What Makes Project Stakeholders Supportive and Adversarial Assistant

What Makes Project Stakeholders Supportive and Adversarial? Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 1

Why are Project Stakeholders Supportive? (Economic Considerations) Many projects, particularly of the infrastructure type, require large substantial amounts of labour. In poorer communities where job opportunities are scarce, unemployment usually high and the regional economy is structurally weak, projects may be the only source of income for large numbers of local people. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 2

Why are Project Stakeholders Supportive? (Economic Considerations) Projects do not require human resources only – they also often require material resource inputs in the form of raw materials and semifinished products as well as services to be provided onsite. Projects can hence boost local businesses, gene-rating a stream of income extending over a part or whole of the project duration. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 3

Why are Project Stakeholders Supportive? (Financial Considerations) Some projects have a long lasting impact on the communities in which they are undertaken – and, for projects which are considered highly desirable such as theme parks, the locationing of offices of major corporations and large shopping malls, this may reflect in an increase in property value over time. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 4

Why are Project Stakeholders Supportive? (Financial Considerations) Some projects may have a long-term desirable impact in terms of the volume of investment which they attract to (and generate within) the community after their completion. For example, a project to set up a vocational training institute in a town may prompt small and medium-sized businesses to settle there. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 5

Why are Project Stakeholders Supportive? (Business from Tourism) Tourism is big business – and tourists like to flock to places which offer opportunities for fun, sightseeing and recreation, and which may be unique in some sense. Tourism is the prime source of earning for many destinations and projects which can „facilitate“ it often generate widespread support. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 6

Why are Project Stakeholders Supportive? (Standard of Living) There are many projects which, on completion, can offer stakeholders access to an improved standard of living in terms of access to a larger and better range of goods and services. Projects which fall under this category include shopping malls, commercial plazas, cinemas and entertainment halls. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 7

Why are Project Stakeholders Supportive? (Acknowledgement) Many projects generate support among stakeholders simply because they are considered important for the development of the local community in which they are undertaken or for the wider community at large. An example is the Beijing Olympic Games 2008 which generated tremendous support among the Chinese people. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 8

Why are Project Stakeholders Adversarial? (Apprehension) People oppose projects because they fear possible confiscation of property and eviction from ancestral villages, townships and settlements, and forcible relocation or resettlement in unfamiliar places which offer relatively fewer economic opportunities and where promised compensation is inadequate or fails to materialize over time. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 9

Why are Project Stakeholders Adversarial? (Economic Losses) A major documented cause for concern among stakeholders in the context of some projects (such as the construction of nuclear power stations and factories) is the ensuing loss of their property value caused by the nature of the projects being undertaken in proximity. Research studies have determined the magnitude of loss in cases. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 10

Why are Project Stakeholders Adversarial? (Perceived Negative Economic Impact) Stakeholders may oppose a project because they expect it to have a negative economic impact on themselves and/or their community over time. For example, they may anticipate an increase in the prices of goods and services, and increase in rents which in particular would affect economically less well off persons. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 11

Why are Project Stakeholders Adversarial? (Pollution) A review of numerous projects worldwide reveals a common issue of great concern – pollution. This can despoil atmospheric, soil, water and acoustic environments, resulting in severe health hazards for individuals and communities and visual degradation of pristine settings. Large-scale chopping of trees is also widely opposed. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 12

Why are Project Stakeholders Adversarial? (Damage to Ecological Systems) Many stakeholders are acutely conscious of the adverse and long-term impact which projects may have on the ecological systems (fauna and flora) of their area or on a broader scale and oppose them on this ground. Powerful stakeholders include the globally active environmentalist organizations Greenpeace & Friends of the Earth. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 13

Why are Project Stakeholders Adversarial? (Traffic Headache) Projects of the construction type often cause traffic congestion and a higher risk of automobile accident and personal injury as the project gets underway. Many stakeholders do not want the personal inconvenience, excitement, and stress caused over a prolonged period of time by having a construction site in close proximity. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 14

Why are Project Stakeholders Adversarial? (Cultural Xenophobia) Many stakeholders oppose projects for the simple reason that the project owners are outsiders to the community. For example, there has been much criticism of MNCs projects in some developing countries, with fears of an „alienation“ of cultural values, norms and traditions being voiced. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 15

