{"id":379,"date":"2014-02-27T14:43:19","date_gmt":"2014-02-27T20:43:19","guid":{"rendered":"http:\/\/aapaseaports.naymicrosite2.wpengine.com\/?p=379"},"modified":"2020-04-23T08:09:13","modified_gmt":"2020-04-23T13:09:13","slug":"working-with-stakeholders-the-buck-stops-at-the-ceos-office","status":"publish","type":"post","link":"https:\/\/www.aapaseaports.com\/index.php\/2014\/02\/27\/working-with-stakeholders-the-buck-stops-at-the-ceos-office\/","title":{"rendered":"Working with Stakeholders: The Buck Stops at the CEO’s Office"},"content":{"rendered":"

From shippers to state agencies, carriers to the community, many groups have an interest in decisions made by the port.<\/strong><\/p>\n

By Lori Musser<\/i><\/p>\n

Running a port in the 21st<\/sup> century is not a pursuit for the meek.<\/p>\n

Port business is important business, especially from an economic perspective. It is complex \u2013 spanning functions, modes, assets, geography, time and jurisdictions. Perhaps the most challenging of all port management tasks is engaging and working with stakeholders. CEOs must ensure these relationships are managed wisely; their jobs hang in the balance.<\/p>\n

The Rise of Stakeholder Rights<\/b><\/p>\n

The variety and sheer volume of stakeholders with a claim on ports is mind-boggling \u2013 and it is growing. In the good old days, some ports ran much like private entities, working with customers to expand business, reporting to a board and quietly taking earnings to the bank. Those days are long gone.<\/p>\n

Nowadays, information is at everyone\u2019s fingertips, and its availability has entitled and allowed individuals and groups to make their opinions known, pursue their expectations and anticipate timely responses. To some extent, private businesses can still pick and choose their stakeholders. Not so for ports. In the same hour, a port might receive a call from a global carrier on crane availability, a minister on scattering ashes, a neighborhood association on noise and a commercial fishery on security.<\/p>\n

Stan Payne, an experienced port CEO and now principal for transportation management consultant Summit Strategic Partners, said that before a port can hope to optimize interactions with and delineate entitlements for stakeholders, it must clearly determine the division of responsibility between its board of directors and its CEO and staff. Who sets stakeholder policy? Who implements it? That will affect the answer to the next questions: Who are the stakeholders? What is the stakeholder policy? What are the boundaries of the port\u2019s relationship with its various stakeholders?<\/p>\n

Payne said that there are pros and cons to greater stakeholder interaction. \u201cWhen you make a decision with stakeholder input, there is a greater chance of success. However, a stakeholder can have a vested interest that may not be in the best interests of the port going forward.\u201d<\/p>\n

He said that there are a number of useful tools to help develop positive relationships with stakeholders, but they come at a cost, and resources must be managed. \u201cPorts must understand that there will be times when the port and stakeholder have to agree to disagree. At that point, how you approach the conflict is important,\u201d Payne said. He added that good relationships take time to develop, and given the relatively short tenure of CEOs and commissioners, staff may be the only candidates available with sufficient longevity to nurture the relationships that can make the conflict resolution process more palatable for stakeholders.<\/p>\n

It is increasingly important to regularly align port strategic plans with those of the cities, counties and states within which they operate. \u201cIt is all about the greater good of the community,\u201d Payne said.<\/p>\n

A New Beginning at the Port of Long Beach<\/b><\/p>\n

Delivering on all stakeholder expectations is neither reasonable nor doable. A port can, however, make great inroads on engendering respect for its decisions through understanding. The Port of Long Beach learned that lesson the hard way.<\/p>\n

\u201cWe were dragged to the party,\u201d according to Managing Director of Environmental Affairs and Planning Rick Cameron.<\/p>\n

In the early \u201890s, Long Beach\u2019s naval station, a long-serving base for the Pacific Fleet, was up for closure. \u201cOnce the writing was on the wall that we would lose the Navy complex, we geared up to see \u2026 how we could benefit from the BRAC process. We were in major need of expansion land,\u201d Cameron said. The port\u2019s reuse plan was accepted, but management hadn\u2019t anticipated the strong bond so many in the local community had with the property. Interested groups included naval aficionados and historic preservationists. A portion of the property, called the Roosevelt Base, was considered historically and architecturally significant for its style, site planning, landscaping and prominent Roosevelt-era African-American architect.<\/p>\n

\u201cThere were a lot of people affected and interested,\u201d Cameron said. This was the first time the port was challenged by stakeholders and special interest groups outside the port community, he added. \u201cWe weren\u2019t doing a good job of listening. That was our culture at the time. We mostly did what we thought best and mitigated.\u201d In the end, the port tore down the facilities and built a container terminal.<\/p>\n

