Harvard Case - Trouble in Paradise: Stakeholder Conflict in the Paseo Caribe Project
"Trouble in Paradise: Stakeholder Conflict in the Paseo Caribe Project" Harvard business case study is written by Gwendolyn Toro, Julia Sagebien, Victor Quinones. It deals with the challenges in the field of Entrepreneurship. The case study is 16 page(s) long and it was first published on : Apr 19, 2010
At Fern Fort University, we recommend that the Paseo Caribe project?s stakeholders engage in a collaborative, transparent, and data-driven process to resolve their conflicts and ensure the project?s success. This process should prioritize stakeholder value creation, address concerns through open communication, and leverage a combination of strategic planning, stakeholder analysis, and change management.
2. Background
The Paseo Caribe project, a mixed-use development in San Juan, Puerto Rico, faced significant challenges due to stakeholder conflicts. The project involved multiple parties with diverse interests, including the developer, the government, residents, and environmental groups. The developers, seeking to generate economic growth and attract tourism, envisioned a luxury development, while residents and environmental groups were concerned about potential negative impacts on the environment and local community. This clash of interests led to delays, legal battles, and ultimately, a stalled project.
The main protagonists of the case study are:
- The developer: Seeking to create a profitable and impactful project.
- The government: Aiming to stimulate economic development and improve infrastructure.
- Residents: Concerned about the project?s impact on their quality of life and environment.
- Environmental groups: Advocating for the protection of natural resources and ecosystems.
3. Analysis of the Case Study
This case study highlights the complexities of stakeholder management in large-scale development projects. Applying several frameworks can provide a comprehensive understanding of the situation:
- Stakeholder Analysis: Identifying and prioritizing stakeholders based on their power, interest, and influence. This helps understand the needs and concerns of each group and tailor communication strategies accordingly.
- Porter?s Five Forces: Analyzing the competitive forces within the tourism and real estate industry in Puerto Rico, including the threat of new entrants, bargaining power of buyers and suppliers, and the intensity of rivalry. This helps understand the project?s market position and potential challenges.
- SWOT Analysis: Evaluating the project?s strengths, weaknesses, opportunities, and threats. This provides a comprehensive view of the project?s internal and external factors and helps identify potential solutions.
- Value Chain Analysis: Examining the various activities involved in the project, from planning and design to construction and marketing. This helps identify potential areas for improvement and cost optimization.
4. Recommendations
- Establish a Collaborative Stakeholder Forum: Create a platform for open communication and dialogue between all stakeholders. This forum should be facilitated by a neutral third party, allowing for transparent information sharing and conflict resolution.
- Conduct a Comprehensive Stakeholder Needs Assessment: Identify and prioritize the needs and concerns of each stakeholder group through surveys, focus groups, and interviews. This will provide valuable data for informed decision-making.
- Develop a Shared Vision and Value Proposition: Collaboratively define a shared vision for the project that aligns with the interests of all stakeholders. This vision should be based on a value proposition that benefits the community, the environment, and the developer.
- Implement a Transparent Decision-Making Process: Ensure that all decisions are made in a transparent and inclusive manner, involving all stakeholders in the process. This builds trust and reduces the risk of future conflicts.
- Develop a Robust Environmental Impact Mitigation Plan: Address environmental concerns through a comprehensive plan that includes measures to minimize the project?s impact on the environment and promote sustainable development practices.
- Implement a Community Engagement Strategy: Engage with the local community through ongoing communication, education, and outreach programs. This fosters understanding and builds support for the project.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations prioritize collaboration, transparency, and stakeholder value creation, aligning with the core competencies of successful project management and corporate social responsibility.
- External Customers and Internal Clients: The recommendations address the needs of all stakeholders, including residents, environmental groups, the developer, and the government, ensuring a win-win scenario for all parties involved.
- Competitors: The recommendations aim to create a competitive advantage by fostering a positive public image and building a strong social license to operate, differentiating the project from competitors.
- Attractiveness ? Quantitative Measures: While quantitative measures are difficult to assess at this stage, the recommendations aim to mitigate risks, reduce delays, and increase the project?s likelihood of success, ultimately leading to higher returns on investment.
6. Conclusion
By adopting a collaborative and transparent approach, the Paseo Caribe project stakeholders can overcome their conflicts and create a successful development that benefits all involved. This approach requires a commitment to open communication, shared decision-making, and a focus on creating value for all stakeholders.
7. Discussion
Alternative approaches include:
- Ignoring stakeholder concerns: This would likely lead to further conflicts, legal battles, and ultimately, project failure.
- Imposing the developer?s vision: This would alienate residents and environmental groups, leading to resistance and potentially hindering the project?s progress.
The risks associated with the recommended approach include:
- Lack of commitment from stakeholders: If stakeholders are not fully committed to the collaborative process, it may be difficult to achieve consensus and resolve conflicts.
- Time and resource constraints: Implementing a comprehensive stakeholder engagement process requires significant time and resources.
8. Next Steps
- Establish the Stakeholder Forum: Within the next month, convene the first meeting of the stakeholder forum, inviting representatives from all relevant groups.
- Conduct Stakeholder Needs Assessment: Within the next three months, conduct a comprehensive assessment of stakeholder needs and concerns.
- Develop Shared Vision and Value Proposition: Within the next six months, develop a shared vision and value proposition that aligns with the interests of all stakeholders.
- Implement Environmental Impact Mitigation Plan: Within the next year, develop and implement a comprehensive environmental impact mitigation plan.
- Launch Community Engagement Strategy: Within the next year, launch a community engagement strategy to foster understanding and build support for the project.
By taking these steps, the Paseo Caribe project can overcome its challenges and become a model for successful stakeholder management in large-scale development projects.
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Case Description
The case centres on the many controversies surrounding the Paseo Caribe real estate development project in San Juan, the capital of Puerto Rico. The project developers had to contend with large demonstrations, civil disobedience, government intervention, legal proceedings and costly delays as a result of allegations that there had been multiple irregularities in the permit-granting processes and that the project had been built on public domain lands. The fact that Paseo Caribe was located in San Juan's prime tourist and convention area, as well as in a historically and culturally important zone, added significance and visibility to the debates. José Antonio Moreno, president of the Puerto Rico Architects and Landscape Architects Association, is reflecting on the lessons learned by industry participants, as well as on ways the association can encourage industry actors to handle conflict in a less confrontational manner. The case illustrates the downside of not managing stakeholder relations proactively or effectively.
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