Risk and Stakeholder Analysis of the HS2 Project
The reports are discussing a project named high-speed 2(HS2) which is a high-speed railway line. The project was performed in the UK. After the channel tunnel train connection, additionally referred to as HS1, opened in 2003, the plans for HS2 originally came from the Labor administration in 2009, more than ten years earlier (hs2.org.uk, 2023). A fresh business High Speed Two Limited was assigned to supervise this independent project, which became accessible to the public for input after an evaluation by the Conservative-Lib Dem government. The proposal provides a suggestion for the connection of London, Manchester, Leeds and Birmingham by making a 'Y' structured line for trains (YAO and Gillen, 2022). Even though billions of dollars have been invested so far on what the HS2 actions alliance calls "arguably the costliest single endeavor to be undertaken through a British Government in peacetime," there is not much tangible progress to demonstrate for it. After this time, other planned adjustments to HS2 have been made, and numerous other estimations, involving the budget, have altered as a result (tfl.gov.uk, n.d). The cost to complete the whole network was first estimated at £32.7 billion, but it swiftly increased to fifty billion dollars in 2013, $55.7 billion in the year 2015, and continuous budget evaluations indicate a final amount in the range of £70-80 billion (Tetlow and Shearer, 2021). Risk is defined as an unpredictable occurrence or circumstance in project management, if it materializes, would have an impact on a minimum of one project's objective. The risk portrays a significant opportunity to effectively evaluate the project on both PESTLE and SWOT analysis. Risks are mainly introduced by uncertainty and can be classified as negative and positive forms depending on their impacts on the project and the uncertainty that is happening in the project. The overall perception of HS2 in the media and among the public is now quite unfavorable. The study aims to analyze the process of managing risks of the project and the impacts of the risks that can lead to the potential success of the project. The report also identifies that the HS2 project is continuing and that current events of great influence, like the general election, may spark more debates over what the report is covering.
Risk identification | Risk qualification | Risk quantification | ||||
Impact | Likelihood | Frequency | Risk analysis and communication | Potential loss | Mitigating strategies | |
Protests | High | Medium | Low | The well-known HS2 project has faced opposition and obstructionist conduct that has harmed both construction sites and vacant homes. In other regions, there are also notable levels of public hostility and insufficient or nonexistent security measures. Illegal demonstrations have the potential to delay HS2 development, which might have an effect on the project's budget, reputation, and timetable.
| Protests can affect the budget, deadline and reputation of the project. It also can impact on the security of the project | ● The project manager has to monitor the activities of the protesters and the security threats. It can help to reduce the protests or respond to the protests. ● The project manager can train the employees for being communicated in the project. ● They can implement incident management plans and teams that can handle the protester situation. ● They have to establish options for legal action when proper procedures are being considered. |
Supply chain capacity | Low | High | Low | The whole UK supply chain's capacity to carry out construction projects, including its ability, dependability, skills, and extra resource limits, might impede HS2 Ltd (Brock and Goodey, 2022). from reaching its objectives and advantages. It might make HS2 Ltd. less able to fulfill timelines or affect the outcomes of increasing, unanticipated cost constraints.
| The supply chain capacity can affect the project's timeline and it also puts pressure on the cost that can lead to project failure. | ● The project creates a policy that can be active on monitoring the supply chain by using different approaches. ● After COVID-19 there were various risks of the supply chain that can be solved by focusing on the capacity and financials of the supply chain. ● The team has to evaluate regularly the state of key suppliers and they have to implement contingency plans for the supply chain. |
Probability of "catastrophic incident" | High | High | Medium | Due to the project's huge magnitude and complexity, a severe or catastrophic event might result in significant harm, cause the project to be delayed, and erode public confidence in HS2's ability to complete it safely (Glaister, 2021).
