1 uncertainty and stakeholder management – a study of two railway projects hans petter krane, phd...

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1 Uncertainty and stakeholder management – a study of two railway projects Hans Petter Krane, PhD student, NTNU EURAM, Liverpool 14.05.2009

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Page 1: 1 Uncertainty and stakeholder management – a study of two railway projects Hans Petter Krane, PhD student, NTNU EURAM, Liverpool 14.05.2009

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Uncertainty and stakeholder management – a study of two railway projects

Hans Petter Krane,PhD student, NTNU

EURAM, Liverpool 14.05.2009

Page 2: 1 Uncertainty and stakeholder management – a study of two railway projects Hans Petter Krane, PhD student, NTNU EURAM, Liverpool 14.05.2009

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Outline of the presentation

• Introduction

• Background

• Main results, discussion

• Conclusions

• Questions, discussion

• Introduction

• Background

• Main results, discussion

• Conclusions

• Questions, discussion

Page 3: 1 Uncertainty and stakeholder management – a study of two railway projects Hans Petter Krane, PhD student, NTNU EURAM, Liverpool 14.05.2009

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What did we look at?

• How the Management of Stakeholders and Risks is Combined in two fairly ”media exposed” projects

• How risks to the functionality delivered by the projects are handled

• And how both internal and external stakeholders are handled

• Introduction

• Background

• Main results, discussion

• Conclusions

• Questions, discussion

Page 4: 1 Uncertainty and stakeholder management – a study of two railway projects Hans Petter Krane, PhD student, NTNU EURAM, Liverpool 14.05.2009

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What did we believe?

• Projects are not giving priority to functionality delivered

• Focus mostly on external stakeholders

• Focus mostly on threats

• Large projects have most resources; will do it best

• Introduction

• Background

• Main results, discussion

• Conclusions

• Questions, discussion

Page 5: 1 Uncertainty and stakeholder management – a study of two railway projects Hans Petter Krane, PhD student, NTNU EURAM, Liverpool 14.05.2009

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What did we find?

• Large project focused on costs & time – small project on ”getting it right”

• Both projects studied were mostly focussed on neighbours

• Main focus for both projects: Threats

– And the implications of this ? ……

• Introduction

• Background

• Main results, discussion

• Conclusions

• Questions, discussion

Page 6: 1 Uncertainty and stakeholder management – a study of two railway projects Hans Petter Krane, PhD student, NTNU EURAM, Liverpool 14.05.2009

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The setting

• Look at projects with ”high profile” towards society

• -That have much interaction with their environment

• -And may easily be critisised

• Important risks/uncertainties will be stakeholder-related

• Introduction

• Background

• Main results, discussion

• Conclusions

• Questions, discussion

Page 7: 1 Uncertainty and stakeholder management – a study of two railway projects Hans Petter Krane, PhD student, NTNU EURAM, Liverpool 14.05.2009

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Further issues in focus

• Governmental QA-regime

• Stakeholder and power relations

• The relation:

Line organisation Project

Approval of projects

for further develpment

For projects > 500MNOK

(60 M€), public sector

QA-1 QA-2

Choice of concept

Design (basis for

cost frame)

Detailed design etc.

QA of specified sets of project documentation

· Basic: Review project benefits / purpose

• Introduction

• Background

• Main results, discussion

• Conclusions

• Questions, discussion

Page 8: 1 Uncertainty and stakeholder management – a study of two railway projects Hans Petter Krane, PhD student, NTNU EURAM, Liverpool 14.05.2009

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Research questions

• In the paper formulated as: – Explore how risk management worked in the projects

– Study influence from internal and external stakeholders

• But here also deeper into:

– How were risks to ”functionality delivered” handled?

– How did power relations around the projects work?

• Introduction

• Background

• Main results, discussion

• Conclusions

• Questions, discussion

Page 9: 1 Uncertainty and stakeholder management – a study of two railway projects Hans Petter Krane, PhD student, NTNU EURAM, Liverpool 14.05.2009

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The cases• Large project:

– New double track line

– Commuter area near capital

– 450 Mill €

– Primo 2001 – Aug. 2005• Small project:

– Station upgrade

– Commuter area near capital

– 3 Mill €

– Autumn 2006 – summer 2007

• Qualitative research, Interview based– 24 persons (sum both projects)

• Introduction

• Background

• Main results, discussion

• Conclusions

• Questions, discussion

Page 10: 1 Uncertainty and stakeholder management – a study of two railway projects Hans Petter Krane, PhD student, NTNU EURAM, Liverpool 14.05.2009

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Some findings, with comments

• Here we have just gone deeper into a few

(– The rest you must read yourself!)

