Objective of the Document

The document will serve as guide for PPP Center staff on how to conduct a stakeholder
consultation workshop as a method of stakeholder engagement.

Target Readers

The audience will be PPP Center staff, with the assumption that they have very little
understanding of the need and mechanics of conducting stakeholder consultation workshops.
Content

1. Overview of Stakeholder Engagement

A. Definition of Stakeholder Engagement

 Process used by an organisation to engage relevant stakeholders for a purpose to achieve

accepted outcomes.
 Needed to remain relevant to survive in a challenging business environment and to be
relevant requires regular interaction with important stakeholder groups.
 A robust stakeholder engagement model vital for companies to understand and respond
to legitimate stakeholder concerns.
 essential and mutually beneficial strategic function that results in better-informed and
more effective policies, projects, programs and services
 For stakeholders, the benefits of engagement include the opportunity to contribute to
policy and program development, have their issues heard and participate in the decision-
making process.

Five steps to Iterative Consultation/Engagement

1. Plan ahead
Before beginning a stakeholder consultation process, it is useful tothink about who
needs to be consulted, over what topics, and for what purpose? Getting clear
answers for these questions up front can save you time, reduce costs, and help keep
expectations in check. For projects with multiple stakeholder groups and issues,
preparing a more formal Stakeholder Engagement Plan in advance is advisable.

2. Consult using basic principles of good practice

There is no one right way of undertaking consultation. Given its nature, the process
will always be context-specific. This means that techniques, methods, approaches
and timetables will need to be tailored for the local situation and the various types
of stakeholders being consulted.

3. Incorporate feedback
Consulting people entails an implicit “promise” that, at a minimum, their views will
be considered during the decision-making process. This does not mean that every
issue or request must be acted upon, but it does mean being clear with people
about which aspects of the project are still open to modification based on their
input, and which are not. It also means taking feedback received during the
consultation process seriously and making best efforts to address issues raised
through changes to project design, proposed mitigation measures, or development
benefits and opportunities.
 4. Document the process and results of consultation
Documenting consultation activities and their outcomes is critical to effectively
managing the stakeholder engagement process. When and where did such
meetings take place? With whom? Around what topics and themes? And with
what results? If commitments to stakeholders have been made during or as
aresult of these consultations, these too need to be documented.

5. Report back
Communities sometimes express frustration that companies show up on their
doorstep to consult on an issue and then are not heard from again – or at least not
until the next time they come, and that too about a totally different matter. It is
both good practice and common courtesy to follow up with stakeholders whom you
consulted, to let them know what has happened and what the next steps in the
process will be.

B. Reasons for Stakeholder Engagement

Stakeholders are leaders and constituents of important groups and organizations that
have a direct interest in the success of your initiative and can directly affect its
outcome. Stakeholder workshops are highly participatory discussions of an issue of
mutual concern. When properly designed they are deliberative (encouraging people
to weigh the pros and cons of a variety of perspectives), honest (promoting an open
exchange of views), and productive (opening up new lines of thought, bringing
disagreements more clearly into the open, and building common ground). They can
help you:
1. create better communication with key actors
2. benefit from the hands-on expertise of those closest to the action of
what you are trying to achieve
3. gain their buy-in and participation
4. avoid unnecessary backlashes by bringing people’s confusion and
resistance out in the open early on, so they can be addressed
C. Principles of Stakeholder Engagement

A. Define the scope of the policy

1. Clearly define, articulate, and communicate scope and boundary of the

stakeholder engagement policy

2. Include background, logic and impact of the policy to set the scene for
the policy.
B. Define the ownership and decision-making process
1. Clearly-define executive ownership of the policy and process, with the
owner mandated to ensure accountability
2. Communicate to the organisation and incorporate in the performance
measurements of the owner.
C. Define the governance process:
1. Strive for credibility of their reported information and so-doing,
support business processes.
2. Benefits/Importance of Stakeholder Engagement for PPP Centre in the
context of PPP meant for LGUs

Why does the PPP Centre need to adopt stakeholder engagement as a

strategy of the organization?

