1 Ivana Burcar Dunović Agnieszka Lukasiewicz Louis-Francois Pau The methodology to research of internal, external stakeholders in megaprojectsIvana Burcar DunovićAgnieszka LukasiewiczLouis-Francois Pau
2 Research questionsHow project context and local cultures influence stakeholder’s behaviour?How do the stakeholders interact?How do stakeholders impact the project thorough their behaviour?How to measure stakeholder involvement? NB: how is involvement defined? -Project performance by classical metrics is only a CONSEQUENCE of the aboveTherefore data analysis of project performances alone is like looking at output variables, without considering exogeneous and endogenesous variables .
3 Stakeholders (eksternal) Research conceptCulture and contextStakeholders (eksternal)Impact on the project
4 CONTEXTUAL & CULTURAL BASIS (L-F) Method based on measures from established disciplines:A) culturally affected micro-behaviors (of individuals and teams within each stakeholder)B) physioeconomicsC) synergy processes in organizational theoryAnalysis of these measures by gap analysis is carried outIn the gap analysis, an attribute value 3 corresponds to a normal situation, while 1 and 5 correspond to opposite extremes in the cultural and organizational senseResulting in a toolbox to characterize and compare megaprojects based on their contextual and cultural attributes
5 CONTEXTUAL & CULTURAL BASIS: GAP ANALYSIS MEASURES (I) Some measures are exogeneous, while others depend on user feedbackLeadership stylePromoting equality/open to compromise – 1Using hierarchy/authority – 5Project concept incubation styleInnovative – 1Conformity or standard solution to a new situation – 5Endorsement processes in the project initiation phaseBottom-up/ Democratic/ Critics allowed - 1Top-down/ Authoritarian/ No critics allowed – 5Project staffingFew people / high skills – 1Plentifull / average skills – 5Communications style around projectNo public communication - 1Wide public communication and feedback -5GovernanceNone / Minimal – 1Public scrutinity / Company wide - 5
6 GAP ANALYSIS MEASURES (II) Organizational team cultureNo synergy / Conflict prone - 1High synergy / Organizational Consensus – 5Executing and controlling the projectFormal /Rigid / Heavy forward planning and reviews – 1Pragmatic / Tools as a support – 5Accountability for success/failureDecentralized between stakeholders – 1Centralized – 5Significant fines actually levied in case of delaysNominalSignificant / DissuasiveRisk view by Project owners (attitude)Embracing risk - 1Avoiding risk - 5Willingness of Project owners to change contractorsLow - 1High - 5
7 GAP ANALYSIS MEASURES (III) Values: Main contractorPromote Social and public value of the project – 1Profitability – 5Values: Project fundersProfitability-5Political interferenceWeak - 1Strong - 5Project achieving Green policy goalsNone - 1Very significant - 5
8 ANALYSIS and OUTPUT OF CULTURAL MEASURES Case data from a megaproject: e.g. Anholt Offshore Wind Farm (now completed) : (Denmark, References, (3,1,2,5,4,2,4,4,5,4,4,2,2,3,2,5))Analysis of cultural measuresClustering into groups of megaprojects exposed to similar contextual and cultural influences (across countries, or within a given country)Comparison of extremes for a given measure, and justification by cultural differences in behavioral, organizational or decision traditionsOUTPUT for Stakeholder network analysis :a) homogeneous clusters of similar megaprojects (clustered by a))b) or megaprojects grouped by extreme values of a given cultural attribute, to better explain stakeholder relations due to that attribute
9 ILLUSTRATION OF OUTPUT TO NEXT LEVEL Social network analysis of stakeholder relationsPolitically driven projectsProjects with high loss risk on project manager (loss of contract, fines)Projects with lean management and high team synergiesNB: The three bottom clusters are examples generated by clustering from data
10 INTERACTION FLOW Project values and user-stakeholder assessment Stakeholder behaviorCulture and contextProjectexecutionImpactPerformanceStakeholder interactionsExogenousEndogenousOutputUSERS are key; you dont do a project for stakeholders also and their feedback impacts selection of stakeholders !!!!! ??????
