Chapter 1
Chapter 1
Chapter 1
Management
Stakeholder-led Project
Management
Changing the Way We Manage
Projects
Second Edition
Louise M. Worsley
Stakeholder-led Project Management, Second Edition: Changing the Way
We Manage Projects
10 9 8 7 6 5 4 3 2 1
If stakeholders matter, then their impact should affect the way we plan,
execute, and implement projects. Most projects—and all valuable proj-
ects—have stakeholders and require some form of stakeholder engage-
ment. It is the engagement that needs managing, not the stakeholders,
because the right type of engagement varies depending on the types of
stakeholders involved and the context of the project.
This book provides a stakeholder-centered analysis of projects and
explains which identification, analysis, communication, and engagement
models are relevant to different types of projects: from an office move to
IT enterprise change to transformational business change and complex
social change. Using case studies from around the world, it illustrates
what goes wrong when stakeholders are not engaged successfully and
what lessons we can learn from these examples.
In this second edition, we also look at the impact of Agile practices
on the stakeholder management process. What changes in approach can
we anticipate, and what practices must continue regardless of the product
development life cycle adopted.
Key models introduced include:
Keywords
project management; program management; stakeholder engagement;
Agile; communications; stakeholder management; project governance;
project communication; sociodynamic model; salience model
Contents
Foreword�����������������������������������������������������������������������������������������������ix
Acknowledgments�����������������������������������������������������������������������������������xi
References�������������������������������������������������������������������������������������������145
About the Author��������������������������������������������������������������������������������147
Index�������������������������������������������������������������������������������������������������149
Foreword
Lessons learned have long inspired my own development of skills and
understanding of how to improve project management practices. At con-
ferences, it is the case studies delivered by practitioners that I hunt out.
When interviewing or coaching project managers, I listen avidly to their
descriptions of triumphs and challenges. Why did it go wrong or right is
never a simple story, but it is a story that informs the cultural heritage and
wealth of knowledge, which underpins project management.
So, as you can imagine, it was with great delight that I received a dis-
sertation proposal from one of my students on the topic of whether and
how lessons learned were being applied in the business environment. Her
results were clear. That while many lessons were documented, they were
rarely shared and acted upon.
Inspired by this finding and energized by fellow practitioners, I have
worked with others to seek out, listen to, capture, and find new ways to
share our learning in projects. It is now some 200 stories and some five
years later, and it is evident to me that there is so much to be learned from
members of our project communities. In this book, I have attempted
to share at least some of these insights and contextualize them into the
theories and models that have proved useful in supporting stakeholder
engagement across a variety of projects. Why pick stakeholder engage-
ment as the focus? Because time after time, as I sat listening to the stories,
the causes of success and failure were plain to see. Whether it is engag-
ing with political groups, external agencies, senior management, internal
groups, or peers and colleagues, the root causes always came back to the
same thing—how well stakeholders were engaged.
I hope you will find the stories and their interpretation of their lessons
helpful, and that you can reflect and compare with your own experiences
in project management.
Acknowledgments
This book was made possible by the input and support of many colleagues
and fellow project managers.
Most importantly, my thanks go to Christopher Worsley, my source
of project management inspiration, my companion in life, and without
who this book could never have been started or completed.
Story Collecting
The Success Stories Shared initiative in South Africa was inspired by a
desire to promote learning and sharing of experiences across the project
management community. My fellow story capturer, Linky van der Merwe
(Virtual Project Consulting) has been a constant motivator and believer;
my thanks to her for keeping this initiative alive and well.
The stories found in this book have been sourced from project man-
agers in three continents. Some of them are created through combined
input from several sources, but most are the result of direct and in-depth
contributions from individual practitioners in the field. My thanks go to
all those who have generously shared their experiences, in particular:
Cape Town Integrated Rapid Transit System (IRT), Reggie Spring-
leer, Manager: Industry Transition, City of Cape Town
The office move: Take 2!, Prof. Dr Eddie Fisher, Head of Program
Management and Quality Assurance-Selex ES, Saudi Arabia
Eurostar: Taking our people with us, Richard Brown, Chairman,
Eurostar, UK
The maverick stakeholders, Dr Bakr Zade, Head of Innovation and
Knowledge Management Practice, CITI, UK
CHAPTER 1
Getting a Stakeholder
Mindset
What Do We Mean by Stakeholder?
