Facilitating responsible solutions
Copyright 2003 AXIS Performance Advisors. If you use this in any way, please cite the source.
Over the last twenty years, most organizations have learned the power of teams: bring together the right people from all over the organization, give them a clear goal, and get out of their way. These teams have created innovative new products, eliminated waste in work processes, improved quality and saved money. However, most of these teams have been populated just by people inside the organization. Now, leading edge organizations are using some of these same methods and concepts to solve problems across organizations and groups.
These multi-stakeholder processes come in a variety of forms: industry groups, architectural "eco-charrettes," supplier conferences, and community development projects. They all share one principle: magic happens when you get everyone into a room together. Suddenly, new options emerge. Relationships improve. Conflicts dissipate. Win-win solutions materialize. Seemingly intractable problems go away.
This is not to say that everyone sings Kumbaya. These can be gnarly meetings to facilitate. But if you're looking for the next frontier for improving organizational performance or the quality of life in your community, think about engaging people outside your own organization.
This article provides an overview of several different types of multi-stakeholder processes and shares tips for conducting them. In future newsletters, we'll provide more detail and case examples on a few of these processes.
What is a multi-stakeholder process? A multi-stakeholder process involves engaging people from different organizations or groups to meet a shared goal.
A multi-stakeholder process involves engaging people from different organizations or groups to meet a shared goal.
If you've ever hired a contractor, you know how siloed the industry is. Your contractor works with a bunch of subcontractors. The person who comes out to look at the job isn't the person who does the work. One subcontractor causes problems for the next. The next thing you know, the window is in the wrong place, the tile isn't laid as you had asked, and someone backed over your prized rosebush. No one wants to try anything new because of the ripple effect through the chain of subcontractors. The dirty little secret in the industry is that you are paying too much because no one wants to rethink traditional building practices.
Eco-charrettes are design meetings that get everyone, or at least the major players, into a room together to design an optimal building. The architect, engineers, contractor and customer explore options and interdependencies: If we change the glazing on the windows and improve the insulation, can we downsize the HVAC system-and if so, does the cheaper HVAC pay for the other improvements? If we lay out the pipes in as straight a line as possible, we can downsize the pumps and motors; what impact would that have on the room layout? If we turn the building 30 degrees, we can get the most solar access, reducing the need for heating; can you make the driveway and parking area work around that?
Many of these eco-charrettes are focused on reducing the environmental impact of the building. There is good reason for this. Green architect Edward Mazria came to the startling realization that buildings are responsible for around half of America's energy consumption and greenhouse gas emissions (whereas cars and trucks contribute only one-sixth as much). Green building practices include reducing the need for energy and natural resources, eliminating toxic materials that cause sick building syndrome and allergic/asthmatic reactions, treating storm water on site, and capturing rainwater for use in toilets, irrigation, or even drinking.
Many of these innovations don't cost more than traditional construction practices and even when they do cost a premium, they usually pay for themselves in reduced operating costs and improved human productivity. In a study of over 100 green buildings in the nation by Capital E group, Lawrence Berkley Laboratory, and participating California state agencies, they found that green features pay for themselves ten times over. Their report says that financial benefits of green design are between $50 and $70 per square foot in a LEED building (one certified to a high level of environmental and energy saving design), over 10 times the additional cost associated with building green. The benefits include cost savings from reduced energy, water, and waste; lower operations and maintenance costs; and enhanced occupant productivity and health. (Source: USGBC and Greenbiz.com) But you can't get these benefits unless all the trades, engineers and architects work together to make design decisions. You don't just tack on a new feature; you have to do an integrated design process.
There are a number of situations where members of an industry need to collaborate. For example, a number of companies in the apparel business worked through Business for Social Responsibility to address sweatshop practices in developing countries. The Environmental Protection Agency formed the National Electronics Products Stewardship Initiative (NEPSI) to try to come up with an industry solution to electronics waste ending up in landfills. (Your monitor probably has six pounds of lead in it.) And AXIS facilitated a multi-stakeholder process called the Unified Green Cleaning Alliance to come up with standards for sustainable janitorial products.
Obviously, these industry collaborations can be tricky. In the case of NEPSI, for example, their initial attempt struggled for a host of reasons. EPA set up the process without having a default proposal, something to drive the companies beyond the status quo; so as long as the parties kept talking, they didn't have to do anything. Competitive pressures got in the way as well; some of the most progressive electronics firms resisted an industry-wide solution because they would lose their unique edge. Companies feared the precedent this project could set, moving the responsibility for waste to manufacturers. And last, according to some insiders, the process failed from not having a facilitator strong enough to manage the group.
The Unified Green Cleaning Alliance avoided many of these pitfalls with a tightly structured facilitation process. The process allowed for broad participation from formulators (the companies which mix up cleaning products), purchasers, users, and toxicologists. They were able over several meetings to come up with a set of criteria they stood behind, despite their different interests. (Our next newsletter will describe this case study in more depth.)
One trend that is growing in the manufacturing sector in particular is the use of supply chain or supplier workshops. These are meetings where the customer invites their first tier suppliers into a dialogue about how to improve the overall process to address quality or environmental concerns. According to a study done by Business for Social Responsibility, waste and inefficiencies across organizational boundaries can be staggering: inefficiencies across the supply chain can waste up to 25% of a company's operating costs and a 5% reduction in waste throughout supply chain can double a typical company's profit margin.