11 Stakeholders impact cluster (I&A ) On what?From the external stakeholder’s point of view the most important is the sustainabilitypersonal /internalglobal/ externalthe PRiSM (Project Integrating Sustainable Method) or Green Project management allows us analyse interest and impact of stakeholdersThe concept is based on 5P’sProduct/The deliverable- resultProcessPeople/SocialPlanet/Environmental 3P’sProfit/Economical
12 OMEGA Centre’s adaptation of the HalSTAR systems model of sustainability
13 Examples of UK sustainability policy mapped onto the adapted HalSTAR wheel
14 How stakeholders influence the project? Side-effects“The triangle –performance”Sustainability1. Pprocess2.Pproduct3. P - People/Social – personal and/or global4.P - Planet/Ecological - personal and/or global5.P -Profit/Economical - personal and/or globalInstitutional - personal and/or globalCulture and contextThe projectEndogeneousInternal StakeholdersExternal StakeholdersExogeneous
15 Current evaluation approaches Evaluating the total impact of stakeholders in relation to the project requires more than identifying the impact level and probability of impact. (…..)Project managers need to assess the stakeholder attributes and classes (Mitchell et al. , 1997), and their position towards the project (Cleland, 1986; Winch and Bonke, 2002)—are they opponents or proponents?Stakeholder atributes (Olander):value (A) = power x legitimacy x urgencyposition value (Pos)interest–impact index (ViII),Evaluation - stakeholder impact index (SII) as a function of A, Pos and ViII.
17 External stakeholder network Elements /Nodes/Constructs – external stakeholdersConnectionsInternal – within the networkExternalto 5PTo context, culture and policy makersPossible tools :Causal/cognitive mappingSocial Network analysisANP – analytical network process
18 Stakeholder’s interaction characteristics - attributes Can be increased or decreased by the mutual stakeholder interactions1. Power – the ability to change the process (1 to 5)What gives the power to the stakeholdersInherentLegal powerPolitical powerSocial capitalBusiness power/capital (money, hiring,….)InheritedDue to administrative flawsdue to media influenceInformaniveness2. Grade of Interest – willingness to engage (1 to 5) Likert scale3. Attitude – positive or negative (-3 to-1 and+1 to+3) Stapel scale
19 Proposed Stakeholder’s measurement characteristics - attributes Power x Attitude – from -5 to 5 (it cannot be zero)2. Proximity = 1/(Power x Grade of interest)From 0,04 to 0,23. Attitude/Power x Grade of interest (???) = attitude x proximity = stakeholder value-0,2 to -0,04 or 0,04 to 0,2NB: Are only 1 and 2 needed? Instead of fixing such closed form expressions, why not let non linear regression determine the actual formulas???OK, we could do that too but we do not have all data values.
20 Interactions between external (?) stakeholders Frequency of interaction /communication (1-5) NB: It has been shown that frequency alone is a poor measure – yes, but this is why we will combine it with other measuresType of interactions – cooperation vs. CompetitionFor each stakeholder (this is specific to each stakeholder and assymmetric) - Yes, that was the intention (Modified Likert)Cooperation+5CoopetitionCompetition-5
21 Example of the network representation FrequencyS1S1S2S3S4s1,2s1,3s1,4s2,1s2,3s2,4s3,1s4,1s3,4s4,2s4,3S2,1S1,3S1,2S3,1S3S2S4,3S2,4S3,4S4,2S4Nature of relationshipS1S2S3S4s1,2s1,3s1,4s2,1s2,3s2,4s3,1s4,1s3,4s4,2s4,3
22 How external stakeholders influenced the process, product and 3P ( How external stakeholders influenced the process, product and 3P (?-too general) – it is aggregatedProcessProductPlanetPeopleProfitInstitutionalInt.Ext.Stak 1Stak 2Stak 3Stak 4Stak 5Answering the question how will lead to influence and impact clusterThis is the framework to obtain the information based on slide 6
23 External stakeholders impact to time, cost and 3P ( External stakeholders impact to time, cost and 3P (?-too general) – it is aggregatedExceeding CostTime delaysScopePlanetPeopleProfitInstitutionalInt.Ext.1-5 (%)1-5+ howStak 1Stak 2Stak 3Stak 4Stak 5This is the framework to obtain the information based on slide 6
26 Social network metrics INTRODUCTION TO THE FORMAL ANALYSIS OF SOCIAL NETWORKS USING MATHEMATICA by Luis R. Izquierdo, Robert A. HannemanNetwork size – how limited resources each actor may have for building and maintaining tiesNetwork density – speed of information, social capital/constrains, connectivity of the network Degree of actors – in-degree and out-degree (the influence)Social distance between actors (between two of them)Walks, cycles, trails and pathsEccentricity of actor – between diameter and radius
