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EFFECTIVE COLLABORATION AND COOPERATION AMONG AIRPORT STAKEHOLDERS

Creating Shared Value

“If I have seen further it only by standing on the shoulders of giants” (Sir Isaac Newton, 1676)

Undertaking this research paper on the ‘Effective collaboration & Cooperation among Airport Stakeholders’ is the voyage of my both professional and personal experiences.…….

I would like to thank my COO – Mr. Manish Sinha, GM- Airside Operations Mr. Lakshmana Kumar Anukula and Mr.Shreepad Amrit AM-QSD for mentoring and rendering their valuable feedbacks while completing this research paper

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Effective Collaboration and Cooperation among Airport Stakeholders

CREATING SHARED VALUE

When Michael Porter, the renowned authority on business prioritize stakeholders and consider the best way to strategy and competitiveness, introduced the world to the approach and collaborate with them. Collaborating with the concept of “creating shared value”, he provided little in the stakeholders demands different mindset which is described way of innovation for more emphasis on the Stakeholder as leadership. It requires offering more questions than Collaboration and effective communication. answers, more listening than speaking, creating more space Stakeholder collaboration is a process through which for the stakeholders to understand the problem, feeling safe groups with similar or different perspectives can exchange to share the ideas, taking ownership and holding themselves viewpoints and search for solutions that go beyond their accountable for creating the results.own vision of what is possible. Collaboration goes beyond In this research paper, first a short introduction to the people participating (passively or actively) in a process. importance of stakeholder collaboration and effective It also extends beyond communication, cooperation, and communication will be provided. The second chapter deals coordination, even though these are key elements in the with Stakeholder identification, the third explains the process. Collaboration refers to a mutually beneficial effective cooperation and collaboration processes, the relationship between two or more parties who work toward fourth explains how to support implementations and common goals by sharing responsibility, authority, and conflict resolutions. Relevant case studies are added at accountability for achieving results. various stages to explain practical aspect of Stakeholder In most of the current business, Airports emphasis to map management process.the current system in which they are working, identify and

Shared Value Equation Diagram

Communication CollaborationCoordination+ =

Importance of stakeholder collaboration and effective communication

Large Airport infrastructure projects generally involve multiple stakeholders such as ANS providers, Airlines, regulating authorities, passengers, local communities, and Airport Operators. New projects can create tensions between different stakeholder groups because different groups naturally have different interests and opinions. Prime goal for businesses is to make profits and regulating authorities try to do what is best for the “greater good” within their political limitations, while local communities tend to take the ‘not in my back yard’ position and protest against any new developments close to their place of residence (Ref: Mumbai 2012).

Stakeholders are able to influence the project management’s decision making process as the project proceeds from the investment preparation phase, to the project execution phase, and on to the operations phase through various methods such as protests, legal battles, and even illegal activities. Stakeholders can potentially have great influence on project time span, cost and ability to implement final decisions (Baxamusa, 2008).

As a result, stakeholder collaboration and analysis has become increasingly important with respect to understanding stakeholder needs and requirements (Donaldson & Preston, 1995; Olander, 2003; Bourne et al., 2008) to achieve, among other things, better project delivery timelines and greater community acceptance of large infrastructures and the operations associated with them.

Chapter 1

Effective Collaboration and Cooperation among Airport Stakeholders 1

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Stakeholder’s attitudes and actions have an impact on the Communicating regularly with stakeholders and creating a success of the project. Different stakeholders have different positive understanding can help you build effective long-interests, attitudes and priorities. Effective communication term RELATIONSHIPS with key groups. A strong ensures that they receive information that is relevant to their relationship brings a range of benefits. Communicating needs and builds positive attitudes to your company or with stakeholders can put you in a strong position when they project. are making important decisions. Supplier communications

can help you to build a supply chain that is aligned with your Stakeholders must UNDERSTAND what you are trying to

needs. Shareholder communications can give you easier achieve. Communication builds an understanding of your

access to funds.goals and the benefits to the audience if they help you achieve those goals. Communication helps you attract the An important element of good communication is to know support and suggestions you need for important the target to which you wish to convey information. Primary investments. If you plan changes that will have an impact on stakeholders require information concerning the company's the operations or service to be provided local community, stock performance, financial statements and planned communication with local government agencies, pressure investments. Send information of this nature promptly groups and the community will build an understanding of while exercising confidentiality. Use channels such as fax your aims. or mail.

