SATISFACTION MAXIMIZING MODEL FOR MANAGING PROJECT STAKEHOLDERS

Abstract

From when a project begins, an uncertain number of stakeholders participate in its planning, execution, monitoring, and controlling, and these stakeholders may change over the course of the project. Project success relies on appropriate stakeholder management and maximization of stakeholder satisfaction. Conventionally, stakeholder management relies solely on the experience and traits of project managers; thus, it can only refer to theories and principles, and cannot be implemented effectively and systematically. To solve this predicament, this study developed a mathematical model that maximizes stakeholder satisfaction considering the level of influence of stakeholders, the available engagement time, project risks, cost of changes, and engagement costs of stakeholders at every stage of a project. The model uses LINGO to calculate the most favorable engagement time for each stakeholder at every stage and maximize stakeholder satisfaction according to the project risk and influence level of stakeholders under conditions of limited engagement time and cost.