In the early 1980s, with concerns about corporate governance and the
demand for increased public and shareholder influence, organizations
needed to find ways to engage with the community in socially responsible
ways. Freeman (1984) is generally credited as being the father of stake-
holder theory, the focus of which is the role of stakeholders with respect
to the firm. With the advent of stakeholder theories, the process of genu-
ine stakeholder engagement entered the boardrooms of government and
large corporates alike.
Cleland and King (1988) were among the first authors to describe the
importance of stakeholders in the context of projects. It was not until 2013
that the topic was included in the Project Management Institute’s (PMI)
main exam, the PMP. Astonishingly, it is only in the last few years that
professional bodies such as the PMI and the International Project Manage-
ment Association (IPMA) officially recognized stakeholder management
as an essential competence required for professional project managers.
The PMI definitions of a stakeholder, traceable through the body of
knowledge publications, show the influences of classical stakeholder the-
ories and a desire to become more inclusive. In 2001, the PMI described
stakeholders as “individuals and organizations that are directly involved
with the project and who have a vested interest in the resulting deliverables
of the project.” In 2013, the definition became: “an individual, group, or
organization who may affect, be affected by, or perceive (emphasis added)
itself to be affected by a decision, activity, or outcome of the project.”
2 Stakeholder-led Project Management
This current definition certainly makes you think more broadly about
who should be involved and engaged with as stakeholders. Still, it may
also leave you wondering how to deal with those who recognize them-
selves as stakeholders when you do not!
Figure 1.1, adapted from Shenhar et al. (1997), provides a helpful
way of representing this much broader view of stakeholders. Here, the
timeline across the project is mapped against the perspectives of the key
stakeholder groups. Project success is measured by factors that change
over time and inevitably involve different and emerging groups of stake-
holders. The project must consider not only the near-term success factors
but also the long-term goals. As time passes, project stakeholders evaluate
the project against quite different desired outcomes:
Stakeholders are more than just the people you work with on the project.
Is Everybody a Stakeholder?
Given the PMI definitions and the concerns about capturing future
potential stakeholders, you could be forgiven for being slightly concerned
that pretty much everybody should be considered a stakeholder. Does
this mean that your team members are stakeholders? Are you, the project
manager, a stakeholder? Perhaps, the more helpful question is: Would it
be beneficial (managerially) to define the project manager and the team
members as stakeholders?
4 Stakeholder-led Project Management
Role-Based Stakeholders
Ask any IT project manager, “Who are the stakeholders for their project?”
and they are likely to give you a list that includes people such as the spon-
sor, business owner, users, technical architect, and suppliers.
Similarly, a civil engineer may respond with something like this: the
client, planning authority, environmental agency, architects, quantity sur-
veyor, resources, subcontractors, and so on.
What both these responses have in common is that they are a list of
roles. An experienced project manager will know what roles are relevant
by the domain and context within which the project is situated. Some of
these roles are similar across different domain areas but may be referred to
differently. A sponsor in an IT or business project has the same purpose as
the client in a construction project. They both own the purse strings and
6 Stakeholder-led Project Management
Case 1.1
The Project Owner—What Was Their Role?
In a finance business, the term project owner referred to the person
nominated to own the project. This role was also sometimes, but not
always, referred to as the project sponsor.
New governance structures were introduced, and as part of this, it
was directed that every project should have a motivation document.
Despite general agreement that the project owner was responsible for
ensuring the return on investment for the project, there was consider-
able resistance to the idea that they should be responsible for generat-
ing the motivation document.
When this was investigated, it was found the level of responsibil-
ity and perceived role of the project owner varied considerably from
project to project. In some cases, particularly small fix-it projects, the
nominated owner was an IT operational coordinator with a limited
perspective on the outcomes of the project.
