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  <front>
    <journal-meta />
    <article-meta>
      <title-group>
        <article-title>Models of Harmonization of Interests and Conflict Reso- lution of Project Stakeholders</article-title>
      </title-group>
      <contrib-group>
        <aff id="aff0">
          <label>0</label>
          <institution>Olga Malyeyeva1[0000-0002-9336-4182]</institution>
          ,
          <addr-line>Dmytro Lytvynenko2[0000-0001-5766-0139], Victor Kosenko 3[0000- 0002-4905-8508]</addr-line>
        </aff>
      </contrib-group>
      <abstract>
        <p>The subject of the study is the stakeholder management processes of the project. The purpose of the work is to develop models for making optimal decisions regarding the composition of the stakeholders, supporting the project goals and choosing behavioral strategies for other stakeholders. The article deals with the essence of stakeholder management processes in the project. The main factors that determine the stakeholder management processes are systematized. On the basis of matrix projections, a system cube of interaction of goals and interests at the stages of the project life cycle was formed. Mathematical optimization models have been formulated to solve the problems of forming multiple stakeholders, which harmonize with the project goals and maximize their involvement in communication actions. The use of game theory to make decisions about possible stakeholder conflicts is justified. The game optimization problem of setting a compromise price for resources with multiple suppliers is formulated.</p>
      </abstract>
      <kwd-group>
        <kwd>project management</kwd>
        <kwd>stakeholders</kwd>
        <kwd>harmonization of interests</kwd>
        <kwd>matrix models</kwd>
        <kwd>game theory</kwd>
      </kwd-group>
    </article-meta>
  </front>
  <body>
    <sec id="sec-1">
      <title>-</title>
      <p>
        Over time, a value-oriented approach to project management is becoming more
widespread [
        <xref ref-type="bibr" rid="ref1">1</xref>
        ]. It is important to balance the interests of stakeholders (stakeholders) and to
align them with the goals of the project over its lifecycle [
        <xref ref-type="bibr" rid="ref2">2</xref>
        ].
      </p>
      <p>
        Some projects, due to their complexity and industry specificity (e.g. transport,
infrastructure), require the active involvement and involvement of several stakeholder
groups of the project [
        <xref ref-type="bibr" rid="ref3">3</xref>
        ]. Often, information is exchanged between the customer, user
(public) and the developer as part of a collaborative process that enables greater
involvement and stakeholder satisfaction. Regular interaction of the project team with
stakeholders reduces the risk of the project, contributes to the early life cycle changes,
reducing time consuming and increasing the likelihood of its successful
implementation [
        <xref ref-type="bibr" rid="ref4 ref5">4, 5</xref>
        ].
      </p>
    </sec>
    <sec id="sec-2">
      <title>Setting Objectives</title>
      <p>
        A standardized methodology for managing P2M innovation projects and programs
focuses on strategic aspects of project management, which in turn create, refine and
accumulate values [
        <xref ref-type="bibr" rid="ref4">4</xref>
        ]. The use of modern information technology project
management enables [
        <xref ref-type="bibr" rid="ref6 ref7">6 - 8</xref>
        ]:
- to increase stakeholder value networks and balance the profitability of projects,
- to increase stakeholder satisfaction with project results,
- to ensure reliability and reduce the risks of related business processes.
      </p>
      <p>
        The application of flexible methodologies enables project management to be
managed more efficiently, depending on their resources and volume, providing the
required level of quality and satisfaction for the stakeholders. [
        <xref ref-type="bibr" rid="ref8">9</xref>
        ].
      </p>
      <p>
        The Project Management Body of Knowledge (PMBOK® Guide) pays much
attention to stakeholder management [
        <xref ref-type="bibr" rid="ref9">10</xref>
        ]. For example, with regard to internal
stakeholders, the notion of "organizational groups" is introduced - internal stakeholders
who interact with the project team. As a result, there is a significant degree of
interaction between the various business elements of the organizations and the project team
as they work together to achieve the goals of the project.
