Managing Complex Stakeholder Networks

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Managing Complex Stakeholder Networks. Panelists. Brian McCarthy Program Management Consultant, CDM John O’Neil General Manager, Johnson County (KS) Wastewater. Outline. Background – why complexity? What or who is a stakeholder? - PowerPoint PPT Presentation

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Managing Complex Stakeholder Networks

1PanelistsBrian McCarthyProgram Management Consultant, CDMJohn ONeilGeneral Manager, Johnson County (KS) Wastewater

2OutlineBackground 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 Discussion3Johnson County WastewaterOperates as a department of Johnson County government under the Board of County Commissioners through the County Managers 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

4Johnson County WastewaterNumber of accounts is about 133,000 constituting more than 90,000 propertiesArea served is 158 square milesAlmost 2,200 miles of service line including 60 miles of pressure mainWorkforce of 218 FTEsOperating budget of $35,400,000 (2010)Capital revenue budget of $37,800,000 (2010)

5Metropolitan District of Hartford, CTWater2 reservoirs100,000 water customers1,600 miles of water main$69 million capital budget (2010)

Sewer population of 300,0001,200 miles pipe4 treatment plants$19 million capital budget (2010)

Municipal corporation providing water and sewer service to greater Hartford , 8 member townsGoverned by a 29-member board (appointed)6Clean Water Project$2 billion+, 15-year program to addressCombined sewer overflowsSanitary sewer overflowsBiological nutrient removalProjects includeSewer separationSewer rehabilitation & liningStorage tunnels & consolidation conduitsTreatment plant capacity increases, process improvements

7StakeholderApparently contradictory meanings / historyNeutral third party holding the wagerSomeone with an economic interest

Usage grew in the 80s & 90s, particularly in discussions of corporate governance8StakeholderPerson 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

9Stakeholder ManagementIdentifies 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

10Who Are the Stakeholders?Other county departments:Human ResourcesBudget OfficeOffice of Financial ManagementEnvironmentalCity planning directorChamber of CommerceDeveloperSchool DistrictState Restaurant AssociationConsulting engineer to developers (2)

Residential customerCity wastewater managerCity engineerApartment association managerWater utility elected officialHome Builders AssociationBoard of County Commissioners ChairmanRegional Association of RealtorsInstitute of Real Estate ManagementHomes Associations11Stakeholder DynamicsInterests are divergentSupport and ability to impact varyTheir level of interest or the effects on them can vary over timeDynamics and relationships exist outside of your program12ChallengesAvoiding damaging conflictExpansion of JCW service area.Maintaining Effective & Efficient CommunicationKeeping up with changes in relationships13So . . . Is this just complicated or is it complex?Complicated a system of connected, diverse, interdependent parts that are not adaptiveComplex adaptive system a collection of adaptive, diverse, connected entities with interdependent actions.

Scott Page Understanding Complexity14A system can be considered complex if its agents are:DiverseConnectedInterdependentAdaptive

15Landscapes as a metaphor for complex systems - Simple Mt. Fuji

16Landscapes as a metaphor for complex systems -

Rugged The Rockies

17Landscapes as a metaphor for complex systems - Rugged landscapes become dancing landscapes when interdependence and adaptation are addedComplex systems are dancing landscapes

Lets explore how we can use this metaphor, and some additional insights from complexity theory, to better understand and manage stakeholder relationships

18Network ModelsHierarchical Org Chart19Network ModelsHub-Spoke

20NetworkModelsFree-form map

21Network ComponentsNodes 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

22Social Network AnalysisFormal representation of the patterns of interpersonal relationships: sociogramsCan be mapped with nodes as actors and edges as exchangesMathematical analysis developed and appliedLong history in social sciencesNew application in engineering and constructionExplore connections between network stability, project success and stakeholder familiarity (Chinowsky, et al)

23Social Network AnalysisModel 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 edgesLength, color, arrows, width, style, etc to represent:Physical distance, communication flow, frequency of communication, strength of relationship, etc.

24Social Network Analysis

25Social Network Analysis

EngineeringRegulatory Agency26Social Network AnalysisPowerful insightsSee same stakeholders in different contextsProject phaseSpecific IssuesChanges over timeDo we need to change the connections?Do we need more or less diversity in the network?

27Value of Modeling Stakeholders as a Complex SystemWe learn a lot just by building the modelInterventions: Taming a lion vs. Poking a tiger with a stickModels of complex systems may not be able to predict specific outcomes, because we cant predict the adaptations that will occurCan help us focus energy and resources to make and keep network robustMap to other tools, e.g. WBS, schedule

28DiscussionWhat 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