Managing Complex Stakeholder Networks

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? 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 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 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, 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 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

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

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

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

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 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

Challenges

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?

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:

Diverse Connected Interdependent Adaptive

Landscapes as a metaphor for complex systems -

Simple – Mt. Fuji

Landscapes as a metaphor for complex systems -

Rugged – The Rockies

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 Chart

Governing Body

CEO

Planning Engineering

Design Firms

Construction

CM Contractors

Operations

Legal Counsel

Network ModelsHub-Spoke

NetworkModelsFree-form map

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

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)

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.

Social Network Analysis

Social Network Analysis

EngineeringRegulatory Agency

Social Network Analysis

Powerful insights– See same stakeholders in different contexts

Project phaseSpecific IssuesChanges 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 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

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