      </p>
      <p>
        Among the methods that allow the formation and analysis of the characteristics of
stakeholder groups, one can distinguish between the matrix of power, interest, and
influence characteristics. Stakeholders are grouped based on their level of authority,
interest in project results, ability to influence the outcome, and ability to cause
changes in the planning or implementation of project work. This method is well proven for
small projects or projects with a complex stakeholder relationship with the project
team [
        <xref ref-type="bibr" rid="ref10">11, 12</xref>
        ].
      </p>
      <p>Another method that is used for complex project relationships is the stakeholder
analysis method that involves building a feature model (Mitchell model) [13]. This
model describes stakeholder groups based on an assessment of their level of authority
- level of authority or ability to influence the end result of a project, urgency - need
for rapid communication, and legitimacy - need and degree of involvement. Based on
this model, you can also prioritize (determine relative importance) stakeholders.</p>
      <p>In recent years, the value of game theory has increased significantly in many fields
of science, including in project management practice [14, 15]. But the apparatus of
game theory-based stakeholder decision-making is still underdeveloped. Therefore,
the purpose of the work is to develop models for making optimal decisions regarding
the composition of stakeholders that support the project objectives and the choice of
behavior strategies for other stakeholders (which are not always loyal to changes in
the project).</p>
      <p>Tasks solved in the work:
− analysis of stakeholder management processes,
− developing stakeholder interests harmonization models with project goals,
− choice of stakeholder conflict resolution game models.</p>
    </sec>
    <sec id="sec-3">
      <title>Analysis of Project Stakeholder Management Processes</title>
      <p>Stakeholders, in other words, interested parties, are the parties that are directly
involved in the implementation of the project at different or all stages of the life cycle
and directly affect it. Stakeholders can include the public, civil servants, owners,
managers, investors and all other actors directly influencing and participating in the
life cycle of the project.</p>
      <p>The community and the interests of the inhabitants of the region have a significant
impact on the project, from the design phase and throughout the time of exploitation
to the stage of project closure. Some studies and organizations even believe that a
proper assessment of the role of society and determining the main characteristics of a
society as a stakeholder can play a key role in the implementation of a transport
project. Significant public participation in project management also requires significant
transparency of project processes and documentation to be disseminated to public
resources.</p>
      <p>Politicians who embody the side of the state also play a significant role at all stages
of the project. In addition to financial issues, civil servants can also resolve
publicconflict issues as well as control information channels about the project's progress to
the general public. The state may also be responsible for obtaining different types of
permits. Obtaining permits is one of the most likely risks of a transport project, which
is why the role of state bodies in this matter is difficult to overestimate. And political
will can significantly reduce political and some economic risks, which greatly
accelerates the process of project implementation.</p>
      <p>In the world classification it is used to allocate the project owner as a separate
stakeholder.</p>
      <p>Stakeholders may also include different supervisory authorities that are related
both to the investor or the contractor, that is, those who control the quality of the
work, as well as various organizations at the request of the state that control
environmental norms and norms of law.</p>
      <p>Also, an investor, a project team leader, a contractor with their own subcontractors
and a supplier participate in the implementation of the project.</p>
      <p>
        Project stakeholder management processes include [
        <xref ref-type="bibr" rid="ref9">10</xref>
        ]:
− identification of project stakeholders;
− involvement of project team members in engaging with stakeholder
communications;
− stakeholder adjustments to the risks of the project;
− communication with stakeholders;
− use of value (both positive and negative) involvement and communication
stakeholder interest.
