1

Mantra for Innovation Project Management

Dhruva SenTechnical Specifications EngineerOriental Consultants Co. Ltd

Title: Design of a stakeholder management system for driving success on infrastructure projects- for Bangalore Metro Rail Project

Table of Contents

Abstract

1.0 Introduction

2.0 Stakeholder identification, Analysis and Assessment

3.0 Stakeholder Management Plan - Engagement Strategies

4.0 Stakeholder Management Plan - Communication System

5.0 Manage and Control Stakeholder Engagement

6.0 Conclusions and Recommendations

Abstract

Stakeholder management is vital to successful project delivery, and more so in case of large

infrastructure projects, given the large number of stakeholders. Current practice uses a quick- fix,

compliance oriented approach with absence of formal systems. Stakeholder Theory as applied to

construction project management is an emerging field, but fast gaining recognition from Management

bodies. Thus there is a case for developing Stakeholder Management systems for large construction

projects, with all elements (PmBoK 5th edition added this knowledge area and two related processes)

being explored in detail. This will help devise novel, innovative approaches to ensure stakeholder

support and participation. The system development will be carried out for the Bangalore Metro Rail

Project. The proposed methodology - Stakeholder analysis with classification models and Stakeholder

register preparation to document requirements/ expectations, potential influence of the stakeholder

groups; Stakeholder engagement assessment mapping; Stakeholder Management Plan preparation;

developing strategies for Stakeholder engagement, with trust building and partnership forging

measures. Design of Channels for early resolution of issues and logs and processing of change

requests and stakeholders input of use of their power and influence for advancing the project; Design

of appropriate information system enabling clear communication to capture, store and distribute data

and information. Strategies will be formed for the full system thus designed to be embedded into the

organisation, helping future projects of the organisation. The designed Stakeholder Management

System is hoped to be adopted successfully by infrastructure project practitioners where they can

contribute to sustainable development and growth.

Key Words Stakeholder Engagement, Communication, Innovation, sustainable growth

2

1.0 Introduction and Methodology

The practice of Stakeholder Management by Project performing organisations is still quite vague and

informal, with a compliance oriented approach. Formalised Stakeholder Management is a growing

area of application on construction projects. But as this is acknowledged as one of the key factors for

project success, it needs separately designed systems to be used for different types of projects. For

infrastructure projects, design of these types of systems can adopt innovative engagement strategies

for some of the large number of stakeholders, who have conflicting needs over a long period. The

strategies are designed from the view of the Project Performing Team (Firm) as applied to external

stakeholders, especially for the case study, but otherwise many stakeholder relationships have been

discussed.

Design of such systems should be based on Stakeholder Theory and can be built around its different

elements. An informed interpretation of the processes recently put forward by PMBOK 5 th edition [3] is

the approach taken. Since theory is new and research limited, industry experience can complement

the theory for development of an effective system. Continuous flexible implementation of strategies

will be an important part of such a system, aided by real time communication channels. This system

design covers recommendations for adoption and embedment into project performing organisations.

This paper takes up the ongoing Bangalore Metro Rail Project as a case study; identifying, analysing

and assessing the Stakeholders to devise suitable strategies for them, which not only keep them

engaged but elicits active participation and leverages their power and influence for clearing

roadblocks and ensuring project success. For infrastructure projects, many of the external

stakeholders concerns are about environmental aspects of the project, and so a separate treatment

has been given for this area. Thus this paper also addresses sustainable growth, which is an integral

part of successful infrastructure projects.

2.0 Stakeholder identification, Analysis and Assessment

2.1 Stakeholder Identification, Analysis– Complete and Correct identification of all

stakeholders who affect the project or get affected by the project initiates the planning for Stakeholder

Management. Due to the large number of stakeholders, they are identified in groups or organisations.

