Stakeholder Relations

Local government principles, LGA- S4 “(a) transparent and effective processes, and decision-making in the public interest; and (b) sustainable development and management of assets and infrastructure, and delivery of effective services; and (c) democratic representation, social inclusion and meaningful community engagement; and (d) good governance of, and by, local government; and (e) ethical and legal behaviour of councillors and local government employees.”

Definition “Stakeholder engagement is the process by which an organisation involves people who may be affected by the decisions it makes or can influence the implementation of its decisions. They may support or oppose the decisions, be influential in the organisation or within the community in which it operates, hold relevant official positions or be affected in the long term.” From Wikipedia

Who are Stakeholders  Employers  Fellow employees – complimentary asset or project owners  Government  Other utility owners  Regulators  Community – Residents, Businesses, Special Interest Groups  Suppliers / Contractors

Stakeholder Engagement approaches  Partnership: Shared accountability and responsibility. Two-way engagement joint learning, decision making and actions  Joint ownership and responsibility

Stakeholder Engagement approaches  Participation: Part of the team, engaged in delivering tasks or with responsibility for a particular area/activity. Two-way engagement within limits of responsibility.  E.g. Future responsibility for ownership or operation of asset; financier

Stakeholder Engagement approaches  Consultation: Involved, but not responsible and not necessarily able to influence outside of consultation boundaries. Limited two-way engagement: organisation asks questions, stakeholders answer.  E.g. Other utilities, regulators, special interest groups, suppliers, contractors

Stakeholder Engagement approaches  Push communications: One-way engagement. Organisation may broadcast information to all stakeholders or target particular stakeholder groups using various channels e.g. , letter, webcasts, podcasts, videos, leaflets.  E.g. Impacted community, contractor industry

Stakeholder Engagement approaches  Pull communications: One-way engagement. Information is made available. Stakeholders choose whether to engage with it e.g. website.  E.g. Wider community, customer survey

Identify project stakeholders  Be systematic- consider all aspects of the project’s area of influence, e.g. technical, business, geographical etc.  Remember the interest groups –identify groups or organizations not directly impacted by the project - interests determine them as stakeholders e.g. wider community, suppliers  Use past stakeholder information and experience  Consider the entire project lifecycle – stakeholders and their interests can change as the project progresses.  People matter stakeholders can be both organisations and people - you can only communicate with individual people. Ensure that the correct individuals within each stakeholder group are identified.

Opportunity to influence project outcomes –Stakeholder Involvement

Product owner/user Finance Organisation Strategy

Opportunity to influence project outcomes –Stakeholder Involvement Product owner/user Finance Organisation Strategy Regulators Community

Opportunity to influence project outcomes –Stakeholder Involvement Product owner/user Regulators Community Suppliers

Opportunity to influence project outcomes –Stakeholder Involvement Product owner/user Regulators Community Suppliers/Contractors Other Utilities

Opportunity to influence project outcomes –Stakeholder Involvement Product owner/user Regulators Community Suppliers/Contractors Other Utilities Other Stakeholders

Opportunity to influence project outcomes –Stakeholder Involvement Product owner/user Regulators Community Other Utilities Other Stakeholders

Consequence of poor stakeholder engagement Risk  Incomplete scope  Insufficient funding  Regulator obstruction  Major impact on neighbouring businesses/utilities  Unanticipated stakeholder aggression Consequence  Budget over-runs  Product not fit for purpose  Unable to obtain approvals  Rework  Project delays  Major contract variations  Adverse effect on reputation

Stakeholder Management Plan  Identify stakeholders for each segment of project cycle  Identify knowledge gaps  Identify impact on each stakeholder group  Use risk management approach to plan communication strategy  Identify most appropriate communication strategy for each group

Prioritisation Influence Interest LowHigh Low Inform and consult Collaborate / empower Balanced and objective information Obtain feedback on options

Stakeholder engagement cycle Identify Stakeholders Document Needs Analyse Stakeholders Influence/Interest Manage Stakeholder Expectations Action Plan Implementation Review and Repeat

Other Strategies  Supplier / Contractor information sessions  Focus groups  Advisory Committees

Supplier / Contractor Information  Annual program of works  Special project listings  Web site listing  s to supplier lists  Information sessions Results :  All enhance responses / tenders  Feedback provides market intelligence

Focus Groups  Engage with community groups  Regular and structured program  Topics include strategic council initiatives, program  Aim to educate community on needs and processes  Understand community reaction and concerns  Involve portfolio Councillors

Advisory Committees  Involve special interest groups impacted by particular project or strategy, usually technical  Structured and regular  Develop Charter  Membership derived from representatives from groups.  Members expected to provide feedback to / from their own group  Designed to explore options and educate  Can involve portfolio Councillor

Best Outcomes  Open communication  Face to face  Listen and understand  Develop trust  Supportive stakeholders  Reputation enhanced