THE APPLICATION OF THE DECISION SUPPORT MODEL TO THE INNER HARBOR AREA OF ENSCHEDE

The goal of the process analysis was to improve the understanding of the complexity of the restructuring of the industrial estate. The improved understanding was to provide specific opportunities for bettering the restructuring and facilitate a continuation of the process.

6.4.1 Initial design should focus on interests and involvement of actors

Obstacles: the first challenge was to ‘translate’ the process model into a workable design for this specific process analysis. A ‘detached’ approach, only analyzing documents, was not suitable, since it was important to develop a shared understanding of how to proceed, which requires an interactive approach. That works as a process intervention: it influences the way the participants think and act.

Taking into account the project constraints, a ‘lean’ design was chosen consisting of three interactive sessions. Each session focused on collecting information and working toward conclusions about how to proceed. Working on conclusions so early in the process reflected an increase in shared views and commitment. The design needed to be adaptable, allowing for changes in agenda and participant needs.

Consequently, design choices for these sessions were initially limited to three. First, it was decided to work with small groups (6–7 participants), using a combination of ‘brainstorm’ and discussion. This enabled open interaction, and

The restructuring of industrial estates in the Netherlands 81 ample opportunity for contribution to the process from each participant, making a small group more efficient than a larger group.

Secondly, choices were made about the composition of the groups for each session. The participants of the first session were limited to representatives of the local government. Representatives of both entrepreneurs and the local government were invited to the next two sessions. This approach was chosen because the local government can be seen as a ‘complex actor’: it consists of several departments that focus primarily on different areas of policy. It was important to start the interaction with the entrepreneurs based on a complete overview of information and opinions of the different internal actors. Finally, the main topics for the agenda and the phases (see Figure 6.2) were chosen.

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Figure 6.2 The main phases and activities in the process analysis.

Taking into account an anticipated need for intermediary adaptations, the objectives were only specified for the first session. This session focused on identifying the availability, quality, and distribution of information within the organization of the local government. In particular, the session was intended to provide information about the current situation on the industrial estate: interests, objectives, availability of resources, and plans and the expected willingness of stakeholders (both departments of the local government and entrepreneurs) to invest in the process and specific measures to make it feasible. It was expected to lead to preliminary ideas about process opportunities, process risks, and uncertainties.

6.4.2 Outcomes of the first session: Rich information, but lack of completeness and overview

The outcomes of the first session were quite ‘rich’. The participants provided a large variety of detailed pieces of information about the situation on the industrial estate. In particular, they described the high ambitions for the site development (usually referring to the responsibility of the local government), and how such ambitions have been translated into a large number of plans and actions. These activities focused on factors such as adequate infrastructure, efficient use of space, sustainable development (including energy efficiency and reduction of carbon dioxide emissions), employment, and quality of life issues.

On the other hand, the participants described how the planning process has faced several major set-backs, and how this may be explained by a mismatch in planning processes. These dynamics were nicely illustrated by one of the participants, saying: ‘When the local government was ready to take action, then the commitment of the entrepreneurs was diminished, and when the

entrepreneurs wanted to take action, then the local government had to start the decision-making’.

The (text) analysis of the detailed information further revealed six problems regarding access to information:

(1) Insufficient clarity about any shared vision of the local government on the development of the Inner Harbor area.

(2) No structured and complete overview of information (data) for the individual firms in the area regarding satisfaction with location factors and plans for the future is available.

(3) Inadequate transparency concerning political ambitions related to harbor developments.

(4) Not clear whether the firms in the area experience the existing problems as their own problems: i.e., accept problem ‘ownership’.

(5) Unknown if commitment is available for joint actions by local governments and firms.

(6) No complete overview of situation regarding compliance with laws and regulations.

The first five problems all refer to topics related to commitment. A provisional conclusion was therefore that the lack of information represented potentially serious process risks, including for identifying process opportunities.

6.4.3 Bridging the sessions: Redesign according to need

It was expected that the representatives of the entrepreneurs could fill in some of the information gaps. A second objective was to explore and identify their commitment to ideas for follow-up developed during the first session, although they had to be modified to accommodate altered plans which emphasized the development of harbor-related activities (development of more quays, as well as attempts to influence the migration of firms into, and out of, the area, and providing opportunities for firms making use of, or having plans for, transport by water).

