Process for Stakeholder Management in Construction Industry

In this post, we are discussing for stakeholder management process in the construction industry which is very much needed if the project has to be successful.

Introduction to Stakeholder Management Process

In order to understand the concept of stakeholder management, we need to discuss who are stakeholders of the projects. Stakeholders are defined as anyone who has an interest in a project. Due to the complex nature of projects many different stakeholders work on a single project to achieve the objective. Stakeholders can be of two types that have an influence on a project, they are defined as primary or secondary stakeholders. The primary stakeholders are the one who has a direct interest and a contractual link in the project like a contractor, consultants, and suppliers while the secondary stakeholders are those who have indirect interest but no contractual link like statutory authorities, local residents, etc. The success of the project is linked to the effectual management of stakeholders, and managing stakeholders is very difficult. The problem is that each stakeholder perceives different opportunities in different views, for some stakeholders the opportunity can be positive while for some other stakeholders the same opportunity can be negative.

 

Stakeholder Management Process

In order to make sure that a typical construction project will be completed successfully it is essential that the project manager manages all stakeholders. In order to ensure that stakeholders are going to cooperate on a typical construction project, the project manager needs to follow the below-identified steps.

• Identify the stakeholders
• Stakeholder Analysis
• Perform stakeholder engagement
• Stakeholder information flow
• Abide by agreements
• Stakeholder debriefing

Identify the Stakeholders

In a typical construction project, the first and the most important step for effective management of stakeholders in identifying and understanding them. Successful project managers need to recognize that no project can be fulfilled in complete isolation. an approach to identify the stakeholders of the project which project manager should follow although it’s not possible to identify all stakeholders. For example, if a residential project is executed in a residential area few of the direct and indirect stakeholders can be contractors, consultants, suppliers, residents, authorities, environmental agencies, the funding bank etc.

Stakeholder Analysis

Once in the project, stakeholders are identified next step is to do an analysis of stakeholders that can influence the project. It requires an understanding of all stakeholders and the project manager needs to develop a strategy based on the analysis. For example, in the above-identified stakeholders, direct stakeholders have a high level of interest and power in the project so they need to be managed closely.

Perform Stakeholder Engagement

Once the project manager has analyzed all stakeholders he needs to engage them accordingly. For example, a consultant contractor needs to make sure that all works are being performed as per the requirements and needs to keep them engaged by showing their good performance to them.

Stakeholder Information Flow

The project manager needs to identify exactly which information is needed that will be provided to stakeholders. Once its identified exact reports are needed to be prepared and distribute accordingly.  For example, In a construction project, the environmental authority is mostly concerned about the reports of protecting the environment. They want to make sure that the works are progressing as per identified methods.

Abide by Agreements

In a typical construction project, direct stakeholders are enforced into agreements to make sure that they will perform their duties in order to achieve the objective. For example, suppliers sign the agreement in order to supply the material now this is their responsibility to bring the material that will enable stakeholders to achieve the objectives.

Stakeholder Debriefing

Once the project is finished it is very important to note down lessons learned in the project regarding the stakeholders. This is to make sure if the same stakeholders come in the next project they are already ready to manage them. For example, in a typical construction project Building regulation authority is a constant stakeholder it is very necessary to have lessons learned from them in order to manage them effectively next time.

Conclusion

In conclusion, in the stakeholder management process project manager needs to manage the project in such a way that most of the stakeholders are satisfied and no stakeholder should create a problem for achieving this objective. The project manager has a responsibility towards the stakeholders which he needs to fulfill without sacrificing the main objective of the project.