Communication helps you to build positive relationships Secondary shareholders require less sensitive and nontrivial with people and organizations, such as the media or special information. Send this information through conventional interest groups, who INFLUENCE other stakeholders. channels such as the company's website or email. Ensure Press releases, interviews with journalists and meetings that the information is clear and easily understood.with interest groups build understanding and ensure that

Forward all the latest and relevant information that has a communications from those groups reflect your point of

significant impact on the company to the stakeholders. This view.

ensures that you keep them informed of timely issues within Communication with stakeholders builds DIALOGUE. By the company and the external environment. Stakeholders setting up forums or inviting other forms of feedback, you value companies that provide them with the latest can gain a better understanding of your stakeholders’ information as it enables them to make calculated decisions interests and attitudes so that you can fine tune your concerning their interests in the firm.communications. Using forums or other social media to

Prepare a crisis management plan to manage communicate enables you to respond to critical comments

communications with stakeholders in unexpected or correct any misunderstandings. Communicating through

situations. A crisis management plan also helps you contain social media can also spread your message further as

information that may have negative repercussions for the stakeholders share attitudes with others.

company if leaked to the wrong persons. The company Communication program must focus on the stakeholders should also use multiple channels for communicating with who have the greatest influence on your success. If shareholders to minimize reliance on one channel.government agencies or industry regulators are considering legislation that could cause problems for your business, for example, concentrating your communications on those groups ensures that they take your point of view into account.

Consultation

Involvement in Decision Making

Shared Responsibility

Transferred Responsibility


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project will often result in the names or persons with Stakeholder identification and assessmentmanager and sponsorship powers, as well as line managers

Deciding who should be involved, how, and when in doing tied to the business units. These are definitively key stakeholder analyses [sic] is a key strategic choice. In stakeholders that have to make decisions about the project’s general, people should be involved if they have information scope and direction.that cannot be gained otherwise, or if their participation is necessary to assure successful implementation of initiatives Include Subject Matter Experts as the Project built on the analyses. Unfolds— Thomas, J. C. (1993). Public Involvement and It’s important for the analyst to not replace the original key Governmental Effectiveness: A Decision-Making Model stakeholders with yet another set. Rather, the analyst is in a for Public Managers. Administration and Society, 24(4), position to re-evaluate throughout the course of discussions 444 -469. whether the correct people are included. This doesn’t

require another full stakeholder analysis exercise; because Start with a Formal Stakeholder Analysis the analyst is not trying to, again, replace anyone. The goal

Exercise is to get additional impacted persons to the table, perhaps through a subject matter expert interview. Where the focus There are many techniques for performing stakeholder of the original stakeholder analysis exercise was the entire analysis, but the overall goal is to determine who are the project, a subsequent evaluation of proper stakeholder persons impacted by a proposed change and to assess their inclusion could focus on a granular sub-component of the attitudes and influences on various project factors. These project, such as an operational unit, system component or attitudes and influences are the drivers behind decision the like.making and project progress in and of itself, as well as

against the entire suite of active projects. Process of stakeholder identification does not over with defining stakeholders. Real challenge comes when we There is one critical element to stakeholder identification transform this definition in to responsibility matrix. It could that often eludes a project’s members. Once formal be better understood with an example of “RUNWAY stakeholder analysis is completed at the beginning of the Capacity Enhancement project” at Hyd Airport.project, it SHOULD continue throughout the life of the rest

of the project. The identification of stakeholders early in the

Chapter 2

CASE STUDY: “RUNWAY Capacity Enhancement” at Hyderabad Airport on “Stakeholder Assessment and Identification”

Hyderabad Airport was the first green field airport in India to be developed on PPP model. It jointly functions with Airport Authority of India as a regulatory authority and various Domestic and International Airlines.

During one of the prestigious project initiated at the GHIAL called “Runway Capacity Enhancement”, as a operator GHIAL had faced a typical challenges in the stakeholder management and engagement.

Basically the project contains certain elements which more technologically advanced and operator tried to induce in to the Hyderabad Airport for the betterment of the process and to increase the number of the movements in the commercially peak hours for the Airport.

GHIAL has faced lot of challenges in making stakeholders to accept the process changes to the existing traditional methodology of airport operations

GHIAL initiated Strategic discussion with stakeholders with collaborative approach during initial start up days meeting was held with individual airlines to emphasis on analysing the aircraft performance (segregated based on fleet, time and operations type) and identification of root causes. These meetings were important tools in involving Airlines in the decision making and also sharing responsibilities.

A forum was created for pilots to meet and discuss improvements on regular basis. Pilots played an important role in implementing improvements as they were in execution and also had a say in Airline board..

