Stakeholder analysis
7
In this chapter we describe the various categories of stakeholders that
we distinguish. Within each category of stakeholders we explain why
these stakeholders are important and how we dialogue with them,
and also how we involve them in determining our policy and strategy.
Subsequently we report on how we used the feedback derived from the
stakeholder dialogs so far and how we will use the feedback in the future.
A new reality is confronting the construction industry. The needs of customers and the community at large are changing. To be able to meet these needs Ballast Nedam must adapt its role accordingly, which has been our active aim for several years. However, the construction industry is merely at the beginning of this transition phase. Speed is of the essence, and Ballast Nedam itself is initiating a dialogue with its stakeholders. Ballast Nedam maintains day-to-day contact with its stakeholders alongside the regular annual stakeholder dialogue. The majority of the contact moments are related to a project or take place in a business unit.
A structured dialogue with our stakeholders allows us to share and sound out, and later to refine, our vision, our policy, our strategy and our expectations. In 2011 we held one-to-one interviews with our stakeholders. We opted for four multi-stakeholder dialogues in 2012, each linked to one of our areas of work – housing, mobility, energy and nature – and how these areas interrelate.
7.1 Our stakeholders
Ballast Nedam identifies eight different stakeholder categories: (1) customers/clients, (2) suppliers/subcontractors, (3) employees, (4) local residents, (5) shareholders, (6) public authorities, (7) knowledge and educational institutions and industry associations, and (8)
The vision of the construction industry’s transition phase set out in Jan Rotmans’ book In het oog van de orkaan. Nederland in transitie (In the eye of the storm. The Netherlands in transition) was on the agenda at the multi-stakeholder dialogues. In an interview in Blauwdruk, Ballast Nedam’s in-house magazine, Jan Rotmans says: ‘The Dutch building industry had lost all flexibility. I started to analyse how that happened. It is predominantly a very inward-looking macho culture and, compared with other industries, rather conservative. If you
7.1.1 Clients
An increasing number of integrated contracts on the market draws us increasingly often into tenders based on competitive dialogue. These dialogues provide us with feedback on our plans, which we use to improve our performance − not only on each project, but also more broadly within Ballast Nedam. Once a contract has been awarded the competitive aspect vanishes, to be replaced by open dialogue with the client to ensure due care in project implementation.
Outside the projects we engage in dialogue in professional groups and events, which keeps us informed of the latest trends and developments and gives us an opportunity to exchange knowledge with our clients. An example is how Ballast Nedam and five other construction companies are discussing transparent and meaningful approaches to performance measurement with the ten large municipalities in the province of Zuid-Holland, under the auspices of the Dutch Construction and Infrastructure Federation (Bouwend Nederland). The aim is a better quality-price ratio for customers and contractors alike. Our largest clients hold annual ‘market events’ to outline the direction they are taking, how their organization is developing and to communicate any specific concerns. Ballast Nedam also attends quarterly thematic meetings that delve into subjects such as sustainability and contract forms (e.g. D&C, DBFM, and maintenance and performance contracts).
We go beyond passive participation, for example by hosting the international LNG for Trucks and Ships Workshop for the NGVA Europe and NGV communication group.
We respond constructively to feedback. For example, a stakeholder contact revealed a need in the market for a small-scale green gas fuelling infrastructure that fleet owners can install on their own sites. Our subsequent internal brainstorming sessions led to the development of a product that satisfies this need efficiently. The result is the Mini Fastfill green gas fuelling concept.
7.1.2 Suppliers and subcontractors
Ballast Nedam aims to achieve the maximum customer benefit from the value we add in the chain, which implies chain cooperation with suppliers and subcontractors. We base our early-stage dialogue with major suppliers and subcontractors on the Lean approach, with a view to creating sustainable partnerships, with a specific project in mind or otherwise.
We also invite members of the chain to mutually inspiring knowledge-sharing sessions, one of which is the annual purchasing event. The agenda covers matters such as CO2 reduction in the purchasing process.
7.1.3 Employees: employee representation in Ballast Nedam
There is an open dialogue on all levels in Ballast Nedam between the Central Works Council and management. Employees elect the members of this council. The Central Works Council had sixteen meetings, ordinary and extraordinary, in 2012, ten of which with the Chairman of the Board of Management. Items on the agenda included the overall state of affairs, the yearly and half-yearly figures, a new member of the supervisory board, pension schemes and the reorganizations.
As the need arises the Central Works Council uses employees as a sounding board for ideas, as happened in talks about the reorganization of various business units and departments, including Infra.
Among the topics currently on employees’ minds are employment security, safety and training. The findings of the employee satisfaction survey are given in Section 6.4.1.2
Binding and motivating (see page 108).