General identification criteria questions are – directly/indirectly affected?; benefits from project?; can

resist project change?; can influence?; impact on project resources?; possesses special skills that

project requires?; etc.. Any individual, group or organisation meeting any of these criteria is a

Stakeholder. Future Stakeholders (who are not currently evident) are also counted in. Identification is

best carried out by Sponsors/Senior Management and Project Manager, along with the Subject Matter

Experts, functional managers, operational managers, departmental heads, partner organisation

representatives, using their expert judgement, project documents and matrices/models of stakeholder

theory and previous templates and registers from organisation or industry projects and databases.

Environmental factors like organisational cultures, govt. standards, global / regional trends etc. will

also affect identification.

3

Identified Stakeholders/ groups need to be classified by Stakeholder Analysis, using mapping on

matrices/models/grids. Many simple classification models/ Grids exist, which map high, medium and

low levels of Stakeholder characteristics like Power, Interest, Influence, Impact, Attitude, Support,

Value hierarchies etc. on X and Y axes. Stakeholders can be placed (positioned) on these grids.

There are the two dimensional models like Power/Interest model (Mendelow) [1] Potential for Threat/

Potential for Support model (Freeman, Savage, Salience (or Power, Legitimacy, Urgency) Model

(Mitchell, Agle, Wood) [2], which are well known and easy to use. Other relatively new approaches

are the three dimensional grouping of Power, Interest and attitude (Murray- Webster and Simon

2005), the Stakeholder Circle (Bourne 2007), Triple Task method etc. Power/Interest and Support/

Threat Potential Models have been used here, for this qualitative study. These models are illustrated

in Fig. 2.1

The mapping of the stakeholders enables identification of the Key Stakeholders. Usually the High

Power/High Interest and the High Support/High Threat Quadrant placed Stakeholders in the matrices

can be considered as the Key Stakeholders, requiring maximum communication and management.

So the Analysis helps determine the level of impact the key stakeholders may have on the project,

based on their power, interest and support threat potential mapping. The mapping also helps initiate

the Engagement Strategy process, because it advocates general approach strategy, as presented in

Fig. 2.1. Stakeholder Register can also be prepared which lists the Name, position, role, contact

information, request/expectations, influence level and power of all the stakeholders. This should be

kept with the Senior Management, owing to its sensitive nature.

2.2 Stakeholder Assessment - In the initial phase of the project, now it is needed to assess and

document the interests, Concerns, requirements/ Expectations, current levels of engagement and

levels of receptiveness of the Key Stakeholders. Documentation can be in the form of Stakeholder

Engagement Assessment Matrix, one sample presented in Fig. 2.1

Gaps can be identified between current and desired engagement levels; and strategies devised to

take the Stakeholders from current to devised engagement levels. In one approach (PmBok 5 th ed.)

[3], the Engagement levels can be classified as Unaware, Resistant, Neutral, Supportive or Leading.

So, strategies have to bring stakeholders up to supportive or leading levels. Another approach can be

to look at the current contribution and commitment levels of the Stakeholders, which can be critical

(has the power to make the project succeed or to prevent it from succeeding altogether); Desirable

(project can be completed even without an active contribution, but with a serious impact on the

quality, time and cost of execution) or Non Essential (contribution to the project possible, but not

essential or can be more easily obtained from other stakeholders). Critical contributors would need

effective strategies.

4

5

3.0 Stakeholder Management Plan- Engagement Strategies

Strategies work out what is needed to be done to win and manage the support of stakeholders.

Win/Win strategies (favouring both the Firm and the external stakeholders) need to be developed,

those which effectively manage the stakeholder, without negatively managing the project or the

organisation [7]. The costs and time required for these strategies should be favourable to the project

organisation. Engagement Style should find likely areas of similarity and difference between the Firm

and stakeholders, regarding the style of communication, type of language, message focus.

The strategies have the objective of keeping engaged and on- board the supporters, neutralise the

sceptics, decreases negative impacts and raises the level of interest of the disinterested throughout

the life of the project. the strategies attempt to close the gap between current and desired

engagement levels. Effective strategies will help the project manager to manage the politics that

invariably comes with diverse multi stakeholders of all major infrastructure projects. It will help win

support for the project and eliminate a major source of project and work stress. The strategies can

also be framed to fuel innovation on the project. this will require openness to new ideas on part of

both the Firm and the Stakeholders.