• Introduction

• Background

• Main results, discussion

• Conclusions

• Questions, discussion

Page 11: 1 Uncertainty and stakeholder management – a study of two railway projects Hans Petter Krane, PhD student, NTNU EURAM, Liverpool 14.05.2009

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• Safety requirements => Major alterations to plans

• Strong restrictions to establishment of new stations in curves

• Several changes in approach / possible outcome as time passed

• Expressing different perceived power among stakeholders

Example 1:

”The Curve” (in the small project)

New safety requirements

Objections to new plans

• Introduction

• Background

• Main results, discussion

• Conclusions

• Questions, discussion

Page 12: 1 Uncertainty and stakeholder management – a study of two railway projects Hans Petter Krane, PhD student, NTNU EURAM, Liverpool 14.05.2009

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Example 2:

”The Neighbourhood” (in both projects)

• Handling of neighbours defined as crucial (possibly stopping project, giving bad esteem)

• Hence: A well prepared strategy, projects organised to keep up good relations

• Stable situation over long period

• Introduction

• Background

• Main results, discussion

• Conclusions

• Questions, discussion

Page 13: 1 Uncertainty and stakeholder management – a study of two railway projects Hans Petter Krane, PhD student, NTNU EURAM, Liverpool 14.05.2009

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Example 3:

”The Reductions” (in the large project)

• “Reduction list” prepared if cost overruns • I.e. prepared for reductions in functionality/ benefits• When used: Internal disputes in railway authority

regarding use and effects• Seemingly internally stronger tensions regarding

• communication

• stakeholder relations

• power relations

than externally

• Introduction

• Background

• Main results, discussion

• Conclusions

• Questions, discussion

Page 14: 1 Uncertainty and stakeholder management – a study of two railway projects Hans Petter Krane, PhD student, NTNU EURAM, Liverpool 14.05.2009

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Some comments

• ”The Curve” – Strong safety authority (SJT)

– Multi phase development of relations

• ”The Neighbourhood”– Stable situation – taken care of - all OK!

• ”The Reductions”– Unclear area– Tensions, unsettled

• Introduction

• Background

• Main results, discussion

• Conclusions

• Questions, discussion

Page 15: 1 Uncertainty and stakeholder management – a study of two railway projects Hans Petter Krane, PhD student, NTNU EURAM, Liverpool 14.05.2009

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Possible conclusions

• Neighbours – well managed, stable relations• Safety authority (SJT) – unclear power relations• Line organisation Project – unclear, strong

interests • For risk management

as a whole:

X

Cost,

delivery

Functionality/Benefits

Positive

Opportunities

Negative

Risk

Ris

k po

larit

y

Risk area

• Introduction

• Background

• Main results, discussion

• Conclusions

• Questions, discussion

Page 16: 1 Uncertainty and stakeholder management – a study of two railway projects Hans Petter Krane, PhD student, NTNU EURAM, Liverpool 14.05.2009

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Summing up:

• This was a fairly loose collection of observations, but most important lessons are:

• Found dynamic, new, unexpected relations

– if not taken serious, may present major challenges to project success

• Challenging interest differences found

Line organisation Project organisation

– Problems if not recognised

• Introduction

• Background

• Main results, discussion

• Conclusions

• Questions, discussion

Page 17: 1 Uncertainty and stakeholder management – a study of two railway projects Hans Petter Krane, PhD student, NTNU EURAM, Liverpool 14.05.2009

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Questions, discussion

• Introduction

• Background

• Main results, discussion

• Conclusions

• Questions, discussion

Page 18: 1 Uncertainty and stakeholder management – a study of two railway projects Hans Petter Krane, PhD student, NTNU EURAM, Liverpool 14.05.2009

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Thank you for your attention !

[email protected](Tel. +47 975 15 809)