Tuesday, April 28, 2009

STAKEHOLDER MANAGEMENT

LESSONS IN PROJECT MANAGEMENT (lesson1, volume 1)

STAKEHOLDER MANAGEMENT

I have often been asked what the relevance of project management (PM) is in this environment and if indeed the PM processes advocated in our training courses can actually be adopted on real projects in Nigeria.

It is in answer to these questions that I have decided to start this series of essays aptly titled lessons in project management.

I intend to select ongoing and past projects in Nigeria (public and private sector projects) and analyze how PM processes if adopted could have impacted on the success of such projects and for projects that utilized PM practices, discuss how these practices helped the projects succeed.

My preferred project management standard or best practice guide is the Project Management Body of Knowledge (PMBOK) Guide created by the Project Management Institute (PMI) hence it will be my reference document for this series.

The Case study (Lekki – Epe Expressway Project, Lagos, Nigeria.) – The Background

The Lekki – Epe expressway way expansion project had gone smoothly, at least to outsiders like you and I, until recently when the toll gate phase of the project was reached. Indigenes of Lekki were not receptive to the idea of the toll gates and planned collection of tolls on a route they have plied without “much hassles” for the past 20 years because of some “minor work”. They simply could not or would not understand the explanations of the Government or the construction company on why this has to be or how it is going to be to their benefit.

The PM Problem

There was inadequate stakeholder identification at the initiating phase of the project. An important stakeholder group (the community) was left out and it has created issues which can escalate and cause problems for the project.

The Project Sponsor has sunk enormous amounts of resources already into the project, the profitability of the project is hinged on the toll collection and the host community is not receptive to the idea. The Project Sponsor at this time I reckon will be spending a good amount of time and energy addressing this issue, distracting them from the project work, it may affect the progress of the project thereby impacting on the overall cost and finish date of the construction work. These are factors that will ultimately affect project delivery and by extension the organisation’s fortunes.

The PM Solution

Good project management practice could have forestalled this present situation. In the PMBOK Guide, 4th Edition, Identification of Stakeholders is a process that should have been carried out in the initiation phase (early stages) of the project. At this stage, the PMBOK recommends that the organisation performing the project identify all people and organizations impacted by the project and document relevant information regarding their interests, involvement and impact on project success.

The organization would at this stage in its project management verify the success criteria of the project, have the influence and objectives of the project stakeholders reviewed and come to a decision on how to proceed on the project. The essence of adequate stakeholder identification at this stage is to ensure that one or more stakeholders that may have been left out initially do not show up in the course of the project and put the project at risk as is the case in this project.

PM practice would have helped handle stakeholder needs upfront and there would have been improved probability for shared ownership, deliverable acceptance (the toll gate for instance) and other stakeholder satisfaction.

The PM Verdict

Adoption of the Stakeholder Identification process in the initiating processes of the project would have saved the Sponsors cost, time, hassles and bad publicity on this project. QED

‘Seye Kolawole, PMP

OAKPMadding value to people and projects

Comments and contributions can be posted on www.oakproject.blogspot.com

6 comments:

OakInterlink Company. said...

Dear Seye,

This is a very good one. Keep it up

Regards,
_____________________________________________________________________________________

SULAIMON LAWAL | Schneider Electric | International Operating Division | FLV PRODUCT MANAGER

OakInterlink Company. said...

Really appreciate this piece. It has further emphasized the relevance of PM to the society. Keep up the good work!



‘Kayode Olayemi CIPM,MPM

OakInterlink Company. said...

We have come to realise that little or no response has been put into the importance of project management.
If continual enlightenment campaign on the need for project management is put in place for all stakeholders in our society, our problem would be halfsolved.
In this present dispension of ours, especially in this country, Nigeria, there is little or no value for stakeholders presence/contribution in project management.

The present problem we are facing is a complete lack of knowledge for stakeholders management. So many abandoned projects which contractors had claimed to have been completed were as a result of absence of stakeholders contribution during the initiation process in the project meeting. So many projects were awarded to contractors in this country without the contractors or the acclaimed project manager knowing the impact of the project on the community or the host.

May i say that the present problem being faced in the Niger delta region is as a result of a complete negligence project management. The corporates bodies within the region, while in the course of carrying out their social responsility (say embarking on a project) would not able to hold a proper stakeholders meeting where contributions, benefits suggestions and it impact would be discussed and documented. Instead, very limited number of people would be consulted and probably after then the project would be awarded and the next thing you here is that a project has been awarded and completed and then commision in the host community concerned.
It is with high regret we keep spending collosal amount of money on projects where little or no impact is felt on these project.

We should appreciate the fact that stakeholders meeting is necessary from the initial process to completion of any project.The would improve on the quality of project undertaken and the positive impact on the beneficiaries.

afenikhena johnson johnyide@yahoo.com

Olu said...

With regards the Lekki – Epe Expressway Project, there is the need for proper management and control in terms of managing the project stakeholders, the project’s environmental impact, and funding. To achieve the mission and vision of such project, the stakeholders should have been involved from inception as stakeholders’ differing expectations can pose significant risks to such development projects which is already the case with some not in support of having a toll along the axis and all. It is unlikely that the requirements of all stakeholders will always coincide as each will seek to influence the project in order to meet their own needs and these pressures can generate change and have other consequences. The issue of funding and the project in its entirety should have been addressed openly amongst these stakeholders to also prevent project delay and a resulting increase in cost. Much also still needs to be done about reducing the environmental impact of the project on road users because an accident almost occurred on my way home one evening along the chevron axis as a result of heavy duty trucks making spontaneous crosses as well as obstructing traffic.

A proper stakeholders’ management and value workshop process should have been employed to encourage the support of those who support the project and minimise the influence of those who do not. All the stakeholders should have been identified, and a full analysis conducted to understand their interests, and identify whether the individual stakeholder groups are broadly positive or negative about the project and manage them effectively. It is essential to make an effort to engage these stakeholders, the residents and road users actively as they also come under the stakeholder umbrella and If they support the project, the programme manager should provide information to maintain their support, nurture them, encourage them to act as advocates for the project, seek to build their confidence in the project and if they are against the project, the project manager should attempt to develop their support and change their view ensuring they fully understand the project and the benefits it will deliver, attempt to build their confidence in the project, and counter any negative influence they have on others. Very simple project management guidelines and principles which if adhered to would help a great deal. Thank you.

OakInterlink Company. said...

Hi Tunji,
Nice one my brother! There is even a bigger issue with this project and that is that it is the only way for residents to get to V.I and there isn't an alternative road. Will it be fair for the residents to be forced pay toll everyday without an alternative???????

Kindly add me to this list.

KR,

Dotun Odufalu
Principal Consultant
eSeed Limited

OakInterlink Company. said...

Hi Seye,
Thanks for the email. It is a good decision to start the series and I'm sure everyone will have one thing or the other to learn as well as contribute. Myself and my friend Dotun will visit your blog site www.oakproject.blogspot.com to make contributions.

Keep it up.

Regards,
'Tunji


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