Improving project performance on construction projects through stakeholder management-an action research inquiry

This thesis examined how the performance of construction projects can be improved through stakeholder management in a construction organization. The research is important to reduce stakeholder non-compliances with the use of the organization integrated management system (IMS), enhance key performance indicators (KPIs) and ensure construction projects are executed in compliance with an improved IMS, to the benefit of the organization, while increasing profitability. The research was undertaken using qualitative research methodology. Data was collected by conducting semi-structured interviews with eight experienced mid-level stakeholders that utilize the integrated management system and lead complex projects at four different research sites. The aim of the interviews was to gather insights, knowledge and understanding on the factors that impact the IMS processes and the strategies to adopt to improve project performances. Thematic analysis was used to identify and analyse the findings. In three action cycles, the research revealed that mid-level stakeholder engagement under an integrated management system is highly critical and will be driven by the capital expenditure (CAPEX) on the project, the scope of the project and the complexity of the project. The research revealed that strategies to address non-compliances and fix existing IMS process gaps, include early engagement through proper stakeholder stewardship, effective communication and alignment among stakeholders, verification of stakeholders mandatory training, senior management timely review and signing of project documents and the implementation of an efficient governance and assurance system through audits to monitor project performances. The research generated actionable knowledge and added value with the development of an improved authority and responsibility matrix (ARM) to hold stakeholder accountable for their tasks, the development of a risk matrix to capture unidentified risks early, the development of a construction planning flow process to match project risks with deliverables, and the development of a financial management tracking (FMT) system to effectively track cost variances and increase profitability.