Project Management : A Common Problem Within The Stakeholder Theory Literature

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No stakeholder input to the cost estimating process in project management is a common problem throughout the stakeholder theory literature that focuses on the management of large engineering projects, such as space and software projects (Lucae, Rebentisch, & Oehmen, 2014); and. This problem has been linked to the multiple definitions for the term stakeholder (Susser, 2012; Doh & Quigley, 2014; Davis, 2014). The literature shows that space projects in the United States exceed original cost estimates by an average of 45% every year (Keller, Collopy, & Componation, 2014), and one out every three software projects will have cost overruns of 150% to -200% (Doloi, 2011). Space projects use parametric models to derive project costs. Those…show more content…
Without stakeholder input, cost estimators do not consider the unforeseen risks that stakeholders might comment on in their feedback. Interactions with key stakeholders early in the cost estimation process lessen the probability of negative project cost impacts (Doloi, 2011). Although managers tend to focus on the probability of a risk event occurring, stakeholders tend to focus more on the consequence of a risk event happening. These studies highlight the importance of stakeholders being involved in the cost estimating process. This is important because negative events, such as incorrect parametric cost models being sent to the U.S. government, have frequently occurred throughout the literature and have been well documented whereas consequences that stem from a lack of stakeholder input, such as loss of governmental contracts due to budget overruns, have not been as well documented (Hartono et al., 2014). This study will touch upon this gap by describing aerospace project managers’ experiences with how the lack of stakeholder inputs has affected their ability to provide accurate cost estimates. Unrealistic Schedules Unrealistic schedules have been linked to lack of stakeholder input, which stems from having multiple definitions of the term

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