Managing Stakeholders in Construction
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| − | This article focuses on managing stakeholders in the construction | + | This article focuses on managing stakeholders in the construction procejct. This article focuses on the different management tools that can be applied to managing the stakeholders and their requirements. The article contains a detailed section of the different management theories regarding stakeholders. These theories include the general definition of stakeholders and the importance of identifying these different stakeholders in a construction project. It also includes the theory about classifying the stakeholders and comparing them internally as a management tool. Different management solutions are presented, such as stakeholder mapping, stakeholder salience and a framework solution. In the section Mapping Stakeholders, the impact/probability-matrix is defined as an important tool in managing the stakeholders. Furthermore the theory behind stakeholder salience is presented as the model that can help the project manager to identify the important stakeholders, to which the project manager should pay close attention. The application of the different tools is presented. The recommendations based on the studies for this article are more digital solution that could combine stakeholder requirements in construction with the building information modelling. The article concludes the importance of identifying, classifying and mapping the different stakeholders in construction projects, since the project otherwise could fail. |
==Overview== | ==Overview== | ||
| − | + | “The project stakeholders are those actors that will incur – or perceive they will incur – a direct benefit or loss as a result of the project.” (Winch, 2010). | |
| + | “Person, group or organization that has an interest in, or can be affected by, or perceived itself to be affected by, any aspect of the project” - (ISO, 2013) | ||
| + | It is the project manager’s role to manage the stakeholders in a construction project and ensure that they are satisfied so that the project can be completed without delaying the project or going over budget. Dealing with stakeholders as a project manager means having a role as a facilitator among different constituencies, as well as ensuring the project requirements are fulfilled satisfactory conditions for all parties. Project stakeholder management is the systematic identification analysis and planning of actions to communicate with and impact stakeholders (Aapaoja & Haapasalo, 2014). As a project manager several tools and methods can be used when dealing with a construction projects stakeholders. The tools are applied to avoid uncertainty in the project, as some stakeholders can have a lot influence on the success of the project. Stakeholders’ ads complexity to a project, and it requires planning from the project manager and in developing the processes the project managers’ role is important. The element of complexity regarding the stakeholders often involves a large number of stakeholders with different requirements, and the interference in the project by key stakeholders. It can also mean the opposite that key stakeholders show little interest in the project, which also can be a challenge for the project manager. (Maylor, 2010) | ||
| + | Construction is one of the most significant industry contributors on terms of domestic product and employment in Europe. The construction industry is under change as moving from being a supply-driven industry to a demand-driven industry. Instead of focusing on delivering one single product, a building, the focus will be on providing a variety of services to the built environment. The industry focuses more on delivering extra values such as sustainability, productivity, comfort and many more. This has entailed that the complexity and uncertainty of the project has increased. A construction project often has many stakeholders compared to other industries. The consequences for a requirement failure from a stakeholder in a construction project are also often more severe than in other industries. It is therefor highly relevant to understand how project manager manage stakeholders in construction projects. <ref name="carter"> | ||
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==Application== | ==Application== | ||
| − | + | Applying the different methods to actual construction projects requires a framework for managing stakeholders. A framework is used to assist the project manager in facilitating the stakeholder identification, salience, classification and mapping. The framework includes 4 different phases that can be followed by the project manager. | |
| + | • Defining the project purpose and customer constrains | ||
| + | • Identifying the project stakeholders according to their functional role | ||
| + | • Assessing the stakeholder salience and the probability of their power/interest matrix. | ||
| + | • Classifying and prioritizing the stakeholders accordingly. | ||
| + | The stakeholders’ requirements are gathered after the stakeholders have been classified. Managing stakeholders often finds place in the beginning of the project phase. (Aapaoja & Haapasalo, 2014) | ||
| + | After the stakeholders have been identified and classified, (Winch, 2010) points to three different approaches that are possible for a project manager in construction to manage the stakeholders. | ||
| + | 1. Define and enquire | ||
| + | 2. Consult and refine | ||
| + | 3. Bribe and ignore | ||
| + | The three different approaches are to be used on the different categorize of stakeholders and their consent. The first approach is appropriate to use to those who are ambiguous and where the requirements are easy to implement. The consult and refine approach is appropriate to use towards stakeholders that are none prescriptive and there are significant uncertainties associated with the stakeholder and the requirements. The bribe and ignore is the most radical approach which is not recommendable. The approach is based on ignoring the stakeholders that are opponents to the project, or try to bribe the stakeholders to either change or obliterate their requirements as a solution. This can typically be seen when dealing with external public stakeholders, such as the local government where zoning is often ignored or tired to be changed. (Winch, 2010) | ||
| + | Some of the challenges in stakeholder management are often finding the resources to deal with the many stakeholders that there are found in construction projects. When dealing with stakeholders you are operating under the project management term; Human Behaviour. When working with people in project management there are always some uncertainties and many challenges. A recent study shows that 1/3 of all projects fail due to lack of communication. (Coreworx, 2016) The consequences of not working with stakeholder management can in the worst cases lead to failure of the construction project. Some of the other challenges in working with stakeholders in construction are ensuring that the requirements set by the stakeholders are followed up during the entire planning and execution phase. Some of the challenges in construction projects are the project changes hands from the architect, to the consulting engineer to the developer. When the project changes hands important information can get lost, for instance stakeholder requirements, and therefor it can happen that those requirements are not actually met in the end of a construction project. Better digital communication, for an example BIM, Building information Modelling, is predicted to be part of the solution for better communication between different phases of the project. | ||