| The effects of the issue can lead to the loss of confidence on the project as well as it adversely affects the project success. | ● They have to start some campaigns that can promote the culture which focuses on health, security, safety and so on. ● They have to create a strategy that has some objectives for health, wellbeing and safety. The projects' ongoing involvement with the strategy and the supply chain with regard to catastrophic risks, in order to provide a standardized method for identifying and managing the catastrophic risks faced by MWCCs. ● In addition to monitoring integrated geographic projects attentively, HS2 Ltd also periodically looks forward to probable high-risk occurrences. |
Decreasing leadership team talent | Medium | High | Low | Talents are very expensive and rare for competitiveness in the marketplace (Sergeeva and Davies, 2021). Due to potential failure of hiring or recruiting necessary skills the project cannot able to establish effective leadership talent that are needed to achieve the goals. | Inappropriate talent and skills can lead failure of the project | ● The project can implement people's strategies that are connected with skill for success. ● By using the strategy the project manager recruits and hires employees for their team. ● It also introduces some leadership and Management programs that can help them to avoid the issue. |
Political and external events | Medium | High | High | The external and political unanticipated events can affect the present and future scope of the HS2 project. The events can make it more challenging for achieving the project aims. | The external and political events can affects the future and present scope of the project. | ● They have to implement some policies in their project that supports all the political and environmental events ● The policies can help the project by considering the emerging and potential risks. |
Underestimated wild habitats and space. | Low | Medium | Low | Underestimate the wild habits can lead different types of issues that can provide result of unsuccessful project | This issue can affects the ethical practices that can lead heavy penalties for the project | ● Modification in the project plan |
Table 1: Risk Register
(Source: Self-created)
Risks | Strategies |
Protests | Adhering to the legal norms and regulations and providing proper justifications and information |
Supply chain capacity | Implementation of modern technologies such as AI and Robotics can be helpful to manage risk of the supply chain (Attaran, 2020) |
Probability of "catastrophic incident" | A Quick Response team can help to manage the risks efficiently by taking expert actions in the preliminary stages |
Decreasing leadership team talent | Motivating individuals to take part in leadership and skills development seminars, workshops and internships |
Political and external events | Proper authentication and documentation of a project can lead to lesser impacts of Political and external events over the project |
Underestimated wild habitats and space. | Railway line must be restructured and the project may require several modifications in plan |
Table 2: Strategies to manage various types of risk
(Source: Self-created)
Factors | Impact |
Political | ● Various political parties are present in the country, each having different plans about the HS2 project or High speed 2 project (Coffey et al, 2023). ● Green party and conservative both parties have some plans for the project and they are trying to invest money on the project for different causes Glaister, 2021). ● The labor party supports the project and they are committed to the completion of the project. |
Economical | ● The most recent business case projects that the whole Y-network will result in net transportation benefits of £74.6 billion (Kaewunruen et al, 2021). ● The project will enhance the economy of the UK and it will help to produce a huge amount of construction jobs for the next few years and the whole project will be able to provide jobs to employees. ● The line will affect the productivity of the UK and it will help the country by increasing the GDP. ● The project got approval in the last year from parliament and the budget had increased and enhanced from the initial estimate. |
Social | ● Eligible owner-occupiers are entitled to the unblighted worth of their house, a ten percent home loss payment, as well as reimbursement for acceptable relocation expenses. ● Apathy on the part of the general public brought on by budget overruns and environmental issues (McNaughton and Banks, 2021). ● Instead of northern cities, it is thought that London enterprises will be the real winners.It will produce jobs for the society. |
Technological | ● Drone was used for capturing the whole structural data of the route of HS2 with two cities such as Birmingham and London. ● The project involves stakeholders for the execution of the all over operations like design and construction without causing local landowners’ inconvenience. ● BIM (Building Information Modelling) can be implemented in the project for various advantages such as improvement of created, designed and maintained. |
Legal | ● The "High Speed Rail Bill" hybrid bill was submitted by the government to the legislature on November 25, 2013. Construction of the initial stage of the HS2 network is authorized under the Bill. ● The second phase of HS2 is still distant from being officially authorized; in a Westminster paralyzed by Brexit, legislation could require further four years to complete. ● The project faces legal challenges because of a construction company threatening and a risk of conflict of interests. ● The Old Oak Common and Euston stations required HS2 to refine their bidding processes. After dropping that £1.3 billion contract, Betchel alleged that the tendering procedure was inequitable and started a legal proceeding. |
Environmental | ● The project will create green corridors that are created with trees and shrubs within 9km2 that are very beneficial for the environment. ● The train will run with high speed that can help to reduce the use of electricity and carbon consumption. ● It can increase the use of trains in the environment. |
Table 3: PESTLE analysis
(Source: Self-created)
The PESTLE analysis helps to understand the external issues of the project in the country UK. There are different factors present that can affect the project. The political factors that are represented in the analysis are political parties which are interested in investing in the project for different purposes. The parties who are mostly interested in the project are the Green Party and conservative party. But it portrays that the labor party is more supportive and will take a part in the completion of the project. There are also some economic factors showcased in analysis. Among them, transportation benefits are one of the important factors that can affect the economy of the country. By providing jobs the project can improve the growth of the economy of the country. The project will increase productivity as well as it will influence the GDP of the country. There are also various social factors present in the analysis as well as technological factors that are affecting the project effectively. Some legal factors are explored such as high-speed rail bill, conflict of interests and so others. The environmental factors such as green corridor, reduction of carbon consumption.
