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Developing a Stakeholder Strategy Moving on after Ferrier

Developing a Stakeholder Strategy Moving on after Ferrier. Lynn M. Calder Manager, Public Consultation Shell Canada Resources. Business Case for Public Consultation. NOT doing it right the first time takes more Shell staff time

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Developing a Stakeholder Strategy Moving on after Ferrier

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  1. Developing a Stakeholder StrategyMoving on after Ferrier Lynn M. Calder Manager, Public Consultation Shell Canada Resources

  2. Business Case for Public Consultation • NOT doing it right the first time takes more Shell staff time • Hearings and inquiries: $100K - $1500K (legal & out-of-pocket costs only) • Recent well delay (rig on stand-by): $200K • Lost opportunity costs: Can be in the range of $10K/DAY or Millions $$$/year!

  3. Root Causes • Time/business pressures • Legacy of downsizing and cost cutting in 1990’s • Loss of Shell competency & resources in public consultation • Loss of knowledge of key Shell processes • High reliance on third party consultants • Insufficient resources to mount an effective defense • No systematic approach to project management, risk assessment and public consultation • “Brent Spar syndrome” • “We have the right to be here” • “Decide-announce-defend” (D-A-D) • “This is the way we have always done it” • “If only we explain it well enough...” • Wrong place, wrong time

  4. … Opportunities for Improvement • Resources PC is ad-hoc and uncoordinated • Accountability and leadership are unclear • No consistent short or long term planning • Only occasional random PC training • Minimal sharing of and acting on lessons learned • Limited corporate memory; hence fulfilling external commitments is at risk • Relationship building with our host communities is inconsistent • Little coordination between Products, Resources, Oil Sands...

  5. Public Consultation in Resources’ FutureOUR VISION • Shell is recognized as an industry leader in PC • We receive timely approvals, with early well managed community input inherent in the conceptual design of all our projects • No hearings are held to resolve community issues – only to resolve fundamental development issues • We are an operator of choice to the EUB, to NGOs and to the community • Our host communities value us as neighbours and business partners

  6. How do we ensure our organization is aligned & capable? • Staff • Communication Materials • Tools Business results Organizational Capability • Information-sharing • Training • Competency matrix Skills & Competency Systems & Processes • Process/Map • Consultation Plans • Database Resource Availability Work Environment

  7. Project Team HSSD Public Affairs Legal JV/Land RSE Project manager Public consultation coordinator Community affairs rep G & G/ Petrophysicist Land Agent Reservoir Engineer Completions & Production Facilities Engineer Seismic Drilling

  8. Back-up slides (to follow)

  9. Public Consultation Start-up(“the Red Book”) • “Public consultation” done as part of ERP process, using third party consultants • Approach had generally been successful in the past • Time/business pressures • Mail-out option was offered as a quick and viable solution • Intended to follow up by phone but Coalition was too quick • Did not check dates on cover letter (package delayed) • Did not recognize higher risk factors • Considered extensive consultation unnecessary for exploration well with low probability of success

  10. Public Consultation Reviews • 2000 (prior to hearing) • Interviewed 35 Shell staff involved in all stages of Public Consultation • Identified ~75 staff & consultants in contact with the public • Reviewed ~ 20 background documents • Discussed PC practices and trends with regulator and other industry staff • 2001 (after decision) • Interviewed Shell hearing panel and other people at Shell • Interviewed EUB staff, consultants, public consultation specialists at other companies • Reviewed EUB Guide 56, recent EUB decisions

  11. Recommendations for Action • Re-affirm Project Manager responsibility for PC • Write guidelines and include in Project Manager accountability • Assign PC guidance in Resources to a senior staff person • Establish a Manager, Public Consultation • Recognize PC as a Resources core competency and staff plan • Raise PC’s profile internally • Establish a PC database to retain learnings and commitments • Reactivate the Resources PC Network

  12. What is in a Public consultation plan? • Project Information • Goals • Stakeholders • Project Overall Schedule • Public Consultation Activities and Schedule • Issue Management • Stakeholder Input Received, Action Taken And Feedback Provided • Future/Ongoing Action

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