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Project Management For Business Excellence
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From the above matrix following points emerge -
- Having done the categorization and behavioral analysis, current engagement levels can be determined very easily for the entire group.
- Category 1 and 2 stakeholders almost always fall in unaware and impacted level of engagement
- Category 4 stakeholders may be divided between resistant and neutral levels of engagement
- While the stakeholder management plan must aim at supportive level of engagement for all the categories, category 3 stakeholders may also be transformed to leading engagement level through appropriate actions.
Now that the gaps have been identified between the current and desired levels of engagement, appropriate actions and communication strategy may be planned by the project team and implemented.
Stakeholder Management Plan
Having completed the stakeholder analysis, a comprehensive action plan needs to be developed for managing the stakeholders in such a way that their engagement level can at least be converted to the supportive level and in some cases to the leading level, followed by implementation, monitoring and a feedback cycle. Although the stakeholder management plan depends on the outcome of the analysis which has a strong relationship with the geographical location of the project site, culture of the region and locality, socio-economic profile of the area, environmental and climatic conditions, political status, etc., the following suggestions may be useful while developing such a plan and subsequent iterations based on feedback during the Control Stakeholder Engagement process.:
Category 1 and 2:
- Expeditious and focused compliance of applicable rehabilitation and resettlement obligations for category-1 stakeholders.
- Faster engagement plan for category 1 and 2 stakeholders (i.e., locals and the project affected persons), which offers them an alternative livelihood and creates a positive interest in the project. Such engagements can be by way of indirect or direct employment, supporting small entrepreneurship, imparting artisan training etc. When the number in the category is large, involving the stakeholders by rotation also may be thought of.
- Many corporations have well-structured corporate social responsibility (CSR) policies and perform regular CSR activities. When undertaking a project, such a policy must be aligned with stakeholder expectations and the management plan, demonstrating the positive impacts of the project to the socioeconomic condition of the area.
- Conducting organized awareness programs to erase apprehensions and fear of the unknown. Also organizing sessions for making stakeholders aware of the project and its benefits. This means a properly designed communication management plan.
It may be noted that the above categories (1 and 2) have maximum number of stakeholders and their positive influence has the power to deflect many influences that may impact the project in a negative way. Hence, for the success of the project, bridging the gap between current and desired level of engagement for this category should be taken as a top priority.
Category 3 and 4:
- Preferably a short-term engagement for stakeholders in category 3 would best satisfy their expectations.
As stated earlier this category of stakeholders are aware of the project and may have a wide spectrum of agendas, ranging from quick revenue through gaining political mileage. Hence, for this category of stakeholders, a detailed analysis would be required through expert judgment or other stakeholders with experience of dealing with them in earlier projects. Once done, appropriate strategy can be formulated to upgrade their engagement level. An interesting aspect of this category is that, through sustained efforts, their engagement level can be changed to leading level in certain areas of the project.
- While the possibility of winning support of category 4 stakeholders is generally not possible, their negative influence can only be neutralized by identifying and responding appropriately to the medium or channel of their influence. However, in a supply-deficit market, they may also take support level of engagement.
Stakeholder analysis should also bring out probable negative impact that may be triggered because of certain responses planned in the stakeholder management process. Such secondary and tertiary impacts may result in additional negative impact. If such an impact cannot be anticipated during the initial qualitative analysis, it must be captured during the monitoring process and appropriate response planned.
Depending upon the length of the project, interim analysis of the stakeholders using similar tools as the initial analysis is suggested on a predetermined frequency.
It should be clearly understood that the effectiveness of the entire process depends on a well conceived and meticulously performed stakeholder identification process and a well drawn communication management plan aligned with the stakeholder management plan.
Reference:
Project Management Institute (2013). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) —Fifth Edition. Newtown Square, PA:
About the author : Mr. Ghose is a post graduate in engineering and technology with 36 years of experience in large manufacturing industries in projects, operations and maintenance, of which in excess of 22 years were in project and program management of large and mega integrated projects in ferrous and non ferrous metallurgical sectors, some of which were green field. A certified Project Management Professional (PMP)® with experience in all knowledge areas, Mr. Ghose has been driving projects from the senior management level for last 15 years. Presently, he is associated with Welspun Group of India as a president and unit head for its Welspun Maxsteel Ltd unit, responsible for operations of the performing unit and integrated steel project.
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