In more significant organizational development projects, the proj-
ect owner had considerable strategic responsibility for transitioning
the business.
The role of the owner and what their agendas were concerning each
project thus varied in noteworthy ways.
8 Stakeholder-led Project Management
Agenda-Based Stakeholders
Case 1.2
Cape Town Integrated Rapid Transit (IRT) System
The City of Cape Town decided to introduce an IRT system. The
IRT would directly compete with existing taxi and bus services, and
resistance to the service was likely to be significant, disruptive, and
potentially violent. A project focusing specifically on the positive en-
Getting a Stakeholder Mindset 9
Everybody is a Stakeholder
But, it was also slightly disturbing that in all but one of the projects,
this was the only stakeholder-related documentation produced. There was
no evidence of any formal approaches to identifying, analyzing, tracking,
monitoring, and engaging with stakeholders. For many project manag-
ers, the development of the communications plan is what they meant by
stakeholder management and nothing more.
If you think you are doing stakeholder management and it is not mak-
ing a difference to the way you run your project, then you are not doing
stakeholder management!
In Summary
Stakeholders are more than just those people and groups we interact with
to deliver the project.
Projects must consider the individuals and groups they impact upon
in the mid- and longer-term.
Role-based and agenda-based stakeholders are different, and they
demand different engagement approaches.
It is not useful to define the whole world as your stakeholder. The real
challenge is to ensure your limited management attention is focused on
the right stakeholders in the right way.
14 Stakeholder-led Project Management
Reflections
At the end of each chapter, we pose some questions to help you draw out
your personal learning. Do take time to give these some thought, or better
still, discuss with project colleagues back in your organization.
1. In your most recent project, who did you engage with as stakehold-
ers? Could there and should there have been other groups?
2. Look at your current stakeholder lists. Do they include role-based
and agenda-based stakeholders?
3. At this stage, what do you feel is the big difference between commu-
nication and engagement? (We will revisit this question later.)
Index
Agenda-based stakeholders, 8 City of Cape Town Integrated
agile environment, 140–141 Rapid Transit project, 99
modeling, 55, 56, 58 communication errors, 77, 78
Agile environment past practices and assumptions,
agenda-based stakeholders, 77–79
140–141 project size, 77
approvals, 130 Conflict escalation, 113
authorizations, 130–131 Consultation group structures, 74
collaborative practices, 134–136 Corporate or societal value, 3
governance, 129–131 Covert power, 112
project roles, 131–134 Credibility-building and
role-based stakeholders, 133–134 communication, 113
stakeholder continuum, 138–141 Critical success factors (CSFs), 29–30
stakeholder process, 134
technology-enhanced engagement, Definitive stakeholder, 67, 69
136–138 Dependent stakeholders, 69
Antagonism, 70 Dominant stakeholder, 69
Aquaculture project stakeholders, 6
Eskerod, P., 64, 72
Badging, 136 Expertise power, 109
Business owner, 7 Extended stakeholder management
process, 105
Cape Town Integrated Rapid Transit
(IRT) System, 8–9 Gamification, 135–136
Cialdini’s six principles of social Genuine consultation, 105–106
influence, 122 Grouping of stakeholders
Circular stakeholder management group dynamics, 75
process, 38 initial groupings, 74
City of Cape Town Integrated Rapid tightly-knit group, 75
Transit (IRT) project top-down approach, 74
comfort and safety drawbacks, 25
communication planning, 99 Hidden stakeholders, 39–40
implementation success, 24–25
MyCiTi buses, 26 Influence power, 110–112
private taxi, 26, 27 Information-giving communication
stakeholder management process, group size, 84
104–107 informed stakeholders, 81
stakeholder wheel, 46, 47 regular communication pitfalls, 82
Coalition-building strategy, 113 responsible and accountable
Communication planning. See also stakeholders, 81
Purposeful communication stakeholder’s role, 80–81
planning steering group meeting, 83
150 Index