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==Conclusion== | ==Conclusion== | ||
| − | + | There are in complex construction projects many different stakeholders that are to be kept satisfied during the entire project. This can be done with different tools such as Stakeholder identification, salience, classification and mapping. These tools are all used to ensure that no stakeholders are forgotten and that no requirements, that are important, aren’t incorporated into the construction project. By categorizing and placing the stakeholders in a power/interest matrix, it can be possible for the project manager to ensure that the most important or dangerous stakeholders are managed accordingly. The project manager in a construction team use 4 different phases to manage the stakeholders. Roughly 3 different approaches can be used to deal with stakeholders and their requirements. One of the biggest challenges in managing stakeholders is communication and the solutions can perhaps be found in digital communication platforms. | |
==References== | ==References== | ||
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==Annotated bibliography== | ==Annotated bibliography== | ||
| + | (Aapaoja & Haapasalo, 2014) – An article written for Department of Industrial Engineering and Management at the University of Oulu in Finland. The article that focuses on the stakeholder identification and classification. The article presents 1 case regarding a Health Center where all the relevant theory is applied, and the framework is used as a management tool. | ||
| + | (Winch, 2010) – A book that focuses on management of construction projects. The book focuses on many different aspects of this topic, Managing Stakeholders is only one several chapters. The book is filled with different cases that underline the different theories presented in the book. | ||
| + | (Olander, 2003) – Licentiate Dissertation from Lund University. The focus of the dissertation is on external stakeholders, which also often requires the most managing. The dissertation contains general information regarding stakeholders, but the analysis is only on external stakeholders. The dissertation suggests different strategies that can be used in the management process and different tools that can be applied. | ||
| + | (Yang, Qiping, Ho, Drew, & Xue, 2010) – This article is not used in the wiki article, but it is an interesting article that concentrates on identifying the gaps in previous studies on stakeholder management. Based on the study a framework is conducted for effective stakeholder management. | ||
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==Notes== | ==Notes== | ||
<references> | <references> | ||
| − | <ref name=" | + | <ref name="carter">C.D. Carter, ''Stakeholders’ Requirements Analysis for a Demand Driven Construction Industry'', (2009), </ref> |
<ref name="smith">R. Smith, "Size of the Moon", ''Scientific American'', 46 (April 1978): 44-6.</ref> | <ref name="smith">R. Smith, "Size of the Moon", ''Scientific American'', 46 (April 1978): 44-6.</ref> | ||
</references> | </references> | ||
Revision as of 21:43, 26 September 2016
This article focuses on managing stakeholders in the construction procejct. This article focuses on the different management tools that can be applied to managing the stakeholders and their requirements. The article contains a detailed section of the different management theories regarding stakeholders. These theories include the general definition of stakeholders and the importance of identifying these different stakeholders in a construction project. It also includes the theory about classifying the stakeholders and comparing them internally as a management tool. Different management solutions are presented, such as stakeholder mapping, stakeholder salience and a framework solution. In the section Mapping Stakeholders, the impact/probability-matrix is defined as an important tool in managing the stakeholders. Furthermore the theory behind stakeholder salience is presented as the model that can help the project manager to identify the important stakeholders, to which the project manager should pay close attention. The application of the different tools is presented. The recommendations based on the studies for this article are more digital solution that could combine stakeholder requirements in construction with the building information modelling. The article concludes the importance of identifying, classifying and mapping the different stakeholders in construction projects, since the project otherwise could fail.
Overview
“The project stakeholders are those actors that will incur – or perceive they will incur – a direct benefit or loss as a result of the project.” (Winch, 2010). “Person, group or organization that has an interest in, or can be affected by, or perceived itself to be affected by, any aspect of the project” - (ISO, 2013) It is the project manager’s role to manage the stakeholders in a construction project and ensure that they are satisfied so that the project can be completed without delaying the project or going over budget. Dealing with stakeholders as a project manager means having a role as a facilitator among different constituencies, as well as ensuring the project requirements are fulfilled satisfactory conditions for all parties. Project stakeholder management is the systematic identification analysis and planning of actions to communicate with and impact stakeholders (Aapaoja & Haapasalo, 2014). As a project manager several tools and methods can be used when dealing with a construction projects stakeholders. The tools are applied to avoid uncertainty in the project, as some stakeholders can have a lot influence on the success of the project. Stakeholders’ ads complexity to a project, and it requires planning from the project manager and in developing the processes the project managers’ role is important. The element of complexity regarding the stakeholders often involves a large number of stakeholders with different requirements, and the interference in the project by key stakeholders. It can also mean the opposite that key stakeholders show little interest in the project, which also can be a challenge for the project manager. (Maylor, 2010) Construction is one of the most significant industry contributors on terms of domestic product and employment in Europe. The construction industry is under change as moving from being a supply-driven industry to a demand-driven industry. Instead of focusing on delivering one single product, a building, the focus will be on providing a variety of services to the built environment. The industry focuses more on delivering extra values such as sustainability, productivity, comfort and many more. This has entailed that the complexity and uncertainty of the project has increased. A construction project often has many stakeholders compared to other industries. The consequences for a requirement failure from a stakeholder in a construction project are also often more severe than in other industries. It is therefor highly relevant to understand how project manager manage stakeholders in construction projects. Cite error: Closing </ref> missing for <ref> tag [1] </references>
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