Cooperation among public parties Maarten Groothuis

“The only person who likes change... “There is nothing more difficult to carry out, nor more doubtful of success, nor more dangerous to manage, than to initiate a new order of things. For the initiator has the enmity of all who would profit by the preservation of the old system, and merely lukewarm defenders in those who would gain by the new one.” Niccolo Machiavelli “…is a wet baby” Review of the context for Change Enablement

Warm welcome? PPP doesn’t always receive a warm welcome: PPP doesn’t always receive a warm welcome: –Accounting people –Procurement departments –Maintenance services –End users –Permit granting authorities Certain stakeholders tend to have mixed feelings - or even severe problems - giving away what they were used to Certain stakeholders tend to have mixed feelings - or even severe problems - giving away what they were used to Resistance to PPP…

Why cooperation among public parties? Principle of subsidiarity Principle of subsidiarity –a central authority should have a subsidiary function, performing only those tasks which cannot be performed effectively at a more immediate or local level As a result, different levels of public authorities have have responsibilities in the realization of infrastructure-, building-, and area development projects As a result, different levels of public authorities have have responsibilities in the realization of infrastructure-, building-, and area development projects NL example: NL example: –State = contracting authority –Province = regional planning and environment –Municipality = urban planning and design

Stakeholder management Stakeholder management is critical to the success of every project Stakeholder management is critical to the success of every project By engaging the right people in the right way in your project, you can make a big difference to its success By engaging the right people in the right way in your project, you can make a big difference to its success Being right ≠ getting things done! Being right ≠ getting things done! Stakeholder management is the process by which you identify your key stakeholders and win their support

Power / interest grid Show Stoppers Show Delayers Dependents Side Liners

Desired level of engagement Ownership Buy In Awareness Nice To Know

Levels of engagement Nice to know Nice to know –not involved in decision making, not effected very much by the project. Public opinion makes a difference. Awareness Awareness –just need to know the project is going on, it does not effect them very much. However, their support is an enabler for the success of this project Buy in Buy in –involved in decision making, they can influence the success of the project to a significant extent. Their feedback is a critical success factor in the change process. Ownership Ownership –really drive the change, convince less convinced audiences of the need of the change. Every PPP project needs a few essential players to function as “change agents”

Demand for communication Manage Closely Keep Satisfied Keep Informed Monitor (Minimum Effort)

Government/SGU authorityMoF CONTRACTIN AUTHORITY PPP Centre SAO Steering Committee Antimonopoly Office Tax Authority Audit Project Manager MRD Project team, consultants Public Media Communicator PRIVATE PARTNER (SPV) BuilderOperatorInvestorsBanks PRIVATE SECTOR CONTROL PUBLIC SECTOR COMMUNICATION CSO PPP process stakeholders

Example What are the interests of the different parties? Contracting authority = Ministry of Defense Contracting authority = Ministry of Defense Owner of the projectOwner of the project Internal divergency: positions differ from financial, operational to support peopleInternal divergency: positions differ from financial, operational to support people Ministry of Finance Ministry of Finance Budget provision and fiscalitiesBudget provision and fiscalities PPP knowledge sharingPPP knowledge sharing Internal divergency might existInternal divergency might exist Parliament Parliament Value for money, good government services for taxpayers’ moneyValue for money, good government services for taxpayers’ money PPP dealflowPPP dealflow

Stakeholder analysis 1. Identifying your stakeholders Brainstorm: all the people who are affectedBrainstorm: all the people who are affected 2. Prioritize your stakeholders Power/interest grid and desired level of engagementPower/interest grid and desired level of engagement 3. Understanding your key stakeholders Current position/opinion, interests and motivationCurrent position/opinion, interests and motivation

Stakeholder analysis StakeholderCurrent position InterestsDesired level of engagement People who have influence or power over the project, or have an interest in its successful or unsuccessful conclusion. What is their current opinion of the project / of PPP? What financial or emotional interests do they have? What motivates them most of all? CA - procurementOwnership CA – finance & controlBuy in Etcetera

Role of the NL Ministry of Finance Tax office Tax office –Position: fiscal issues may never be an obstruction to PPP –Interests: clear fiscal settlements –Level of engagement: buy in Budgetary office Budgetary office –Position: getting used to PPP –Interests: value for money –Level of engagement: buy in PPP Knowledge Center PPP Knowledge Center –Position: ministries, regional and local governments conduct their own PPP projects, PPP Knowledge Center still participates –Interests: dealflow and transaction costs –Level of engagement: ownership –PPP policy and pilots, no legislation (PPP code of conduct in preparation) –Tension: getting things done without formal power –Informs the Parliament and politicians and uses their power when necessary

Cooperation among stakeholders As project team members As project team members Within steering committee Within steering committee General communications General communications Communication with specific stakeholders Communication with specific stakeholders Public-public agreements Public-public agreements Through regular procedures Through regular procedures In the end: enforced by legal power In the end: enforced by legal power –Engagement is preferred to legislation Integrated into project structure, project plan, communication strategy and communication plan

Questions?