Mega Projects, Mega Problems
The critical need for effective stakeholder management
can analyze the past but you have to design the future.
Stakeholder management, Stakeholder Circle, SRMM.
The critical need for effective
stakeholder management [P127]
ability of people to protest has increased exponentially with the
advent of mobile communications and social media. In 2010, a single
dedicated person can quickly generate a large protest movement. This
applies equally to political, environmental and social movements.
Mega-projects will inevitably create opposition. The larger
the project, the more opponents it is likely to generate, as Spike
Milligan is quoted to have said: Money
can't buy you friends but you can get a better class of enemy.
Traditional construction management has focused on the ‘iron
triangle’ of time, cost and scope. Today, this is not enough,
in many parts of the world, ignoring the social aspects of a
mega-project in 2010 will cause the project to fail!
Effective stakeholder management is mandatory for mega-project success
in all advanced economies and in most emerging economies. If the
project is sufficiently controversial, the protest movement can quickly
spread globally. So what is ‘stakeholder
management’ and how can it contribute to a profitable project
outcome? Within the project, stakeholder management
encompasses the project team (workers, managers, clients and customers)
and the project supply chain. Effective engagement with the
‘supply chain’ has been a focus of reports since
the 1994 including Latham and Egan. External to the project
stakeholder management encompasses politicians, ‘the
public’ and the media as well as people directly or
indirectly impacted by the work or its outcomes.
Fortunately for both groups of stakeholders, including both the
proponents of the project (supporters) and the opponents of the
project, the art of stakeholder management remains the same.
The key steps are:
within effective relationships is the only ethical way to change
stakeholder perceptions and expectations to the benefit of the project.
Supporters need to be encouraged, opponents need to be managed and
their opposition minimised. The skill is focusing on the
right people at the right time. Two tools developed to assist in this
process are the Stakeholder
Circle® methodology and the SRMM® maturity
model. These tools will be discussed within the framework of
managing mega construction projects to optimise the stakeholder
relationships in and around the project and minimise risk exposures. A
high proportion of risks are directly related to people!
all of the stakeholders that matter at this point in time –
who’s who and who’s important. There are
always too many potential stakeholders to attempt to manger everyone.
the stakeholders to see who is really important.
the important stakeholders assess their wants and expectations and
understand what the project needs from them (mutuality).
specific communication plans for the key internal and external
general PR communications for the wider audience.
the communication plan(s).
the stakeholder community at regular intervals to see what is working
and what is not and adjust accordingly.
Construction Conference 2010 (ICC2010)
12 to 13 October
Legend Hotel, Kuala Lumpur, Malaysia