With fruitful debate and discussions for six months on collaborative platform (ACDM) all the airlines operating at Rajiv Gandhi International Airport unanimously agreed for the process changes. As a result RGI Airport is now being referred as benchmark for ATC processes in India.


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Depending on the importance of the stakeholder the Airport has to choose to:

Align mission values with the stakeholder values

Manage stakeholder expectations

Monitor stakeholder reactions

Key stakeholders for the airport and their requirements


The following are the process changes that had been bought in the ATC/ Airline process at the GHIAL:

5%

Subgroups

RGI Airport

RGI AirportRGI Airport

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Effective cooperation and collaboration processes - Finding Balance between the different stakeholders

Not all the stakeholders play the equal role in the Airport business. It is important to understand whether their values are also in conflict with each other as well as within the organization.

The forces of stakeholder values exist and will impact the organization performance. Therefore to balance the influences from the different stakeholders is important to align the mission values with the key stakeholders.

So it is important as an Airport operator to focus on the following parameters to maintain the balance

1. Balanced conversation

2. Stakeholder return on investment

3. Stakeholder assessment

4. Measure Brand and reputation

5. Creating and maintaining balance

Balanced conversation:

There are two ways of the balanced conversation: 1. directly talking to stakeholders 2. Having others talk about your company

In all the cases these conversations build the organization brand reputation. All the stakeholders will have their own values. So it is impossible to have the same conversation with every group. While the subject may be the same but the nuances of what important and how to conduct the conversation differ with each group.

The personalized conversation: same topic + different person = new inflection

Stakeholder return on investment:

Alignment with stakeholder values must show memorable investments. Alignment outcomes can be measured by 3R brand equation

Relevance + Relationship = Return on Investment

Measure Brand and Reputation:

The method of evaluation of brand of the stakeholder is by :1. Measuring its financial strength2. Stakeholder support3. Overall brand awareness

Chapter 3

• Performance

• Workplace

• Products

• Leadership

• Citizenship

• Goverance

• Innovation

The method of evaluation of reputation of the stakeholder is by:

Creating and maintaining balance

If mission values are not aligned with the stakeholder values you risk destroying the important stakeholder relationships. Stakeholders expect the companies to understand and abide by their personnel values.

As an operator, Airport cannot all the time align the mission values to the stakeholder values but you need to prioritize the stakeholder group and determine which values are essential for the alignment.

A CASE STUDY on ‘Baggage Handling Improvement Project’ at RGI Airport and Challenges faced in ‘Finding the Balance among different stakeholders’

Baggage delivery at the airports has increasingly gained attention over the last few years. This Development is due to the realization that what important role this issue plays in the efficiency of airline and airport industry. One of the main concerns of passengers (and Airlines) is to be able to find their baggage on arrival. Since 2003, the introduction of X-ray screening within all baggage procedures has become even more complex.

This project aimed at the process of Baggage Handling process at Baggage Break up Area / Arrival Baggage Process by identifying the potential constraints impacting the delivery time of baggage at Rajiv Gandhi International Airport, Hyderabad. The study desires the outcome of delivering the bags to the terminal carousals as fast as possible by improving the work efficiency at BBA. On time performance in delivering the baggage is not just a sound performance Indicator for the operational departments but also allows Ground Handling agencies and Airlines to differentiate themselves from their competitors.

As an airport operator the biggest challenge is to strike the balance among the different stakeholders as it involves ‘Immigration, Customs, Airlines, Ground Handling agencies, CISF’.

Various stakeholders were interviewed to map as-is process and understanding the ground working situations. Root cause analysis was also done to identify the key causes for the delay in the baggage delivery processes.


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From the inputs from the fishbone, brainstorming sessions with the stakeholder and management were used for determining the areas of improving.

The following solutions were drawn and implemented by bringing all the stakeholders under a single tree and striking the balance among all the stakeholders• Ground Handling and customs duty roster had been revised to match with the baggage flow• Strengthened the procedures to ensure robust communication and processes control to reduce the delay due to

late reporting of the various resources• Established the centralized control on the GHA manpower• Multiple feeding points for conveyer were approved with the support of the various stakeholders to eliminate

the alignment issue• Additional X-ray lines were approved by the customs screening to fasten the screening the processes• Standard processes for all the agencies were established with effective change management system.