3.1 Stakeholder Engagement Strategy Approaches - based on Stakeholder Analysis and

Assessment – this approach is to keep stakeholders at collaborative or empowered levels.

Empowering – Stakeholder convene and manage programmes, gatherings, consultation activities;

set agenda, and with empowered stakeholders, project becomes self sustainable Collaboration –

decision making partnerships, stakeholders put on management committees, shape policy making,

lead consultations etc. Responsibilities shared for processes and outcome. Agendas emerge from this

collaboration. Involvement- project staff work with stakeholders throughout decision making process

to understand and take into account their views, stakeholders have input to project information and

take part in workshops, voting, active focus groups etc. Their concerns, agendas are collected,

recongnised and reflected in decision making. Consulting- stakeholders receive full feedback on

decisions taken, they act as respondents in focus groups, are part of project staff led consultation

workshops, have some dialogue with project staff, the aim of these strategies to confirm widespread

contextualised awareness of project and emergence of reaction data from stakeholders. Informing-

dialogue with project staff implicitly welcomed but not explicitly invited and stakeholders are mere

recipients of broadly contextualised information through briefings, blogs, targeted letters. They are

made aware of their rights of participating in the project. Notifying/Announcing only

uncontextualised information supplied, stakeholders not expected to have dialogue with project staff,

there are no separate briefings but they have access to minutes/ documents. [4]

3.2 Strategies for External stakeholders - They are can act as gatekeepers to resources that firms

need. For example, customers decide whether or not to use the project deliverable, communities may

be powerful enough to decide whether or not to let a company occupy a location in their area, and

employees decide whether or not to share their innovative ideas with their employer or defect to a

6

competitor. Poor stakeholder relationships make stakeholder controlled resources less accessible. At

the very least, stakeholders can increase or decrease the cost and speed of access to resources.

Strategies for external stakeholder have been presented for the Case Study in Table 2.1.they cover

contractors, Customers (Project Users), Regulatory bodies, Media, Project Affected persons and

activist groups, Political parties and Industry bodies.

3.3 Stakeholder Engagement for Sustainability of Projects - Sustainability creates economic,

social and environmental value for Firms and their Stakeholders. Not all companies, however, have

adopted the sustainability agenda and believe the assumption that establishing positive relationships

with stakeholders makes good business and ethical sense. Firms that put a lower priority on

sustainability and greater emphasis on the bottom line often make poorer decisions. Clarkson

suggested this may be because they lack information from stakeholders and the environment that

would allow them to anticipate opportunities and solve problems when they are small and less costly

to remedy. The failure to establish and nurture stakeholder relationships creates stakeholder risk.

Strong relationships with and between employees, and with supply chain and business alliance

partners are a prerequisite for innovation. This underscores the need for developing sustainability

strategies.

Management theorist Sethi’s three tier model for corporate social responsibility [6] includes i) Level 1

compliant- social obligation (a response to legal and market constraints), ii) Level 2 Responsive –

social responsibility (congruent with societal norms) meeting reasonable individual stakeholder

expectations, and good levels of customer expectations and iii) Level 3 Engaged- social

responsiveness, company develops competence to navigate uncertainty, maximises opportunity and

engages effectively with external stakeholders on issues and concerns.. this model can be used on

Projects, level 3 is the Ideal level to aim for, by firms.

4.0 Stakeholder Management Plan - Communication Plan

It describes how communication can be applied to inform all stakeholders regarding the

processes, status and the effects of the project. The elements of this plan are Communication

Requirements, Information to be communicated (content, level of detail), frequency and channels of

communication, target persons/ Groups who receive and escalation processes as necessary. Typical

messages will show benefit to the external stakeholders of what is happening on the project, and

should focus on the key performance drivers like increasing profitability or delivering real

improvements.