That was the start of a new beginning of the Port of Long Beach. The port was growing at a pace that couldn\u2019t be handled in a sustainable way \u2013 growth that was accompanied by mounting challenges. The challenges would not diminish when stakeholders were ignored. So, eventually, they were engaged.<\/p>\n

Cameron said, \u201cIn the 10-year period following our perfect storm, we learned to engage, to listen to the community, to be a major part of the community. Corporate culture was changed. In 2005, the port established its Green Port policy \u2013 a cultural overhaul designed to help move forward with meaningful, environmentally-sound sustainability programs.\u201d That involves substantial, ongoing community engagement and investment.<\/p>\n

\u201cInstead of taking our community relationship as being least important, today, it is our most important mission,\u201d Cameron said.<\/p>\n

Port of Cleveland\u2019s Proactive Stance<\/b><\/p>\n

Will Friedman, president and CEO of the Port of Cleveland, agrees that engagement and education are critical. \u201cPR and reputation management is especially important to us. We have a tax levy, and every five years there is a referendum,\u201d he said.<\/p>\n

Although the port has had its share of controversies, Friedman said it tries to live by three maxims: work hard to be credible, always be transparent and, if you commit, then deliver. He said the Port of Cleveland\u2019s customer service programs embrace all stakeholders, including the community.<\/p>\n

Being proactive can facilitate community engagement. Friedman cites the example of a former dredged spoil disposal site that created a peninsula jutting about 100 acres into the water. It was unused by the port, had revegetated itself and had become an important bird habitat. The port declared it a preserve and earned a considerable amount of goodwill in the process.<\/p>\n

\u201cEven when you are proactive, it is hard to win over everyone,\u201d according to Friedman. He said the port\u2019s strategic plans embody a new, more thoughtful, transparent and intentional relationship with the community, but that ports must be selective.<\/p>\n

\u201cThere are tons of demands on us, but we still have a port to run. Judgment comes into play. And like anything else you look at ROI,\u201d he said. That includes looking at opportunity costs, such as dollars saved by avoiding litigation, and also qualitative metrics.<\/p>\n

Port of Prince Rupert Partnership for Prosperity<\/b><\/p>\n

The Port of Prince Rupert resides alongside a municipality that comprises almost 40 percent aboriginal peoples. In a landmark agreement with the Lax Kw\u2019alaams Indian Band and Metlakatla Indian Band, interests were aligned in a way that provides for future growth and expansion at the port.<\/p>\n

Part settlement for container terminals falling within the traditional territory of the native people, the agreement guarantees First Nations participation in the economic opportunities created through the port while allowing continued growth and expansion of the port.<\/p>\n

The agreement also provides for financial payments associated with impacts on traditional use of the site, provides jobs during construction and operations, and provides preferred contracting opportunities associated with the container terminal development and port operations.<\/p>\n

The partnership, reached in 2011, allows the port and the Coast Tsimshian to work together toward the mutual objective of economic development in the Northwest Canada.<\/p>\n

Showing Resolve<\/b><\/p>\n

How port CEOs make tough stakeholder decisions will in large part define the success of ports in the coming decades. The buck stops at the CEO\u2019s office.<\/p>\n

Optimal stakeholder interaction is a vision to strive toward. Planning and engagement and education can be resource-intensive, frustrating, somewhat thankless pursuits, but it can also produce solid blocks of support for goals and better management practices.<\/p>\n

Port CEOs who plan, think about business and communities in tandem, and manage their outreach can pave a path to sustainability and success. Positive stakeholder relationships are an investment in a port\u2019s future that no port can do without.<\/p>\n

<\/b><\/p>\n

A Stakeholder\u2019s View: The Nature Conservancy<\/b><\/p>\n

Why would a port take the time to work with a stakeholder, such as The Nature Conservancy? Some industry insiders would say ports should just stick to the knitting. But if the \u201cknitting\u201d involves altering coastal environments, ports are typically obligated to mitigate for unavoidable project impacts. If an organization such as the Nature Conservancy can offer recommendations to help make a habitat mitigation project better \u2013 more viable, more attractive, more cost-effective \u2013 then ports would be imprudent to ignore them. Take, for example, the following case:<\/p>\n

In the Gulf of Mexico last spring, more than 800 volunteers and partners came together to rebuild oyster reefs in Pelican Point near Mobile, Ala. They moved nearly 13,000 interlocking concrete blocks that became the foundation for the reefs. The rebuilt oyster reefs minimize erosion, protect coastlines and infrastructure, and enhance important natural habitat for fish, birds and other marine life.<\/p>\n

