Managing Complex Stakeholder Networks

1. Managing Complex Stakeholder Networks

2. Panelists • Brian McCarthy • Program Management Consultant, CDM • John O’Neil • General Manager, Johnson County (KS) Wastewater

3. Outline • 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

4. Johnson 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

5. Johnson 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)

6. Metropolitan District of Hartford, CT 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) • Water • 2 reservoirs • 100,000 water customers • 1,600 miles of water main • $69 million capital budget (2010)

7. Clean 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

8. Stakeholder • 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

9. Stakeholder 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

10. Stakeholder 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

11. 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

12. Stakeholder 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

13. Challenges • Avoiding damaging conflict • Expansion of JCW service area. • Maintaining Effective & Efficient Communication • Keeping up with changes in relationships

14. 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

15. A system can be considered complex if its agents are: • Diverse • Connected • Interdependent • Adaptive

16. Landscapes as a metaphor for complex systems - • Simple – Mt. Fuji

17. Landscapes as a metaphor for complex systems - • Rugged – The Rockies

18. 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

19. Network ModelsHierarchical Org Chart

20. Network ModelsHub-Spoke

21. NetworkModelsFree-form map

22. Network 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

23. Social 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)

24. Social 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.

25. Social Network Analysis

26. Social Network Analysis Engineering Regulatory Agency

27. Social 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?

28. Value 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

29. Discussion • 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