INFLUENCE OF STAKEHOLDER MANAGEMENT ON PROJECT SUCCESS IN THE NORTHERN CAPE OPERATING UNITS (NCOU) PROJECTS OF ESKOM Name: Masekoala Lesesa Student number: 2016387397 A field study submitted to the UFS Business School in the Faculty of Economic and Management Sciences in partial fulfilment of the requirements for the Degree Master in Business Administration at the UFS Business School University of the Free State Bloemfontein Supervisor: Prof Helena van Zyl DATE: 15/10/2020 i DECLARATION "I declare that the Field Study hereby submitted for the Magister in Business Administration at the UFS Business School, University of the Free State, is my own independent work and that I have not previously submitted this work, either as a whole or in part, for a qualification at another university or at another faculty at this university. I also hereby cede copyright of this work to the University of the Free State." Signature: Date: 15/10/2020 ii ACKNOWLEDGEMENTS I am indebted to the following persons: • First and foremost, I would like to extend my sincere gratitude to my God and Heavenly Father for all the countless blessings You have showered upon me. Thank You for giving me enough courage, wisdom and powerful knowledge to complete this dissertation. • Thank you to Prof. Helena van Zyl for giving me the opportunity to pursue my Master in Business Administration (MBA) degree and for the patience and enthusiasm you showed in answering numerous questions. It is really an honour to be associated with a supervisor of your calibre. Your guidance and fresh ideas contributed a lot towards the successful completion of this MBA study. • To Eskom NCOU general manager, thank you for giving me the opportunity/permission to do my studies at Eskom NCOU. • To my colleagues at Eskom NCOU, thank you for support and participation in this dissertation. • To my parents, Mrs and Mr Lesesa, thank you for all the sacrifices you made raising me. Thank you for the warm love and support you have given me over the years. But most importantly, I thank you for teaching me humility. • To my six-year-old son, Lesesa Neo Kelebohile and my husband, Marake Thabo Daniel; you guys mean the world to me. I thank God every day for bringing both of you into my life and making me complete. Thank you for the support you gave me though my study. iii ABSTRACT The purpose of this study was to investigate the influence of stakeholder management on project success in Eskom NCOU since the year 2000. Eskom is South Africa’s electricity public utility, as well as the largest producer of electricity in Africa. The company has implemented a variety of projects to increase its capacity and to ensure that all plants are fully maintained and operating at optimum levels. Eskom has not been engaging properly with its stakeholders and that has resulted in delays of project deliveries as well as work stoppages. In addition, this has caused social unrest among citizens in various municipalities. The objectives of the study were to ascertain the influence of stakeholder management on projects. The historical background and objectives of the stakeholder management on Eskom projects were explained through the literature review. The instrument used to collect data in this research was semi-structured interviews. The research study unearthed that at Eskom, the use of stakeholder management is important, as it fosters relationships and communication crucial for driving projects, and also that stakeholder management improves motivation and decreases conflict. The research determined that stakeholders can play several roles in a project life cycle. The findings showed that the management of stakeholders plays a pivotal role in ensuring project success. The findings also revealed that the participants agreed that project managers should have a stakeholder management plan that is all- encompassing. The recommendations suggest that the general management of project stakeholders and project success is enhanced by improving both the project and the environment that promote the needs of project stakeholders. Effective communication between stakeholders and project leaders plays a pivotal role in ensuring that projects succeed. Project leaders should identify key stakeholders that have the capacity to stall or stop projects. They need to work hand in hand with stakeholders and address their concerns as much as possible. iv TABLE OF CONTENTS DECLARATION ........................................................................................................... i ACKNOWLEDGEMENTS ........................................................................................... ii ABSTRACT ................................................................................................................ iii TABLE OF TABLES .................................................................................................. vii LIST OF FIGURES ................................................................................................... viii CHAPTER 1: INTRODUCTION .................................................................................. 1 1.1 Introduction and Background ........................................................................................................... 1 1.2 Problem statement ........................................................................................................................... 3 1.3 Research objectives .......................................................................................................................... 3 1.4 Research questions ........................................................................................................................... 4 1.5 Research methodology ..................................................................................................................... 4 1.5.1 Research design ............................................................................................................................. 4 1.5.2 Sampling and target population .................................................................................................... 6 1.5.3 Data collection ............................................................................................................................... 6 1.5.4 Data analysis .................................................................................................................................. 6 1.5.5 Pilot study ...................................................................................................................................... 7 1.5.6 Ethical considerations .................................................................................................................... 7 1.5.7 Demarcation of field of study ........................................................................................................ 8 1.6 Significance of the study ................................................................................................................... 8 1.7 Outline of the study .......................................................................................................................... 8 1.8 Conclusion ......................................................................................................................................... 9 CHAPTER 2: LITERATURE REVIEW ...................................................................... 10 2.1 Introduction .................................................................................................................................... 10 2.2 Definition of key terms ................................................................................................................... 10 2.2.1 Project .......................................................................................................................................... 10 2.2.2 Stakeholder management ............................................................................................................ 11 2.2.3 Project success ............................................................................................................................. 11 2.3 Theoretical framework ................................................................................................................... 13 2.3.1 Stakeholder theory ...................................................................................................................... 13 2.3.2 Resource dependency theory ...................................................................................................... 13 2.4 An overview of the stakeholder management process .................................................................. 14 2.4.1 Project stakeholder identification ............................................................................................... 16 2.4.2 Stakeholder analysis .................................................................................................................... 18 v 2.5 The influence of stakeholder management on the success of projects ......................................... 18 2.5.1 Stakeholders’ involvement in project identification .................................................................... 19 2.5.2 Stakeholder involvement in project planning .............................................................................. 20 2.5.3 Stakeholder involvement in project implementation .................................................................. 21 2.5.4 Stakeholder involvement in project monitoring .......................................................................... 21 2.6 The opinions of various role players in projects about the relationship between stakeholder management and project success ........................................................................................................ 22 2.6.1 Stakeholder management in project success/failure .................................................................. 22 2.6.2 The significance of stakeholders in project management success .............................................. 23 2.7 The influence of communication with stakeholders on the success of projects ............................ 25 2.7.1 Stakeholder communication in a project ..................................................................................... 25 2.7.2 Influence of communication in a project ..................................................................................... 27 2.8 Improving stakeholder management practices .............................................................................. 27 2.8.1 Developing project stakeholder management ............................................................................ 27 2.8.2 Stakeholder engagement ............................................................................................................. 28 2.8.3 Motivating project stakeholders .................................................................................................. 29 2.9 Conclusion ....................................................................................................................................... 30 CHAPTER 3: RESEARCH METHODOLOGY .......................................................... 32 3.1 Introduction .................................................................................................................................... 32 3.2 Research design .............................................................................................................................. 32 3.3 Research philosophy ....................................................................................................................... 33 3.4 Research strategy ............................................................................................................................ 33 3.5 Sampling design .............................................................................................................................. 