A. What are the benefits and importance of Stakeholder Engagement for the
PPP Centre and the LGU context?

a. Community engagement works best where it is an ongoing cumulative

process enabling relationships and trust to build and strengthen over
time. Individual engagement events should be planned and designed with
this in mind and aim to contribute to the overall aims of the engagement
process. Community or voluntary groups may want to participate at a
range of levels – from providing advice to co-designing the process and
from undertaking some aspects of the engagement to delivering projects
to meet some of the outcomes.

B. Why adopt the Stakeholder Engagement Strategy?

a. Meaningful stakeholder engagement is not an end in itself, nice to have, or

just a good way to manage crises when they come along. It may start as an
activity to help solve a problem but as the continuous loop of engagement
develops and matures over time, stakeholder engagement becomes an
essential and mutually beneficial strategic function that results in better-
informed staff and constituents as well as more effective policies, projects,
programs and services.
3. Stakeholder Engagement Framework or Model with brief discussion of each
step in the models.

1. Think Strategically

PURPOSE
The aim of this first Stage is to identify your reasons for stakeholder engagement and the key
stakeholder groups and issues that relate to your organisation. This will provide a basis for
ensuring that stakeholder engagement informs and becomes part of your business strategy.

It is important not to jump directly into engagement but to think strategically first: Why do you
and your stakeholders want to engage? Who do you need to engage with? About what issues?
What do you want to achieve, and how will you know if you are successful?
 PRINCIPLES
The key principle at this Stage is materiality.
'Inclusivity'
PRINCIPLES
"acknowledging stakeholders right to be heard, and accounting for one’s actions to
stakeholders'"

 *Materiality
 *Completeness
 Responsiveness

Here that means: The organisation identifies and addresses the most material impacts related
to its business operations and the strategy, as well as the stakeholders that are subject to these
impacts. Furthermore, the organisation identifies and addresses the stakeholders with
significant potential to influence the organisation.

PROCESS
The actions and tools outlined in this Stage are based on three linked questions which need to
be answered in order to align your stakeholder engagement processes with your organisation’s
strategic objectives.
2. Analyse and Plan

PURPOSE
The aim of this Stage is to collect information and develop a plan of action based on your
strategic engagement priorities and current abilities.

There is always an element of ‘learning on the job’ and opportunism with stakeholder
engagement. Companies often start engaging with stakeholders they already know well, and
then start talking to others outside of their traditional comfort zone. Others start by responding
to a particular crisis or opportunity.
The stakeholder engagement process itself is a learning cycle as both the company and its
stakeholders learn more about each other’s motivations, ways of working and spheres of
influence.
However, this does not mean that stakeholder engagement cannot and should not be planned
in the same way that other business activities are planned. Without good planning stakeholder
engagement processes are unlikely to deliver where it counts for the business. Instead it may
end in disappointment, recriminations and damaged relationships with the people that you
have already recognised as essential to your organisation’s success.

PRINCIPLES
The key principles that this Stage intends to deliver on are materiality and completeness.

PROCESS
The actions and tools outlined in this Stage take you through four linked questions to help
develop a plan of action for engagement based on a clear understanding of the expectation
gaps between your organisation, its stakeholders and peers as well as the changes and
resources that might be necessary to close these gaps.

This will help you to develop a strategically aligned, resource-efficient approach to engagement
and to initiate the process of internal learning and engagement of key departments and
individuals needed to make stakeholder engagement more than just talk.

You will want to develop a clear idea of:

• How the issues that you have prioritised so far are currently managed within your
organisation;
• How you are currently engaging with stakeholders on these issues;
• What others are doing, and with whom you could collaborate;
• What you can and want to do about the specific issues;
• Which specific stakeholder representatives you want to engage with, and what they
expect.

This Stage is outlined in five steps that can be used as a process for collecting the information
you need for successful stakeholder engagement. But the individual elements and associated
tools can also be used within your existing management and planning processes where
stakeholder engagement is seen as an integral part of achieving discrete business objectives.
3. Strengthen Capacities for Engagement

PURPOSE
The aim of this Stage is to ensure that the company and its stakeholders have the organisational systems
and skills to engage successfully in a productive relationship. It also looks at overcoming the barriers that
may hinder stakeholders from engaging.