      </p>
      <p>Positive value can be based on the benefits of stakeholder support that have a
significant impact on certain stages of the project life cycle. Negative value can be
obtained by measuring the real costs (losses) of non-productive stakeholder engagement.</p>
      <p>Information that can be attributed to stakeholders in a particular group with a
common interest is: basic requirements, expectations, opportunities to influence the
project deliverables, phase of the project lifecycle, when the stakeholder has the
greatest impact [16].</p>
      <p>
        Following the identification of stakeholders and their analysis, a baseline
stakeholder engagement plan is developed and updated at project life cycle stages to reflect
emerging changes. The following information should be taken into account when
drawing up (and adjusting) the plan [
        <xref ref-type="bibr" rid="ref9">10</xref>
        ]:
      </p>
      <p>− the culture, political environment and leadership model of the organization
(stakeholders);
− administration policies;
− stakeholder propensity to take risks;
− established communication channels;
− global, regional or local practices or practices;
− geographical distribution of objects and resources.</p>
      <p>The stakeholder engagement plan identifies the management strategies and actions
required to effectively engage and secure stakeholder communications.
Implementation of this plan is possible in the absence of conflicts of interest or in the quick
reaching of compromise solutions.</p>
      <p>Stakeholder identification and engagement processes are iterative. Stakeholder
interests and priorities may change at different stages of the life cycle. This is due to the
fact that one stakeholder ends up participating in some of the project's work, and new
stakeholders fill up the stakeholder groups.</p>
      <p>Agreed stakeholder communication strategies are taken into account when drawing
up a project communication management plan [17]. The distribution of roles and
areas of responsibility of stakeholders is also taken into account in the project's resource
management plan. In stakeholder management processes, it is necessary to make
optimal decisions when negotiating with different organizations and influencing them on
the part of the project team.</p>
      <p>Based on the above, it is possible to make a matrix of factors that influence the
stakeholder management processes (Table 1).</p>
      <p>The interests of these groups may be contradictory and may not be consistent with
the objectives of the project at all stages of the life cycle. Therefore, the task of
balancing the interests of different groups and harmonizing interests with the goals of the
project arises.</p>
      <p>In the IT sphere, a special recruiting procedure is used to select the project
contractors that best meet its objectives. For example, headhunting is a method of
selecting rare, key and highly professional specialists with unique competencies (and
interests). The application of such technology provides accurate consideration of the
project needs and is carried out through direct contact with a potential employee or
through networking. It is worth noting that networking is used when the project
manager knows which people are irrationally attracted to a specific workplace and at what
workplace these people work, but believes that they will not be able to hold effective
negotiations with these candidates, so the recruiting agency engages and finds the
right candidate.</p>
      <p>The main difference between headhunting and standard recruitment technology is
that headhunting provides the client with a range of additional consulting and
information services. However, the guarantee of a high likelihood of matching a specialist
to the project's goals is associated with high financial, time and labor costs. Another
modern technology of selecting specialists is recruitment, which involves recruitment
taking into account the real features of the workplace and the business, personal
qualities of the candidate, and is carried out with the help of an existing pool of candidates.
4</p>
    </sec>
    <sec id="sec-4">
      <title>Stakeholder Interests’ Harmonization Model</title>
      <p>The process of aligning (harmonizing) the interests of stakeholders with project goals
include the following steps [13]:
− identifying stakeholder interests of different groups at different stages of the
project life cycle;
− determining the importance of each stakeholder in terms of external, internal
factors of the project and in view of the project objectives;
− determining the degree of stakeholder influence in terms of their own
characteristics (power, legality and urgency);
− calculating the overall balance of stakeholder interests based on the compliance
matrix;
− determining that the project objectives are in line with the interests of
stakeholders;
− identifying stakeholder loyalty groups to maximize involvement through active
communications.</p>
      <p>For the formalized presentation of the last two steps, we apply a systematic
approach and mathematical optimization models.</p>
      <p>The following notations are introduced:
S = si  , i = 1, n - the total set of project stakeholders;
C = {сj}, j = 1, p - set of partial goals of the project;
G = gk  , k = 1, m - set of stages of the project lifecycle.</p>
      <p>The degree to which the stakeholder interests are aligned with the project
objectives is characterized by magnitudes (Table 2)</p>
      <p>We denote the relevance of each goal of the project lifecycle by a matrix of values</p>
      <p>V = v jk , j = 1, p , k = 1, m ,
which form a Boolean matrix, that is, take a value of 1 (the target must be reached at
this stage of the LC) or 0 (the target does not belong to this stage of the LC).</p>
      <p>The degree of power (or participation) of the stakeholders in the individual stages
of the LC is denoted by</p>
      <p>W =</p>
      <p>
        wik , i = 1, n , k = 1, m ,
which take on values wik [
        <xref ref-type="bibr" rid="ref1">0,1</xref>
        ]
      </p>
      <p>Thus, we have a system of three matrices that can be represented graphically as a
system cube (Fig. 1).</p>
      <p>Y =</p>
      <p>
        yij , i = 1, n , j = 1, p ,
forming a set of elements of the matrix and taking values yij [
        <xref ref-type="bibr" rid="ref1">−1,1</xref>
        ] . Negative
values make sense of the mismatch of project interests and goals.