Some Communication requirements for Stakeholders have been discussed as part of the strategies

for Engagement, some requirements are now identified for targeting particular groups:

Internal –Board of Directors - will need high level information like status reports, consultation cycle

can be 1/60 days Steering group- will need reports on conflicting interests, Variation Order approval

and Project Costs, consultation cycle can be 1/45 days, Project Group - will need information from

7

different Project Departments and external departments on technical and financial matters; takes

decision of the project unless they are at such level of variations that they need escalation to Board,

consultation cycle can be 1/30 days Working Groups– will need information from all the departments

of engineering, operations etc. for delivery (commissioning) of the Project, consultation cycle can be

1/15 days [8]

External- Communication elements are discussed in the Strategies designed for them in the Case

Study Table 2.1. it is highlighted here the importance of strategies for the affected people located in

the vicinity of the project – the Firm should develop good relationship with the affected people,

avoiding trouble and enhancing reputation. Information shall be provided to people as well as a

contact point for questions, other concerns and to gather further information, leading to enhanced

interest, positive feeling and feedback even if inconveniences are identified (such as construction

work, operation), prompt communication and response or details about possible difficulties and

obstacles, allowing negative public opinion to be identified. This enables quick reaction to negative

trends of public opinion.

Channels of information – Any or a combination of the whole range of channels available need to be

used, including Audio/visual, Online, social media, Printed materials, questionnaires, local radio

campaign, telephone hotline. Written communication can suffice for low interest/ low influence

stakeholders, but more face-to-face communication needed as one moves towards high interest/high

influence stakeholders. For style of communication, type of language and messages, the firm should

optimise between its own preferences, availability of channels and the preference of target

stakeholders.

Stakeholder Identification, Analysis and Strategies (with communication requirements) for

stakeholders of Bangalore Metro are presented in Table 2.1. The entire process was done by the

actual experience of the author and discussion with his project colleagues, based on Stakeholder

theories,with the study of Detailed Project Report, Initial Project Master Plan, Contract Documents for

General Consultancy and JV Agreements, procurement strategies ,Tender documents that were

prepared or in preparation for the different work packages and with the understanding of the Internal

Project team, contractors, civic bodies, local authorities , traders associations etc. Many of the

strategies are being used successfully on the project and some can be recommended for adoption.

8

Table 2.1

9

ID Stakeholder Group Concerns Mapping Category Strategy1 Project Owners/Client BMRCL Successful delivery of Project on

Budget & time, Fare and other revenue, safe operations,

Interest HPower HSupport HThreat L

Key Stak. Collaboration with and selective empowerment of Consultants, timely and clear decision making, resource arrangements for contractors, arrange project funding, user buy in strategies, CRS/RDSO engagement strategy

2 Sponsors/ Govt. GoI, GoK Successful delivery of Project on Budget & time, Brand Image

Interest HPower HSupport HThreat H

Key Stak. DPR discussed and approved

3 Lending Agency/InvestorsJICA

Timely use of funds, payback of funds

Interest HPower LSupport HThreat L

Keep informed about fund positions, try for loans for further project phases

4 Senior Management/Board of Directors

Completion on time and budget, and balance works on schedule

Interest HPower HSupport HThreat L

Key Stak. Seeking timely approvals on Variation Orders, getting approvals on escalated issues etc.

5 Consultant; Rites,Oc,Pbi,Systra

correct engineering decisions, supervision control, client satisfy

Interest HPower HSupport HThreat L

Key Stak. Keep client informed of actual and potential delays and over runs and managing all approvals, provide options and alternatives and recommendations on delivery, put forward and defend achievable targets, exclusive dealing with contractors

6 DesignersDesign Consultants

Good, acceptable designs Interest HPower LSupport HThreat L

Minimum impact design with sufficient and well located entry/exits, platforms, elevators/escalators, to cater for normal/ emergency situations

7 Team Members/Employees (permanent/contract/expatriate)

Long term employment, Good Working conditions, Team Spirit, Cultural issues, career progress,

Interest HPower LSupport HThreat L

Create cohesive and well informed work force, staff briefings, performance reviews, training and support when needed

