W1_Thuraiya_Leadership Styles analysis Using Tuckman model

Week 3 Blog/ Hamed AL Foori– Stakeholder Management During Project Execution

Problem Background

 Stakeholder management is a key success towards reaching the final objective of a project. Because different parties are being involved in the project in some way or another, it has been essential to develop a Stakeholder Management Plan as part of the project documents to identify and manage stakeholders during the implementation phase of the project.
The current challenge is that lack of stakeholder management by the project company (the owner) causes misunderstanding and, as a result, delays in achieving certain project’s milestones. This exercise is to identify stakeholders associated with power and water projects and evaluate their interests and influence accordingly.

Why do we care?

The lack of effective communication management can trigger challenges which would results in project’s delays. The major challenges associated with the previous and current projects are as below:

1- Obtaining Permits from respective stakeholders.

2- Finalizing physical interfaces.

3- Meeting other contractual obligations.

Any delays in managing stakeholders could potentially cause a delay in the project. Therefore, it was essential to involve all

Actions to Solve the Problem (Feasible Alternative):

To effectively monitor stakeholders’ performance, a Stakeholder Management Plan is required after developing the project and prior start of execution. The first step to develop the plan is stakeholder identification where common stakeholders of Independent Power and Water Projects are as below:

Table 1: Stakeholder Identification Table

Type	Stakeholder		Category
External	Government	Authority of Electricity Generation	Regulator
		Ministry of Oil and Gas	Decision Maker
		Ministry of Housing	Decision Maker
		Ministry of Environment and Climate Affairs	Regulator
		Ministry of municipalities and water resources	Decision Maker
		Royal Oman Police	Decision Maker
		Public Authority of Electricity and Water	Regulator
	Public	Communities and People	Negative Beneficiaries
	Private Sector	Oman Electricity Transmission Company	Beneficiaries
		Electricity Distribution Companies	Beneficiaries
		Majis Industrial Services	Beneficiaries
		Oman Gas Company	Beneficiaries
		Sohar Port Company	Beneficiaries
Internal	OPWP	Development Department	Decision Maker
		Legal Department	Decision Maker
		Planning Department	Decision Maker
		Implementation Department	Decision Maker
		Client Contract and Interface Department	Decision Maker
	Other	Consultants and Advisors	Beneficiaries

Outcomes of the Actions:

After identifying common stakeholders who are involved in power and water projects, it is required to rank them based on their influence and interest. Opinions regarding stakeholder’s power/interest were obtained from subject matter experts through a short survey. The survey asks the expert to rank each stakeholder’s interest and power from 1 to 5. Results from each expert were collected and averaged among other results.

Overall, stakeholders fall in four main categories (in relation to power and interest):

1- Keep satisfied: those who have high influence but low interest.

2- Keep encourage and influence: those who have high power and interest.

3- Keep informed: those who have high interest but low power.

4- Keep monitor: those who have low power and interest.

Selection Criteria of the Outcomes:

 The following table summarizes results of the survey for each stakeholder mentioned above.

Table 2: Survey’s Results of Stakeholder Identification.

	Stakeholder	Interest (Avg.)	Power (Avg.)
Government	Authority of Electricity Regulation (AER)	4.2	5
	Ministry of Finance (MoF)	3.4	5
	Ministry of Oil and Gas (MoG)	2	3.2
	Ministry of Housing (MoH)	1.2	4.2
	Ministry of Environment and Climate Affairs (MECA)	1.2	4.4
	Ministry of Legal Affairs (MLA)	1.3	3.2
	Ministry of Municipalities and Water Resources (MMER)	1.6	2
	Royal Oman Police (ROP)	1	2.2
	Public Authority of Electricity and Water (PAEW)	4.4	4.2
	Electricity Holding Company (EHC)	2.8	3.2
	Local Communities (LC)	3.6	1.6
Private Sector	Oman Electricity Transmission Company (OETC)	3	4
	Electricity Distribution Companies (EDCs)	3.2	3.4
	Majis Industrial Services (Sohar)	2.6	2.2
	Oman Gas Company (MOG)	1.8	3
	Petroleum Development Oman  (PDO)	1.8	1.8
	Sohar Industrial Port Company (SIPC)	2.6	2.6
	Others
OPWP	Development Department (PD)	4.2	4.6
	Regulatory Compliance Department (RC)	2.8	4.6
	Spot Market	3.2	3
	Planning Department (P&E)	4	3.8
	Implementation Department (PI)	5	5
	Client Contract and Interface Department  (CCI)	4	3.6
Other	Consultants and Advisors (C&A)	3.2	2.4

Analysis and Comparison of the Outcomes:

After collecting all the data from SMEs, a stakeholder mapping tool will be used to illustrate the relation of power and interest for each stakeholder. Note that this is an overall analysis as this map is dynamically changing from each stage of the project to another.

Figure1: Stakeholder Map Analysis

From the stakeholder analysis above, it can be concluded that most of the government entities have high influence in making decisions, but on the other hand, they may have low interest in getting onboard towards developing and executing the projects. While the functional departments of OPWP (planning, developing, implementing and monitoring) are on the “High High” category, the private sector is distributed on the chart between the “Low Low” for non-power/water companies and “High High” for power/water companies.

Tracking the Implementing the stakeholder’s register

Such a stakeholder register document shall be required as part of the project charter in order to evaluate the interfaces of the project at the earliest stage of the execution phase. Because the stakeholder register is dynamically changing as new stakeholders appear on the stage, the project manager shall update the register document accordingly and monitor each stakeholder’s performance through the stakeholder management plan.

Reference

A Guide to the Project Management Body of Knowledge (PMBOK Guide).(2013). Newtown Square, PA: Project Management Institute.

GUILD OF PROJECT CONTROLS COMPENDIUM and REFERENCE (CaR). (2015, November 2). Retrieved from http://www.planningplanet.com/guild/gpccar/identifying-engaging-stakeholders

Terezinha Hignett. (2017, April 20). Poor Communication Leads to Project Failure One Third of the Time. Retrieved from http://www.coreworx.com/pmi-study-reveals-poor-communication-leads-to-project-failure-one-third-of-the-time/