INFLUENCE OF STAKEHOLDER MANAGEMENT PLAN ON PROJECT PERFORMANCE: A CASE OF OLKARIA GEOTHERMAL POWER PROJECT, NAKURU COUNTY
Geofry Ngetich - Master of Arts in Project Planning and Management, University of Nairobi, Kenya
Prof. Christopher Gakuu - Department of Open, Distance and eLearning, University of Nairobi, Kenya
ABSTRACT
KenGen is the leading government parastatal with sole mandate of power generation through management and operation of power plants in the country. The organization has achieved much in ensuring that energy, an important ingredient and an enabler of national blue print dubbed Vision 2030 is achieved. However the organization has experienced challenges including major delays, project stoppages and even revision of project cost as well as design. The study sought to determine the influence of stakeholder management plan on project performance. The purpose of the study was to examine influence of stakeholder management plan on project performance at Olkaria Geothermal power project. The study was set to determine influence of stakeholder engagement, analysis and mapping on project performance. The study adopted descriptive research design. The target population was 1660 people and it included all stakeholders living in Kamere, RALP settlement, Lemayan, key employees and Kenya Wildlife personnel. The sample size was 322. Data was collected through administration of semi-structured questionnaire, collected data was then be arranged, organized and summarized. Categorization was done and finally patterns and themes were identified and linked by use of computer software. Factors influencing project performance were analyzed using regression methods. The study was used to provide information that will be useful in understanding the factors influencing stakeholder management plan in power generation project Performance with focus in Olkaria geothermal project. The study established that there was a weak positive relationship between stakeholders’ interests and performance having a correlation coefficient of 0.374. It was also established that there was a weak positive relationship between stakeholders’ engagement and performance having a correlation coefficient of 0.290. Furthermore, it was established that there was a weak positive relationship between stakeholder analysis and performance. It was also established that there was a weak positive relationship between stakeholder mapping and performance having a correlation coefficient of 0.463. The study therefore noted that stakeholder analysis and stakeholder mapping were highly correlated to performance while stakeholder engagement was the least correlated with performance. Stakeholders have significant influence not only on the success of projects but primarily on the performance of the projects. The study therefore recommended that proper assessment and analysis of the stakeholders both internal and external should be held as key factor by project managers. A good understanding of the stakeholders will go a long way in positively influencing the project performance. To ensure successful performance of a project, stakeholder needs and expectations must be placed into consideration before the inception of the project. This will go a long way in positively influencing the performance of the project. Stakeholder involvement in the decision making on matters relating to the project can be done by putting into place a well-structured channel of communication that will ensure all the stakeholder are engaged in the activities of the project.
