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Reducing Project Risk Through

Effective Stakeholder Engagement :

Lessons Learnt from Selected Projects in Malaysia

Dr. Ir. G Balamurugan

ERE Consulting Group Sdn Bhd

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Dilemma

Every project, no matter how well conceived ortechnically sound, will hurt or be perceived tohurt some interest or member of the public.

 And every member of the public has “veto

 power”, i.e. the ability to stop or seriously delay

a project.

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Frustration

We are trying to implement an infrastructureproject that will benefit the people..

yet these people see us as their enemies.Ungrateful #&%$#@(

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Typical Controversial Projects

• Incinerators & landfills

• Roads

• Dams

• Ports, marina & coastal defence

• LRT / MRT

• Housing, townships, cemetery, etc

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Controversy causes :

• Project delays

• Cost over-runs

• Tarnishes proponent’s reputation

• Increases scrutiny over project

• Loss of government credibility

• Essential infrastructure projects are stalled –therefore original problem remains unsolved

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Whenever there are

public protests, projectsare scrutinized in greaterdetail :

•Detailed EIA

•Public review of projectdocuments

•Independent expert opinions

•Banks, insurance companies

More scrutiny means more delaysand greater costs

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Challenging

Will not completely eliminaterisks

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Perceived level of credibility / trust

• Non-governmental organizations

• Scientists/ academics

• Media

• Trade unions, etc

• Government - Federal- Local

• Private companies

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1.

Engage stakeholders

strategically

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2.

Engagement must be continuous

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Engage Engage Engage

Feasibility Design Construction

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Close the loop

INFORM

FEEDBACK

REVIEW

INFORM

FEEDBACK

REVIEW

 Always follow up. It isdamaging to credibility if thereis no follow up withparticipants on decisionsmade in response to theirconcerns

3.

Provide appropriate informationcommunicate, communicate, communicate

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Stakeholders have varyinginformation needs

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Provide information that allow stakeholdersunderstand your projects

The need for the projectPolicy contextWhat problem it will solveHow it will benefit the stakeholdersHow it has been planned

Project schedule (how long construction)Impacts, compensation, etc

Provide informationthat allow stakeholdersunderstand yourprojects

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4.

Demonstrate planning efforts

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MRT Alignment Options

Segment B1: Jalan BatuTiga to Tropicana

Medical Centre

Segment B2: Jalan

Duta to Warisan

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5.

Demonstrate technical basis

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• Demonstrate the sound technical basis.

 A sound logical and technical basis isnecessary to achieve publicconfidence.

Department policies are not sufficient justification.

Example : the briefing for NGOs

 Although there will bemorons in the crowd, the

majority are intelligentpeople

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6.

Help stakeholders to engage better 

Provide appropriate informationin an appropriate manner in anappropriate venue

Date and time must suit localcommunities

Use local languages / dialectwhere possible

Provide translators

Provide ample opportunity to askquestions

Workshop expenses(travel/accommodation) paid for 

7.

Take ownership of the engagement

process

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Project Owner present at all dialogues [itwould be helpful if the representative can

also speak well] 

Senior executives must participate in thedialogues. Show that you are serious

Do not rely too much on consultants

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8.

Participatory planning

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Participatory planning

Community-mapping

9.

Empathy

Empathy 

Understand their problems andfrustrations AND demonstratethat you understand.

 Acknowledge past mistakes.

 Acknowledge achievements(e.g. Bundu Tuhan and KiauCCA)

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10.

Be aware of rumors

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• Espionage. Be aware of neighbourhood gossips, forumson the internet, media reports,

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Thank you