34 3.5.1 Target population ........................................................................................................................ 34 3.5.2 Sampling ....................................................................................................................................... 34 3.5.3 Recruitment of participants ......................................................................................................... 35 3.6 Data collection ................................................................................................................................ 35 3.7 Data analysis ................................................................................................................................... 36 3.8 Trustworthiness .............................................................................................................................. 36 3.9 Ethical considerations ..................................................................................................................... 36 3.9.1 No harm or injury ......................................................................................................................... 36 3.9.2 Permission .................................................................................................................................... 37 3.9.3 Informed consent ......................................................................................................................... 37 3.9.4 Confidentiality .............................................................................................................................. 37 vi 3.9.5 Conflict of interest ....................................................................................................................... 37 3.10 Limitations..................................................................................................................................... 38 3.12 Conclusion ..................................................................................................................................... 38 CHAPTER 4: DATA PRESENTATION AND ANALYSIS .......................................... 39 4.1 Introduction .................................................................................................................................... 39 4.2 Participants’ demographic features ................................................................................................ 39 4.2.1 Positions in the work environment .............................................................................................. 40 4.2.2 Working experience ..................................................................................................................... 40 4.2.3 Educational level .......................................................................................................................... 41 4.3 Stakeholder management and project success .............................................................................. 41 4.3.1 Understanding of the term stakeholder management as well as project success? .................... 42 4.3.2 Roles played by stakeholders in project management ................................................................ 44 4.3.3 Importance of various roles played by stakeholders ................................................................... 47 4.4 Influence of stakeholder management on project success at Eskom NCOU .................................. 49 4.4.1 What is the influence of stakeholder management on project success? .................................... 49 4.4.2 Effects of stakeholder management on the project team ........................................................... 51 4.4.3 Impact of stakeholder management on project deliverables...................................................... 53 4.5 Stakeholder management strategies for Eskom, Northern Cape ................................................... 54 4.5.1 Recommended stakeholder management strategies .................................................................. 54 4.5 Conclusion ....................................................................................................................................... 56 CHAPTER 5: CONCLUSION AND RECOMMENDATIONS..................................... 58 5.1 Introduction .................................................................................................................................... 58 5.2 Summary of research findings ........................................................................................................ 58 5.3 Conclusions and recommendations ................................................................................................ 59 5.3.1 Conclusion .................................................................................................................................... 59 5.3.2 Recommendations ....................................................................................................................... 60 5.4 Further research areas .................................................................................................................... 61 5.5 Conclusion ....................................................................................................................................... 61 Bibliography .......................................................................................................................................... 63 APPENDIX A: PERMISSION LETTER .................................................................... 68 APPENDIX B: INTERVIEW GUIDE ......................................................................... 69 APPENDIX C: ETHICAL CLEARANCE LETTER ..................................................... 71 APPENDIX D: CONSENT FORM AND ACCOMPANING LETTER ......................... 72 APPENDIX E: LANGUAGE EDITING DECLARATION ............................................ 76 vii TABLE OF TABLES Table 2.1 Stakeholders’ communication in a project ................................................ 25 Table 4.1 Theme 1. .................................................................................................. 42 Table 4.2 Theme 2. .................................................................................................. 49 Table 4.3 Theme 3. .................................................................................................. 54 viii LIST OF FIGURES Figure 2.1: Stakeholder management processes ..................................................... 15 Figure 2.2: Internal and external stakeholders ......................................................... 17 Figure 4.1 Gender .................................................................................................... 39 Figure 4.2 Positions.................................................................................................. 40 Figure 4.3 Employee experience .............................................................................. 40 Figure 4.4 Educational levels of employees ............................................................. 41 1 CHAPTER 1: INTRODUCTION 1.1 Introduction and Background A significant number of projects attribute their success to proper and top-notch stakeholder management; it is therefore important that any organisation, including Eskom, ensures that for every project that they do, all stakeholders are properly managed. This chapter introduces the topic, highlights the research background, problem statement and research objectives, and research questions, as well as the significance of the research. Projects are not performed in a vacuum, but within an organisation, within an industry, market, in communities and for customers or shareholders (Ahmed & Shepherd 2010:34). Heizer and Render (2010:109) define stakeholders as individuals or organisations (groups) that can influence the success or failure of a project or are affected by the success or failure of a project. Construction projects, by their diverse nature, have individuals and organisations actively involved in them, or whose interests may be affected positively or negatively by the project outcome (Gardiner, 2005:44). Studies have revealed that stakeholders can contribute to project success or failure (Newcombe, 2003:90). It is therefore imperative for management to consider the influence of its actions and decisions on stakeholders as the actions and decisions of stakeholders influence the project (Clements & Gido, 2012:113). It is in light of this discussion that this proposal aims to investigate the influence of stakeholder management on project success in Eskom Northern Cape Operating Units (NCOU) projects since the year 2000. Over the past two decades, increasing research has been done into stakeholder management due to its positive influence on project delivery (Gracy & Larson, 2006:156). According to Schwalbe (2009:126), there are several, but no formal approaches to stakeholder management by the construction industry. Kaiser and Kaplan (2006:117) state that the cultures of a nation and the construction industry environment have an influence on the stakeholder management process and project outcome. Stakeholder management is essential to achieve stakeholder needs and satisfaction (Too & Weaver, 2014:178). 2 Studies have identified several approaches to stakeholder management processes (Gracy & Larson, 2006:13). Varying approaches of stakeholder management (SM) can partly be attributed to the different construction industry practices, culture, environment and historical developments. Grutter (2010:154) states that developed and developing nations follow different stakeholder theories and practices; this is because of the differing nature of challenges faced by management in the different locations (Fung, 2017:29). Stakeholders are “people or organizations that are actively involved in the project, or whose interests may be positively or negatively affected by project” (Clements & Gido, 2012:18). According to Portny (2017:123), it is important that project managers understand the characteristics of and features of project stakeholder management to be able to identify and determine the stakeholder needs and expectations. In addition, Schwalbe (2017:112) reiterates that stakeholder management is about engaging, influencing and involving the stakeholders in the decision-making process. Eskom is South Africa’s electricity public utility; it is the largest producer of electricity in Africa. Since 2007, Eskom has been implementing load shedding due to failure in meeting the national demand for electricity. The lower supply of electricity has been due to plant breakdowns, coal shortages, employee strikes, and low capacity in aged plants. Consequently, the company has implemented a variety of projects to increase its capacity as well as ensure that all plants are fully maintained and operating at optimum levels. The Northern Cape Operating Unit (NCOU) is responsible for all the Eskom power plants in the Northern Cape, including Vanderkloof Hydroelectric Power Station, which generates a 240MW. In total, NCOU is responsible for operating 222 substations for Eskom. It is also responsible for the implementation of future Eskom electricity generation programs, which includes an installed capacity of 5MW in solar energy by the end of 2020 (Eskom, 2020:9). Eskom has not been engaging properly with its stakeholders and that has resulted in delays of project deliveries as well as work stoppages. In addition, this has caused social unrest among the citizens in the Northern Cape where residents of Dikgatlong Municipality, Barkley West Municipality, Delportshoop Municipality and Kimberley have been involved in various protests, which in turn are tarnishing the image of 3 Eskom (SABC Digital News, 2018; Sowetanlive, 2018). It is based on this background that the researcher seeks to investigate the influence of stakeholder management on project success in Eskom NCOU projects. 