Output for the Organization:1. Domestic Last Bag delivery was decreased to 25 min from 30 min and meeting the KPI of 90%2. Last international baggage delivery had improved from 60% to 80% within 40 min over a period of 2

years with the effective stakeholder collaboration

stakeholders. This could be an informal process or through I s s takeho lder representa t ion the development of partnership agreements or MoUs;

important?Identifies the governance structure for destination

Recognizes the concerns and goals of all stakeholders is management as an important framework that clearly important for planning, decision-making and developing outlines communication, reporting and decision-making mutually beneficial strategies and actions; processes.

Destination Management Tip: A stakeholder network Collaboration and Cooperation Goals:diagram can assist in identifying who is who within a

network and inform the stakeholder engagement process. Collaboration relies on trust, inclusion, and constructive engagement to achieve a broad common purpose. It does Engages stakeholders based on their interest, skills and not use advocacy, exclusion, and power over others to expertise to ensure a comprehensive basis of knowledge for achieve it ends. Power and status differences among planning;participants are de-emphasized and ownership of the

Understands and communicates the value of tourism, process is shared .Stakeholder collaboration can, in the including economic, social and environmental, to right circumstances, provide a powerful approach to stakeholders is important to gain support and participation responding to complex problems that isolated efforts in destination planning and management; cannot solve. Increasingly, conservation organizations are

pursuing collaboration that focuses on building and Develops a shared understanding of business in a region, maintaining a long-term relationship with key including the values and ideals of the destination is stakeholders. This does not mean there won’t be conflict, important for an agreed business focus;but when conflicts arise they can be addressed within a

Develops an agreed vision that provides a focus for future collaboration framework. It is therefore extremely planning, development and management of aviation in the important that organizations that take on the role of destination; promoter or facilitator of collaboration processes

understand how conflicts emerge or are exacerbated.Identifies clear roles and responsibilities of all


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Inclusive and non-hierarchical participation.

Participant responsibility for ensuring success.

A common sense of purpose and definition of the problem.

The identification and testing of multiple options.

Participants educating each other.

Participants sharing in the implementation of solutions.

People being kept informed as situations evolve.

**Adapted from Carpenter 1990

CASE STUDY: ‘CARGO Export Process Improvement’ at Mumbai Airport and Challenges faced in cooperation & collaboration

Chhatrapati Shivaji International Airport is one of the busiest Airports in South East Asia & one of the most important Aviation Hubs in the World. Many people are aware about its stature as a passenger airport, but very few know about the Cargo aspect of it. Cargo is one of the highest revenue generating sectors in any Airport & in this airport it’s no different. This is shown in the fact that Chhatrapati Shivaji International Airport ranked 48th in the World in terms of passenger traffic but 30th in the World in terms of Cargo handled & it’s still seeing significant rises in influx.

In the light of continual improvement and future expansion program for export cargo infrastructure and services without hindering the operations, the need for this process improvement initiative was raised.

For execution of the project, in headship of Quality and Safety department a team has been formed. The team consists of members from all verticals of Cargo like; Export Cargo Operations team, Cargo IT, E&M and Cargo Security team. A group of management students (interns) were also helped to complete the project.

Since reducing the dwell time of cargo is the main objective of this project, the time taken between the various operational stages involved in the Export Cargo process has been observed over a period of time. During this period total of more than six thousand samples were collected at various stages of the cargo export process

Theproject was further divided in to four modules for effective collaboration and implementation of the recommendations suggested

Ÿ TDG and Loader efficiency

Ÿ CHA and related processes

Ÿ Carting agents and related processes

Ÿ Warehouse Management

Effective collaboration with all the authorities was established and involved everyone in the consultations and decision making.


Key characteristics of collaboration:

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Components of the collaboration processes

Activities under each component, and their sequencing, will depend on the context in which the collaboration is proposed. The process should be a flexible one, allowing opportunities to be taken whenever appropriate. If the effort is new, many activities may need to be undertaken simultaneously, and require the leadership or advocacy of a key stakeholder. If the stakeholders are already working together, some elements may not be needed while others may need to be reviewed to ensure that the appropriate stakeholders are involved and that the process is based on an understanding of the interests and issues at stake.

Stakeholder

Analysis

Shared Agenda

Processes

Design

Constituency

Building

Implementation


The following are key outputs implemented in the 30% improvement in the “Cargo Export process Improvement” at Mumbai International Airport:

VMS was designed and implemented (Vehicular Management System)

Proper roistering and allocation of loaders at TDG for cargo off loading (Truck Docking Gate)

New Hydraulic pump trolleys had been introduced for the better movement

Regular trainings were planned and executed in coordination with HR

Additional Space had been created by ware house management

Effective supervision at the customs counter

Regular maintenance of IT systems were framed

Bench marking tolerable time for each processes

All agencies responsible contact number displayed in the main Cargo area

DMS introduced for the 13 handling carriers (Document Management system)

Ware House management

By effective collaboration and cooperation from the different stakeholders there was a total growth of 30% in the “ Cargo Export Processes Improvement “ at Mumbai International Airport

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Defining

conflict

Functional &

dis-functional

conflicts

Identifying

causes

Monitoring

indicators

& warning signs

Levels of

stakeholder

conflicts

When do stakeholders commit to collaboration?