The activities outlined in this chapter should be understood as an ongoing effort to build and maintain the
company’s and its stakeholders’ abilities to engage. These abilities concern not just the skills needed to
facilitate dialogue and other engagement processes, but also for all the activities that lead up to and follow
engagement, as described in stages one, two and five. Therefore activities such as recruitment, training,
performance appraisals and the development of governance structures, policies and management
systems should all reflect the requirements of the ‘engaging company’.

This Stage provides some basic guidance on how this can be done.

The abilities of stakeholders to engage also require attention and may need strengthening. Companies
who wish to engage with stakeholders need to consider the specific requirements and limitations of
stakeholders, and may have to provide assistance to under-resourced stakeholders so that these can take
part in engagements.

PRINCIPLES
The principles of materiality, completeness and responsiveness provide guidance in ensuring that
stakeholder engagement supports the goal of organisational accountability. This Stage aims to strengthen
the company’s ability to deliver on all three principles.
4. Engage with your stakeholders in ways that work

PURPOSE
The aim of this Stage is to design and implement engagement processes which meet
stakeholder expectations and organisational objectives.
When it comes to actually engaging with your stakeholders, there are a wide range of options;
from basic meetings and phone calls to more innovative processes such as advisory panels or
multi-stakeholder forums. Various examples are cited in Volume 1 to this manual, the Guide to
Practitioners’ Perspectives.
There is also a large amount of guidance on how to carry out different kinds of engagement
processes, some coming from the field of corporate stakeholder engagement, but also more
broadly from the field of public participation. The most common approaches are outlined
briefly in this chapter.

The question is often not just one of choosing a fair and effective technique for dialogue but
can extend to designing governance structures and decision making processes as engagement
deepens into active partnerships. The key is to choose the right technique or governance
structure for the job: this depends on your objectives and your stakeholders’ needs.
PRINCIPLES
The principles of materiality, completeness and responsiveness provide guidance in ensuring
that stakeholder engagement supports the goal of organisational accountability. This Stage
contributes to the delivery of all three principles.

PROCESS
The actions and tools outlined in this Stage help you to decide what engagement processes you
can use to meet the practical and strategic needs of both your organisation and those of your
stakeholders. It then guides you through the particular design decisions concerning issues such
as timing, pre-information, the use of external facilitators and setting ground rules that you will
need to address in setting up the engagement process. Finally, it provides some generic tips for
the actual engagement itself.
5. Take action and review the engagement

PURPOSE
The aim of this Stage is to translate new learning, insights and agreements into action, and to
ensure that your stakeholders understand how you do this.

Although a key engagement activity has now taken place, the whole process is far from over.
New learning, insights and agreements need to be translated into decisions, policies and action
plans and from there into improved business processes, or strategic or operational changes.

The relationships that have been developed during the engagement process also need to be
secured. This requires timely feedback about what actions you plan to take, and further
engagement or more ongoing dialogue if necessary. That is, despite the best preparation and
planning, during the course of engagement new material issues may come to light which require
further dialogue. A consequence of which may be a reconsideration of the materiality of different
issues, their reprioritisation and the need to identify further resources.

Furthermore, the whole engagement process itself needs to be reviewed in order to identify
possibilities for future improvements in subsequent stakeholder engagement cycles.
PRINCIPLES
The principles of materiality, completeness and responsiveness provide guidance in ensuring that
stakeholder engagement supports the goal of organisational accountability. The key principle
that this Stage intends to deliver on is the principle of responsiveness.