1.2 Problem statement Eskom seeks to monitor and manage its stakeholders in all their projects. Proper monitoring of stakeholders leads to early conflict resolution and project success. Stakeholders of Eskom have a big stake in their projects and hence managing them ensures that the projects conform to their specific needs. The challenge at Eskom and its Northern Cape Operating unit is the lack of engagement and consultation of Eskom’s stakeholders and communities. This challenge is evidenced through problems of stakeholders who fail to execute their responsibilities, workers that go on strikes and communities that carry out protests against Eskom. Failure to address these problems through engagement will lead to delays in current and future project implementation, which will consequently affect Eskom’s ability to generate enough electricity for the Northern Cape and South Africa as a whole. 1.3 Research objectives 1.3.1 Primary research objective The primary research objective of this study is to investigate the influence of stakeholder management on project success in Eskom NCOU since the year 2000. 1.3.2 Secondary research objectives The secondary research objectives of this study are to: • Explore the various role players on stakeholder management and project success; • Discuss the influence of stakeholder management on project success at Eskom NCOU; • Ascertain the influence of communication with stakeholders on the success of the Eskom NCOU core projects; and 4 • Recommend stakeholder management strategies for Eskom, Northern Cape to ensure project success. 1.4 Research questions The research questions for this study are the following: • What influence does stakeholder management have on the success of projects? • What are the key role players in projects who have an impact on stakeholder management and project success? • What is the impact of stakeholder management on the success of projects at Eskom? • How does communication with stakeholders influence the success of the Eskom NCOU core projects? • What are the recommendations for improving stakeholder management practices at Eskom? 1.5 Research methodology 1.5.1 Research design Research methodology focuses on the collection and analysis of data from the primary research (Burns & Grove, 2015:119). The research methodology constitutes the research design, research strategy, sampling, research instruments, validity and reliability, data analysis, pilot study and ethical considerations. The research design is a method of collecting data that involves grouping together many components of research in a systematic manner with the purpose of addressing the research problem correctly (Butler, 2014:129). According to Cader (2016:123), examples of research design include causal-comparative, explanatory, correlational, descriptive and exploratory research. 5 a. Experimental studies Experimental studies refer to control-based studies where the researcher introduces the cause and records the change produced for the researcher to starts causes and waits to observe its effects (Kumar, 2014). b. Descriptive research Kowalczyk (2013:1) defines descriptive research as research as research to discover information and also give clarification. Descriptive research seeks to describe existing conditions without analysing relationships among variables. c. Explanatory research Heeks (2013:182) defines explanatory research as research to explain cause and effect. It focuses on a single area and seeks out details that explain said phenomenon. d. Exploratory research Kumar (2014) defines exploratory research as research that is done with the purposes of gathering descriptive information and answering questions like why a certain phenomenon exists. Exploratory research is unrestricted, interactive and open minded in nature. This research study adopted an exploratory research design, because the aim of the study is to explore how stakeholder management affects project success in Eskom NCOU projects. The study was centred on the various views of the stakeholders regarding the level of stakeholder engagement and how it has affected project success. Research philosophy “is the worldview that the researcher has in order to understand the nature of the problem philosophical” (De Vos, Fouche & Deport, 2011:22). The research philosophy chosen for this study is phenomenology, described as a qualitative research approach philosophy. “The qualitative research approach looks deeper at the problem and allows engagement of participants and has a more profound analysis of the problem as it derives understanding form the set of experiences, views and beliefs of the participants” (Gray, 2014:53). The reason behind the choice of phenomenology philosophy for this research was because it allows for a deeper look at the subject from the participant’s point of view. 6 1.5.2 Sampling and target population Sampling strategy is a technique that breaks down the target population into a smaller number that is easy to manage (Burns & Grove, 2015:123). There are two types of sampling, namely probability and non-probability sampling. According to Coppersmith (2013:62), probability sampling gives everyone in the target population the same opportunities of being selected to participate in the research study. Examples of probability sampling include simple random, systematic, cluster and stratified random sampling. The target population can be defined as the total number of people in a research process where vital information will be gathered (Butler, 2014:76). The total number of Eskom employees in the Northern Cape is 655; of these 107 work within the assets creation department, who are responsible for handling Eskom projects on a daily basis. The 107 employees comprise 55 employees with 6 to 10 years’ experience (51%); 20 employees with more than 10 years’ experience (19%); and 32 employees with 1 to 5 years’ experience (30%). A sample of 16 employees was chosen through stratified random based on years of experience. Thus, 8 participants with 6 to 10 years’ experience were selected; 3 with more than 10 years’ experience; and 5 with 1 to 5 years’ experience. 1.5.3 Data collection The proposed study used semi-structured interviews to collect data. The reason for selecting semi-structured interviews is that they encouraged the collection of data about the point of views and experiences of the stakeholders involved with Eskom. The semi-structured interviews were administered by the researcher through an interview guide which questions were drafted based on the research questions. 1.5.4 Data analysis Data analysis is an approach used to present, interpret and analyse data obtained from the primary research (Cader, 2016:117). The proposed study used thematic data analysis. According to Dawson (2015:63), thematic data analysis has the ability to interpret and analyse variables involved in the research. The research will 7 establish themes that enable the researcher to analyse findings in a logical way that answers research questions. 1.5.5 Pilot study A pilot study is research carried out before the actual research study is done. It is conducted to verify the viability of the study and check whether there is a need to modify the research or not (Butler, 2014:32). The proposed study selected four Eskom employees to conduct the pilot study; these four employees were not included in the actual research. The pilot study was used to test the reliability of the questions in the interview in answering the research questions, thereby allowing the researcher to make necessary adjustments if needed before the full study. 1.5.6 Ethical considerations The proposed study considers ethical principles in the research process. The ethical principles include no harm or injury to the research participants, permission, consent, confidentiality. In addition, the researcher obtained ethical clearance from the university. The Ethical clearance letter is attached in the Appendices, the Ethical clearance number is UFS-HSD 2020/0627/1307. 1.5.6.1 No harm or injury Harm or injury happens when a research participant is hurt either emotionally and/or physically as a consequence of participating in the study (Cader, 2016:115). The proposed study tried to avoid harm and injury. Emotional harm was avoided by not using any offensive language that is racial, tribal and gender sensitive. 1.5.6.2 Permission A written letter was submitted to Eskom, seeking permission for the research study to be conducted at the organisation. 1.5.6.3 Informed consent Informed consent is a way in which participants are not coerced or forced to participate in the research process (Burns & Grove, 2015:62). The proposed study gave participants consent letters to sign to indicate that they participated out of their 8 own free will. The consent letters informed the participants of the research problem, research questions as well as how the research findings will be used. 1.5.6.4 Confidentiality The records of all the participants were put in a locked safe place to ensure their confidentiality. The identity of participants was not requested in order to maintain confidentiality. A research report was written at the completion of the research in line with the stipulation by the University. The names and confidential information of the respondents will not be published to keep their identity unknown. 1.5.7 Demarcation of field of study The focus of the study was to investigate the influence of stakeholder management on project success in Eskom NCOU projects since the year 2000. The study involved Eskom employees and the field of study of this research undertaking is project management. 1.6 Significance of the study The study can be valuable to Eskom’s NCOU projects department as it reveals how the department can monitor and manage their stakeholders effectively in all their projects. The department will also be able to achieve project success based on effective management of key stakeholders and to conform to their specific needs. For employees, they will be in a position to appreciate the importance of stakeholder communication which will eliminate problems of stakeholder engagement, delays in current and future projects implementation. The economy as a whole can benefit from Eskom’s efficiency and effectiveness in provision of electricity for the Northern Cape and South Africa as a whole. For the academia, the study may add knowledge on ways of improving stakeholder management, which can be used in undertaking future studies. 1.7 Outline of the study Chapter One: Introduction and problem statement. Chapter Two: Literature review. 9 Chapter Three: Research methodology. Chapter Four: Results, discussion and interpretation of findings. Chapter Five: Conclusions and Recommendations. 1.8 Conclusion The above research proposal seeks to investigate the influence of stakeholder management on project success in Eskom NCOU projects. Management has the role of guiding organisations towards successful attainment of organisational goals; it is therefore important for them to understand the role that communication, engagement and stakeholder management plays in ensuring that projects are successful and organisational goals are achieved. The above proposal has detailed the research problem and questions, the literature on stakeholder management as well as the research methodologies shaping the proposed research on stakeholder management and project success. 10 CHAPTER 2: LITERATURE REVIEW 2.1 Introduction The literature reviewed in this section defines and portrays the idea of stakeholder management influence and its contribution to project success. The research problem looks into the importance of managing project stakeholders to ensure that the project objectives are achieved despite varied stakeholder interference. This chapter considers issues to do with project stakeholder identification and the level of influence these stakeholders will have to the success of the project. It is critical to also examine the objectives of the identified stakeholders and how they will influence project. Communication plays a pivotal role; as such, the role of the communication process between critical stakeholders and project managers was put into perspective. Since project stakeholders have a significant influence on the entirety of any project, it is therefore vital to examine in detail the extent of their influence on projects. Accordingly, a short theory review on project strategy and its connection to project success follows. 