Stakeholder Management

1. 1
MODELLING AND MANAGING STAKEHOLDER’S
POWER AND INFLUENCE FOR QUALITY
IMPROVEMENT IN CONSTRUCTION PROJECTS
A CASE STUDY AT “JAIPUR METRO”

2. MODELLING AND MANAGING
STAKEHOLDER’S POWER AND INFLUENCE
FOR QUALITY IMPROVEMENT IN
CONSTRUCTION PROJECTS
A CASE STUDY AT “JAIPUR METRO”
PRESENTED BY:
SHIV KUMAR S.
Assistant Professor
Musaliar College of Engg. & Technology

4. Owner : Jaipur Metro Rail Corporation Limited (JMRCL)
Client : Delhi Metro Rail Corporation Limited (DMRC)
Type of Project : Design and Build
Scope of Work : Approach Tunnel, Open Ramp Portion and Underground Chandpole Metro
Station by Cut & Cover Method
Original Contract Price : Rs. 101.85 Crore
Revised / assessed Price: Rs. 95.41 Crore
Project Length : 529.476 meter
Revised Project Length : 502 meter
Contract Period : 24 month
Commencement date : 19th November 2010
Intended Completion date : 18th November 2012
Price Adjustment : Yes (Labour, Steel, Cement, Fuel & Machinery/Machine tools)
Liquidated Damages : 0.005% / day for Key dates and 0.05% / day Completion of works, max.10 % of CP.
Defects Liability Period 52 week
Project Salient Features

6. PACKAGE DESCRIPTION OF
WORK
WORK ALLOTED TO
COMPANIES
C1 Construction of Elevated Way
Duct for approximately 6km
round
DSC Limited
C2 Construction of Four Way
BRTS Corridor extending up to
4.5km, Construction of Way
Duct for 2.5km
ITD-ITD CEM JV
C3 Construction of underground
station at Chandpole
ITD Cementation India
Limited
6

7. PACKAGE DESCRIPTION OF
WORK
WORK ALLOTED TO
COMPANIES
C4 Construction of the
maintenance yard for vehicles
Prathibha Consitium
C5 Construction of Way Duct of
Two-lane for 2.5 km
ITD-ITD CEM JV
C6 Construction of 6 elevated
stations at Mansarovar,Atish
Market,Ram Nagar,Civil Lines,
Ajmer Pulia,Vivek Vihar
B L Kashyap & Sons
C7 Construction of two Metro
stations- Sindhi camp Bus
stand, and at Railway station
KMV Projects
7

9. C3 Office
C3 Staff Mess
Jaipur Railway Station
Chandpole
Station

10. Project
Start Point
Project
End Point
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11. INTRODUCTION
• The interactions and interrelationships between stakeholders largely determine the
overall performance of a construction project, and have the crucial responsibility for
delivering a project to successful completion.
• Successful completion of construction projects is dependent on meeting the
expectation of stakeholders throughout the project life cycle.
• The failure of project management teams to address the concerns of construction
project stakeholders has resulted in countless project failures, primarily because
construction stakeholders have the resources and capability to stop construction
projects.
• Thus, it is important to analyze, identify and manage stakeholder interests and
relationships.
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12. WHO IS STAKEHOLDER?
 STAKE:
Stake is an interest or a share in an undertaking.
 STAKEHOLDER:
 An individual with a stake.
 Any person, group or organization who can be positively or negatively
impacted by, or cause an impact on, the actions or activities proposed.
 TYPES OF STAKEHOLDERS :
Stakeholders can be divided into internal stakeholders and external stakeholders
• Internal stakeholders being those directly involved in an organization’s decision-
making process (e.g. owners, customers, suppliers, employees)
• External stakeholders being those affected by the organization’s activities in a
significant way (e.g. neighbours, local community, general public, local authorities).
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13. STAKEHOLDERS MANAGEMENT
 Analysis of 334 stakeholders involved directly to the project (Internal
stakeholders only).
 73 Stakeholders in company, 261 Stakeholders involved in sub-contractors.
 List of sub-contractors (sub-contract given by the company).
 Soma Construction Limited (7 Engineers, 105 Labours).
 Desai Projects Private Limited (5 Supervisors, 86 Labours).
 Bhoorathnom Construction (P) Ltd (3 Supervisors, 30 Labours).
 Valecha Engineering Limited (3 Supervisors , 22 Labours).
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14. STAKEHOLDERS MANAGEMENT
(CONT…)
An important component of stakeholder management is stakeholder analysis.
The study includes:
 A case study at Jaipur Metro C3 Package.
 Analysis of 334 Stakeholders.
 Questionnaire , Interviews , Emailing ,Telephonic conversation etc.
 Attitude, Power, Interest level.
 Datas will be stored for engaging the stakeholders using Project
Stakeholder Organize Deluxe software 3.7.
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15. COMPANIES UNDER C3 PACKAGE
 Soma Construction Limited and Valecha Engineering Limited.
 Construction of Diaphram walls.
 Construction of Roof Slab level (Piling done for columns at 12m depths).
 Construction for tunnels (Top-down method).
 Construction of Sidewalks.
 137 Stakeholders are involved.
15