Strengths | Weaknesses |
● The main strength of the project is enhancing rail connectivity and capacities. ● It also helps people by providing new jobs as well as it helps in tackling climate change. ● It also helps people to reach their destination quickly because the high-speed trains have more speed than others. ● It has a huge capacity to tend the travelers by involving extra seats or spaces for the people. ● To minimize damage on the most sensitive regions, tunneling is employed. ● Long-distance transport is given a low-carbon choice, and additional steps are supported to limit aircraft and the use of motor vehicles. | ● The project negatively affects the political, economic and environmental factors. ● It will destroy many homes that are not good for the people of the area. ● Building HS2 has a significant carbon footprint. ● Several stops restrict the number of towns immediately along the route who can benefit from transportation.
|
Opportunities | Threats |
● The use of effective approaches helps to reduce resource imputation and immerse CO2 ● Maximization of integration and communication with different methods at new stations. ● The advantages of HSR for reducing CO2 will rise if the electrical supply is decarbonized in the future. | ● Future energy shortages bring back coal generation because, for instance, the electricity supply has not been decarbonized. |
Table 4: SWOT Analysis
(Source: Self-created)
Stakeholders play a critical role in the success of a project. It has been explored that stakeholder helps to perform a task superiorly and at the same time helps in gaining familiarity and popularity of a project. Besides this, it has also been explored that the stakeholders help in gaining sustainability of a project and help in displaying the success criteria of a project. Thus, as a project manager, it is highly necessary to include and identify key stakeholders of a project leading to higher project standards (Hu et al., 2019). Firstly, stakeholder identification is highly critical which is done by analyzing individuals and groups that can directly impact the project operations. The stakeholders are those who are linked with a project closely and efficiently and are influenced by the results of the project (Wawak and Woźniak, 2020). A stakeholder identification and analysis chart is best to identify the stakeholders of a project. The HS2 project is also a large-scale construction project in the UK that looks to connect London with different parts. In such large-scale community projects, the influence and impact of stakeholders remains high and thus a proper identification and analysis is required.
Identified Stakeholders | Impact on the project | Influence on the project | Importance of the stakeholders | Contribution to the project |
HS2 Ltd | High | High | HS2 limited assisted in developing and designing the plan of the high speed line | Procurement and establishing a supply chain of efficient contractors and designers, land acquisition to execute the project |
Department for Transport (DFT) of UK (hs2.org.uk, 2023) | High | High | Dft is the major investor of the HS2 project and helps in budgeting the costs of the project | Huge sum of revenue is assigned for successful completion of the project. Cash flow is maintained superiorly (hs2.org.uk, 2023) |
West Coast Partnerships | Medium | High | West Coast partnership serves the HS2 projects by developing its Infrastructural values. Looks to accelerate the benefits over investment indulged | Played a major part in the design, development and mobilization of the H2S project. Several àdjacent services have also been in the HS2 project |
Train operating companies (hs2.org.uk, 2023) | High | Medium | The train operating companies will benefit the project by providing key ideas and insights about the sustainability of the line (hs2.org.uk, 2023) | Several key resources in construction phase of line project have been extracted from the train operator companies |
UK government | High | Medium | UK government and administrative bodies will assist in successful completion of the project by reducing adverse impacts of adverse political factors, social concerns | Provides administrative support to the project and provided land for construction of the project as per proposed plan |
Contractors such as SCS JV, Align JV etc. (newcivilengineer.com, 2022) | Medium | Low | Contractors assisted in maintaining availability of resources in the project and also helped in managing equipments and materials of the project | Provided significant subcontractors who supplied top standards of resources. Contributed the project by providing resources timely and monitored the development of project (newcivilengineer.com, 2022) |
Network Rail (cjassociates.co.uk, 2023) | High | Medium | Network rails helps to keep railway transport facilities of Britain safe and secured. It helps to review the entire plan, Infrastructure and execution of the project | Assisted in proposing the relevance of the HS2 line besides another railway line. Discussed about the needs of the HS2 line to connect London with different parts
|
Transport for London (TFL) (cjassociates.co.uk, 2023) | High | High | Tfl is an efficient stakeholder as it helped in planning and designing the HS2 project | Customer safety has been the major priority for Tfl and along with that it has contributed in minimizing the impact of HS2 over the community. |
