damaging relationships is a disagree without damaging relationships is a
major asset major asset
Pro-active Defensive
Adaptive
Obstructive
Block- not our
responsibility
Admit and
justify faults,
do our best
Accomplish
Take the lead
The Continuum of Stakeholder models The Continuum of Stakeholder models
Naylor; J (2004) Naylor; J (2004)
Five Major Questions Five Major Questions
Who are our stakeholders? Who are our stakeholders?
What is their stake? And what is their What is their stake? And what is their
expectations expectations
What are the stakes and What are the stakes and
expectations of stakeholder? expectations of stakeholder?
owner owner
Owners / Shareholders Owners / Shareholders
Their stake: Their stake:
stocks, bonds, equity, etc. stocks, bonds, equity, etc.
Their expectation: Their expectation:
some ROI some ROI
Selection of Project based on Numerical/ Non Selection of Project based on Numerical/ Non--
numerical analysis numerical analysis --- --- NPV, ROI NPV, ROI
Employees Employees
Stakes and expectations: Stakes and expectations:
Employees Employees
Their stake: Their stake:
jobs, career, jobs, career, ----- -----
Their expectation: Their expectation:
decent wages, security, benefits and decent wages, security, benefits and
meaningful work meaningful work
Customers Customers
Stakes and expectations: Stakes and expectations:
Customers Customers
Their stake: Their stake:
need for / purchases of products and need for / purchases of products and
services services
Their expectations: Their expectations:
honesty, quality goods, fair pricing honesty, quality goods, fair pricing
Supplier/Vendor Supplier/Vendor
Stakes and expectations: Stakes and expectations:
Suppliers Suppliers
Their stake: Their stake:
income from goods and services income from goods and services
Their expectation: Their expectation:
fairness, mutual prosperity, honesty fairness, mutual prosperity, honesty
Community Community
Stakes and expectations: Stakes and expectations:
the community the community
Their stake: Their stake:
the environment, taxes, payroll, the environment, taxes, payroll,
infrastructure improvements infrastructure improvements
Their expectations: Their expectations:
good citizenship, open partnership good citizenship, open partnership
Project Manager must Project Manager must have have a a strong strong
relationship relationship to the owners to look after to the owners to look after
their their interests in particular including all interests in particular including all
resource based stakeholder resource based stakeholder
Resource Base Stakeholders Resource Base Stakeholders
Investors Investors
Employees Employees
Customers Customers
In whose interest: In whose interest:
the the stakeholder stakeholder alternative alternative
Stockholders are one group among many. Stockholders are one group among many.
Stakeholders are those groups that have a Stakeholders are those groups that have a
stake in or claim on the resources / stake in or claim on the resources /
activities of the company. activities of the company.
Each has a right to be treated as a end itself Each has a right to be treated as a end itself
not just means for enrichment of the not just means for enrichment of the
stockholders. stockholders.
Owner and project selection
Employees Employees
Global competition has reshaped the social
contract between organizations and their
employees
Consider the trend of expanding employee
rights
Right not to be fired without just cause
Right to due process and fair treatment
Right to freedom of speech within the workplace
The New Social Contract
Project/Business
Expectations
Employees
Expectations
Understandings
Reasons for change
Social Contract
Reasons for the Change in the Social Contract
Global Competition
Technology advances
Deregulation
Social Contract: Changes
Old Social Contract New Social Contract
J ob security Few tenure arrangements
Life careers with one employer Few life careers; changes common
Loyalty to employer Loyalty to self
Sense of entitlement
Personal responsibility for ones
job future
Stable, rising income Pay for value added
Focus on individual
accomplishments
Focus on team building and
projects
Employee Rights Movement
For nonunion workers, employee rights issue
continues to be a problem . . . That is, the
employees desires to be treated with dignity and
respect, to have a right to due process,
privacy, freedom of speech, and
safety, and even a right to a job.
Employee Rights Movement
Sources of Employee Rights
Legal rights
Collective bargaining rights
Alternative Dispute Resolution
Common Approach
Open door policy
Three concerns
Process is closed
One person review
Bias in favor of managers
Case