2.2 Definition of key terms 2.2.1 Project A project can be described as a methodology utilised by an organisation to accomplish its key objective; the procedure could be recommended to have a beginning and an end date (Achterkamp & Vos, 2017:435). In addition, Barber and Warne (2015:1033) state that a project incorporates the use of “human and non- human resources (for example people, equipment, money)”. Binder (2017:554) defines a project as a transitory undertaking attempted to make a unique product, service or result. Bourne and Walker (2015:650) distinguish the five attributes of a project as follows: • A set-up objective; • A predetermined life expectancy with start and end; • The participation of various offices and experts; • A task that has never been done; and • Defined time, cost and execution prerequisites. 11 Projects have various constraints, which include scope, cost, time, quality, risks and resources. Managing these constraints is one of the key difficulties project management intends to address. 2.2.2 Stakeholder management Project stakeholders have been broadly examined in different project management works. Cleland and Gareis (2016:119) depict project stakeholders as individuals whose interests could influence the result of the task. Gido, James and Clements (2011:228) contend that although project stakeholders are a group of individuals who have different interests for a specific task; they are likewise intrigued by an effective result regardless of the degree of interest. The Project Management Institute (2018) defines a project stakeholder as an individual, group, organisation, who may affect, be affected by a decision, activity or outcome of a project undertaking. Internal stakeholders may include employees, management, project team members, and government and donor organisations. External stakeholders may include customers, beneficiaries, government, local authorities, parastatals, contractors and subcontractors. Hamilton (2014:178) proposes that stakeholder management manages the relationships between partners within project undertakings. This relationship must be created and organised to accomplish a fruitful result. Nicholas (2016:179) says stakeholder management is just simple persuasion of stakeholders by project managers. Harrington and McNellis (2016:443), as well as Jepson and Eskerod (2016:330) concur that stakeholders are comprised of more than one person, dealing with this relationship as depicted by Kerzner (2014:35) 2.2.3 Project success Rodolfo (2018:4) defines a successful project as one that meets the defined objectives within its budget frames and scheduled times. However, project success for development projects can be seen as one that goes beyond meeting budgets and timeframes, they deliver benefits and meet the expectations of the stakeholders, beneficiaries and the donors. Rodolfo (2018:5) continues to say that project success can also be measured in terms of how effective or efficient they were. Effective projects are measured in terms of benefits and stakeholder satisfaction. Efficient ones depend on how the project manages the limited resources to meet the set 12 goals, whilst maintaining good relationship with both internal and external stakeholders. Lock (2017:301) supports the above saying project success entails the fulfilment of stakeholder needs estimated by the achievement criteria as distinguished and concurred at the beginning of the project. Koester (2014:177) proposed that a project is a success if the final product gives value to the customer and improves the livelihood of the consumers. Rodolfo (2018:4) postulates that it is important for success criteria to be defined correctly at the start of the project, this will enable an object evaluation at project completion. As such, he sets three basic levels of project success determination: • Level 1: Project Completion Success: This level sets the tone on the criteria used to determine the extent of the success of the project output. It deals with project constraints, scope, budget, schedule and quality. These criteria are limited to the duration of the project and success can be measured during and soon after project termination. • Level 2: Results Success: This sets the criteria by which the product or service is deemed a success or failure. These criteria are used once the product is delivered to the intended beneficiaries. They receive the final product, use it and give feed back to the project managers and stakeholders on the suitability of the product. • Level 3: Development Success: This determines the criteria by which a product or service brings value to the beneficiaries or stakeholders and how it contributes to their wellbeing in terms of things like health, social, and economic benefits. Conclusively, the criteria set apply to the electrical industry in the Northern Cape. Projects undertaken have budgets, scope and timeframes which relate to level 1. The electricity delivered is used by consumers, including locals, industry, metropolitans, government departments and communities and this answer to level 2. Finally, introduction of electricity to rural communities adds value and improves their wellbeing; hence is developmental. 13 2.3 Theoretical framework 2.3.1 Stakeholder theory The stakeholder theory recommends the standards for overseeing stakeholders of an enterprise. It categorises stakeholders and what they may expect, it helps project managers to decide on the most proficient method to address these requirements (Ackermann & Eden, 2016:245). This theory tries to help enterprises to manage dynamic business conditions and unpredictable needs of different stakeholders of the company (Heeks, 2013:204). Young-Hoon (2015:130) further recommends that the level of influence of every stakeholder on the project should be surveyed. Ackerman and Eden (2016:248) note that the significance of stakeholders to organisational strategy and general organisational planning has to be valued. However, stakeholders’ consideration regarding performance has not been adequately done. In the public sector, it is fundamental that performance measurement is done and the outcomes be utilised for administrative purposes to enhance the rating of an enterprise. According to Binder (2017:322), organisational planning perceives that stakeholders influence the activities of an enterprise. The management is required to fuse stakeholders’ needs in business operations. The adoption of stakeholders’ approaches to strategic management should direct future decisions of the organisation. The stakeholder theory also stresses the importance of the connection between project managers and vital project stakeholders. In particular, management should comprehend that the achievement of projects can be affected incredibly by the involvement of different stakeholders. These stakeholders will be engaged, depending upon the relationship they have with the project management and not junior staff working on behalf of top management (Binder, 2017:323). 2.3.2 Resource dependency theory The resource dependency theory points out that companies do not operate independently, as they depend on different factors/enterprises in the business environment. This dependence gives external elements an influence in controlling how an enterprise operates. This theory states that stakeholders that possess resources/assets required by an enterprise are viewed as significant. However, 14 Heeks (2013:211) argues that capacity does not exclusively show the significance of stakeholders. Authoritative theories see authentic stakeholders as those that truly count. The external environment should be surveyed in accordance with stakeholder desires and this be fused in business goals. In managing its stakeholders, project managers need to perceive that not all stakeholders’ needs will be met. Some decisions will bring about conflicts of interest and others may mean rearrangement of interests for a specific stakeholders’ group (Ackermann & Eden, 2016:251). 2.4 An overview of the stakeholder management process Barber and Warne (2015:1040) affirm that the identification and analysis of the desires and objectives of a stakeholder help to decide the level of influence that they have on the project. In this regard, project managers should employ techniques that assess the level of the influence a stakeholder could have on an undertaking, instead of the effect of the project on the stakeholder or the stakeholders’ goals. On the other hand, Binder (2017:574) contends that the project supervisor and his team ought to facilitate a procedure that empowers stakeholders to recognise, negotiate and accomplish their targets through stakeholder empowerment and engagement. Following a broad survey of the literature, Bourne and Walker (2015:663) infer that the principle stakeholder management theory concerns two primary areas: • Identification of project stakeholders, assessing their interests and dedication, and deciding their potential effect on the project; and • An analysis of various kinds of stakeholder relationships, disclosing how stakeholders respond to the differences between the project goals against their goals, and defining procedures dependent on this analysis. The stakeholder management approach described in the PMBOK Guide (PMI, 2013:114) appoints the systems associated with stakeholder management to the project management procedure groups as depicted in Figure 2.1. This structure classifies stakeholder analysis as systems under the process group identify stakeholders. 15 Figure 2.1: Stakeholder management processes (Source: PMI, 2013:115)) As per the PMBOK Guide (PMI, 2013:116), stakeholder management incorporates forms required to accomplish the following: • Identify stakeholders; • Analyse stakeholder desires and their effect on the project; and • Develop powerful commitment systems that encourage stakeholder contribution in project decision making and execution. Furthermore, the PMBOK Guide (PMI, 2013:118) recommends that the focal point of stakeholder management should be on constant communication with project stakeholders. Cleland and Gareis (2016:130) define stakeholder management as the procedure of identification, analysis, decision-making, communication and all other sorts of exercises in terms of overseeing stakeholders. They classify stakeholder management activities into two interrelated sub-groups of stakeholder analysis and stakeholder engagement. Research by Gido et al. (2011:246), and Harrington and McNellis (2016:449) extensively concur that stakeholder analysis includes the following three stages: 16 • Identifying stakeholders including their interests; • Assessing stakeholders’ influence; and • Analysing the relationships of stakeholders. Similar to the PMBOK Guide (PMI, 2013:120), Gido et al. (2011:252) demonstrate that powerful communication among stakeholders is vital to the procedures associated with stakeholder engagement. Hamilton (2014:184) concludes that the inability to engage partners at the beginning of a project influences antagonistically on the robustness and quality of decisions. Stakeholder engagement is interconnected with stakeholder identification as well as stakeholder analysis processes, as certain stakeholder identification and analysis strategies require information that is determined from stakeholder engagement (Phillips, 2013:188). For instance, snowballing is a stakeholder engagement strategy utilised to include existing stakeholders in identifying other stakeholders and their inclinations (Harrington & McNellis, 2016:450). Stakeholder workshops can give significant information in respect of the connections between stakeholders. This information would then be used to assess these relationships and their effect on the project. The interrelationship between stakeholder identification, stakeholder engagement and stakeholder analysis shows the dynamic setup of the stakeholder management procedure (Jepson & Eskerod, 2016:336). 