6.4.4 Outcomes of the second session: Commitment remains the key issue

The change of plans regarding development of the harbor would have significant physical consequences for the infrastructure and design of the area. It was common knowledge that entrepreneurs profiting from the developments would support the new plans. On the other hand, it was unknown to what degree active opposition would be encountered from the firms not profiting from the developments. The key challenge was therefore to develop a strong business case. New solutions needed to be found, and for each solution acceptable distributions of costs, benefits and risks among the involved stakeholders was needed. Thus, the second session appeared

The restructuring of industrial estates in the Netherlands 83 to indicate that ‘everything’ must be done all over again. This was however, by no means the case. The results underpinned the fact that the participants of the session acknowledged the importance of appropriately addressing the information problems identified during the first session.

6.4.5 Bridging the sessions: Addressing changed priorities

The third session was designed to address issues arising from the changed plans, and the possible divergence of opinions between the first and second sessions.

The participants were first individually asked to identify how to address process opportunities (the outcomes are presented below). A three-step approach was used. The risks (probability × negative effects) related to not addressing process opportunities were identified. Subsequently, follow-up actions were suggested and prioritized.

Finally, a short discussion, focused on the outcomes and their consequences for a process toward reaching a shared view on how to proceed, was conducted.

6.4.6 Final outcomes

The outcomes of the final session strongly reflected the effect of the changes to the plans for the area. The main conclusion was that it was clear that insufficient commitment for implementation of the plans was available. This was understandable, taking into account that the plans had been changed quite recently. On the other hand, the stakeholders preferably involved in the process were known. For some of these stakeholders their willingness to invest was also known. The session led to a prioritization of follow-up actions. The high priority actions were:

• Create a ‘shared view’ on the restructuring: All stakeholders needed to know, and acknowledge, aims and constraints for the restructuring, and they needed to be actively involved in scenario- development.

• Develop a ‘map’ of process opportunities and process risks: The complexity of the restructuring is high. The possible effects of specific measures and solutions are accordingly difficult to assess. Developing an easily adaptable and dynamic ‘map’ of the area would enable all stakeholders to get an overview of pros of cons of measures.

• Develop new, and make use of emerging, ‘golden opportunities’: A ‘golden opportunity’ is a combination of a good idea (solution), and sufficient commitment and resources for its implementation. The process management of the restructuring should aim at designing such opportunities, while at the same time also spotting and using temporary ‘opportunity windows’ (e.g., caused by co-financing). This implies influencing and monitoring all three factors. In particular, restructuring program-managers can be given a clear mandate for making decisions within a pre-defined ‘range’ regarding costs and effects on policy fields.

• Ensure appropriate combinations of specific challenges and specific skills:

Interaction between representatives of firms and local government in a restructuring covers a large variety of topics and skills. In particular, the restructuring program management should ensure that involved personnel possess the necessary skills for development of commitment and business cases such as motivation and negotiation.

• Perform an integral compliance-check on laws and regulation: Restructuring is a way to address the process of decay. One of the reasons for decay is that firms pay limited attention to how their activities affect their surroundings. In some cases this may result in non-compliance with spatial and environmental laws.

An integral compliance-check can reveal such problems. Appropriate actions can be taken to ensure that quality is maintained in the restructured area.

More specific actions, which would contribute to the above mentioned high-priority actions, were also recommended. These actions were aimed at improving access to information about the firms, and influencing progress and quality of outcomes of the restructuring. The first recommended action focused on how firms tend to target on their ‘own’ problems. Firms often perceive problems as limited to their own areas (plots of land) and factors that directly affect continuity of the firm. Problems that affect the performance of the whole industrial estate are either

‘neglected’ or perceived as something that should be solved by, for example, the local government. It was therefore recommended that how individual firms perceive the necessity for joint action to improve the industrial estate be identified, as well as to what degree they would be willing to contribute to joint actions. In particular, it was vital to establish whether individual firms would stimulate or ‘block’

specific developments. All these topics are to some extent ‘sensitive’, because the information has strategic value. It was therefore recommended that a representative of the firms be used for collecting the required information. By doing so, there could be no discussion of the intentions of a representative from the local government. The preferred representative needed therefore be well-known and trusted by the other entrepreneurs in the area, and at the same time, be neutral towards the outcomes.

Information on a variety of other topics was also needed. Trends, objectives and plans, agreements, and measures taken and their effects on site performance needed to be evaluated. It was therefore also recommended that a central data-base be developed that would include all information relevant to the restructuring. This data-base should, in particular, contain fact-sheets on all individual firms. A regular updating of the information is necessary, and it was therefore recommended that a platform be created for information exchange involving representatives of firms and the local government.