Critical Success Factors For Stakeholder Management Essay

2.7 CRITICAL SUCCESS FACTORS FOR STAKEHOLDER MANAGEMENT

Yang et al. (2009) has revealed the necessity, to develop a comprehensive list of success factors for effective stakeholder management. Based on interviews and surveys in Hong Kong fifteen CSFs were identified, ranked and grouped using factor analysis. Those critical success factors were viewed as those activities which should be addressed in order to ensure effective management of stakeholders.

The fifteen success factors identified as

1. Identifying stakeholder

2. Finding out their needs and expectations

3. Prioritising the stakeholders

4. Ensuring effective communication with all the stakeholders

5. Stakeholder participation in decision making

6. Resolving conflicts among the stakeholders

Failing to address the concerns and expectations of the stakeholders involved has resulted in many project failures (Li et al., 2013). During the project process, all stakeholders’ needs should be assessed “so that a satisfactory and realistic solution to the problem being addressed is obtained” (Love et al., 2004). Li et al. (2012) clarifies that stakeholders’ needs can provide an indication of the stakeholder groups’ concerns, the problems the project team faces, and stakeholders’ requirements of the projects. Furthermore, Olander and Landin (2008) also substantiated the importance of analysis of stakeholder concerns and needs through case studies in Sweden. Identifying and analysing stakeholder concerns in construction projects are essential tasks during the participation process in order to avoid project failures (Atkin and Skitmore, 2008).

2.7.3 Prioritising the stakeholders

Karlsen (2002) found in his study for project stakeholder management that some stakeholders have power because they control information and resources, while other stakeholders are important because they decide whether the project result is a success or not. Therefore it was important to prioritize which stakeholder is the most important to the project?

2.7.4 Ensuring effective communication with the

The work of managing stakeholder does not stop according to plan activities. Since the nature and membership of the project stakeholder change according to the project Lifecycle stage, so the team needs to continuously scan their project stakeholder for unplanned occurrences that may trigger a review when the activity moves from one stage of its implementation to other stages (Bourne, 2010). As a result of that the evaluation of stakeholder demands and influence should be considered as a necessary and important step in the planning, implementation, and completion of any construction project (Olander and Landin, 2005).

2.7.9 Evaluating stakeholder satisfaction

Yang et al., (2011a) placed an emphasis on the recognition of the fact that there are several stakeholders whose expectations and influences must be included in the project management process. And it has been emphasized that if a project’s key stakeholders are not satisfied with the ongoing project outcomes, the project team will as a result be required to adjust scope, time, cost and quality in order to meet the stakeholders’ requirements and expectations. Olander and Landin (2008) found that the level of stakeholder satisfaction depends on two basic considerations:

• The concerns and needs of stakeholders,

• The stakeholder management process, e.g. how they are