Stakeholder involvement is an important component of ensuring project success (Allen, McLees, Richardson, Waterford, 2015; Poplawska, Labib, Reed, & Ishizaka, 2015; Widen, Olander, & Atkin, 2014). However, stakeholders are not consistently and appropriately engaged in the project management processes in the aerospace industry (Lucae et al., 2014; Susser, 2012). Stakeholders should be involved with project planning, project execution, and assessing the readiness of technology (Government Accountability Office, 2010; Oehmen et al., 2011; Fageha, & Aibinu, 2013). These three project management processes are associated with the most benefit to a project’s success (Project Management Institute, 2013; Allen, et al., 2015). When properly executed …show more content…
However, scholars still struggle to identify a holistic approach that explains how to manage relationships among stakeholders within and outside of a company (Melia’, Pe’rez, & Dobo’n, 2010; Russo & Perrini, 2010; Tangpong & Johns, 2010; Un & Montoro-Sanchez, 2010). Some scholars (Abboubi & Cornet, 2012; Aggeri & Acquier, 2005; Myllykangas, Kujala, & Lehtimaki, 2010; Yakovleva & Vazquez-Brust, 2012) have attempted to develop a model for managing stakeholders but their models lack clarity because they do not take into the fact that stakeholders do not always follow agree with the project manager or the company on certain strategic business decisions. Aggeri and Acquier (2005) developed a model that has four tenets for managing stakeholders. The first tenet is that a company will always have stakeholders who have vested interests in the company (Aggeri & Acquier, 2005). The second tenet is that stakeholders will not be equally skilled in influencing their company (Aggeri & Acquier, 2005). The third tenet is that the success of a company is based on its capacity to meet the needs and expectations of the influential stakeholders (Aggeri & Acquier, 2005). The fourth tenet is that is that the purpose of management is to adjudicate the demands of stakeholders and those of the company because sometimes demands can conflict (Aggeri & Acquier, 2005). Although Aggeri and Acquier’s (2005) model highlights stakeholder management areas that bring value to the successful management of projects, Abboubi and Cornet (2012) stated that, it only considers the possibility of stakeholders yielding to the company
The importance of proper stakeholder identification is occasionally overlooked due to complacency or unhealthy business practices in project management. Failing to properly identify stakeholders is a perfect formula for disaster. According to the Project Management Body of Knowledge (PMBOK) (2013), identifying stakeholders is the method of recognizing any person or group that can influence, be influenced or seemingly influenced by the process and consequence of a project. Their interest and impact on the project are then examined and documented. Customers, societies, and benefactors are all considered stakeholders and they are actively involved in project activity (PMBOK, 2013).
Hence, the stakeholders which are described as those who are affected by the organisation performance ,actions and duties and those actions includes employees, clients, local community and investors as well. The theory of stakeholders also suggests that it is the responsibility of firm to make sure no rights of stakeholders are dishonoured and make decisions in the interest of stakeholders which is also the purpose of stakeholder theory to make more profit and balancing it while considering its stakeholders (Freeman 2008 pp. 162-165). In the other words organisation must also operates in a more socially accountable approach by carrying out corporate social responsibility as (CSR) activities.
Regarding to organizational stakeholders, there are three main groups of stakeholders: customers, employees and investors. The company attempts to link stakeholders’ needs and expectations to the company’s goals. For customers, the company must treat them fairly and honestly. For employees, the company needs to treat them fairly, make them a part of the company and respect their needs. For investor, managers should comply with the accounting procedure, do not manip...
The key benefit of this process is that it will maintain or increase the efficiency and effectiveness of stakeholder engagement activities as the project evolves and its environment changes.The are several input methods to control stakeholder engagement. Project Management Plan, some of the factors that affect control stakeholder engagement include the life cycle selected for the project, how HR requirements will be met, change management plan and techniques for communication among stakeholders. There are three tools and techniques that can be used. Information Management Systems; these capture, store, and distribute information to stakeholders on project cost, schedule progress, and performance. Expert Judgment Engagement levels of stakeholders are monitored and adjusted by conferring with senior management, key stakeholders, project managers on other projects in same area, SME’s (Subject Matter Experts) in business or project area and industry groups and consultants. Meetings Status review meetings are used to analyze information about stakeholder
Sometimes, the stakeholders of the projects have their own personal objectives which become a hindrance in carrying out the project successfully.