Conflict resolution in Cooperation & Collaboration Process

Stakeholders can be engaged in a variety of ways and at multiple levels, in more than one relationship or activity at a time, during the course of a collaboration process. Stakeholder motivations for participating should be considered before the collaboration process as they may have their own interests. People will get involved only if they believe it is worth their effort. Stakeholders may commit to collaboration in activities like:

1. Airport development activities (including the Master Plan);

2. Airport environment initiatives (including the Environment Strategy);

3. New airport activity (such as new services) or changes to aviation services;

4. Planning, regulatory and policy changes affecting the airport;

5. Changes to airport facilities; Access issues including for people with special needs;

6. Economic contribution of the airport (including the Airport Economic Impact Study)

Conflict resolutions in the stakeholder management form a very vital part in the growth of the organizations. If these were not addressed properly may lead to uneven balance among the communities and Airport business may stagnate at a point wherein we find no way to get move on. It also when not addressed in time may rise to more demands from the stakeholder than before.

Stakeholder Conflict resolution involves a process oriented study where four key elements to be analyzed:

Stakeholder management conflict styles are to be adopted from the nature where they teaches us the excellent management principles

Ÿ Competition – Shark

Ÿ Collaborating – Owl

Ÿ Compromising – Fox

Ÿ Accommodating – Teddy Bear

Ÿ Avoiding – Turtle


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Conclusion:

Employees are the Key cheerleaders of the company sustainability efforts.

During the recent survey conducted on the top three stakeholder groups in driving their company’s sustainability initiatives, employees ranked second (cited by 22% of respondents), behind customers (37%) and ahead of shareholders (15%), policymakers (7%) and NGOs (7%). To accommodate the growth Airports are working on their infrastructure and exploring innovative methods for smooth passenger movement. For execution and sustainability of improvement plans a strong stakeholder management framework is must.

Stakeholder Management framework is much more than compilation of numbers from astrological forecast and draw a plan on paper in board room meetings. Its substance and detail must come from the minds of people who are closest to the action and who understand the business, their resources, and their strengths and weaknesses.

Behaviors are beliefs turned into action. Behaviors deliver the result. Norms of behavior is essential part of Stakeholder Management Framework. Ensure “rules of engagement” are well defined.

The following are the few ideas that can be used to achieve good stakeholder management processes:

1. Management and stakeholders should work together to draw up a realistic list of goals and objectives for the airport. Engaging stakeholders will improve business performance and they take interest in the project

2. Communication is the key, social operating mechanism is important for successful communication plan. These are formal or informal meetings, presentations, even memos or email exchanges – anywhere that dialogue takes place. Ensure communication plan is integrative, cutting across the all verticals of Airports and breaking barriers among organizations, units, functions, disciplines, work processes and hierarchies.

3. Agreeing on deliverables is important. This makes sure that there is no undue disappointment at the end.

By successfully managing your stakeholders organization will be better able to keep a lid on the scoop creep, ensure project requirements are aligned , understanding tolerance for risk and mitigates issues that would delay the growth. Good stakeholder management is a testimony for the success of the organization and a key component to a healthy organization environment.

References

1. www.google.com

2. www.slideshare.com

3. www.flynats.com

4. www.aviationexplore.com

5. www.aai.aero.in

6. www.dgca.nic.in

7. www.airliners.net

8. www.flightaware.com

9. www.flightglobal.com


Abbreviations ACDM: Airport Collaborative Decision Making

PPP: Public Private Partnership

ANS: Air Navigation Services

GHIAL: GMR Hyderabad International Airport Limited

CISF: Central Industrial Security Force

AAI: Airport Authority of India

ATC: Air Traffic Control

IT: Information Systems

SOP: Standard Operating Procedure

FIDS: Flight Information Display Systems

TDG: Truck Docking Gate

CHA: Custom Handling Agent

BBA: Baggage Breakup Area

RET: Rapid Exit Taxiway

OTP: On Time Performance

A/C: Aircraft

RGIA: Rajiv Gandhi International Airport

GHA: Ground Handling Agent

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