ORG20002 Business & Society: Shared Value in Royal Children's Hospital

This report provides an analysis of the New Royal Children's Hospital project in Melbourne, a public-private partnership (PPP), focusing on stakeholder management and the creation of shared value. It identifies key stakeholders from both the public and private sectors, including ministers, senior executives, patients, builders, and architects, and discusses their roles and responsibilities in the project. The report also examines stakeholder mapping, prioritizing stakeholders based on their interest and influence, and addresses potential conflicts that may arise due to differing objectives. Furthermore, it explores strategies for managing these conflicts, such as training, regular communication, and mutual decision-making. The report concludes by highlighting opportunities for creating shared value, including improved patient services, enhanced facilities, and environmentally sustainable development initiatives. The analysis draws upon various sources, including project summaries and technical papers, to provide a comprehensive overview of the project's stakeholder dynamics and its contribution to societal value.

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NEW ROYAL CHILDREN'S HOSPITAL
PROJECT
Description
Public sector Stakeholders
•Project name - The new Royal Children's
Hospital Project
•Value - $946 million
•Additional capacity to treat – 35000 patients
Public sector Stakeholders
• Private public partnership
• A corporative agreement between private and public
sectors
• Contract related to infrastructure provision.
• For instance building of transport systems, hospitals,
schools, sewerage, and water systems.
• Use of private and public endeavours by
governments
• The focus for this project would be Hospital building
• There were thirty two partnership Victoria projects
Private sector stakeholders
A great children's hospital, Melbourne
PPP’S
Introduction
•Car parking area – more than 2000
•More accommodation like play area
•Expanded childcare facility , education facilities,
shopping facilities
Ministers
•This includes treasurer for economic development of
Victoria’s. They are the major internal stakeholders.
•The major responsibilities of ministers are:
• preparation and delivering of state budget, promotion of
economic growth among state of Victoria.
•Overseeing of economic strategy and economic policy
•Driving wages policies and that are administered by
minister of industrial relations
•Other important responsibilities are providing fund
management services and investment
Private sector stakeholders
• Redevelopment project of The new Royal Children’s
Hospital is taken by State Government of Victoria
• The hospital has outstanding services for case of
Victoria’s children
• Since 140 years, the family and children of Victoria
are cared by the hospital
• The announcement was made on 21 November
2017, that the designing, building, financing, and
management of the hospital would be considered by
Children’s Health Partnership for 25 year period.
• Industry - Department of Health and Human Services
Facilities manager
• For this project, the facility manager was
spotless group.
• The major responsibility of this stakeholder in
construction is making sure that the services
related to business are meeting the required
needs of people that are held responsible for
work
Sponsor –
• sponsors for this project were international
public partnership
• This group is responsible for ensuring the
delivery of project with pre determined benefits
Senior executive group
•This internal stakeholder includes secretaries of four
major divisions of Victoria. That is department of finance
and treasury, economic division, finance and budget
division, government and corporate division, and
commercial division
Organizational structure
• This include all the personnel working within the
Victoria’s who are responsible fro different work in
divisions.
• For instance, in economic division, personnel are
responsible for improving Victoria’s prosperity, tax
policy , revenue forecasting. Corporate division
includes preparation of legislations around the
departments
Patients
• These are the major stakeholders, as they are the
customers for the business
• Every aspect is considered according to needs of these
stakeholders
Builder
• The builders for this project were Bovis Lend Lease
• They are responsible for construction work in the
project
Architecture
• For this project, the architecture were Bates Smart,
Billard Leece, and HKS
• Major planning related to the building and construction
are conducted by architecture
• Therefore, it can be said that this architecture is very
relevant while implementing the project

