Developing a Stakeholder Strategy Moving on after Ferrier

1
Developing a Stakeholder StrategyMoving on
after Ferrier

• Lynn M. Calder
• Manager, Public Consultation
• Shell Canada Resources

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Business Case for Public Consultation

• NOT doing it right the first time takes more
  Shell staff time
• Hearings and inquiries 100K - 1500K (legal
  out-of-pocket costs only)
• Recent well delay (rig on stand-by) 200K
• Lost opportunity costs Can be in the range of
  10K/DAY or Millions /year!

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Root Causes

• Time/business pressures
• Legacy of downsizing and cost cutting in 1990s
• Loss of Shell competency resources in public
  consultation
• Loss of knowledge of key Shell processes
• High reliance on third party consultants
• Insufficient resources to mount an effective
  defense
• No systematic approach to project management,
  risk assessment and public consultation
• Brent Spar syndrome
• We have the right to be here
• Decide-announce-defend (D-A-D)
• This is the way we have always done it
• If only we explain it well enough...
• Wrong place, wrong time

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Opportunities for Improvement

• Resources PC is ad-hoc and uncoordinated
• Accountability and leadership are unclear
• No consistent short or long term planning
• Only occasional random PC training
• Minimal sharing of and acting on lessons learned
• Limited corporate memory hence fulfilling
  external commitments is at risk
• Relationship building with our host communities
  is inconsistent
• Little coordination between Products, Resources,
  Oil Sands...

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Public Consultation in Resources FutureOUR
VISION

• Shell is recognized as an industry leader in PC
• We receive timely approvals, with early well
  managed community input inherent in the
  conceptual design of all our projects
• No hearings are held to resolve community issues
  only to resolve fundamental development issues
• We are an operator of choice to the EUB, to NGOs
  and to the community
• Our host communities value us as neighbours and
  business partners

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How do we ensure our organization is aligned
capable?

• Staff
• Communication Materials
• Tools

Business results
Organizational Capability

• Information-sharing
• Training
• Competency matrix

Skills Competency
Systems Processes

• Process/Map
• Consultation Plans
• Database

Resource Availability
Work Environment
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Project Team
HSSD
Public Affairs
Legal
JV/Land
RSE
Project manager
Public consultation coordinator
Community affairs rep
G G/ Petrophysicist
Reservoir Engineer
Land Agent
Completions Production
Facilities Engineer
Seismic
Drilling
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Back-up slides (to follow)
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Public Consultation Start-up(the Red Book)

• Public consultation done as part of ERP
  process, using third party consultants
• Approach had generally been successful in the
  past
• Time/business pressures
• Mail-out option was offered as a quick and viable
  solution
• Intended to follow up by phone but Coalition was
  too quick
• Did not check dates on cover letter (package
  delayed)
• Did not recognize higher risk factors
• Considered extensive consultation unnecessary for
  exploration well with low probability of success

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Public Consultation Reviews

• 2000 (prior to hearing)
• Interviewed 35 Shell staff involved in all stages
  of Public Consultation
• Identified 75 staff consultants in contact
  with the public
• Reviewed 20 background documents
• Discussed PC practices and trends with regulator
  and other industry staff
• 2001 (after decision)
• Interviewed Shell hearing panel and other people
  at Shell
• Interviewed EUB staff, consultants, public
  consultation specialists at other companies
• Reviewed EUB Guide 56, recent EUB decisions

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Recommendations for Action

• Re-affirm Project Manager responsibility for PC
• Write guidelines and include in Project Manager
  accountability
• Assign PC guidance in Resources to a senior staff
  person
• Establish a Manager, Public Consultation
• Recognize PC as a Resources core competency and
  staff plan
• Raise PCs profile internally
• Establish a PC database to retain learnings and
  commitments
• Reactivate the Resources PC Network

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What is in a Public consultation plan?

• Project Information
• Goals
• Stakeholders
• Project Overall Schedule
• Public Consultation Activities and Schedule
• Issue Management
• Stakeholder Input Received, Action Taken And
  Feedback Provided
• Future/Ongoing Action