16. COMPANIES UNDER C3 PACKAGE
 Desai Projects (P) Ltd and Bhoorathnom Construction Company (P)
Ltd.
 Construction of Main Station building.
 Construction of Generator room , Water tank ,Diesel generator room,
ESR room, Electrical Panel room, UPS room( Concrete blocks – 0.25 x
0.25 x 0.15).
 Construction for Ramp (Raft-10m ,1m each working space , 1.2m c/c
shoulder piling).
 124 Stakeholders are involved.
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18. PROCEDURES INVOLVED IN THE
STUDY
The main procedures involved in this study are:
Identifying the stakeholders.
 Prioritize the stakeholders.
 Understand the Key stakeholders.
 Managing the stakeholders.
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19. IDENTIFYING STAKEHOLDERS
 Identifying stakeholders requires a good deal of research.
 Listing of stakeholders.
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20. PRIORITIZE THE STAKEHOLDERS
 Once the list of names has been generated , analyse the list in terms of
power, influence and the extent to which they are affected by the project.
 Questionnaire were prepared seperately for different stakeholders along
with different question codes for getting more accurate result.
 Out of 334 stakeholders, 246 gave response , on the basis of which the
stakeholders are prioritize into four sector table as shown.
 Prioritization Chart has been prepared.
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21. High power
Satisfy
Opinion formers. Keep them
satisfied with what is happening and
review your analysis of their
position regularly.
Manage
Key stakeholders who should be fully
engaged through full communication and
consultation.
Low power
Monitor
This group may be ignored if time
and resources are stretched.
Inform
Patients often fall into this category. It may
be helpful to take steps to increase their
influence by organizing them into groups or
taking active consultative work.
Low impact/stake holding High impact/stake holding
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22. UNDERSTAND THE KEY
STAKEHOLDERS
 Talk to stakeholders directly.
 Key Stakeholders can be summarized on the Stakeholder map.
 A good way of doing this is by color coding.
 Supporters in green, blockers and critics in red, and others who are
neutral in orange.
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24. MANAGING THE STAKEHOLDERS
 After identifying all the Key Stakeholders, who are the threats and who are
in favour of the project has to be managed using PROJECT
STAKEHOLDER ORGANIZE DELUXE 3.7 software.
 The identified key stakeholders are entered, organized and managed using
stakeholder organize deluxe software, considering the data’s collected
from the project execution team.
 Project Stakeholder Organize Deluxe 3.7 is simple database management
software that helps us to enter, organize, and manage our project
stakeholders.
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25. Examples of stakeholder analysis using Project
Stakeholders Organize Deluxe Software
STAKEHOLDER VIVEK KHARIYA
IDNR 103
COMPANY ITD CEMENTATION INDIA PRIVATE
LIMITED
STATUS Active
POSITION Project Manager
TYPE Organization
CATEGORY ProjectTeam
PHONE1
PHTYPE1
PHONE2
PHTYPE2
EMAIL vivek2000@gmail.com
WEB 25

26. Examples of stakeholder analysis using Project
Stakeholders Organize Deluxe Software
CONTACT
ADDRESS1 28-C, SECTOR-5
ADDRESS2 CIVIL LANES
CITY JAIPUR
STATEPROV RAJASTHAN
ZIPPOSTAL
COUNTRY INDIA
COMMENTS Good attitude and influence level. Enthusiastic
in work.
HOWTOMANAGE Manage Closely
IMPORTANT
POWERLEVEL1 5-VeryHigh
INTERESTLEVEL1 5-VeryHigh 26