PROCESS
The tools and actions outlined in this Stage cover three processes which need to take place
following the engagement process itself: action in terms of planning and monitoring agreed
strategic and operational changes by using information gained to inform decisions concerning
strategic intent, products, and processes; reporting and feedback to the stakeholders involved
and to other interested parties; and, review of the engagement process itself to learn from
successes and mistakes and to highlight any areas where further development of the stakeholder
engagement process is needed. This will feedback into the next strategic engagement cycle to
shape the prioritisation of key stakeholders and issues, and the commitment of the associated
resources.
4. Stakeholder Identification and Analysis
A. Definition

1. Process of systematically gathering and analysing qualitative information to

determine whose interests should be taken into account when developing and/or
implementing a policy or program

• To identify the key actors and to assess their knowledge, interests, positions,
alliances, and importance related to the policy
• Allows policymakers and managers to interact more effectively with key
stakeholders and to increase support for a given policy or program.
• Detect and act to prevent potential misunderstandings about and/or opposition
to the policy or program (if done before implementation)

2. What are the building blocks of stakeholder engagement?

Stakeholder engagement is an umbrella term encompassing a range of activities and

interactions over the life of a project. These can be divided into eight components
each of which will be discussed in a separate section below:

■ Stakeholder Identification and Analysis

■ Information Disclosure
■ Stakeholder Consultation
■ Negotiation and Partnerships
■ Grievance Management
■ Stakeholder Involvement in Project Monitoring
■ Reporting to Stakeholders
B. Why Conduct a Stakeholder Identification and Analysis

a. The first step in the process of stakeholder engagement is stakeholder

identification–determining who your project stakeholders are, and their key
groupings and sub-groupings. (Remember that certain stakeholder groups
might be pre-determined through regulatory requirements.)

From this flows stakeholder analysis, a more in-depth look at stakeholder

group interests, how they will be affected and to what degree, and what
influence they could have on your project. The answers to these questions will
provide the basis from which to build your stakeholder engagement strategy.

Here it is important to keep in mind that not all stakeholders in a particular

group or sub-group will necessarily share the same concerns or have unified
opinions or priorities

C. Steps in Conducting a Stakeholder Identification and Analysis

1. Identify those stakeholders directly and indirectly affected by the project

When identifying affected stakeholders, a systematic approach often works

well, starting with delineating the project’s geographic sphere of influence.
Here, think not only about the primary project site(s), but also all related
facilities, including associated facilities, transport routes, areas potentially
affected by cumulative impacts, or unplanned but predictable developments.
Use this analysis to establish and articulate your project’s area of influence and
determine who might be affected and in what way.

2. Identify those whose “interests” determine them as stakeholders

For some projects, the most vocal opposition may come from stakeholders
outside the affected area – in other parts of the country, from other countries
altogether, or even from overseas.
Underestimating their potential influence on project outcomes may pose risks.
It is therefore important to also include in your stakeholder analysis those
groups or organizations that are not adversely affected, but whose interests
determine them as stakeholders.
“Interest-based” analysis and mapping can help clarify the motivations of
different actors and the ways in which they might be able to influence the
project.
3. Be strategic and prioritize

It is not practical, and usually not necessary, to engage with all stakeholder
groups with the same level of intensity all of the time. Being strategic and clear
as to whom you are engaging with and why, before jumping in, can help save
both time and money. This requires prioritizing your stakeholders and,
depending on who they are and what interests they might have, figuring out
the most appropriate ways to engage. Stakeholder analysis should assist in this
prioritization by assessing the significance of the project to each stakeholder
group from their perspective, and vice versa.

4. Refer to past stakeholder information and consultation

Referring to historical stakeholder information related to your project or

locality can save time and flag up risks, liabilities, or unresolved issues that can
then be prioritized and managed in relation to the different strategic
alternatives being considered.

If your project is an expansion of a prior investment or operation, possible

sources of prior information include existing stakeholder databases;
consultation and grievance logs; environmental and social impact assessment
studies and consultation processes completed for an earlier phase of the
project; annual environmental monitoring reports; and community
investment plans of the company, local government, or other businesses in
the same locality.