A supplier workshop is most effective when:
General Motors, for example, discovered that by requiring their supplier of ignition sets to manufacture different versions for different cars, they inadvertently had added significant costs for themselves and their supplier. By sitting down with key suppliers, you can often reduce packaging and other waste while improving quality. Sometimes the solution is in changing the structural relationship. A number of automobile manufacturers have changed their relationships with chemical companies, for example, by paying Dow and DuPont to paint their cars instead of buying the paint directly. Now both parties are encouraged to minimize the use of this hazardous product.
(If you are interested in learning more, please consider ordering the latest booklet in our Sustainability Series: Partnering with Vendors: Supplier Workshops for Mutual Gain.)
The ultimate multi-stakeholder process involves a host of different organizations and the public. The projects may vary in purpose:
One interesting model is an Oregon Solutions Team. As Greg Wolf, who runs the program through the National Policy Consensus Center explains, an Oregon Solutions Team brings together parties from business, government and non-profits to fulfill a need for the community. The convener is appointed by the Governor, a respected but neutral player to bring the parties together. Usually over a period of a few meetings spread out over several months, the parties create a set of commitments and agreements. Their projects have helped site a windfarm, construct a trail across multiple landowners' property (public and private), maximize the social benefits from a wetland restoration project, and create a facility to provide vocational training for disabled adults.
Typical community development projects require a host of different types of facilitated processes:
While I've described several distinct types of multi-stakeholder processes - ones focused on design, an industry, suppliers or the community -- this is certainly not an exhaustive list. Despite their differences, there are several principles they have in common:
Chose the right convener - It matters who calls the meeting. Sometimes your own organization is the right convener, but at times you may need to work through a non-profit or hire a respected outsider.
Hire an experienced facilitator Without a gifted facilitator, your meetings will be at best inefficient; at worst they will dissolve into conflict and dissension. Facilitators come from different backgrounds and perspectives so look for someone with the right blend of skills for your project.
Get the right people to the table It can take some time to verify that the right organizations are represented. Then you have to make sure you have the right people who can speak for their organizations. You don't want to find yourself in the negotiating game common to car sales people: "I'll have to go ask my manager."
Have a burning platform It's an old adage of negotiations: if I can win by doing nothing, I'll do nothing. You need a burning platform to bring people to the table, a reason for them to engage. This may take the form of a straw proposal, a default decision, or a deadline (i.e., if you can't come to consensus by March 1, we'll impose a solution). But ensure that maintaining the status quo isn't an option.
Take time to build trust In many cases, people will bring stereotypes to the meeting: business people only care about profits; ranchers don't care about the land; government employees are lazy; Republicans are ____; Democrats are ____. You fill in the blanks. You must allow time for people to get to know one another, to understand one another's needs and perspectives without being judged. Once trust begins to develop, people will open up and innovative solutions will begin to emerge.
Obviously, these processes take time and money. So you want to use them where you need them most. Answer these questions to see if you uncover any needs:
Is there a stakeholder group that concerns you? Perhaps they are already speaking out against your organization, or perhaps you're being proactive and want to find out what they think before it shows up on the Five-O'Clock News.
Are you working on a decision or project that will impact the community or be highly visible? Perhaps you are planning to construct a new building, expand your operations, hire ex-cons, make a new product, or move work offshore.
Do you use or do anything the community might be concerned about-with or without cause? Think about hazardous chemicals, emissions, traffic, safety, noise, labor issues, accidents, emergency planning, etc.
Are you hampered from doing the right thing by structural elements in your industry sector? Would doing the right thing put you at a competitive disadvantage? Do you wish certain relationships between organizations or sectors could be different?
Is there something about your major suppliers that is inhibiting your performance? Perhaps their costs seem high or their packaging leaves you a dumpster-full. Maybe there are quality or environmental issues you'd like to iron out.
Are you missing key pieces of knowledge? Do you need the expertise of your suppliers, governmental agencies or NGO's. Do you not know what the community or other stakeholders think?
Are you not the right voice on this topic? Do you need the credibility of a non-profit to back up what you say? Do you need a consortium of other organizations to get others to listen? Do you need someone else to convene a group to solve a problem?
Is the problem complex, affecting and affected by a number of different players?
If you answered yes to any of these questions, a multi-stakeholder process might be useful. Feel free to call us to explore how your issue might be addressed through a multi-stakeholder process.
For information on the whole series, go to www.pacifier.com/~axis/publications.html and click on "booklets."
Forming and Facilitating Sustainability Teams -- Sustainability usually requires working with people from across the organization, or sometimes even people outside the organization. These teams may include steering committees to oversee the whole effort or individual task forces/project teams to investigate promising options. In any case, it is critical to form and facilitate these teams carefully. A room-full of people represents a sizeable investment so you don't want to waste time sorting out confusion or backtracking down dead ends! This booklet provides the principles and practices that will help your teams succeed. It includes a toolbox of our favorite facilitator techniques.
Partnering with Vendors: Supplier Workshops for Mutual Gain -- According to research published by Business for Social Responsiblity, inefficiencies across your supply chain can waste up to 25% of a company's operating costs. So if you want to engage some of your first tier suppliers in a discussion about how you might improve your quality, cost, and environmental performance, read this booklet to learn how to conduct these supplier workshops.
Like all books in the series, these are only $10 each plus shipping and handling. If you want to order, just email me at darcy@axisperformance.com. If you want to pay using a credit card (a little more expensive due to service charges from Acteva) go to http://www.acteva.com/go/axis.
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