Highways Agency | Medium | Medium | Providing relevant resources and information about such a critical and high risk project | Assisted in providing resources. Besides also provided information regarding the adverse effect the British highways from the H2S project |
Canal & River Trust | Low | Medium | Important for maintaining the rivers and canals of UK from the adverse impacts of H2S project | Provided a proper guidelines regarding the major things to be maintained to lower impact on canals and rivers from the project (cjassociates.co.uk, 2023) |
Hitachi Rail (hs2.org.uk, 2023) | High | Low | Helped in enhancing the functionality and standards of the HS2 rail line through technological developments | Contributed the project by providing low noise pantography. Assisted in boosting the energy efficiency of the HS2 project (hs2.org.uk, 2023) |
Common people | Medium | Low | Help in growing the popularity of the project among a large mass of people. | Contributed in developing the relevance and acceptance of the project in the society. |
National and International media | High | Low | For developing the familiarity of the project among larger mass of people in the society | Contributed in the project by spreading photos and videos of the project across television and social media through which people came to know |
Social bodies such as NGO’s | Low | Medium | Social bodies and NGO's are key stakeholders as they help in keeping the project ethical, legal and authentic | Contributed in the project by maintaining its carbon footprints and noise which helps in growing sustainability of the project |
Table 5: Stakeholder Identification
(Source-Self-created)
The table represented above identified the major stakeholders of the HS2 project. Each and every stakeholder has their own importance and contribution to the project and assists the project to get executed properly. Thus, the project manager needs to manage each of the stakeholders efficiently to grow the success of the project. The table also showcased the amount of impact and influence each stakeholder can deliver over the project which helped to identify the most powerful and important stakeholders of the HS2 project.
Stakeholder management and engagement is highly important in a project. It has been explored that a stakeholder communication plan is highly important to manage each stakeholder efficiently and closely (Kaur and Lodhia, 2019). Besides this, it has been explored that stakeholder engagement helps a project avoid a number of risks which grows the success of a project. In the case of large-scale projects such as HS2, the importance to stakeholder engagement is highly necessary (Kujala et al., 2022). Thus, it is highly required to propose a communication management plan for every stakeholder to keep themselves excited and stubborn about the project.
Stakeholder name | Engagement activity | Owner | Channel | Frequency |
HS2 Ltd | Manage Closely | Project Manager | Formal meetings, Emails and memos | Daily |
Department for Transport (DFT) of UK | Manage Closely | Project Manager | Emails and memos | Daily |
West Coast Partnerships | Keep Satisfied | Project Manager | Updated reports and summaries through mail | Weekly |
Train operating companies | Keep Informed | Project Manager | Formal letters and official messages | Weekly |
UK government | Manage Closely | Project Manager | Emails and memos | In every 15 days |
Contractors such as SCS JV, Align JV etc. | Keep Satisfied | Project Manager | Formal meetings | Weekly |
Network Rail | Manage Closely | Project Manager | Memos and Agenda summaries | Weekly |
Transport for London (TFL) | Keep Satisfied | Project Manager | Online meetings | In every 10 days |
Highways Agency | Keep Satisfied | Project Manager | Updated Emails | In every 15 days |
Canal & River Trust | Keep Satisfied | Project Manager | Updated Emails | In every 15 days |
Hitachi Rail | Keep Informed | Project Manager | Formal meetings | In every 15 days |
Common people | Monitor | Project Manager | Surveys, News prints and private interviews | Monthly |
National and International media | Monitor | Project Manager | Press meetings and interviews | Monthly |
Social bodies such as NGO’s | Monitor | Project Manager | Emails and official letters | Monthly |
Table 6: Communication Management plan
(Source-Self-created)
The above table highlights the communication plan with stakeholders for the HS2 project. It highlights the major communication strategies that must be deployed by the project manager to manage and engage each stakeholder in the project. Besides this, it has also been explored that a communication plan is highly significant as it assists the project manager to prioritize the most important stakeholders. It has been explored that the communication strategies are fixed based on the interest and power of the stakeholder in the project. The stakeholders having higher interest and power in the project are managed closely and they are communicated daily. In this way, based on the interest and power of stakeholders, the communication strategies are planned. Email, memos, formal meetings, online meetings, agendas etc. are some of the major communicating channels selected for stakeholders of the HS2 project.
