Stakeholder management: An analysis of the impact of viewing an organization as a single stakeholder - a case study of the State Water company in South Africa

Corporate project failure in recent times has been associated with poor stakeholder management. These avoidable adverse events are not only prevalent in business corporations; but also in government owned enterprises. Project stakeholders have become more influential in the decision-making processes, in project planning and execution. Stakeholders cannot be avoided when decisions are made as their exclusions in decision-making may derail organizational objectives. The increased use of consultants in state owned entities has seen some internal stakeholders such as departments and sections within the companies play a less significant role in projects executed by the organizations. The objective of this paper is to explore the implication of ignoring internal units in a large organization in corporate project management. The fundamental flaws identified were associated with stakeholder identification and subsequent inclusion in the planning and execution of the project. The process of identifying the key stakeholders in the bulk flow meter replacement project, the subsequent stakeholder analysis and the emergence of excluded stakeholders are explored; flaws analyzed, and possible solutions given for such future projects. The project revealed the need for project managers to acquaint themselves with the culture, structure of the organization and the interdepartmental and sectional relationships within the organization. The paper exposes why it is unwise and risky for a project manager to view an organization as a single stakeholder. The article concludes with lesson learnt from this project, which are applicable to future projects.