Building Business Reputation Monitor Is vital in a challenging market to bind your customers to you, and to give more than they actually expect. A solid reputation is indispensable. It offers considerable competitive advantage and contributes to favourable behavioural intentions to do and keep doing business with Ballast Nedam.
The 2012 Building Business Reputation Monitor has mapped out the reputations of the largest housing associations, consultancies, developers and builders in the construction and housing fields. Reputation is quantified on the following seven main dimensions: service orienta tion, commercial method, innovative approach, good employment practices, transparency, social responsibility and financial performance. Ballast Nedam was assessed by 120 stakeholders, who can be classified in the following three groups: advisers, developers and government. The familiarity of the Ballast Nedam name among the respondents was 95 per cent, which ranks Ballast Nedam the third most familiar construction company name. We ranked fourth on reputation relative to the other large construction companies. The reputation score in 2012 was almost the same as in 2011.
Ballast Nedam has made progress in the past year on the ‘reputation driver’ service orientation. The main attributes with a favourable influence on the intention to do business with Ballast Nedam in the future are ‘good joint venture partner’ and ‘know-how’. Ballast Nedam ranked one place higher on ‘financial performance’ despite a lower score for this driver than last year. Ballast Nedam ranked lower on the reputation drivers ‘good employment practices’, ‘social responsibility’ and ‘transparency’. These are points for improvement for the company. The reputation monitor shows that Ballast Nedam has achieved good and specific media coverage for the ‘implementation of high-profile projects’. Ballast Nedam stakeholders have an above average intention of doing business with our company in the future, which is borne out by an above-average score on the sentiments ‘confidence’, ‘good feeling’ and ‘respect’ that they perceived with Ballast Nedam. Ballast Nedam has discussed the Building Business Reputation Monitor findings internally. In 2013 they are playing a part in the communication and in the internal change management processes for employee attitude and behaviour.
7.1.4 Our project neighbours
We are aware of the impact of our projects on numerous parties with wide-ranging interests in the nearby communities. Ballast Nedam endeavours to reassure these parties, to provide clear information and to minimize disruption. Ballast Nedam provides reassurance and clarity by involving stakeholders early in projects, entering into dialogue with them about the work and the impact-mitigating measures, thereby creating support for the chosen solutions. Due care and reliability are important criteria in this process. The result is a smoothly running project and the identification of opportunities for Ballast Nedam and our clients. The process also contributes to the socially responsible conduct of all Ballast Nedam employees, our partners, subcontractors and suppliers.
7.1.5 Shareholders
As a publicly listed company, Ballast Nedam attaches much importance to maintaining good relations with its shareholders. Investor Relations aims to inform shareholders in a straightforward, honest and transparent way about the strategy of Ballast Nedam, business model, distinctive capabilities, financial position and social responsibility.
The Board of Management provides information to shareholders and investors and regularly engages in dialogue through bilateral talks, roadshows, seminars, the presentation of the yearly and half-yearly figures, and the Annual General Meeting of Shareholders. The Board of Management visits the major shareholders individually in order to provide them with background information and to discuss company strategy. Ballast Nedam also holds a shareholders’ excursion each autumn. In 2012 Ballast Nedam and its shareholders visited the A2 Maastricht integrated area development project, where we proudly presented the Avenue2 project. Ballast Nedam and Strukton are the driving forces in this consortium.
7.1.6 Public authorities
The public sector is an important contact for Ballast Nedam in view of its role in regulations, permits, setting priorities and supervision. Municipalities, provincial governments and the national government have a powerful influence on how the various Ballast Nedam companies operate. They are more than important clients; the national government is also an important driver of more highly integrated contracts in construction and infrastructure. We opt for constructive dialogue with these stakeholders, both within projects and through industry associations, such as the Dutch Construction and Infrastructure Federation (Bouwend Nederland) and the Netherlands Association of Property Developers and Investors (NEPROM). We are affiliated with Cascade (raw material extractors), BFBN (concrete plants) and NVLB (building material suppliers) and other organizations that liaise with the regulatory authorities. Ballast Nedam also has representatives on various Dutch standards committees for regulations. Ballast Nedam also participates in various platforms where public and private parties come together, such as the Nederland Boven Water area development programme.
7.1.7 Knowledge and educational institutions and industry associations
Students at universities of applied sciences and research universities are potential employment candidates for Ballast Nedam. Dialogue and partnership with these institutions are therefore important for us. Our main focus is on the universities of applied sciences in the Netherlands, but we also collaborate with other institutions.