2.4.1 Project stakeholder identification During a project’s lifecycle, various people or groups with explicit interests will be identified. The difficulty is to distinguish these project stakeholders and assess their needs and desires in connection to the goals of the project to determine which needs and desires will be fulfilled, and recognise which stakeholders can have an effect on the decisions of the project (Mesly, 2017:381). There are two perspectives with respect to the starting point for overseeing stakeholders. Nicholas (2016:620) suggests the starting point as distinguishing the suitable stakeholders followed by deciding the kind of their interest (classification). On the other hand, Perrin (2018:42) considers stakeholder classification as the starting point and then followed by identification advancing the idea that a job based 17 model ought to be lined up with the setting of the project. Project managers have the freedom to choose which criterion in distinguishing between stakeholders. PMI (2013:102) separates between factors that have effect on the project and which cannot be influenced by the project stakeholders, and those components that can be influenced by the project stakeholders. Phillips (2013:270) reasons that project stakeholders can only with significant effort influence general environmental variables (legal, economic, political and technological factors), and within the project environment recognises the external stakeholders as well as the internal stakeholders as shown in Figure 2.2. Figure 2.2: Internal and external stakeholders (Source: Stevens, 2012:621) Internal stakeholders are a group of individuals known as the most significant, because they are part of the project strategy. They are officially bound with the organisation, which execute the task, for instance through a business contract, hence they are hands on from the onset of the project until its termination. External stakeholders are individuals or groups who are not officially individuals from the organisation, which execute the task but have interests in what the internal stakeholders are doing. In any case, they can have a major significance or they can be very vital for the success of the task. Due to its determination, the group requires constant supervision of the project supervisor (Stevens, 2012:390). Wysocki (2013:365) singles out the two most significant stakeholders of each venture who are the producers of the project and customers. 18 2.4.2 Stakeholder analysis Achterkamp and Vos (2017:440) state that stakeholder analysis refers to the procedure whereby stakeholders are comprehended in terms of their power, role, authenticity, interest and capacity. Project managers should therefore be able ‘to foresee issues and solutions in an undertaking. As such, stakeholder analysis ought to happen when the team still has the opportunity and time for direction. Binder (2017:565) says stakeholder analysis compels project managers to possess committed logical and instinctive abilities to recognise stakeholders and work with them to comprehend their desires and influence upon project success. He further contends that this idea helps a procedure that maximises project stakeholder positive input, and subsequently limits any potential impeding information and its influence on a project. While researchers have contributed immensely on stakeholder analysis in project undertakings and conceptualisation, Bourne and Walker (2015:168) contend that partners are not normally overseen by project managers. However, what is overseen is the manner by which information is transmitted to stakeholders to empower them to take part in a venture. From a practical point of view, Cleland and Gareis (2016:123) note that since stakeholders can make or kill a task, their inclusion in the project is fundamental; yet the way to keeping them tuned in is to communicate continually. Gido et al. (2011:235) reason that for the management to be productive, it is significant for the project manager to comprehend the desires for all project stakeholders. 2.5 The influence of stakeholder management on the success of projects Stakeholders certainly do have an influence on projects. According to Gido et al. (2011:259), stakeholders can have a negative effect on projects, which would show through the rise of issues and vulnerability of the project. This principally depends on their point of view and the perceived effects of the project on their interests. Jepson and Eskerod (2016:338) further highlight that these issues and vulnerability can lead to project failure, which is normally caused by provision of deficient resources, poor communication and changes to the extent of work. Nicholas (2016:632) says that project managers need to profit from the early stakeholder identification and management right at the beginning of a project and this will convert into great project 19 performance. Kerzner (2014:45) believes that project managers should be able to recognise critical stakeholders that can conversely affect a project. This will influence the management style; hence initiating being proactive versus being receptive and driven by crisis. In this instance, the project manager will proactively interface with the different systems trying to motivate stakeholders to follow objectives in a helpful way within the task team. 2.5.1 Stakeholders’ involvement in project identification Project stakeholders are people or enterprises effectively engaged with a project or whose interests might be influenced, because of project execution or completion of a project and might as well have influence over the project’s outcome and objectives. Stakeholders benefit by having their desires comprehended and overseen through communication of suitable messages, as well as guaranteeing that the stakeholders comprehend what support they should give to the project. Stakeholders have a stake in the project’s outcome. This could be a right, an interest or an ownership. Rights can be moral or legal possession in a particular situation (Zandhuis & Newton, 2014:176). Authentic and valid stakeholders should be identified, and their capacity and influence comprehended to deal with their potential influence on projects (Ackermann & Eden, 2016:198). The identification of project stakeholders is part of the project planning procedure, and comprises lifting people and groups considered in the project or affected by it, appropriate techniques would then be able to be defined and implemented to expand a stakeholder’s positive influence. This turns into a key risk issue for project directors. Inability to appropriate the association between the risk management and stakeholders, management has prompted innumerable project failures (Cleland & Gareis, 2016:233). Hamilton (2014:347) showed that stakeholder inclusion in electrical energy projects enabled projects to be driven in the right direction. All participants included in a project have an influence on the organisation and leads to the project’s prosperity. Stakeholders naturally have objectives and interests which they protect. As such, this helps to promote better decisions and development of apparatuses for data training which is essential for the project execution. The fundamental focus on the activities needs to be on supporting the implementation of projects instead of developing decision-making systems. 20 Information should be accessible to key stakeholders to assist with trade-offs (Barber & Warne, 2015:166). Project management aptitudes are significant, because they provide the will, the vitality and direction from the time the undertaking is conceived to the time the task is ended. Limited aptitudes render the recovery programme undirected, with less energy (Lock, 2017:172). 2.5.2 Stakeholder involvement in project planning Stakeholder involvement in project planning exercises includes identification of the project’s goals, the detailing of the required project resources and their allotment, the determination of the strategies to be utilised to convey the project’s finished product, reacting to significant occasions and assessing activities and results. The advantages of stakeholders in the planning process decrease distrust of the undertaking procedure or result. It also increases commitment to the objectives of the project and elevated credibility of the venture’s outcome (Perrin, 2018:225). In this way, a connection between stakeholders’ involvement in project planning and their influence on the performance of the project was examined by Bourne and Walker (2015:540) in various projects. As indicated by their conclusion, stakeholder involvement has an effect on various project objectives, software project planning and resource designation decision and project execution. Mesly (2017:379) contends that stakeholder contribution in planning includes their inclusion in deciding how to plan, building up the scope statement, choosing the planning group, identifying expectations, making the work breakdown structure, recognising the activities required to finish those expectations, administering systems in their coherent sequence, assessing the activity resource requirements, developing schedules, risk planning, developing budgets and conventional endorsement to start work (Lock, 2017:298). Moreover, processes, for example, planning for scope management and for communication, identifying roles and duties, figuring out what to buy for the project and holding a commencement meeting are commonly advisable. The most widely recognised instruments or procedures utilised in the stakeholder involvement in the planning stage are called the Project Plan and Milestones Reviews. Stakeholders are fully involved in the planning stage. At this level, the project authorities set up the project work plan, spending plan and opening a bank account for channelling project funds (Nicholas, 2016:173). 21 2.5.3 Stakeholder involvement in project implementation Management of projects is staggeringly challenging (Gido et al., 2011:76), coming from the unordinary issues and risks of the variety that customary techniques cannot process (Harrington & McNellis, 2016:88). This vulnerability and complexity identify with the characterising qualities of projects, namely long span, tremendous investment and numerous uncontrollable new factors (Jepson & Eskerod, 2016:452). The involvement of stakeholders in project implementation is a significant exercise in project management. The implementation of projects assists with organising individuals and different resources needed to carry out the project. According to Heeks (2013:212), stakeholder contribution in project implementation is required to change the planned goals and strategies of a project into efficient activities. This leads to designation of resources, productive use of these resources, and the proficient and viable conduct of particular assignments through well-coordinated resources and individuals to accomplish the objectives of the project. 2.5.4 Stakeholder involvement in project monitoring It is vital for project managers to ensure that the project is on course and all the resources and budgetary allocations are adhered to. This impinges on the need to monitor the progress of the project continuously. However, projects may not progress as initially planned and may need a project path, time and budget alterations. It is therefore vital for the project managers to involve stakeholders in the monitoring process, as they need to be consulted on such issues. One approach to help fulfil stakeholder concerns and encourage openness is to include project- influenced stakeholders in observing the execution of mitigation measures or other social and ecological programmes. Such inclusion, and the flow of information produced through this procedure, can likewise urge local stakeholders to have a higher level of responsibility regarding their environment and welfare in connection to the project, and to feel engaged and empowered that they can plan something practical for addressing issues that influence their lives. Participatory monitoring will additionally fortify associations between the project and project stakeholders (Zandhuis & Newton, 2014:139). 