CIM “New Terms for Engagement for Global Leaders” Conference - April 5, 2002
Developing a Stakeholder Strategy
Moving on after Ferrier
Lynn M. Calder
Manager, Public Consultation
Shell Canada Resources
CIM “New Terms for Engagement for Global Leaders” Conference - April 5, 2002
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!
CIM “New Terms for Engagement for Global Leaders” Conference - April 5, 2002
Root Causes
 Time/business pressures
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Legacy of downsizing and cost cutting in 1990’s
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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”
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“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
CIM “New Terms for Engagement for Global Leaders” Conference - April 5, 2002
… Opportunities for Improvement

Resources PC is ad-hoc and uncoordinated
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Accountability and leadership are unclear
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No consistent short or long term planning
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Only occasional random PC training
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Minimal sharing of and acting on lessons learned
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Limited corporate memory; hence fulfilling external commitments is at
risk
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Relationship building with our host communities is inconsistent
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Little coordination between Products, Resources, Oil Sands...
CIM “New Terms for Engagement for Global Leaders” Conference - April 5, 2002
Public Consultation in Resources’ Future
OUR 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
CIM “New Terms for Engagement for Global Leaders” Conference - April 5, 2002
How do we ensure our
organization is aligned
& capable?
•Staff
•Communication Materials
•Tools
Business
results
•Information-sharing
•Training
•Competency matrix
Organizational
Capability
Skills
&
Competency
Resource
Availability
Systems
&
Processes
Work Environment
•Process/Map
•Consultation Plans
•Database
CIM “New Terms for Engagement for Global Leaders” Conference - April 5, 2002
Project Team
HSSD
Public
Affairs
Legal
JV/Land
RSE
Project manager
G & G/
Seismic
Petrophysicist
Land
Agent
Community
Reservoir
Completions Facilities Public
Engineer Drilling & Production Engineer consultation affairs rep
coordinator
CIM “New Terms for Engagement for Global Leaders” Conference - April 5, 2002
Back-up slides (to follow)
CIM “New Terms for Engagement for Global Leaders” Conference - April 5, 2002
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
CIM “New Terms for Engagement for Global Leaders” Conference - April 5, 2002
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
CIM “New Terms for Engagement for Global Leaders” Conference - April 5, 2002
Recommendations for Action

Re-affirm Project Manager responsibility for PC

Write guidelines and include in Project Manager accountability
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Assign PC guidance in Resources to a senior staff person
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Establish a Manager, Public Consultation
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Recognize PC as a Resources core competency and staff plan

Raise PC’s profile internally
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Establish a PC database to retain learnings and commitments

Reactivate the Resources PC Network
CIM “New Terms for Engagement for Global Leaders” Conference - April 5, 2002
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