8 Contractors/Sub Contractors/SuppliersCivil engg., systems (traction, S&T, Rolling Stock, Escalators)

Client/Consultant satisfaction, Reasonable Margins and Profits, Low inventory, Stable Markets, contractual protections

Interest HPower HSupport HThreat H

Allow contract bound working, with adequate compensations for extra variations (to ensure their cash flows), contract mechanisms adoption and negotiations for timely redressal of time extensions and conflict resolution, responsibility for their sub contractors/suppliers, Maintenance of healthy living conditions at camp sites, with ancillary facilities like shelter, canteen, first aid for labour

9 Customers/ Project Users (General Public)

Safety, Inconvenience/disturbances in daily life, benefits, enhancement in quality of life

Interest HPower LSupport LThreat L

Support improved and timely information, open communication, respond to their feedback about service improvement, product innovation.

10 Regulatory Bodies, Utility & Service Organisations BWSSB, BESCOM, BBMP, Traffic Police, Gas, Pollution Boards, Land Authorities, Min. of Env. & Forests

limited disruption and early restoration of services, compliance with regulations, ,Environment Protection, Land use, Aesthetics, Disaster Management

Interest LPower HSupport HThreat H

Key Stake.

EIA Study & EM Plan, Air quality, noise & vibration levels monitoring, use low emission equipments, restricted construction at night, noise barriers, soil/muck/waste disposal to other sites, monitoring of buildings to check ground subsidence, seismic considered design, Compensatory afforestation, Rainwater harvesting, runoff control, avoid heritage structures or else avoid pollution impact, temporary/permanent diversions/support and

10

5.0 Manage and Control Stakeholder Engagement

5.1 Manage Stakeholder Engagement – is the process to convert the strategies and communication

plan into action, the actual working with and communicating with the prioritised stakeholders. When

implementing the plan, stakeholders will provide feedback and response (capture and record), and

this creates issue logs and change requests. Issues logged in are clarified and resolved as they

occur, through communications and negotiations and change logs, Corrective and preventive actions

suggested by the Stakeholders will be forwarded to Integrated Change Control process (PmBok 5 th

ed.) [3]. The Manage process seeks to increase support and minimise resistance from stakeholders,

by applying the plan and strategies at appropriate times; negotiating with Stakeholders and

influencing them to act according to our plan, overcoming their resistance to change, modifying

organisational behaviour and thus harmonising the group towards accomplishing project objectives.

Managing Stakeholders will also require proactiveness in terms of addressing potential concerns that

have not yet become issues and anticipating future problems that may be raised. Trust building

measures whish are planned will be put into action.

The Plan may need updates as a result of the Manage process, in terms of new or changed

stakeholder requirements, removal of outdated requirements, incorporating additional needs etc.

Stakeholder Register will also be updated, with new ones, taking out registered ones no longer

required or requirements of specific stakeholders.

Some Strategies for Managing the Stakeholder Management - New one to one Groups for media

engagement, local authorities etc. need to be formed. Some external stakeholders need to be

solicited as members of the Steering Committee. The internal stakeholders need to be persuaded for

this change. Some stakeholders may be losing control; they should be given additional

responsibilities, to overcome the loss of control that they will have to encounter. Projects may be

under risk of covert sabotage by negative stakeholders. If persuasion tactics fail, senior management

will have to be contacted for getting the negative stakeholder replaced by a more cooperative one. On

tough nuts to crack, build peer pressure through the stakeholder’s or the Firm’s network of contacts,

because it’s hard to hold out against a group. Delivering information should be done incrementally in a

carefully planned way, with different people playing different roles in the communication plan.

Unexpected issues can suddenly emerge, as a ‘big’ mission can only override culture for a short time

and make a group seem like a homogeneous team but once the pressure is off, people revert to their

normal behaviour; so constant vigilance and maintenance of key relationships is critical to achieving

final success.