Ballast Nedam participates in a variety of national and European partnerships and industry associations. For instance, ENCORD (European Network of Construction Companies for Research & Development) is involved in industry-led research into virtual building (BIM), sustainability, infrastructure, health and safety, Lean Building, population ageing and
The A Lanes A15 consortium of Ballast Nedam, Strukton, Strabag and John Laing proactively engaged residents and road users in the A15 Maasvlakte-Vaanplein project to keep them informed about their specific situation. The measures they took included information evenings, letters to residents, local newspaper articles, eight-weekly work planning and advertisements to warn of impending roadworks. This approach called for close collaboration with municipalities and the Directorate- General for Public Works and Water Management. The skill comes in presenting a uniform message to residents despite the client’s and the contractor’s differing contractual responsibilities. This communication approach also requires raising the awareness of internal project staff of the impact on people nearby, particularly if work is carried out at night.
In 2012 ENCORD delivered the Construction CO2e Measurement Protocol for reporting construction industry greenhouse gas emissions. The protocol augments the GHG protocol produced by the WRI (World Resources Institute) and the WBCSD (World Business Council for Sustainable Development), and is accredited by these organizations.
Ballast Nedam is also a member of ECTP (European Construction Technology Platform), a European network of construction companies, research institutions, universities and industry associations.
In 2012 Ballast Nedam was involved in E2B (Energy Efficiency in Buildings) under the current European Union Seventh Framework Programme, and collaborated in reFINE (Research for Future Infrastructure Networks in Europe), which is drawing up a strategic research agenda (SRA). The European Commission will initiate new research projects on this basis.
7.1.8 Social organizations
Ballast Nedam also enters into dialogue with social and non-governmental organizations (NGOs), such as in our partnerships with MVO Nederland (MVO Netwerk Beton), the Dutch Green Building Council (BREEAM Infra), the Stichting Klimaatvriendelijk Aanbesteden & Ondernemen (CO2 performance ladder) and the Forest Stewardship Council (FSC controlled wood). We have had talks with Groengasmobiel and Urgenda about using green gas for road vehicles, and we have jointly provided information on this subject to a broader public. Together with the Netherlands Environmental Assessment Agency we are implementing the long-term policy for natural assets and landscape.
We maintain contacts between projects and local organizations because they are stakeholders in the integrated approach to a project. We likewise engage in dialogue with the Society for the Preservation of Nature (Natuurmonumenten), the National Forest Service (Staatsbosbeheer) and Limburg Landscape (Stichting Limburgs Landschap) about the conservation or redevelopment of flora and fauna.
7.2 Organization stakeholder dialogue
Ballast Nedam held the first regular stakeholder dialogue in 2011. The four multi-stakeholder dialogues we held in 2012 were each linked to one of our areas of work – housing, mobility, energy and nature – and how these areas interrelate.
Our organization prepared for the stakeholder dialogues by investigating the definition of, trends in, and challenges facing each area of work. We listed Ballast Nedam’s activities in each area of work and the future scenario we are aiming for. The result is a set of vision building blocks for each area of work that formed the basis for the stakeholder dialogues. Once you know where you want to go in the future, you are in a position to define a strategy for getting there.
Ballast Nedam invited stakeholders for each area of work as representatives of specific categories: clients (public and private sector), suppliers, a knowledge institute, a financial institution and a social organization (see Section 7.1). There were therefore six or seven stakeholders at the table from a variety of organizations, each with their own approach and a distinct relationship with Ballast Nedam.
We asked the participating stakeholders to provide feedback on the definitions of the areas of work, the trends, the vision building blocks for each area of work, and the challenges confronting Ballast Nedam. We are using the outcomes of the dialogues to refine our visions and the definitions of the areas of work, which have already been incorporated in Section 1.3 our Key activities on page 17. We also refer to the feedback when defining our strategy.
The dialogues followed a fixed pattern of sharing and discussing the definition, the most important trends and dilemmas, and the vision building blocks for the specific area of work. Each session was chaired by Rob van Tulder, professor of Business and Society Management at Erasmus University Rotterdam and director of the Partnerships Resource Centre. Ballast Nedam was represented by a member of the Board of Management and the cluster director with the most affinity with the corresponding area of work. A second ring of Ballast Nedam staff listened attentively, minuted the discussions and made the occasional contribution to the dialogue.
The stakeholders’ response to the invitation was extremely favourable, and they were delighted to have an opportunity to contribute their ideas on the various subjects. The open nature of the dialogue allowed stakeholders to demonstrate the importance of Ballast Nedam’s clear communication of the choices facing and being made by the organization.
7.3 Materiality analysis
In 2011 we asked a stakeholder to prioritize various CSR issues in order to identify the sustainability aspects that Ballast Nedam should focus on, which was used as input for a materiality matrix. The topics stakeholders found important at the time, for themselves and for Ballast Nedam, were integrity, sustainable resource use, life-cycle management, chain cooperation and innovation and entrepreneurship.
We handled these topics as follows in 2012:
- On integrity, we refined the compliance policy and the organization, including the appointment of a Chief Compliance and Risk Officer, who will further develop the zero-tolerance policy. We also strengthened the compliance organization (see Section 6.4.3 Integrity on page 119).
