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Dec-

Case

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Five Major QuestionsFive 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 shouldWhat strategies, actions or decisions should

we take to best deal with thosewe take to best deal with those

responsibilities?responsibilities?

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Stakeholder theoryStakeholder theory

Stakeholders a definitionStakeholders a definition

A stakeholder is any individual or group who canA stakeholder is any individual or group who canaffect or is affected by the actions decisions,affect or is affected by the actions decisions,

policies and practices, or goals of thepolicies and practices, or goals of theorganisationorganisation

Freeman 1984Freeman 1984

Stakeholders are all the people and groupsStakeholders are all the people and groups

affected by, or that can affect, an organisationsaffected by, or that can affect, an organisationsdecisions, policies and operations.decisions, policies and operations. Post Lawrence and Weber 1999Post Lawrence and Weber 1999

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Stakeholder ManagementStakeholder Management ClassificationClassification

PrimaryPrimary

SecondarySecondary

--InternalInternal

--ExternalExternal

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Factors to consider inFactors to consider in

Stakeholder ManagementStakeholder Management Dynamic in natureDynamic in nature

PowerPower InterdependenceInterdependence

ConflictConflict

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MappingMapping

Influence on

Project

Engagement with Project

Lo

Lo

Hi

Hi

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Stakeholder ManagementStakeholder Management

Make sure there is a process where you canMake sure there is a process where you canassess priorities between theassess priorities between the project needsproject needs andandthethe stakeholders demandsstakeholders demands / requests/ requests

Look forLook for common groundcommon ground with your stakeholderswith your stakeholders

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Stakeholder ManagementStakeholder Management

Build partnerships such that everyone can benefitBuild partnerships such that everyone can benefit

Be flexible, very few things are absolutely set inBe flexible, very few things are absolutely set inconcrete, power of imaginative thinkingconcrete, power of imaginative thinking

Sometimes you just cannot agreeSometimes you just cannot agree an ability toan ability todisagree without damaging relationships is adisagree without damaging relationships is amajor assetmajor asset

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Pro-activeDefensive AdaptiveObstructive

Block- not our

responsibilityAdmit and

justify faults,

do our best

Accomplish Take the lead

The Continuum of Stakeholder modelsThe Continuum of Stakeholder models

Naylor; J (2004)Naylor; J (2004)

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Five Major QuestionsFive Major Questions

Who are our stakeholders?Who are our stakeholders?

What is their stake? And what is theirWhat is their stake? And what is their

expectationsexpectations

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What are the stakes andWhat are the stakes and

expectations of stakeholder?expectations of stakeholder?

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ownerowner

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Owners / ShareholdersOwners / Shareholders

Their stake:Their stake:

stocks, bonds, equity, etc.stocks, bonds, equity, etc.

Their expectation:Their expectation:

some ROIsome ROI

Selection of Project based on Numerical/ NonSelection of Project based on Numerical/ Non--

numerical analysisnumerical analysis ------ NPV, ROINPV, ROI

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EmployeesEmployees

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Stakes and expectations:Stakes and expectations:

EmployeesEmployeesTheir stake:Their stake:

jobs, career,jobs, career, ----------


decent wages, security, benefits anddecent wages, security, benefits and

meaningful workmeaningful work

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CustomersCustomers

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CustomersCustomers Their stake:Their stake:

need for / purchases of products andneed for / purchases of products and

servicesservices

Their expectations:Their expectations:

honesty, quality goods, fair pricinghonesty, quality goods, fair pricing

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Supplier/VendorSupplier/Vendor

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SuppliersSuppliers Their stake:Their stake:

income from goods and servicesincome from goods and services


fairness, mutual prosperity, honestyfairness, mutual prosperity, honesty

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CommunityCommunity

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the communitythe community Their stake:Their stake:

the environment, taxes, payroll,the environment, taxes, payroll,

infrastructure improvementsinfrastructure improvements

Their expectations:Their expectations:

good citizenship, open partnershipgood citizenship, open partnership

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Project Manager mustProject Manager must havehave aa strongstrongrelationshiprelationship to the owners to look afterto the owners to look after

theirtheir interests in particular including allinterests in particular including allresource based stakeholderresource based stakeholder

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Resource Base StakeholdersResource Base Stakeholders

InvestorsInvestors

EmployeesEmployees

CustomersCustomers

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In whose interest:In whose interest:

thethe stakeholderstakeholder alternativealternative Stockholders are one group among many.Stockholders are one group among many.

Stakeholders are those groups that have aStakeholders 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 itselfEach has a right to be treated as a end itselfnot just means for enrichment of thenot just means for enrichment of the

stockholders.stockholders.

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Owner and project selection

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EmployeesEmployees

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Global competition has reshaped the socialcontract between organizations and theiremployees

Consider the trend of expanding employeerights Right not to be fired without just cause

Right to due process and fair treatment

Right to freedom of speech within the workplace

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The New Social Contract

Project/Business

ExpectationsEmployees

Expectations

Understandings

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Reasons for change

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Social Contract

Reasons for the Change in the Social Contract

Global Competition

Technology advances

Deregulation

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Social Contract: ChangesOld Social Contract New Social Contract

Job security Few tenure arrangements

Life careers with one employer Few life careers; changes common

Loyalty to employer Loyalty to self

Sense of entitlementPersonal responsibility for ones

job future

Stable, rising income Pay for value added

Focus on individual

accomplishments

Focus on team building and

projects

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Employee Rights MovementFor nonunion workers, employee rights issuecontinues to be a problem . . . That is, theemployees desires to be treated with dignity and

respect, to have a right to due process,privacy, freedom of speech, andsafety, and even aright to a job.

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Employee Rights Movement

Sources of Employee Rights

Legal rights

Collective bargaining rights

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Alternative Dispute Resolution

Common Approach

Open door policy

Three concerns

Process is closed

One person review

Bias in favor of managers

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Case

Documents

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