22 2.6 The opinions of various role players in projects about the relationship between stakeholder management and project success 2.6.1 Stakeholder management in project success/failure Research on project failures in the electrical energy industry in both developing and developed nations exhibits a comparable pattern. For example, Koester (2014:80) highlights the generally horrible performance and low efficiency of energy companies working inside South Africa. Several research projects have been done in various industries in the field of assessing project success. However, a clear and unambiguous meaning of project success has not been acquired (Mesly, 2017:385). In the energy industry, specialists in the area of project success centre around two primary interrelated subjects; in particular project success criteria, as well as project success factors. Nicholas (2016:624) characterises project success criteria as the measure by which an undertaking will be decided as a success or failure. Project success factors are the elements that influence task execution. Customarily, the triple imperatives of time, cost and quality, depicted by PMI (2013:110) as “the iron triangle”, are the criteria used to gauge the success of a project in the energy industry. However, Perrin (2018:48) contends that the necessities and fulfilment of the project stakeholders are similarly significant in project success criteria. Especially the long-term success of significant electrical energy projects is controlled by the project stakeholders’ impression of the results accomplished, as opposed to the conveyance of the project as per the planned spending plan, timetable and details (Phillips, 2013:276). To add on, the study by Stevens (2012:395) perceives stakeholder satisfaction as the key project goal. Wysocki (2013:371) demonstrates that success criteria can be ordered into two primary groups: • Hard goals, which are quantifiable and tangible (for example criteria of time, cost, quality, environmental sustainability and, health and safety); and • Soft goals, which are subjective, less quantifiable and intangible (for example, effective communication, satisfaction and connections among stakeholders). 23 The project success factor of stakeholder management influences both the soft and hard success criteria. For example, an examination by Young-Hoon (2015:137) exhibits that an absence of commitment and poor communication between project stakeholders are two of the most basic elements causing delays in electrical energy projects. Besides, an investigation of cost overruns in electrical energy projects concluded that communication and coordination between all project stakeholders can significantly diminish the time and in general venture costs (Young-Hoon, 2015:137). Given the increasing accentuation on stakeholder satisfaction as a vital project achievement basis and the potential for time and cost decreases, it is obvious that stakeholder management is viewed as a basic factor in the effective conveyance of electrical energy projects (Achterkamp & Vos, 2017:443). 2.6.2 The significance of stakeholders in project management success According to Young-Hoon (2015:145), knowing what role stakeholders play in project management is significant. Most ventures include various stakeholders, and every one conceivably can accelerate, slow down or totally deter progress. Stakeholders may not be in the controlling position; however, they can be very helpful sponsors, advocates and specialists of change (Young-Hoon, 2015:145). Young-Hoon (2015:146) adds that it is essential to keep stakeholders happy. Frequently, the process of overseeing stakeholders is seen by project managers as a type of risk management. Keeping stakeholders happy and living up to their desires will decrease the danger of negative influences influencing the project. Achterkamp and Vos (2017:446) highlight that good stakeholder management will not just clear the way of potential hindrances; it will likewise support quick progress and eventually improve the nature of the outcomes delivered. It is not just an instance of keeping stakeholders happy; it is additionally about utilising their expertise, time and influence to assist with achieving objectives. The capacity to comprehend the significance of stakeholders in a project is apparently what isolates the best project managers from the normal performers. Barber and Warne (2015:1044) highlight the significance of stakeholders and their management in a project as follows: 24 2.6.2.1 Free resources Taking advantage of the knowledge and abilities of engaged stakeholders can give project managers access to a large pool of extra resources at no additional expense. 2.6.2.2 Increased success perception Good stakeholder management throughout an undertaking should guarantee that stakeholders view the project in a positive way, regardless of the result. If stakeholders’ expectations are managed effectively over the project span, they are likely to see a project as a triumph than the individuals who have been disregarded. 2.6.2.3 Smooth handover process It is simpler to hand over the expectations to somebody who has been completely mindful of the undertaking’s developments. Stakeholders who have been engaged viably will progressively be prepared to take the reins when a project ends. Stakeholder management bolsters fruitful project conveyance from various perspectives (Binder, 2017:579). However, it is not easy for project managers to keep each stakeholder engaged and informed in every case, especially in a situation where stakeholders are in several organisations and various areas. In these circumstances, project managers may decide to carry out online stakeholder management, utilising the most recent tools to keep the more extensive working community engaged with the progress of the project (Perrin, 2018:62). As stated by Bourne and Walker (2015:665), collaboration software is a compelling device for supporting stakeholder management on a wide range of activities, especially when there are challenges in uniting every one of the members for conference calls or meetings. Cleland and Gareis (2016:134) believe the creation of online interactive platforms creates the feeling of a community, because every stakeholder can make a simple public profile that incorporates a photograph, information about their company and contact details. Project managers would then be able to utilise the instrument for overseeing stakeholder engagement in any way they need to stay updated with the latest on progress, looking for input and feedback, and taking advantage of their extra resource base, when required (Harrington & McNellis, 2016:452). 25 2.7 The influence of communication with stakeholders on the success of projects 2.7.1 Stakeholder communication in a project Communication with stakeholders is critical in any project undertaking. It is critical for project managers to open several channels of communication to ensure they rely on messages and get critical feedback to keep the project on course. Stevens (2012:403) expresses that there has been a principal shift in development and business thinking, which aims to move from being capital-focused to people-centred. This shift is founded on the requirement for an extreme move in emphasis from master or external experts to stakeholder engagement. The requirement for participatory methodologies is embodied in project management within the setting of property development projects (Wysocki, 2013:381). “Appropriately mandated, engaged, and informed”, project stakeholders can contribute to decisions that influence their needs in the project and have a basic influence in making a safely based feasible project conveyance (Young-Hoon, 2015:155). However, the key question is how stakeholders communicate in an undertaking to upgrade the accomplishment of a project. Table 2.1 gives a few answers regarding the kind of communication done by stakeholders and the influences that they have on the project. Table 2.1 Stakeholders’ communication in a project Participation typology Some elements Passive communication Being told what will occur or has just occurred. Top-down information shared is for external experts only. Communication in information giving Answer questions presented by extractive analysts – utilising overviews, and so forth. Individuals unable to influence. Participation by consultation Consulted and external specialists listen to points of view. Typically externally characterised problems and solutions. Individuals not so much engaged with decision-making. Participation is done by consultation. Communication by material incentives Resource provision, for example labour. Minimal incentive to take part after the end of the motivator. Functional Group formation to meet foreordained goals. Normally done 26 communication after significant project decisions are made, accordingly, initially reliant on outsiders, however may become self- subordinate, and empowering. Participation as organisation. Interactive communication Joint investigation to joint actions. Conceivable utilisation of new local organisations or fortification of existing ones. Empowering and enabling, so individuals have a stake in keeping up structures. Self-mobilisation Already enabled, take decisions free of external organisations. Might challenge existing unjust distribution of power and wealth. Participation as strengthening. Source: (Harrington & McNellis, 2016:458) From Table 2.1, communication in the project environment fluctuates from passivity at one extreme, to self-mobilisation at the other. Generally, participation through communication needs to reinforce the capacity of individuals to acquire more obligations regarding the service that is provided to them. In any case, the idea of participation through communication is utilised to cover numerous activities, for example, budget setting; provision of labour, materials or money; inclusion in problem identification; project planning and execution; and partnership-related undertakings. Harrington and McNellis (2016:458) contend that this mirrors the numerous interests various individuals have regarding who participates, and the degree of participation engaged with the project. A large number of stakeholders may need to participate in the development of a project. These stakeholders can have alternate points of view and interests. Important issues may include gender differences in terms of the manner in which men and women use assets; equity to enhance service conditions, and their relations with the powerful and wealthy; leaders at individual, authoritative and group levels; and their association with the rest of the populace (Harrington & McNellis, 2016:459). As Achterkamp and Vos (2017:449) contend, sharing through participation does not really mean participating in power. Participatory management styles give venture stakeholders a voice. For example, vocal master stakeholders may command discourses. Encounters have indicated that the more varied project stakeholders are, the more troublesome it is to include all individuals in the project’s decision making. 