- In order to clarify our view on sustainable resource use, we made ‘material use’ part of our CSR policy (see Section 6.3.4 Materials on page 101). We also contributed actively to the MVO Netwerk Beton and the Green Deal Concrete 1.0 (see Section 6.3.4.3
Achievements in 2012 on page 102).
- Ballast Nedam also uses the PPP business model for investments in our own business cases, such as CNG Net LNG24 and Wind24, and seeks opportunities for marketing concepts based on life-cycle thinking and acting. A good example of a new partnership of this kind is the Connexxion public transport depot, where the business case includes returnability and residual value.
- There have been various chain cooperation initiatives, such as the Lincubator. Ballast Nedam is a front runner in the market for BIM (Building Information Models). BIM and GIS (Geographical Information Systems) support the teamwork between parties in the building process. Data are compiled, combined and reused by Ballast Nedam or external parties. In turn the data are transferred to clients or other parties. The Ballast Nedam BIM Data Manager was developed in 2012 (see Section 6.5.1
Chain responsibility on page 122).
- Examples of our efforts on innovation and entrepreneurship include the opening of our digital ideas platform ‘tok!’ to external parties, the 3D Woonvisualisatie, the energy-neutral iQwoning® and modular construction (see Section 6.5.2 Innovation,
the common denominator on page 127).
- Internal communication on these subjects focused on raising awareness and know-ledge sharing, through reports in Blauwdruk − Ballast Nedam’s in-house magazine −
Alongside press releases, external communication consisted of holding or attending events. For example, in September 2012 Ballast Nedam arranged three activities for the Dutch Green Building Week, including a visit to our iQwoning® plant in Weert. The main topics
at this event were modular construction and chain cooperation at Ballast Nedam. Chapter 6 on page 89 presents details of our vision on the various CSR themes, and our related policy, as well as various examples of how we are implementing the policy.
Stakeholders at the various dialogues in 2012 also raised specific CSR issues that they expect Ballast Nedam to tackle. These include the circular economy and the life cycle, product responsibility throughout the life span of a product, energy and CO2 reduction and chain cooperation. These issues largely coincide with the material issues in the 2011 matrix, which is a clear sign that stakeholders still expect Ballast Nedam to pay serious attention to them.
7.4 Follow-on to stakeholder dialogues
Jan Rotmans analyses how the construction market is changing. He has observed a transition towards searching for and finding co-creation through smart partnerships, which involves having the courage to not give customers whatever they ask for, but instead to answer the unspoken question. This is a transition to a market in which the key is no longer property, but use value, and in which a dynamic balance must be sought between activities and the ecosystem, and in which we move away from a supply-oriented to a demand-oriented model. It is also a transition from a centralized to a distributed infrastructure, and from ‘on-grid’ to ‘off-grid’. Finally, the ‘license to operate’ is becoming increasingly important in this new phase.
Sustainability Predevelopment 2050 1980 Acceleration Stabilization
The transition to a sustainable construction industry
Stakeholders’ response to Jan Rotmans’ analysis was that Ballast Nedam is at the very beginning of the transition phase.
Stakeholders are confident that with an integrated approach, focus and courage, Ballast Nedam will be able to move forward in the transition phase.
The analysis of the stakeholder dialogues of the various areas of work paints a picture of the role stakeholders expect Ballast Nedam to take, both within the specific area of work and − more in particular − in a broader context, and in respect to both the definitions used and vision to be developed. Various conclusions and recommendations can be distilled from the analysis. A market-oriented response to the trends and guaranteeing the ‘license to operate’ will enable Ballast Nedam to take the next step in the transition phase. We give below the six stakeholder recommendations that impressed us as the most unequivocal:
- stay focused;
- communicate what you want or where you want to go; - look across the national borders;
- take an integrated approach to the areas of work; - enter into new partnerships with courage; - dare to be different.
We will address these priorities alongside the ongoing matters that emerged from the 2011 stakeholder dialogue in the coming year. We are using the outcomes of the dialogues to refine our visions and the definitions of the areas of work. We also refer to the feedback when defining our strategy.
We will be holding stakeholder dialogues again in 2013. We use the feedback we receive from stakeholders to improve our organization. The feedback helps us make choices and add depth to our vision of working together for a better living environment, today and tomorrow.
Nieuwegein, 7 March 2013 Board of Management,
T.A.C.M Bruijninckx P. van Zwieten
neW bAbylon, the hAgue
The ‘New Babylon’ project is one of the largest city centre building projects in the Netherlands. It com-prises a large-scale renovation and new building of office towers, two apartment blocks and the Baby-lon retail, hotel, leisure and office centre (145,000 m2), adjacent to Central Station. The underground car park for the complex is linked to the new Anna van Bueren multi-storey car park