5.2 Control Stakeholder Engagement - Stakeholder engagement throughout the life of the project is

crucial to project success (PmBok 5th ed.) [3]. The Firm should use different processes of Stakeholder

management during different stages and gateways of the project. Overall project stakeholder

relationships are monitored and strategies are adjusted during different project phases, to keep the

stakeholders engaged throughout the life cycle. The process increases the efficiency and

effectiveness of stakeholder engagement activities, as the project evolves and the environment

11

changes. This process will also identify the project phase when the interest, power, influence, etc. of

the stakeholder will be the highest and the phase when it is at its lowest. All the outputs of the

Stakeholder Management Plan will be reviewed and updated regularly (PMBoK 5 th ed.) [3]; especially

at major milestones and when new stakeholders may come in or replace outgoing ones and should be

coordinated with manpower plan. It will monitor the variations (if any) against the Plan looking at how

the work was to be executed etc. Work performance data will also be used by this process, generated

by the work performed against the Plan, and this is integrated based on relationships across areas.

The monitoring of the Plan can be done through integrating the communication plan into the project

schedule and reporting on it through team meetings. It will require dynamic and proactive efforts,

where some of the strategies will have to be revisited (as situations change, acting on the Manage

process outputs)

It is also to be remembered that the effectiveness will diminish with time. So the focus of this process

is to keep the stakeholders engaged throughout, through continuous negotiation and communication,

and applying the plan with flexibility at different times. Analysis also needs to be done regularly to

track changes in Stakeholder attitudes to the Project, over time.

6.0 Conclusions and Recommendations

In this paper, Stakeholder Management processes as prescribed in PMBOK 5 th ed. [3] were

deliberated, from the point of view of their application to mega construction projects. The theory

elements for each of these processes were briefly discussed and their practical applications were

presented as strategies and plans. How these processes can be practised on the construction

projects was understood and a system framework was designed. The system was used and illustrated

for the case study project. A stakeholder Management Plan, based on the sequenced processes as

advocated by PmBok 5th ed. [3], and illustrated in this study can be a design framework for a System

for project organisations. Limitations of the Study - Stakeholder Management is a sensitive area, and

had to be treated as such. Hardly any previous data was available from previously executed

infrastructure projects.

The most reliable way to ensure that the plan will be integrated and embedded into the overall project

planning and implementation is to establish the plan as a component of the project. This will ensure

that it receives funding and supervision along with the other investment components and is used. It

should be got approved from the Management, as a part of the Project Management Plan.

Based on the arguments put forward in the paper, it is strongly recommended that formal Stakeholder

Management be practiced at major construction projects. Formalised systems, should be set up under

Stakeholder Management Plan, which should form part of the total Project Management Plan in the

beginning of the project. Under these systems, Stakeholder should be identified, analysis carried out

for the key Stakeholder groups, and then strategies framed for these groups. Groups should be

formed from Project team members who should be tasked with the implementation of these

12

strategies. Thereafter, the Plan needs to be closely managed with flexibility during all the project

phases, for achieving and sustaining project success.

References:

[1] Mendelow A., ‘Stakeholder Mapping’, Proceedings of the 2nd International Conference on

Information Systems, Cambridge, MA (1991)

[2] Mitchell R. K., Agle B. R. and Wood D.J., "Toward a Theory of Stakeholder Identification and

Salience: Defining the Principle of Who and What really Counts." in: Academy of Management

Review 22(4): (1997).

[3] PMI, A Guide to the Project Management Body of Knowledge (PMBOK Guide)- Fifth Edition (2013)

[4] Rudd T., Colligan F. and Naik R., “Levels of Learners Voice Participation” in “Learners Voice: A

handbook from Futurelab” Bristol, Futurelab (2006)

[5] RITES EIA Study Report for Phase III corridor of Delhi Metro Rail Project, (August 2011)

[6] Sethi S.P., “Dimensions of Corporate Social performance: An Analytical Framework” California

Management Review 17.(1975)

[7] Thompson L., “The Truth About Negotiations” Prentice Hall- (2007)

[8] TramStore21 Report – “Building sustainable and efficient tram depots for cities in the 21st

century- Communication & Stakeholder Management”. (2012)

13