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8/13/2019 2 Risk Management
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www.ere.com.my
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