27 2.7.2 Influence of communication in a project According to Ackermann and Eden (2016:207), the success of a project relies upon effective communication. Improving communication maximises the achievement of a project and limits risks, which cause project failure. Furthermore, Binder (2017:270) states that if a project director can create effective communication with project stakeholders, this may mean more ventures for him/her and the project team. The influence of communication on the success of a project becomes evident through the different communication forums used by a project administrator for dispersal of crucial information. A legitimate communication plan should be set up from the beginning of a project (Cleland & Gareis, 2016:367). Project plans speak to the definite reasoning and refined understanding of the different project stakeholders. Yet, unless plans are communicated to every concerned individual, they remain something simply on paper Kerzner (2014:161). Strong communication and cooperation techniques guarantee that all project staff moves in the direction of normal set-down objectives with aggregate effort guaranteeing project success (Nicholas, 2016:217). With everyone in agreement, reactions from the project team members at different phases will be founded on a similar set of references. This guarantees a reduction of assumptions and misunderstandings that could affect the progress of the project. Any changes made to the project plan need to be communicated appropriately to all stakeholders for the project to progress seamlessly (Stevens, 2012:344). Status reports are another part of project communication that brings awareness to stakeholders concerned about the progress of the project. This encourages aggregate reasoning that can guarantee the accomplishment of the project. Status reports additionally help to concentrate on problem areas by making everybody mindful of them. The subsequent aggregate reasoning will at last lead to an agreement on answers for the problem areas (Phillips, 2013:120). 2.8 Improving stakeholder management practices 2.8.1 Developing project stakeholder management 28 Jepson and Eskerod (2016:337) show that customary management works include planning, organising, leading, and controlling. Management of stakeholders usually consists of overseeing stakeholder techniques where the executives incorporate these customary focus areas. Kerzner (2014:42) identifies potential development areas for management of stakeholders: • Plans and strategies • Visions and goals • Procedures and schedules • Evaluations • Tools and methodologies • Theories Koester (2014:184) and Lock (2017:313) refer to the following areas to improve the performance of a project: project vision, mission, and goals; project sponsorship; project planning; project particulars; conflict management; and resistance to change. The writers express that consistently communicating the vision with stakeholders guarantees the build-up of speed. Furthermore, having a suitable stakeholder management plan is fundamental for accomplishing consensus and blending conflicting voices, appropriate planning throughout the project. 2.8.2 Stakeholder engagement Barber and Warne (2015:1053) emphasise the significance of stakeholder engagement in the stakeholder management process by incorporating the development of project stakeholder engagement techniques. Binder (2017:582) prescribes that the management of stakeholder engagement processes incorporates collaborating and communicating with stakeholders to live up to their needs and desires, tending to stakeholders’ issues and developing stakeholder association in project activities throughout the life cycle of the project (Binder, 2017:582). This methodology limits stakeholder opposition and altogether improves the probability of project achievement (Binder, 2017:583). Bourne and Walker (2015:668) contend that engagement methodologies need to be designed to compare to the project stakeholders’ desires and needs, as well as the stakeholders’ interests in the undertaking and level of help for the project. Moreover, the unique engagement technique formulated for each project stakeholder needs to incorporate the strategy, 29 recurrence and substance of communication from the project team throughout the life cycle of the project (Bourne & Walker, 2015:668). Previous investigations have recognised various techniques used for the stakeholder engagement process management. This procedure involves two concepts, namely holding and concession. Cleland and Gareis (2016:141) depict holding as sitting idle and observing existing projects, maintaining and strengthening the norm and guarding against process changes. The opposite of this system is concession, which is characterised as listening and respecting stakeholder requests (Jepson & Eskerod, 2016:340). Based on these investigations, Harrington and McNellis (2016:461) devise a list of four stakeholder engagement methodologies as follows: • Holding: Either battling against addressing a stakeholder’s problems or totally pulling back and disregarding the stakeholder; • Defence: Doing only the minimum lawfully required to address a stakeholder ‘s issues; • Compromise: Negotiating with stakeholders and attempting to get a compromising arrangement; and • Concession: Implementing stakeholders’ necessities or respecting stakeholders’ requests. Stakeholder engagement is associated with the stakeholder identification and analysis processes and numerous stakeholder engagement strategies can be utilised during the stakeholder identification and analysis processes. According to Gido et al. (2011:260), various stakeholder engagement strategies are used by specialists in the electrical energy industry to ensure that projects succeed. 2.8.3 Motivating project stakeholders Hamilton’s (2014:193) examination into organisational climate and project achievement uncovered that promoting an atmosphere that encouraged communication, individual contribution, and one which valued and regarded ideas yielded tremendous benefits. Hamilton (2014:193) expresses that “a supportive hierarchical environment is an important element in effective project results”. Harrington and McNellis’ (2016:464) examination into the relationship between the 30 project environments to project success upholds the conclusions of Kerzner (2014:48). Harrington and McNellis (2016:464) found that the success of a project relies upon the degree of interaction among the project team. This infers that general project stakeholder management and project success are improved through making both a project and an environment that supports project stakeholder needs. Project managers need to understand organisational and stakeholder elements and that powerful collaboration through systems administration and participation is a significant factor in deciding the accomplishment of a project. Lock (2017:321) sets forth the notion that stakeholders generally have plainly defined objectives, which serve to motivate through a feeling of achievement once the challenge of meeting those objectives is accomplished. These conclusions have a fundamental relation with the theory of motivation (Koester, 2014:110; Mesly, 2017:394). Nicholas (2016:636) portrays prior motivation theories as including Maslow’s hierarchy of needs and Herzberg’s two-factor theory, with contemporary theories of motivation, including McClelland’s needs theory. From the point of view of project stakeholder management, creating the correct degrees of motivation in the project environment can eventually prompt increased project performance and success. Stevens (2012:409) expresses that “motivation is the main thrust that supports people in their endeavours to arrive at project goals”. 2.9 Conclusion This chapter has discussed the key issues in project management as perceived by various scholars. These incorporated the general acknowledgment that project stakeholder management can influence the success of a project; subsequently, the significance of identifying and classifying stakeholders; the elements of project stakeholder management and the influence of project stakeholder on project strategy; and the connection between motivation levels and stakeholder management and project success. These constructs are investigated within the setting of the electrical energy industry. The purpose of the literature review was to identify the influence of stakeholder management and its contribution on project success. The key findings show that effective stakeholder management is a fundamental factor in the success of a project. In particular, stakeholder management has a vital role in the accomplishment of both hard (e.g. cost) and soft 31 project success criteria (e.g. stakeholder satisfaction). Secondly, adopting an appropriate stakeholder management strategy helps with delivering successful projects. 32 CHAPTER 3: RESEARCH METHODOLOGY 3.1 Introduction This chapter discusses the research methodology, followed by the study. Research methodology focuses on the collection and analysis of data from the primary research (Burns & Grove, 2015:119). The research methodology constitutes the research design, research strategy, sampling, research instruments, validity and reliability, data analysis, pilot study and ethical considerations. 3.2 Research design The research design is a method of collecting data that involves grouping together many components of research in a systematic manner with the purpose of correctly addressing the research problem (Butler, 2014:129). According to Cader (2016:123), examples of research design include causal-comparative, explanatory, correlational, descriptive and exploratory research. • Causal comparative design – this design is control based. The researcher introduces the cause or variable and records the change; that is, the researcher starts with the cause and waits to observe effects (Kumar, 2014). • Descriptive research – Kowalczyk (2013:1) defines it as research to discover information and existing conditions without analysing relationships among variables. • Explanatory research – Phillips (2013) defines explanatory research as one that tries to explain cause and effect. It focuses on a single area and seeks out details that explain said phenomenon. • Exploratory research – Kumar (2014) defines exploratory research as research done with the purposes of gathering descriptive information and answering question like why a certain phenomenon exists. Exploratory research is unrestricted, interactive and open minded in nature. This research adopted an exploratory research design. This is because the aim of the study is to explore how stakeholder management has affected project success. Thus, exploratory design was more ideal considering that the study is the first of its kind for Eskom Northern Cape NCOU projects. 33 3.3 Research philosophy Research philosophy is the worldview that the researcher has in order to understand the nature of the problem philosophical (De Vos, Fouche & Deport, 2011:22). There are two main philosophies that can be adopted when undertaking research. The first is positivist philosophy which advocates for measurements, facts and use of statistics in understanding the world (De Vos et al., 2011:22). This philosophy supports quantitative approach to research, which entails the use of quantitative data. This makes the approach to be viewed as reliable. The second philosophy is phenomenology based on the use of social constructs, such as human opinions and attitudes as well as behaviour in understanding the surrounding world (Gray, 2014:53). This philosophy supports the qualitative research approach. It is based on use of non-quantitative data, although it is considered as subjective. The study adopted a phenomenological philosophy and qualitative approach. Qualitative research looks deeper at the research problem and has a more profound analysis of the problem as it derives understanding from the set of experiences, views and beliefs of the participants (Gray, 2014:53). The qualitative approach is ideal, as the study is centred on the various views of the stakeholders regarding the level of stakeholder engagement and how these have affected project success. Thus, the qualitative approach was employed to explore the case for Eskom Northern Cape NCOU projects. 