with restrictions 0  wik  1.
      </p>
      <p>This problem is represented by a linear optimization model and is solved by the
simplex method.</p>
      <p>2) If management task is to select the most interested stakeholder from a given
set for intensive communication with him during the project implementation, then the
variables are</p>
      <p>0 if the stakeholder is not included to a group
si = 
1 if the stakeholder is included to the group
.</p>
      <p>The task is to search for a vector of values si that gives the maximum value to the
target function</p>
      <p>n p m
B(2)max =    yijv jk wik si .</p>
      <p>i=1 j=1 k =1
This problem is solved by Boolean programming methods.</p>
      <p>Let's consider the issue of coordinating the performers and stakeholders interests in
the implementation of the IT project lifecycle phases. The goals of IT projects can be
divided into three groups:
1) development of software and information systems. Includes goals (second
level - set C): development of software, modules, applications and
information systems for consumer needs;
2) sale and maintenance of software and information systems. Sale of
readymade software (software) and information systems, with their subsequent
support and support;
3) IT audit and IT consulting. IT audit (audit of information systems) provides
independent verification of the efficiency of use and application of
information technologies in the work.</p>
      <p>Let's consider the specifics of the first group of projects. The selection of
performers for these projects should be done in accordance with the objectives of the
second tier.</p>
      <p>In this case, the following phases of the program process (multiple G) are taken
into account:
−
−
creation of software specification;
software development;
(1)
(2)
− software testing (includes validation and verification);
− development or evolution of software (software evolution).</p>
      <p>The interests of software engineering professionals correspond to the basic areas
of knowledge (set S):
− Software requirements;
− Software design;
− Software construction;
− Software testing;
− Software maintenance;
− Software configuration management;
− Software engineering management;
− Software engineering process;
− Software engineering tools and methods;
− Software quality.</p>
      <p>Using these sets, you can build a matrix of interrelation of interests, phases of the
project and its goals.
5</p>
    </sec>
    <sec id="sec-5">
      <title>A Game Model Of Stakeholder Conflict Resolution</title>
      <p>To effectively resolve conflicts of interest in IT management, the following
competencies and communication technologies should be applied:
1) knowledge of the specifics of the IT market;
2) knowledge of the features of the IT professions (ERP programmer, HTML
layout engineer, database administrator, site administrator, analyst, business
analyst, web designer, web programmer, layout engineer, ERP systems
consultant, content manager, manager Sales Manager, Internet Project Manager,
Bridge Programmer, 1C Programmer, Website Editor, System Administrator,
System Analyst, Information Security Specialist, Computer Games Writer,
Software Tester) to understand what the project is working on a specialist is
needed;
3) recruitment company planning;
4) possession of search and selection methods (direct search, head hunting);
5) application of methods of remote assessment and motivation of person-lu;
6) conducting interviews with the use of express analyzes and tests;
7) application of modern methods of adaptation of personnel for elimination of
their career in IT;
8) presenting companies and projects to arouse interest from potential
employees;
9) making decisions on rejections and objections, difficult clients and unusual
situations.</p>
      <p>In the project environment, there are inevitable conflicts between project team
managers and stakeholders. The success of project managers often depends on their
ability to resolve conflicts [18].</p>
      <p>Conflicts can be caused by scarcity of resources (labor, material, financial, time),
priorities for work schedules and other reasons. In the presence of different opinions,
the project team members are responsible for the decision. The possibility of conflicts
should be anticipated and resolved at an early stage and, as a rule, with the
cooperation of all parties.</p>
      <p>Here are the factors that influence the methods of conflict resolution:
− the importance and intensity of the conflict;
− limited time available to resolve the conflict;
− the relative power of the stakeholders involved in the conflict;
− the importance of supporting effective communications;
− motivation to resolve the conflict in the long or short term.</p>
      <p>There are five basic methods used to resolve conflicts, the essence of which is
presented in Table 2.</p>
      <p>The last three categories of conflict (compromise, coercion, and cooperation) can
be described using game theory.</p>
      <p>To describe the game, you must first identify its participants. But in stakeholder
management games, it is difficult to identify all players (current or potential).
