Managing Complex Stakeholder Networks
Mar 31, 2015
Managing Complex Stakeholder NetworksManaging Complex Stakeholder Networks
PanelistsPanelists
Brian McCarthy
– Program Management Consultant, CDM
John O’Neil
– General Manager, Johnson County (KS) Wastewater
OutlineOutline
Background – why complexity?
What or who is a stakeholder?
Who are the stakeholders for water infrastructure projects and programs & what are their attributes?
Why is stakeholder management complex?
How can we approach stakeholder management as a complex problem?
What tools can help us manage the complexity?
Questions and Discussion
Johnson County WastewaterJohnson County Wastewater
Operates as a department of Johnson County government under the Board of County Commissioners through the County Manager’s Office.
Operates six major treatment facilities, one lagoon facility, 30 stand alone pump stations, two combined pump and remote wet weather treatment facilities and two remote wet weather treatment facilities.
Average flow treated is 63 MGD
Johnson County WastewaterJohnson County Wastewater
Number of accounts is about 133,000 constituting more than 90,000 properties
Area served is 158 square miles
Almost 2,200 miles of service line including 60 miles of pressure main
Workforce of 218 FTE’s
Operating budget of $35,400,000 (2010)
Capital revenue budget of $37,800,000 (2010)
Metropolitan District of Hartford, CTMetropolitan District of Hartford, CT
Water
– 2 reservoirs
– 100,000 water customers
– 1,600 miles of water main
– $69 million capital budget (2010)
Sewer
– population of 300,000
– 1,200 miles pipe
– 4 treatment plants
– $19 million capital budget (2010)
Municipal corporation providing water and sewer service to greater Hartford , 8 member towns
Governed by a 29-member board (appointed)
Clean Water ProjectClean Water Project
$2 billion+, 15-year program to address
– Combined sewer overflows
– Sanitary sewer overflows
– Biological nutrient removal
Projects include
– Sewer separation
– Sewer rehabilitation & lining
– Storage tunnels & consolidation conduits
– Treatment plant capacity increases, process improvements
StakeholderStakeholder
Apparently contradictory meanings / history
– Neutral third party holding the wager
– Someone with an economic interest
Usage grew in the 80’s & 90’s, particularly in discussions of corporate governance
StakeholderStakeholder
Person or organization (e.g. customer, sponsor, performing organization, or the public) that is actively involved in the project or whose interests may be positively or negatively affected by execution or completion of the project. A stakeholder may also exert influence over the project and its deliverables.
– Project Management Institute, PMBOK Guide
Stakeholder ManagementStakeholder Management
Identifies how the program will affect stakeholders and then develops a communication strategy to engage the affected stakeholders, manage their expectations, and manage acceptance of the objectives of the program.
– Project Management Institute, Standard for Program Management
Who Are the Stakeholders?Who Are the Stakeholders? Other county departments:
– Human Resources
– Budget Office
– Office of Financial Management
– Environmental
City planning director Chamber of Commerce Developer School District State Restaurant
Association Consulting engineer to
developers (2)
Residential customer City wastewater manager City engineer Apartment association
manager Water utility elected official Home Builders Association Board of County
Commissioners Chairman Regional Association of
Realtors Institute of Real Estate
Management Homes Associations
Stakeholder DynamicsStakeholder Dynamics
Interests are divergent
Support and ability to impact vary
Their level of interest or the effects on them can vary over time
Dynamics and relationships exist outside of your program
ChallengesChallenges
Avoiding damaging conflict
– Expansion of JCW service area.
Maintaining Effective & Efficient Communication
Keeping up with changes in relationships
So . . . Is this just complicated or is it complex?So . . . Is this just complicated or is it complex?
Complicated – a system of connected, diverse, interdependent parts that are not adaptive
Complex adaptive system – a collection of adaptive, diverse, connected entities with interdependent actions.
Scott Page – Understanding Complexity
A system can be considered complex if its agents are:A system can be considered complex if its agents are:
Diverse
Connected
Interdependent
Adaptive
Landscapes as a metaphor for complex systems - Landscapes as a metaphor for complex systems -
Simple – Mt. Fuji
Landscapes as a metaphor for complex systems - Landscapes as a metaphor for complex systems -
Rugged – The Rockies
Landscapes as a metaphor for complex systems - Landscapes as a metaphor for complex systems -
Rugged landscapes become dancing landscapes when interdependence and adaptation are added
Complex systems are dancing landscapes
Let’s explore how we can use this metaphor, and some additional insights from complexity theory, to better understand and manage stakeholder relationships
Network ModelsHierarchical Org ChartNetwork ModelsHierarchical Org Chart
Governing Body
CEO
Planning Engineering
Design Firms
Construction
CM Contractors
Operations
Legal Counsel
Network ModelsHub-Spoke
Network ModelsHub-Spoke
NetworkModelsFree-form map
NetworkModelsFree-form map
Network ComponentsNetwork Components
Nodes – represent actors or agents in a network
Edges – represent the relationships or connections between the agents
Each of these have characteristics or properties that we can describe and use to further analyze the network
Social Network AnalysisSocial Network Analysis
Formal representation of the patterns of interpersonal relationships: sociograms
Can be mapped with nodes as actors and edges as exchanges
Mathematical analysis developed and applied
Long history in social sciences
New application in engineering and construction
Explore connections between network stability, project success and stakeholder familiarity (Chinowsky, et al)
Social Network AnalysisSocial Network Analysis
Model the diversity of the network using the properties of the nodes
– Shape, color, text, photos, size, etc. to represent:
– Power, impact, influence, location, organization, ability to adapt, communication style, etc.
Model the characteristics of the connections and interdependencies of the nodes using the properties of the edges
– Length, color, arrows, width, style, etc to represent:
– Physical distance, communication flow, frequency of communication, strength of relationship, etc.
Social Network AnalysisSocial Network Analysis
Social Network AnalysisSocial Network Analysis
EngineeringRegulatory Agency
Social Network AnalysisSocial Network Analysis
Powerful insights
– See same stakeholders in different contexts
Project phase
Specific Issues
Changes over time
– Do we need to change the connections?
– Do we need more or less diversity in the network?
Value of Modeling Stakeholders as a Complex SystemValue of Modeling Stakeholders as a Complex System
We learn a lot just by building the model
Interventions: “Taming a lion” vs. “Poking a tiger with a stick”
Models of complex systems may not be able to predict specific outcomes, because we can’t predict the adaptations that will occur
Can help us focus energy and resources to make and keep network robust
Map to other tools, e.g. WBS, schedule
DiscussionDiscussion
What are some of the challenges to acceptance of a complex systems model for stakeholder management?
How do we avoid being perceived as crossing the line into stakeholder manipulation?
Other questions