W1_Thuraiya_Leadership Styles analysis Using Tuckman model

W3_Juhaina_Third Party Stakeholder Management

-          Problem Definition

One of the main aspects significantly affecting the progress of our power and water progress during the planning and development stage is the management of the third party stakeholders. Every stakeholder has a different level of interest and power and the Project Manager is required to identify the approach and technique to be used with every stakeholder according to their level of interest and power to the relative project in order to maintain the progress of the project. 

-          Identify the Feasible Alternative

The identification and mapping of all related third party stakeholders for any project is required to be during the initiation of the project. This ensure engagement as soon as it is required and will help to set the plan at an early stage of who and how to interact with these stakeholders. The stakeholders are divided into the following categories:

·         Beneficiaries: typically being the parties benefiting from the project after its completion;

·         Negative Beneficiaries: stakeholders who are negatively impacted by the project during its implementation usually;

·         Implementers: the parties responsible for carrying out the project;

·         Decision Makers: the entities approving related aspects of the project such as government agencies or boards;

·         Financiers: being the banks, shareholders, or any financing company and/or those in the finance or accounting department;

·         Regulators: governmental entities regulating the activities of the project.

-          Development of the Outcome for Alternative

Taking the example of a wind farm as a project, the third party stakeholders usually involved are identified in the following table:

Third Party Stakeholder	Categories
Public Authority of Electricity & Water (PAEW)	Regulator & Decision Maker
Authority for Electricity Regulation (AER)	Regulator & Decision Maker
Ministry of Housing (MoH)	Regulator
Ministry of Environment and Climate Affairs (MECA)	Regulator
Electrical Holding Company (EHC)	Regulator
Ministry of Finance (MoF)	Financier
Ministry of Legal Affairs (MoLA)	Regulator
Electricity Transmission Company (OETC)	Implementers & Decision-Maker

Table 1 – Stakeholders list of IWP Projects

As the stakeholders listed can affect the project in different ways, it is required to carry out a stakeholder analysis which would identify the type or the strength of involvement in the project:

Stakeholder	Information	Influence	Interest	Impact	Totals
PAEW	6	9	9	8	32
AER	8	10	10	10	38
MOH	7	9	1	10	27
MECA	6	7	1	10	24
EHC	3	1	5	2	11
MOF	6	10	2	7	25
MOLA	9	5	4	5	23
OETC	8	9	10	8	35

Table 2: Analysis of Third Party Stakeholders on Wind Farm Projects

- Selection Criteria

From the analysis above the stakeholders can be ranked in as shown in the following table:

Stakeholder	Totals
AER	38
OETC	35
PAEW	32
MOH	27
MOF	25
MECA	24
MOLA	23
EHC	11

Table 3: Third Party Stakeholders Ranking related to Wind Farm Projects

The total results present the level of involvement of the stakeholders, where the higher the ranking the more involved is the party in the project.

Analysis and Comparison of the Alternative

The results from the analysis of the stakeholders are used to map the level of interest and power of the third party stakeholders in the wind farm project as provided in the following figure. The power is the sum of the total excluding the interest score. A 

Figure 1 – Analysis of Third Party Stakeholders

- Selection of the Preferred Alternative

According to the result of the analysis, a decsison on the approach to be adopted for each third party stakeholder to be used according to the following figure, with stakeholders in each quadrant as shown on Figure 2:

Figure 2 – Approach relevant for each stakeholder

 ·         Stakeholders with High power & Interest: these stakeholders shall be fully engaged and satisfied. This approach shall be used with PAEW, AER and OETC.

·         Stakeholders with High power & low interest: shall be kept satisfied and more effort shall be made to get their interest in the project. This approach shall be used with MOLA, MECA, MOF and MOH.

·         Stakeholders with Low power & high interest: must be adequately informed, and no major issues are arising.

·         Stakeholders with Low power & low interest: these stakeholders should be monitored but no excessive communication is required. This approach shall be used with EHC.

- Performance Monitoring and the Post Evaluation of Result

This approach shall be applied on the wind farm project an repeated for a number of projects. The feedback shall be acquired from the relevant stakeholders to determine if the management process is working.

 - References

[1] Stakeholder management, APM, retrieved from { https://www.apm.org.uk/body-of-knowledge/delivery/integrative-management/stakeholder-management }

[2] IDENTIFYING AND ENGAGING STAKEHOLDERS, GUILD OF PROJECT CONTROLS COMPENDIUM and REFERENCE, retrieved from { http://www.planningplanet.com/guild/gpccar/identifying-engaging-stakeholders }

[3] STAKEHOLDER POWER/INTEREST MATRIX, retrieved from { https://knowhownonprofit.org/organisation/strategy/directionsetting/stakeholdermatrix.jpg }  

[4] Stakeholder Analysis, retrieved from { https://www.mindtools.com/pages/article/newPPM_07.htm }