Over the past decade, The Nature Conservancy, in partnership with the National Oceanic and Atmospheric Administration, U.S. Army Corps of Engineers, U.S. Fish and Wildlife Service and others, has been putting science into action at more than 160 restoration sites around the globe and in every U.S. state. Together, it\u2019s led the world\u2019s largest seagrass restoration project in Virginia, conducted some of the most innovative coral restoration in Florida and the U.S. Virgin Islands, and directed the world\u2019s largest oyster restoration initiative in the Gulf of Mexico.<\/p>\n

Healthy, intact wetlands, coral reefs, oyster reefs, coastal dunes, mangroves and flood plains can blunt the impact of wind-driven waves, reducing erosion and minimizing flooding. \u201cThese natural barriers can act as a first line of defense. They buffer local communities and important infrastructure from flooding while contributing to local economies through recreation, fish production and other community benefits,\u201d said Mark Tercek, president and CEO of The Nature Conservancy.<\/p>\n

Learn more about the science of coastal restoration, the role nature can play reducing risk from coastal storms and providing benefits to the coastal economy at www.nature.org\/RestorationWorks<\/a>.<\/p>\n

 <\/p>\n

Seaport Stakeholders<\/strong><\/p>\n

\n

Tenants
\nCarriers
\nShippers
\nFreight Forwarders
\nVessel Agents
\nBCOs
\nTerminal Operators
\nStevedores
\nLabor
\nPilots
\nLine Handlers
\nTug Operators
\nProvisioners
\nShipyards
\nMarinas
\nRailroads
\nTruckers
\nPipeline Interests
\nSupply Chain Participants
\nRoad Administration
\nBridge Administration
\nTunnel Administration
\nAirport Administration
\nCauseway Administration
\nWaterway Administration
\nLock Administration
\nParks Administration
\nInvestors
\nRating Agencies
\nHOAs
\nFerries
\nConservationists
\nEnvironmentalists
\nFirst Nations
\nHistoric Preservationists
\nActivists
\nTax Watchers
\nMilitary
\nSecurity
\nFirst Responders
\nCommunity
\nNeighbors
\nBusy Bodies
\nGadflies
\nPleasure Boaters
\nFishers
\nCommercial Fisheries
\nBoat Builders
\nFilm Makers
\nPhotographers
\nArtists
\nNovelists
\nWedding Coordinators
\nFuneral Directors
\nInternational Trade Community
\nTrade Associations
\nEconomic Development Agencies
\nChambers of Commerce
\nUser Associations
\nConsulates
\nDevelopers
\nMPOs
\nMunicipalities
\nCounties
\nState Agencies
\nFederal Agencies
\nElected Officials
\nUtilities
\nBoards
\nStaff
\nHoteliers
\nTourist Bureaus
\nRecreational Water Sports
\nWaterfront Retailers
\nWaterfront Restaurants
\nDock Owners
\nCasino Operators
\nResearchers
\nNon-Profits
\nEducational Institutions
\nSeafarers\u2019 Centers
\nSpiritual Community
\nOffshore Oil interest
\nWind Generation Interests
\nCable Layers
\nTreasure Hunters
\nArcheologists
\nAquaculturists
\nCompetitors
\nMedia
\nPublic Transportation<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

From shippers to state agencies, carriers to the community, many groups have an interest in decisions made by the port. By Lori Musser Running a port in the 21st century is not a pursuit for the meek. Port business is important business, especially from an economic perspective. It is complex \u2013 spanning functions, modes, assets, …<\/p>\n","protected":false},"author":25,"featured_media":380,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,442],"tags":[],"class_list":["post-379","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-features","category-leadership"],"_links":{"self":[{"href":"https:\/\/www.aapaseaports.com\/index.php\/wp-json\/wp\/v2\/posts\/379","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.aapaseaports.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.aapaseaports.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.aapaseaports.com\/index.php\/wp-json\/wp\/v2\/users\/25"}],"replies":[{"embeddable":true,"href":"https:\/\/www.aapaseaports.com\/index.php\/wp-json\/wp\/v2\/comments?post=379"}],"version-history":[{"count":0,"href":"https:\/\/www.aapaseaports.com\/index.php\/wp-json\/wp\/v2\/posts\/379\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.aapaseaports.com\/index.php\/wp-json\/wp\/v2\/media\/380"}],"wp:attachment":[{"href":"https:\/\/www.aapaseaports.com\/index.php\/wp-json\/wp\/v2\/media?parent=379"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.aapaseaports.com\/index.php\/wp-json\/wp\/v2\/categories?post=379"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.aapaseaports.com\/index.php\/wp-json\/wp\/v2\/tags?post=379"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}