5. Develop socio-economic fact sheets with a focus on vulnerable groups

For complex projects likely to impact upon people and the environment over
a large geographic area, or affect vulnerable groups, it may be useful to
compile socio-economic information for distribution to project staff and
external consultants working in the proposed project area. Collecting this type
of data in advance can help ensure that any future stakeholder engagement
activities are culturally appropriate from the outset, and that the groups most
vulnerable or potentially disadvantaged by the proposed project are identified
early on. An experienced social scientist familiar with the local area would be
needed to develop such fact sheets, which could then be used and expanded
throughout subsequent phases of the project.
6. Verify stakeholder representatives

Identifying stakeholder representatives and consulting with and through

them can be an efficient way to disseminate information to large numbers
of stakeholders and receive information from them.
When working to determine representatives, however, there are a number
of factors worth considering. First, try to ensure that these individuals are
indeed true advocates of the views of their constituents, and can be relied
upon to faithfully communicate the results of engagement with the project
company back to their constituents.
One way to do this is to seek verification that the right representatives
have been engaged, by talking directly to a sample of project-affected
people.

7. Engage with stakeholders in their own communities

In general, companies that choose a venue where stakeholders feel more

comfortable - most likely at a location within the community – tend to have
more productive engagement processes, for the following reasons:

■ It lends transparency to the process. Community members can

witness the process and stay informed about what is being
discussed on their behalf, and what has been agreed at the close of
consultation or negotiations.
■ It increases accountability of local leaders. Community members
will know what they are entitled to demand, and they will be able
to monitor its delivery and avoid corruption.
■ It sends the message that companies value the input of
communities enough to travel there and spend time there.
■ It contributes to community members’ feeling of ownership over
the engagement process. Community members say that the
opportunity to have input into public meetings gives them a sense
of having a role in the outcome of decisions.
■ Finally, it allows community members to identify their own
representatives, preventing illegitimate representatives from
claiming that they speak for communities.
 8. Remember that government is a key stakeholder

There are many important reasons to establish and maintain good working
relationships with governmental authorities at different levels, and to keep
them informed of the project’s activities and anticipated impacts.
Government support can be critical to the success of a project, and routine
engagement with various regulatory and public service authorities is often
required as part of doing business. On a practical level, local government
authorities may have long-established relationships with project-affected
communities and other local and national stakeholder groups, and as such
can play a role in convening and facilitating discussions between the
project and stakeholder representatives. Local government can also
partner with private companies in many respects, for example, in providing
services, communicating information to the local population, or
integrating local development plans with the operational needs of the
project.

“Keeping track of government-led consultation with stakeholders on issues related to your

project is highly recommended. Such consultation may be required as part of regional
economic planning, environmental permitting or exploration licensing, compensation for
land and assets, or the design and management of infrastructure. It is important for your
company to be aware of these consultations as they might have implications for future
stakeholder relations.”

9. Work with representative and accountable

NGOs and community-based organizations
Non-governmental organizations (NGOs) and community-based organizations
(CBOs), particularly those who represent communities directly affected by a
project, can be important stakeholders for companies to identify and engage
on a proactive basis. NGOs may have expertise valuable to effective
stakeholder engagement.

For example, they can be sources of local knowledge, sounding boards for
project design and mitigation, conduits for consulting with sensitive groups,
and partners in planning, implementing and monitoring various project-
related programs. However, it is important to carry out initial research
regarding the local power dynamics and existence of special interest groups to
ensure that any intermediary organizations, such as NGOs, are truly
representative of and accountable to the community interests they claim to
support and represent. If there is NGO opposition to your project, engaging
early to try and understand the concerns or critiques being raised can offer an
opportunity to manage these issues before they escalate or find another
outlet for expression.
10. Recognize employees as a good channel of communication

Local communities tend to be viewed as those “outside” the company gates.