3.4 Research strategy The research strategy should agree with the research approach (Coppersmith, 2013:60). As mentioned previously, the qualitative approach, based on phenomenological philosophy was employed. The research strategies consistent with qualitative approach include case study, ethnography and grounded theory (Gray, 2014:60). The current study employed the case study approach, as it seeks to narrow down to Northern Cape operating units (NCOU) projects. The justification is that a case study ensures full investigation by focusing on specific cases (Gray, 2014:60). 34 3.5 Sampling design 3.5.1 Target population The target population can be defined as the total number of people in a research process where vital information will be gathered (Butler, 2014:76). The target population was 107 Eskom employees who work within the assets creation department, which is responsible for handling Eskom projects on a daily basis in the Northern Cape. 3.5.2 Sampling Sampling strategy is a technique that breaks down the target population into a smaller number that is easy to manage (Burns & Grove, 2015:123). There are two types of sampling, namely probability and non-probability sampling. According to Coppersmith (2013:62), probability sampling gives everyone in the target population the same opportunities of being selected to participate in the research study. Examples of probability sampling include simple random, systematic, cluster and stratified random sampling. • Simple random – random sampling represents a haphazard selection of participants to give them equal chances of selection (Punch, 2013:30). • Systematic – systematic techniques follow a pattern in choosing participants, for instance, the second participant from last selected (Punch, 2013:30). • Cluster – cluster sampling involves formation of categories that result in an unbiased representation of an entire population (Saunders, Lewis & Thornhill, 2016:88). • Stratified – stratified sampling entails the formation of subsets representing common target population attributes (Saunders et al., 2016:88). Non-probability sampling is based on selecting participants based on certain criteria that do not result in fair representation (Punch, 2013:30). Techniques under non- probability are judgemental, quota and convenience. • Judgemental sampling is based on use of researcher judgement (Punch, 2013:30). 35 • Convenience – the techniques seeks to choose closer participants and those that are available (Saunders et al., 2016:88). • Quota – the technique is applied where the target population is big and the research seeks to ensure representative sample (Punch, 2013:30). The sample comprises 16 employees selected through judgemental sampling. The rational was to include members based on years of experience. 3.5.3 Recruitment of participants The sample comprises eight participants with 6 to 10 years’ experience; three with more than 10 years’ experience; and five with 1 to 5 years’ experience. The researcher targeted staff from the assets creation department, which is responsible for handling Eskom projects in the Northern Cape on a daily basis. The researcher received permission from the head of the department, following approval by authorities. The number of years of members was requested from Eskom’s assets creation department to enable the use of judgemental sampling. In addition, emails of selected members were obtained from the selected members for planning and updating purposes. These were used to contact the participants, ask for their consent and made appointments about where and when the interviews would be conducted. 3.6 Data collection The proposed study used semi-structured interviews to collect data. Semi-structured interviews involve discussions steered by the researcher based on a chosen topic (Dawson, 2015:62). The method leaves room for other questions that could emerge. The reason for selecting semi-structured interviews is that they encourage the collection of data about the views and experiences of the stakeholders involved with Eskom. The semi-structured interviews were administered by the researcher through Microsoft teams and telephonically. This has been necessitated so as to prevent the risk of COVID-19 by ensuring social distancing and hygiene considerations. 36 3.7 Data analysis Data analysis is an approach that is used to present, interpret and analyse data obtained from the primary research (Cader, 2016:117). The study used thematic data analysis. According to Dawson (2015:63), thematic data analysis has the ability to interpret and analyse variables involved in the research. It focuses on classifying data based on themes. The rationale for the use of thematic analysis is that it helps to establish themes that enable the researcher to analyse findings in a logical way that answers research questions. The findings were presented through narrations. 3.8 Trustworthiness The study observed credibility, confirmability, transferability and dependability. • Credibility – the study investigated practical problems related to Eskom NCOU projects, which warrants credibility. • Transferability – this relates to the use of findings for similar situations (Zikmund, 2018:55). The use of structured approach will lead to transferability. • Dependability – in the view of Fowler (2012:96), dependability is study reliability. The observation of ethics and professionalism made the study dependable. • Confirmability – according to Zikmund (2018:55), confirmability is when the study is corroborated by past studies. A review of past studies will ensure research confirmability. 3.9 Ethical considerations The study considered ethical principles in the research process. The ethical principles include no harm or injury to the research participants, permission, consent, confidentiality. In addition to below principles, ethical clearance was obtained from the University (Ethical clearance number: UFS-HSD 2020/0627/1307). 3.9.1 No harm or injury Harm or injury is when a research participant is hurt either emotionally and/or physically as a consequence of participating in the study (Cader, 2016:115). No harm or injury was experienced relating to this study. The study did not use any 37 offensive language that is racial, tribal and gender sensitive, to mitigate any emotional harm. All respondents were treated equally with respect and dignity and their wishes were respected. No physical contact was possible due to the COVID-19 pandemic guidelines, which limit movement and encourage social distancing. 3.9.2 Permission A written letter was submitted to Eskom to seek permission for the research study. Correspondence with the management was done via email and a signed copy was produced as evidence that permission has been granted. 3.9.3 Informed consent Informed consent is a way in which participants are not coerced or forced to participate in the research process (Burns & Grove, 2015:62). The study gave participants consent letters to sign so that they could confirm participation out of their own free will. The consent letters informed the participants of the research problem, research questions as well as how the research findings were used and published. Participants were informed that a detailed report of the findings would be published through the University and will be used for academic purposes. Their identity will remain confidential as no names will be published. 3.9.4 Confidentiality Burns and Grove (2015:62) advocate the privacy of the research inputs and participants. The records of all the participants will be locked in safe place to ensure their confidentiality in line with the guides outlined by the University. The identity of participants was not requested in order to maintain privacy and they will remain anonymous. 3.9.5 Conflict of interest The researcher is an employee of Eskom and conducted a research in the same company. Some valuable work time was taken from the company during the research. Senior management was notified on the days the research was undertaken. Discussions were limited to the project and did not go beyond the scope 38 of the project. The interview guide was used to ensure the discussions remained on track. 3.10 Limitations The focus of the study was to investigate the influence of stakeholder management on project success in Eskom NCOU projects. The study only involved 16 Eskom employees who work with project management. However, interviews were used to collect data. 3.12 Conclusion The chapter discussed the research methodology, followed by the study. The sections included in the chapter were research design, research philosophy, research strategy and sampling design. The chapter further discusses data collection instrument, data analysis procedure, ensuring trustworthiness and ethical considerations. The next chapter will present the results, discussion and interpretation of the findings. 39 CHAPTER 4: DATA PRESENTATION AND ANALYSIS 4.1 Introduction This chapter will focus on the presentation and interpretation of the research findings. Sixteen participants were interviewed and raw data were collected for the purposes of this research. The findings from the participants were thematically analysed to ensure similar responses were treated accordingly. This processed data were presented using charts, tables and graphs to illustrate meaning and relationships. Explanations were given to ensure that readers understood the research findings. 4.2 Participants’ demographic features The researcher obtained the demographic data from the participants. This was important for the researcher to have a basic understanding of the participants. Figure 4.1 Gender Figure 4.1 shows the gender distribution of the participants. Ten participants were males and six were women. This represented 62% for males and 38% for females. Female (6) 38% Male(10) 62% 0%0% Gender Female (6) Male(10) 40 4.2.1 Positions in the work environment Figure 4.2 Positions They were asked about their current positions at work. Figure 4.2 summarises the findings. 50% (eight) of the participants were general workers, 31% (five) were supervisors, whilst 19% (three) were managers. This, tallies with normal work theory where few people occupy top positions. 4.2.2 Working experience Figure 4.3 Experience of employees Employees( 8) 50% Supervisors(5) 31% Managers (3) 19% The positions Employees( 8) Supervisors(5) Managers (3) 5 8 3 0 2 4 6 8 10 1 to 5 6 to 10 Above 10 N um be r o f P eo pl e Years of Experience Experience in Years 41 Figure 4.3 above summarises the working experience of the participants in the study. These experiences consist of the number of years they were working in projects directly involving Eskom. Five of the respondents had fewer than five years’ experience; three had between more than ten years’ experience; and the majority had been between 6 to 10 years in the service of Eskom. The years of experience of the participants suggest that they had valuable knowledge that could be of value in the study, as they were all directly involved in Eskom projects. 4.2.3 Educational level Figure 4.4 Educational levels of employees The participants were asked about their levels of education. Figure 4.4 represents the findings. The majority of the participants (seven) were holders of a National Diploma from recognised institutions. Five participants were holders of a Bachelor of Technology degree and the remaining four were holders of Bachelor’s degrees. In this respect, all the participants have the requisite education and qualifications suitable for their jobs. 4.3 Stakeholder management and project success This section will explore the responses from the participants in an effort to uncover the role played by the stakeholder management to ensure that the project succeeds. Degree; (4) B.Tech; (5) N.Diploma; (7) , 0% Education level N.Diploma (7) B. Tech(5) Degrees(4) 42 The responses were grouped under various themes that were identified by the researcher. Table 4.1 below shows the findings of the research. Table 4.1 Theme 1 Theme Category Code The various role players Stakeholder manageme