Stakeholders
All projects, changes or decisions that your organisation undertakes involve stakeholders. A stakeholder is someone who may affect, be affected by, or may perceive themselves to be affected by, your organisation’s decision or activity.
Stakeholders may be internal or external to your organisation. Customers, environmental advocates, those providing finance, suppliers and the general public are examples of potential stakeholders. The success or otherwise of your proposed project, change or decision can often be influenced by your stakeholders so it is important that you engage with them.
Stakeholders that are internal to your organisation need to be involved so that:
- There is a clear understanding and appreciation of the purpose and objectives of your project, change or decision
- Any disputes, misunderstandings or challenges are resolved early
- Everyone understands their role in managing risk, and their accountability
- The knowledge of the project team is used effectively to identify, analyse and evaluate risks and develop risk treatment plans
- Knowledge and lessons learned during the process are shared
- Those who need to be kept informed about the undertaking, or those required to make important decisions, can get the information they need about risk and its management.
You also need to communicate and consult with your external stakeholders. This involves a two-way dialogue between stakeholders, as opposed to a one-way flow of information from the decision maker. Unless stakeholders’ views are appreciated and acted on your project may not be regarded as a success, even if it is delivered in scope, to budget and within schedule.
We conduct stakeholder analysis in the early phases of the risk management process, as part of establishing the context, during which the objectives and concerns of each stakeholder are identified and documented. Such analysis plays an important part in demonstrating the integrity of the process and in ensuring the objectives of the undertaking encompass all legitimate stakeholders' objectives and expectations.
From this, a communication plan can be formulated, to determine how best to involve various stakeholders, bearing in mind their perspectives on what you plan to do.
Here is an example of a simple stakeholder analysis from a risk assessment for an upstream gas project:
Stakeholder |
Objectives |
---|---|
Shareholders |
Improved company value and share price Good relationships with Government, partners and other key stakeholders Strong safety and environmental performance Positive impacts on local communities |
Downstream operations |
Reliable supply of gas Gas meets delivery quality requirements |
Non-operating JV partners |
Maximise value for their shareholders Manage relationship with non-operator |
Managers |
Safe management of operations and facilities Sustainable operations Profitable operations, optimise gas production to meet demand Maintain staff morale and welfare Maintain positive reputation |
Employees and contractors |
Safe, equitable and stimulating workplace Continued employment at competitive remuneration |
Regulators |
Protect the environment and the community Ensure compliance with requirements |
Regional councils |
Maximise local benefits Upgrade local infrastructure (e.g. roads, airports, rail, telecommunications) |
Landowners |
Retain existing agricultural land use Minimise disruption and operating footprint Rehabilitation after cessation of production Upgrade infrastructure Maximise compensation payments |
Traditional owners |
Protection of cultural heritage and sensitive areas Engagement with the company |