Why are Project Stakeholders Adversarial? (Suspicions About Need for Project) Some stakeholders may be of the opinion that there is no genuine need for undertaking a project - in other words they sincerely believe that the project serves no purpose and is in effect a waste of resources, or that it is based on a „contrived“ need and is actually designed to benefit the project owners at their expense. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 16

Why are Project Stakeholders Adversarial? (Frustration Over Lack of Consultation) Many projects are undertaken without thoroughly analyzing the stakeholder community and engaging them with respect to their concerns. Some stakeholders may resent not having been adequately consulted and/or informed prior to the project‘s initiation and hence may not endorse it as they may have otherwise done. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 17

Why are Project Stakeholders Adversarial? (Use of Strong-Arm Tactics) Occasionally the media reports about heavy-handed methods used by project owners and allies to get the project done. This may entail verbally or physically intimidating stakeholders who oppose the project, and in some documented cases can include more serious forms of violence like abduction and murder. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 18

Why are Project Stakeholders Adversarial? (Concern For Cultural Assets) Some projects such as dam and road construction extend over a large space and may cause damage to precious cultural or archeological assets at places which were once of historical significance and happen to be located at or in proximity of the project construction sites. Stakeholders have documented many such cases worldwide. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 19

Why are Project Stakeholders Adversarial? (Crime Fear) Large projects may require the influx of project employees from outside the community. Ocasionally, tensions between the „imported“ stakeholders working on the project and the community where the project is located may arise over diverse issues, one of which are incidents of crime committed by the outsiders. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 20

Why are Project Stakeholders Adversarial? (Image of the Project Owner) It has been observed on many projects that stakeholders are put off by the reputation, policies and practices of the organization(s) which are undertaking the project. This is especially true, for example, on projects in which large oil and mining companies are involved in developing countries. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 21

Why are Project Stakeholders Adversarial? (Negative Publicity) Some projects which generate considerable opposition may find it difficult to find a place where they can be implemented. Some stakeholders may be concerned that allowing controversial projects to be set up in their community may tarnish their reputation in other communities given the negative publicity about the projects. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 22

Why are Project Stakeholders Adversarial? (Attitude to Change) Most people tend to be content with their way of life as long as it meets all their basic needs and wants and offers a comfortable environment. As projects go hand in hand with change, and because the consequences of the change cannot always be accurately envisioned, stakeholders may be hesitant to support the project. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 23

Why are Project Stakeholders Adversarial? (Security Concerns) 9/11 changed our world, pushing security to the forefront of our concerns. Stakeholders may apprehend with increasing intensity the potential dangers inherent in the pursuit of certain project such as nuclear power stations, chemical factories and even infrastructure projects stemming from the threat of terrorism (or just accident). Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 24

Why are Project Stakeholders Adversarial? (Civil Strife Situations) Numerous intra- as well as interstate conflicts plague our world. In war-ravaged countries such as Aghanistan and Iraq, relief and reconstruction projects are underway on a grand scale. Many of the projects and their staff have over time been targetted by insurgents who are opposing and seeking to destabilise the state. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 25

Video Case Study: Chad-Cameroon Pipeline (Review of Project Stakeholder Issues and Concerns) This insightful 25 minute video made by the environmentalist organization Friends of the Earth documents the ‚broken promises‘ by the oil companies implementing the project, the project financers and governments of Cameroon and Chad toward the external stakeholders of this project which is one of largest infrastructure projects undertaken to date in Africa. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 26

Project Stakeholder Options Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 27

Influencing Projects: Stakeholder Options (Institutional, Political and Legal Options) MNon-cooperation MEnlisting media support to generate negative publicity) MExerting pressure on other stakeholders to oppose the project MBoycotts MLobbying politicians and legislators MPetitioning MLitigation Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 28

Influencing Projects: Stakeholder Options (Non-Cooperation) At the very least an actively adversarial stakeholder can be expected to adopt a noncooperative stance towards the projects, for example, by refusing to sell goods and services to the project implementors, refusing to work on the project, not providing information which could facilitate it and withholding needed support for the project in the relevant forums. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 29

Influencing Projects: Stakeholder Options (Enlisting Media Support) The Media is a powerful opinion-shaper – and a convenient means for mobilizing support for or against a project if a convincing case can be made. Adverse media coverage – even if based on misinformation - can cause serious complications for the project, making it (at the very least) expend resources unnecessarily on correcting stakeholder perceptions. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 30