27 Social network metrics Network conectivityClustering coeficijent of a nodeto which the friends of my friends are my friendsclustering coefficient for the entire networkthe average of the clustering coefficients of all the nodesCentrality of a node – measure of its structural importance based ondegree - having more ties means being more importantcloseness, - who are able to reach other actors at shorter path lengths, or who are more reachable by othersBetweenness - being in between many other actors what makes an actor central
28 Megaproject stakeholder network metrics New network metrics will be developed combining these network metrics with values of actors atributes and types of relationships for:Network characteristicsThe role in the network - importanceCommunication and Clustering patterns for C-C clustresImpact on the project with respect to the stakeholder metrics
29 Stakeholder’s involvement Are external stakeholder’s representatives involved in regular meetingsAre external stakeholders engaged in plannig stage of the projectIs there a modification of the project introduced under the remarks of stakeholderActions taken to support the project by external stakeholdersActions taken against the project external stakeholdersMedia attitudeLegal framework and practice of public consultationsIs there a continuous commuinication with external stakeholders
30 RESULTS How stakeholders impact the project? Project performance and impactHow stakeholders impact the project?How to measure stakeholder involment?Stakeholder networkHow the stakeholders interact?How project context and culture influence stakeholder’s behaviour?Groups of Megaprojects with consistent cultural & contextual attributes
31 References on sustainability and stakeholders Commission Communication of 15 May 2001 ‘A Sustainable Europe for a Better World: A European Union Strategy for Sustainable Development’This strategy provides an EU-wide policy framework to deliver sustainable development, i.e. to meet the needs of the present without compromising the ability of future generations to meet their own needs. It rests on four separate pillars – economic, social, environmental and global governance – which need to reinforce one another.Chinyo, E., Olomolaiye, P. (2010). Construction Stakeholder Management. Wiley-Blackwell, p. 17, 68Epstein, M.J., Roy, M-J. (2001). Sustainability in Action: Identifying and Measuring the Key Performance Drivers, Long Range Planning 34 (2001) 585–604, p. 588Freeman, E. R. (1984). Strategic Management: A Stakeholder Approach. Boston: Pitman, p. 5-6, 12Freeman, R. E., Harrison, J. S., Wicks, A. C., Parmar, B. L. i de Colle, S. (2010). Stakeholder Theory; The State of the Art. Cambridge: Cambridge University Press.Friedman, A. L. i Miles, S. (2006). Stakeholders: theory and practice. Oxford: Oxford University Press.Olander, S. (2006). External Stakeholder Analysis in Construction Project Management. Lund University.Olander, S. (2007). Stakeholder impact analysis in construction project management. Construction Management and Economics (March 2007) 25, 277–287Olander, S., Landin, A. (2008) A comparative study of factors affecting the external stakeholder management process. Construction Management and Economics.Olander, S., Atkin, B. Stakeholder Management – The Gains and Pains. In Chinyo, E., Olomolaiye, P. (2010). Construction Stakeholder Management. Wiley-Blackwell,Olander, S., Landin, A. (2005). Evaluation of stakeholder influence in the implementation of construction projects. International Journal of Project Management 23 (2005) 321–328.L.S. Smutko, S.H. Klimek, C.A. Perrin, and L.E. Danielson, Involving Watershed Stakeholders: An Issue-Attribute Approach to Determine Willingness and Need (willingness – attached)L-F Pau, with Kristian Jääskeläinen, “ERP project’s Internal Stakeholder network and how it influences the project’s outcome”, Working paper, SSRN, July 2009, under publicationL-F Pau, Discovering the dynamics of smart business networks, Proc Smart Business network conference, Beijing, May 2008, ; and: Computational Management Science, March 2013, DOI: /s xL-F Pau, P. Vervest, E. van Heck, K. Preiss, Smart business networks (Eds), Springer, Berlin, ISBN: , 2005,442 p.UCLA- Omega centre, Centre for Mega Projects in Transport and Development, Incorporating Principles of Sustainable Development within the Design and Delivery of Major Projects: An international study with particular reference to Major Infrastructure Projects for the Institution of Civil Engineers and the Actuarial Profession, November 2010