In any project it is important to do a stakeholder analysis in order to be able to identify the stakeholders and prioritise them by power and their interest to the success of the strategy or project. Once you identify them there is need to fully understand what motivates them in this project and what might be done to get their much needed support, thereby reducing obstacles to successful implementation. There maybe need to dangle carrots in order to get buy in from key stake holders. Incentives and rewards goes a long way in motivating other stakeholders to get results oriented effort.
Stakeholder engagement is a central commitment demanded by PfS. The engagement process under BSF should allow for discussion between the ProjectCo, the Local Authority and Schools, enabling better identification of sustainable energy requirement.
Stakeholders’ analysis is the analysis which tells that how the company is dealing with the people which are directly or indirectly related with the company’s operations. These are called stakeholder and they include the employee, society, suppliers, buyers, shareholders, got and other tax related companies.
Stakeholder, plays an important role in decision making progress whom can provide the new information, some extra solution, the benefit in other degree, and make the outcome. Indeed, stakeholder’s joining can bring a lot advantage to the company, but before we discuss the strategies to make sure their continuous involvement and commitment, let me explain the reason why they not want to join in or why they lost the passion to have the commitment.
Stakeholders are individuals, groups, and organisations with the power to influence the delivery of an organisation’s strategy and thus the organisation’s performance and/or a significant interest in an organisation’s strategy and thus the organisation’s performance (Wisniewski, 2001; Ackermann & Eden, 2011). In the context of the draft BSC to be developed, however, the analysis shall focus on relatively aggregated stakeholder groups. Firstly, the aim of this stakeholder analysis is not to pinpoint individual persons as stakeholders who may then be managed more easily than large organisations, but to identify rather broad stakeholder groups interested in Zara’s performance. Secondly, addressing
Most of the time the commonality can materialize in various forms in different projects. For example, at most of the highest level, in an enterprise, the commonality most likely will be as simple as the realization that all the projects just belong to the same company. As one might deliberate about the entire structure it is important to realize where the Project Portfolio Management (PPM) is positioned and the distinct roll the project portfolio manager has in this process. The descriptions below provides a good representation of the multiple roles and position of the people involved with the project management strategic management process:
Stakeholders are those groups or individual in society that have a direct interest in the performance and activities of business. The main stakeholders are employees, shareholders, customers, suppliers, financiers and the local community. Stakeholders may not hold any formal authority over the organization, but theorists such as Professor Charles Handy believe that a firm’s best long-term interests are served by paying close attention to the needs of each of these stakeholders. The modern view is that a firm has responsibilities to all its stakeholders i.e. everyone with a legitimate interest in the company. These include shareholders, competitors, government, employees, directors, distributors, customers, sub-contractors, pressure groups and local community. Although a company’s directors owes a legal duty to the shareholders, they also have moral responsibilities to other stakeholder group’s objectives in their entirely. As a firm can’t meet all stakeholders’ objectives in their entirety, they have to compromise. A company should try to serve the needs of these groups or individuals, but whilst some needs are common, other needs conflict. By the development of this second runway, the public and stakeholders are affected in one or other way and it can be positive and negative.
Another method for analysis is the stakeholder analysis (Savage, 1991). A stakeholder is any person or entity who can either be positively or negatively affected by actions or decisions that are taken by a company. Therefore a stakeholder analysis is a review of all the persons that will be affected by any decisions that are made by the company especially in the process of planning a new strategy. It is an analysis that needs to be conducted early on in the planning phase so that the business can ensure that all the required people and suggestions are included from the very beginning. A stakeholder analysis is crucial in determining whether a project or planning strategy will succeed or not. Poor stakeholder analysis will cripple the project
Stakeholders refer to individuals or groups of people that have an interest in a business. Management argues that as long as there is wealth for shareholders, then anything is done in a responsible manner and things should be done to promote the interest of other stakeholders.
When planning a new project, how the project will be managed is one of the most important factors. The importance of a managers will determine the success of the project. The success of the project will be determined by how well it is managed. Project management is referred to as the discipline that entails the processes of carefully planning, organizing, controlling, and motivating the organization resources so as to foster and facilitate the achievement of specific established and desired goals and meet the specific criteria of success required in the organization (Larson, 2014). Over the course of this paper I will be discussing and analyzing the importance of project management.