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NEW ROYAL CHILDREN'S HOSPITAL
PROJECT
Stakeholder management
Keep completely
informed
• Facilities manager –
Spotless Group
Manage most
thoroughly
• Patients - children
of rural/regional and
metropolitan
Victoria
Regular minimal
contact
• Sponsor -
International Public
Partnerships
Anticipate and meet
needs
• Builder – Bovis Lend
Lease
• Architects –Bates
Smart, Billard Leece,
and HKS
Stakeholders priorities
Potential conflicts
A great children's hospital, Melbourne
Stakeholders mapping
Stakeholders mapping
• Stakeholder mapping is prioritizing the revenant
stakeholders in the project
• This is based on interest of the stakeholder in the
project and influence of the stakeholder
• From the stakeholder mapping developed for this
project, the most important stakeholder is the
patients that needs to be managed thoroughly, as
the project is taken for the interest of this
stakeholder group
• Sponsor of the project are not contacted regularly,
as per the priority
• The stakeholder group that has to be anticipated
and meet the needs and will influence the project
largely are builder and architects
Stakeholders priorities
•Since many stakeholders are involved, the
chances of issues increases
•Managing the internal and external stakeholders
become necessary
•PPP is a large project, involving large number of
stakeholder throughout, which needs to be
managed together
•This is done through appropriate communication
approach
• From this table, it can be said that the
stakeholder mapping are developed on the
basis of two parameters that is the interest
of the stakeholders and the influence of the
stakeholders. The stakeholders for this
project were identified, which would be
plotted in this grind according to the priority
of the stakeholders
Stakeholders priorities
Keep completely informed
• First quadrant, where the interest of the
stakeholders are high, but the influence of the
stakeholders are low
• In this case, facility manager would come under
this grid, and they would be kept informed in
order to keep the things managed
Manage most thoroughly
• This is second quadrant among the grid,
according to which both the interest of the
stakeholder and their influence is high, which
means these are to be highest prioritized
• The major stakeholders for this grid are patients,
as all the activities are to be conducted
according to the need of this stakeholder group
Regular minimal contact
• According to this quadrant of the grid,
the interest of the stakeholders and
the influence of the stakeholders are
less, therefore only minimal contact are
provided.
• In this case, it includes sponsors of this
project. These are listed low at the
priority list. The reason being the
sponsors are not much involve in
operations of the project.
Anticipated and meet needs
• This is the last quadrant, which has high
influence of stakeholders , although the
interest of these stakeholders are low
• In this project, these stakeholders are
architecture and builders. They are
responsible for implementation of the project
plan. Therefore their needs are necessary to
be accomplished. That is providing them
adequate resources and also taking care of
their individual needs
• The chances of conflicts are very high as
there are many stakeholders involved in
the project working for a common
organizational objective
• Although the individual objective for the
stakeholder groups are different, which
can cause conflicts among the
stakeholders

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NEW ROYAL CHILDREN'S HOSPITAL
PROJECT
Potential conflicts
Creating shared value
Way to deal with potential
conflict References
A great children's hospital, Melbourne
Way to deal with potential conflict
• It is the business concept, including
corporation of organization in society and
redefining capitalism
• This include addressing needs of the
society and challenges through the
corporation, while making profits.
The major opportunity to create shared value
for this PPP project :
• Better service to the patients of Victoria’s
• Improves quality and facilities to the
stakeholders
• Including medicines facility within the
hospital
• Availability of food service for parents
• Environmentally sustainable development
initiative
Potential conflicts
Way to deal with potential
conflict
1. Conflict management
• This includes solving the conflicts through
five major approaches according to the
level of the cooperation and assertiveness
• According to the grid above, the five forces
which can be helpful in managing the
conflict are avoiding, competing,
collaborating, accommodating, and
negotiation or compromising
• Mutual decision making through
collaboration, which are most suitable for
the management to adopt in case of
conflict among two stakeholders
• acaa.net 2019, The-new-Royal-Childrens-Hospital-technical-paper, viewed
2015, <
https://www.acaa.net.au/wp-content/uploads/2015/05/The-new-Royal-Child
rens-Hospital-technical-paper.pdf
>.
• batessmart 2019, new-royal-childrens-hospital-melbourne, viewed 2012, <
https://www.batessmart.com/2012/jan-feb/new-royal-childrens-hospital-me
lbourne/
>.
• dtf.vic.gov 2019, New Royal Children's Hospital Project, <
https://www.dtf.vic.gov.au/partnerships-victoria-ppp-projects/new-royal-chil
drens-hospital-project
>.
• dtf.vic.gov 2019, RCH-Project-Summary_FINAL, viewed 2018, <
https://www.dtf.vic.gov.au/sites/default/files/2018-01/RCH-Project-Summar
y_FINAL.pdf
>.
• Mio, C, Corazza, L & Scagnelli, SD 2017, 'Simulacra and sustainability
disclosure: analysis of the interpretative models of creating shared value',
Corporate Social Responsibility and Environmental Management, vol 24,
no. 5, pp. 414-434.
• rch 2019, about-us, <https://www.rch.org.au/rch/about-us/pubs/>.
Conflict regarding designing
• The design is the major aspect while
constructing the project, the conflict may be
while making decision regarding design of the
project
Conflict among builders and facilities
manager
• This may occur as facility manager is
responsible for effective and efficient support
to the staff, which may not be likable by the
builder, which may cause conflict
Communication gap
• All the stakeholders are not in contact with
each other, which leads to
miscommunication and eventually results
into conflicts
Misalignment in priorities
• The stakeholders may feel that they are
not on priority list as per their role in the
projects, leaving stakeholders dissatisfied,
and reason for conflicts
Difference in planning and execution
• The major reason that can cause conflict
among the stakeholders are difference in
the planning or setting of standards which
are not able to executed or aligned
similarly. This leads to major conflicts in
stakeholders responsible for planning like
ministers, and senior executive group and
execution stakeholders that are
architectures .
Conflicts among labours
Some other ways to deal with the
conflict are:
2. Understand root cause of the
problem and then solve
3. Maintaining harmony among the
stakeholders
4. Effective communication -
through reducing the
communication gap, the
understanding level among the
stakeholders can be increased
5. Training – through training the problem
related to execution can be solved
6. Regular contact – the top level
management must get in contact with all the
stakeholders to avoid arouse of conflicts
among the stakeholders