Therefore, the most important conflicts of interest for a particular project should be
described.</p>
      <p>Games usually cover several periods during which players perform sequential or
simultaneous actions. Actions can be related to prices, purchase volumes, or costs of
work, etc. The strategies chosen at each stage determine each player's "payments",
which can be expressed in value or any other way of measuring the amount of
resources.</p>
      <p>Consider setting the problem of conflict of interest in the interaction of the
resource manager and suppliers, the result of which is a decision to compromise on
resource prices [19]. We formulate an optimization problem in the form of a game of
two people with opposite interests.</p>
      <p>Let us denote:</p>
      <p>U = (u1, u2 , , un ) - vector of mixed resource manager strategy (player A) for
vendor selection ui;</p>
      <p>Z = (z1, z2 , , zm ) - the vector of the mixed strategy of the supplier (player B) to
choose the resources to be supplied zj.</p>
      <p>The constituent strategies are subject to the condition
m n
 ui =  z j = 1 ..</p>
      <p>i=1 j=1
where ui  0 ( i = 1, , m ), z j  0 ( j = 1, , n ).</p>
      <p>The price of the game:
 = n m aijuio z oj ,
j=1 i=1
(3)
(4)
where аij – price for the i-th resource from the j-th supplier,
uo – optimal resource manager strategy (likelihood of supplier selection),</p>
      <p>Using game theory models, you can determine the best solutions for pricing new
products, plans for the development of new markets, enterprise cooperation, division
of project performance, etc. Thus, the theory of game theory can be applied to all
kinds of decisions, if their decision-making is influenced by other actors [20].</p>
    </sec>
    <sec id="sec-6">
      <title>Conclusion</title>
      <p>This paper addresses the issues of stakeholder management of the project. The
application of mathematical models is proposed to solve the problems of stakeholder
consistency assessment and conflict situations in the project implementation.</p>
      <p>The essence of the process of stakeholder management of the project is
considered: identification, planning, involvement of stakeholders. The main factors that
determine the stakeholder management processes are systematized. Based on the
matrix projections “interests - project goals”, “project goals - life cycle stages”, “life
cycle stages - stakeholder interests”, a systematic cube of interaction of goals and
interests at the project life cycle stages is formed. Mathematical optimization models
are formulated to solve the problems of forming multiple stakeholders, which
harmonize with the project goals and maximize their involvement in communication
actions. The areas of activity of IT companies, the main types of projects, development
phases and the fields of knowledge that are involved in the IT sphere are considered.</p>
      <p>The issues of the project Manager's competence in recruiting personnel in the it
sphere for solving internal conflicts are considered. The application of game theory is
justified for deciding on possible stakeholder conflicts. The optimization problem of
determining the compromise price for resources with multiple suppliers is formulated.</p>
      <p>Further research is being conducted towards developing a dynamic stakeholder
structure model to plan effective stakeholder engagement in a virtual IT-project
management office.
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