27. Examples of stakeholder analysis using Project
Stakeholders Organize Deluxe Software
ATTITUDELEVEL1 4-Supporter
POWERLEVEL2 04
INTERESTLEVEL2 04
ATTITUDELEVEL2 04
CUSTOM1
note
EVALUATIONNOTES Fully satisfied in the work
NOTES date note
LOG 16-01-2012 Entry date of details
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28. INFERENCE OF THE PROJECT
 On the basis of the detailed study conducted on the stakeholders engaged
under C3 Package of construction of underground station at Chandpole of
Jaipur Metro, it has been concluded that out of 334 stakeholders only 246
gave their responses (ie,73.65%) and it was observed that 116 of them had
a positive temperament while 83 were neutral which can also be visioned
has a positive outlook to the project.
 47 out of 246 were blockers and had various issues which could be
resolved by the company.
 The overall inference is that 199 (116+83) out of 246 is approximately
81% is definitely positive and hence the project can be deemed as a
success.
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29. CONCLUSION
 The pros and cons of this project was that it is an almost-perfect analysis of
employee satisfaction of any company and is beneficial in overall administration
of the same.
 This study must be carried out so as to tackle various employee related problems
and to ensure utmost stakeholder satisfaction.
 On the contrary, this study has a major disadvantage ie, it is very time
consuming. If it was to be conducted on the entire project it would have been a
humongous if not an impossible task.
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30. SAMPLE QUESTIONNAIRES FOR
ANALYSIS
Q.1. What is your total experience in this field?
less than 5 years
5 to 10 years
more than 10 years
Q.2. For how many years are you working with Company?
Less than 2 years
2-5 years
5-10 years
Q.3. Do you think that you have work load?
Yes No
Q.4. Is the superior friendly to you?
Yes No
Q.5. Do you think that your work is carried out properly?
Yes No
Q.6. Do you think that your labours are working according to your directions and control?
Yes No
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31. SAMPLE QUESTIONNAIRES FOR
ANALYSIS
Q.7. Are you satisfied with the company’s submission of drawings at proper time?
Yes No
Q.8. Is there any lag in the work ?
Yes No
Q.9. Do you think that the manpower and equipment provided to you is sufficient to finish the task?
Yes No
Q.10. How many labours have been supervised by you?
Upto 10
between 10 to 30
between 30 to 50
Q.11. Do you think that the present state of work can be improved ?
Yes No
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32. SAMPLE QUESTIONNAIRES FOR
ANALYSIS
Q.12. Which factor according to you is the best for improving the state of work?
improving the pay scale of supervisor
giving supervisors more power
conducting seminar to improve quality
Q.13. What is the working hour for you?
8 hours
8-10 hours
more than 10 hours
Q.14. Are you provided with the facility of overtime?
Yes No
Q.15. How many casual leaves are allotted to you monthly?
less than 2
2-3 days
3-4 days
None
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33. SAMPLE QUESTIONNAIRES FOR
ANALYSIS
Q.16. According to you ,Is there any thing the company can do to improve your work satisfaction
level?
Yes No
Q.17. If yes, the change has to be made in which field ?
Work incentive
Better inter-relation with higher officials
Better working condition
Opportunity for growth
Q.18. According to you , the working environment for you is :
Good
Poor
Satisfactory
Q.19.Do you think that the co-workers are doing their work properly?
Yes No
Q.20. Do you think that any decision made by you is appreciated by company?
Yes No
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34. REFERENCES
• Freeman, R.E. (1984) Strategic Management: A Stakeholder Approach, Pitman
Publishing Inc., Boston .
• Freeman, R.E. (1999) Divergent stakeholder theory. Academy of Management Review.
• Olander, S. (2006) External stakeholder analysis in construction project management,
Doctoral thesis, Department of Construction Management, Lund University, Lund.
• Vinten, G.(2000) The stakeholder manager. Management Decision, 28(6), 377-83.
• Gibson, K (2000) The moral basis of stakeholder theory. Journal of Business Ethics,
26(3), 245-257.
• Friedman, A.L. and Miles, S. (2006) Stakeholders: Theory and Practice, Oxford
University Press, Oxford.
• Newcombe, R.(2003) From client to project stakeholders: a stakeholder mapping
approach. Construction Management and Economics, 21, 841-8.
• Cleland, D.J. (1995) Project Management Strategic Design and Implementation,
McGraw-Hill, Singapore.
• Morris, P.W.G. (1994) The Management of Projects: A New Model, Thomas Telford,
London.
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