Influencing Projects: Stakeholder Options (Influencing Other Stakeholders) Stakeholders are not isolated entities but can under circumstances form „alliances“ with other stakeholders to promote their objectives which may include opposing a project or some aspects of it. As individuals, stakeholders may be in a position to exert little influence but, collectively, they may be a powerful force to be reckoned with. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 31

Influencing Projects: Stakeholder Options (Lobbying Politicians and Legislators) Politicians and legislators are powerful forces which can obstruct the course of projects. In many documented cases, stakeholders have successfully mobilized political and legislative support to oppose projects. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 32

Influencing Projects: Stakeholder Options (Boycotts) Among the many options stakeholders have at their disposal to influence the course of a project is the use of boycotts. These may take the form of refusing to supply inputs for the project during the implementation phase or refusal to purchase the goods and services which will be available once the project is completed and enters its operational phase. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 33

Influencing Projects: Stakeholder Options (Petitions) Petitions are an active and highly overt means of showing public opinion against a project. Petitions have been used in a number of different contexts, such as infrastructure projects and projects where the private-sector wants to develop schemes in localities. In some instances, petitions have prevented the implementation of projects. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 34

Influencing Projects: Stakeholder Options (Litigation) Litigation is a powerful tool which stakeholders can use to influence projects. As all projects function in a legal environment, litigation is especially useful when the law leaves room for discretionary interpretation and where projects exhibit noticeable shortcomings in regard to the implementation of the laws which they are required to follow. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 35

Influencing Projects: Stakeholder Options (Withdrawal of Recognition) In some instances, project stakeholders can resort to the option of denying official recognition for a project or its owner as a means of modifying it or causing its abandonment. A recent example in this regard was UNESCO‘s threat to strike the German city of Dresden off its heritage list to prevent the construction of a bridge across the River Elbe. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 36

Influencing Projects: Stakeholder Options (The Resort to Illegal Options) MVerbal threats against project personnel MBlockading project construction sites, facilities and logistic supply routes MViolent rallies and demonstrations, and strikes against the project MActs of Violence: Rioting, arson, targeted sabotage, vandalism and other scare tactics MCriminal Acts: Abduction, assault, injuring and murder of project personnel Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 37

Influencing Projects: Stakeholder Options (Verbal Threats) One of the „milder“ illegal options which stakeholders have at their disposal for influencing projects is to direct verbal threats against project personell. The threats may hint, directly or indirectly, at some action that may happen at a future point in time and which may result in physical and/or material damage to the project and the people working for it. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 38

Influencing Projects: Stakeholder Options (Rallies and Demonstrations) Another highly overt means of showing opposition towards (or support for) a project is to organize public rallies and demonstrations with large media coverage. Through such events, a common sentiment is conveyed which other external forces – for example, political forces may seek to exploit for selfbenefit at the expense of the project. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 39

Influencing Projects: Stakeholder Options (Blockades) Project construction sites, facilities and supply routes are often subject to physical blockades by project stakeholders with a view to preventing supplies from reaching them and consequently causing both a delay as well as increase in cost to the project, besides intimidating the project personell. Violent clashes and injuries and deaths may occur as a result. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 40

Influencing Projects: Stakeholder Options (Violent Acts Against Property) Criminal acts may assume many different forms, including violence which is directed against property, such as, the systematic sabotage of project sites, facilities and machinery, rioting with the intention of vandalizing and pilferage of project resources, and arson attacks. Such actions can delay the project and frighten the owners into abandoning it completely. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 41

Influencing Projects: Stakeholder Options (Violent Acts Against People) Stakeholders may, in some circumstances, indulge in criminal acts such as assaulting, injuring, abducting or even murdering project personnel in order to prevent the implementation of certain projects. Stakeholders may resort to such extreme measures because they perceive the project as representing the interests of the state, with which they may be in prolonged armed conflict, or out of desperation because they have no other option to prevent the project which they perceive as an existential threat. Several incidents of premeditated and recurring violence against project staff have been documented in crisis regions around the world in recent years, for example, in energy projects undertaken in the Nigerian Oil Delta, in (re-) construction and social development projects in Afghanistan, Pakistan and Iraq, and in the strife-torn island of Jolo in the Phillippines. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 42

Case Studies: Use of Options by Project Stakeholders on Projects Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 43

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The Houston Chronicle, 9 th February 2008 Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 51

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