There are some major factors that assist a project to gain success. One of the most important factors in this context is risk monitoring. In every project, project managers frame a major risk management and mitigation strategy. Besides this, risk monitoring is also important for mitigating risks efficiently. Thus, it has also been evaluated that risk monitoring strategies are highly important and significant. The risks of the HS2 project have already been identified earlier. The first major strategy is proper risk identification and after that, the availability and traceability of the proposed mitigating approaches must also be monitored. After that, the major sources of the risks of the HS2 project must be monitored and potential occurrence of the risks need to be tracked and monitored. Besides this, while monitoring the identified risks if any further risks are identified those must also be prioritized and proper monitoring must be done. The risk monitoring strategy of the HS2 project must indulge technological tools like the Risk dashboard which help to keep records of each risk properly. It helps to monitor the risks efficiently and at the same assists in comparing risks.
Figure 1: Risk Dashboard
(Source: powerslides.com, 2023)
Besides this, the utilization of probability and impact matrix can also help in monitoring risk efficiently of the HS2 project. Utilizing this matrix helps assign significant scores over the probability and impact of the risk (Alfreahat and Sebestyén, 2022). After that scores on severity are also given for each risk. Thus, eventually, it helps to monitor the dreadful risks efficiently. Hence, utilizing these techniques will help to monitor the risks of the HS2 project efficiently.
Figure 2: Probability- Impact Matrix
(Source: slideteam.net, 2022)
Assumptions
HS2 is going to be the second high speed railway track in London. By coming to the end of the task, it can be assumed that HS2 can definitely lower carbon emissions and can also reduce the rate of energy consumption. Besides this, it is also assumed that HS2 will grow the connectivity of London with different other parts of England. HS2 is also expected to enhance reservation seats for passengers on long-distance journeys. Besides this, it is also assumed that the successful completion of the HS2 project will develop the employment rate in the UK. Apart from this, it is also assumed that the HS2 project will develop traveling convenience between major cities in England. Besides this, it has also been assumed that HS2 will lower external concerns such as infant mortality, environmental pollution, and accidents, etc. (hs2.org.uk, 2023)
Recommendations
The first major recommendation to the HS2 will be to grow confidence about their delivery of the project rather than revising the opening date time after time. Besides this, modern technologies must also be involved in the project construction phase to grow the productivity of the project. Besides this, human resources for the project need to be planned efficiently. The project employees must be provided with appropriate training before letting them in such large-scale projects. Besides this, HS2 has been found as environmentally challenged. Thus, it is recommended that the project manager must modify the project plans so that the project does not harm wildlife, human living places, or any natural objects. The sustainability of the project must be developed over time. Besides this, the stakeholders must be indulged more in the board meetings to grow their importance in the project leading to higher popularity.
Conclusion
The study thoroughly discussed the risks, stakeholders, and communication plan of the HS2 project. The HS2 project is the second high speed rail track in England intended to revolutionize the traveling convenience through rail tracks of England. The study primarily identifies the major risks accustomed to the HS2 project which included protests, supply chain disasters, potential catastrophic incidents, lowering leadership and competencies of the employees etc. The impact, likelihood, and frequency of the risks have been thoroughly discussed and along with that mitigation strategies for each of the risks is portrayed. The external and internal environment of the HS2 project has also been analyzed using PESTLE and SWOT analysis. After that, the stakeholders of the HS2 project have been identified and along with that, a thorough communication management plan has also been incorporated in the study. The communication plan is made based on the stakeholders’ power and influence in the project. After that, risk monitoring strategies have been discussed in which the role of risk dashboards and Probability and Impact matrix have been explored. Finally, a few assumptions on the project are made and recommendations have been proposed which must be adhered to grow the sustainability of the project.
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