In reality, however, a good part of your workforce may be part of these

communities or reside among them. Whether implicitly or explicitly,
employees communicate messages about the company and the project to the
outside world and help to create perceptions as well as pass along
information. This provides a great opportunity for companies to leverage this
built-in channel of communications as a means of outreach and dissemination
to the local population.
6. Levels of Engagement (including methods to engage)

Different levels of participation

A. Different levels of participation
1. Passive participation (‘tokenism’)- For example: attending meetings,
sharing information, taking part in consultations but not actively
contributing.
2. Participation in project-centred development -This involves people
taking part in a project that has been planned by people outside the
community, by NGOs or government. This could include discussion at
public meetings, involvement in building, providing labour and attending
training, managing the project, determining and monitoring its
objectives.
3. Participation in people-centred development- This involves people
from within the community themselves initiating and managing change,
making plans and ‘owning’ development.

7. Stakeholder Consultation Workshops

A. Role of a Facilitator
• Encourages full participation by all participants
• Does not try to push a personal agenda onto the group and tries to
maintain objectivity
• Promotes mutual understanding and learning (common language,
points of reference, context, etc.)
• Fosters inclusive solutions
• Teaches the group new thinking skills
• Understands the collective wisdom of the group is more powerful
than one person’s position
 • Makes sure the group reaches clear results from the meeting
including supporting the group to determine action items and
timelines
• Is responsible for preparation and follow-up

B. Why Conduct a Stakeholder Consultation Workshop

C. Steps in Conducting a Stakeholder Consultation Workshop

A. Successfully engaging identified stakeholders in a respectful process

allows for mutual trust and understanding to grow. This is the foundation for
mutual learning, problem solving and ongoing partnership. This section describes
considerations for planning and conducting successful stakeholder meetings, tips
for respectful engagement, and guidance for effective follow-up communication.

• Create a thoughtful agenda that gives realistic timeframes for discussion and
action items.
• Create a checklist of meeting preparations and follow-up.
• Allow maximum opportunities for participation, which includes careful
preparation for the facilitation of the meeting or call.
• Offer and receive feedback with tact and finesse.
• Prepare for conflict or disagreement with some possible response or solutions.
• Convey respect- This may be different and specific to particular stakeholders.
For example, if trying to engage external stakeholders, respectful behaviour
would include not using department acronyms and jargon or creating
 opportunities for everyone to shake hands and get to know people personally
before the meeting begins.
• Create a welcoming and accessible environment Choose a location and time
accessible to the stakeholders you are targeting. Is it an environment where
stakeholders will feel comfortable?
D. Facilitating a Stakeholder Consultation Workshop

Consider these key elements for effective meeting design when designing an agenda:

Results: What do you want to accomplish?

What will have happened by the end of the meeting?
Relationships: How do the participants relate to the facilitator, to the agency, to
each other, and to the result? How can you foster trust among the group?
Process: How can the design of the meeting help you to achieve your desired
results?
Resources: What are the participants bringing with them that will help get the
results you want? E.g., their time, their commitment, their passion, their talent,
who they know, who they can influence, access to others, etc.

Facilitative Listening Skills Employed during In-person Meetings :

Paraphrasing: Clarify what a participant said by using your own words to restate
the main points.
Drawing People Out: This technique is used with paraphrasing to get more
clarification. Ask, “What do you mean by that?”
Stacking: Keep a speaking order list, which helps everyone participate by creating
“turns” for people to speak. This allows facilitators to monitor how many times
one person speaks if they are dominating and pause to cue people who are not
as vocal.
Tracking: The facilitator pauses to identify and categorize the different thoughts
put forth to make clear that there are multiple issues being discussed. Allows all
of the ideas that shared to be seen and heard, even when they are not all
discussed.
Encouraging: Is the art of creating an open space for people to participate fully,
especially when you notice people are disengaging. You can say, “Let’s hear from
someone who hasn’t spoken yet.”
Balancing: The first few people who share their opinions often dictate the
direction of conversations in meetings, but balancing asks for other views
because the silence of others does not imply consent.
Making Space: Includes keeping an eye out for facial expressions and/or body
language that indicate someone wants to speak but doesn’t. It sends the signal
that all ideas and opinions are welcome.
Intentional Silence: Inviting a pause that lasts a few seconds to allow people time
to figure out their thoughts and focus on a response.
Listening for Common Ground: A technique that helps with clearly identifying
where the group has agreement and clearly identifying areas of polarization.