Benefits of using external consultancies for stakeholder engagement
By Jess Noble
In Australia, across all tiers of government as well as in the private and third sectors, engaging with project stakeholders is no longer simply a gesture of social goodwill or a regulatory tick-box exercise.
Proactive stakeholder engagement can form the blueprint for project success and is a proven way to strategically manage and mitigate risks. In a world where government and corporate social responsibility is under scrutiny, community and stakeholder engagement has become standard practice. If done right, stakeholder engagement can determine a project’s social licence to operate.
Whether it’s a small local council planning a new playground, or a utility company rolling out a national upgrade, the risk is too high not to involve project stakeholders early and often, and the safest way to ensure the biggest impact is to use the services of an external specialist consultancy. While the public service is pushing to reduce their reliance on outside agencies, here’s 5 reasons why we believe that the most effective stakeholder engagement work is done by external, impartial consultants.
1. One step removed from project politics
One of the key advantages of hiring a specialist consultant is the neutrality that comes with an outsider. Unlike internal engagement professionals who may be caught up in project politics, or be seen as biased by stakeholders, external consultants can provide unbiased insights and recommendations. This independence can foster a deeper trust among community members and stakeholders, without the personal agenda. By serving as independent facilitators, evaluators and advisors, engagement consultants can offer more effective conflict resolution, build consensus, and ultimately strengthen relationships by acting as a safe conduit between stakeholder and project team.
2. Community engagement is a highly specialised area
Specialist community engagement consultants know their stuff. They generally work across many sectors, projects, and communities, and are constantly building on their specialised engagement skills and tools.
Most successful external consultants are well versed in the many and varied engagement methods and strategies, and stakeholder management best practice – and know how to engage across all project phases from planning through to execution.
3. Resource efficiency
Effective stakeholder engagement requires significant planning, time, resources, and specialised skills. For clients with limited internal capacity or expertise in this area, partnering with an external consultant can reduce project risk and ultimately save money. External consultants bring efficiency to the engagement process, achieving meaningful results in less time. By outsourcing specific tasks or projects to experienced consultants, clients can also deploy their internal resources elsewhere.
4. Innovative and creative approaches
A good external engagement consultant has innovative ideas, skills, and ways of doing things. They follow emerging trends and technologies, they upskill and train, and they follow best practices in stakeholder engagement.
Digital technologies like AI, virtual reality, and data analytics tools are new and emerging areas of interest in stakeholder engagement and external consultancies are aware of this and ahead of the game. In addition, most external consultancies also come with highly skilled creative departments or subcontractors to design project communications assets and deliverables.
5. The results are measurable
Effective stakeholder engagement involves measuring success against data and metrics, and accountability mechanisms. External consultancies know the vital importance of establishing benchmarks and tracking progress over time. By implementing robust evaluation frameworks, consultants help clients measure the impact of their engagement efforts (and budgets), identify areas for improvement, and make data-driven decisions. This focus on accountability ensures that community engagement initiatives are aligned with project and organisational objectives and deliver positive outcomes that benefit both the project and its stakeholders.
Conclusion
The decision to work with an external community engagement consultancy can be the secret to project success. By leveraging the specialist skills and perspectives of external consultants, projects can reduce risk, build social licence and value, and ultimately create positive change.