■  Responding to the key concerns of stakeholder groups

Frequently, but not always, concerns can be grouped around professional or job interests. The following discussion raises some of the key issues in relation to municipal stakeholder interest groups (see also discussion above concerning municipal leadership and management). An illustration of the range of municipal stakeholder interests (and the responses generated) is provided in Box 12.7.

Administrative staff will be concerned to see that existing procedures and systems are followed correctly and that change and disruption within the organisation is minimised. It is likely that administrative staff have enjoyed a degree of authority over municipal resource deployment. From their perspective, a partnership arrangement might undermine the degree of direct power and influence they hold. Most municipalities suffer from the problem that even minor decisions are referred upwards to senior administrative staff who regard it as their right to direct and supervise almost all routine decision-making. A partnership arrangement with a private sector operator would change the nature of administrative authority; rather than directly controlling all decisions at all times, it will have a monitoring and/or regulating role. This role change not only requires different attitudes towards administrative supervision (a change from direction to enabling), but also a greater measure of objectivity in management. It requires different, transparent behaviour patterns. Administrative staff may well find that they are under pressure to raise the level of efficiency of many internal operating systems to match the new standards of the private operator.

Elected representatives are typically concerned about the loss of direct control over service delivery, particularly if their voter base is dependent on them being seen as the provider. In many municipalities, elected members at council and ward level have a tradition of getting involved in service delivery rather than policy-making. They are commonly identified with new infrastructure or infrastructure improvements or specific services that they have personally backed. A partnership arrangement may curtail their influence over contracts, jobs and resources as well as service planning. They may be concerned that they will be held responsible, or that success will reveal past inefficiencies. Success, however, is normally the key to changing political members' attitudes, and examples abound of politicians wishing to be associated with successful projects in the public domain.

Political members will also be concerned about the impact on voters: Will the partnership approach have an adverse impact on particular groups of voters? A key concern will be the tariff. Few politicians are keen to be associated with the introduction of a higher tariff for basic services, irrespective of the baseline situation. The short tenure of councils and mayors means that they may not be associated with the medium-term benefit. Many are concerned only with the results achievable in the immediate future.

In order to develop a group of elected members who are supportive of the idea of partnerships, champions will need to highlight the immediate benefits that are achievable and create partnership frameworks that maximise them; it may be necessary to devise strategies for implementing tariff increases. Capacity building is essential: exposure to successes elsewhere helps to remove some attitudes based on assumptions. Exposure to their own success offers the greatest attraction, and it is clear that politicians do change their attitudes as they see successful municipal partnerships developing. Most critical, however, is the support of the voters, and the development of a transparent process through which politicians can 'see' voter opinion is probably the key to creating attitudinal change among elected members.

Technical staff, particularly those directly associated with the service provision, will not only be concerned for their jobs; they will have entered into their profession with a certain expectation of their career. A PPP may completely reverse that expectation, and create opportunities in other areas with which they are not familiar. For instance:

•  Partnerships may be a direct threat to their professional credibility. Many fear that a partnership approach sends a message that senior line managers (or a department) have failed, and ultimately new levels of performance may reveal pre-existing inefficiencies and incompetencies.

•  New financial systems may remove opportunities for traditional forms of rent-seeking.

•  Some technical staff will experience a loss of power and authority over the control of line staff and day-to-day responsibility for all forms of expenditure. These are important issues in an organisation in which salary and status may be judged on the size of departmental budgets and resources.

•  Partnerships may also change the career paths of professional staff. In a large city corporation, the position of chief engineer brings enormous status and power, ostensibly because of the large budgets and capacity to take decisions on capital works. The municipal delegation of responsibility for the water and sewerage network may radically change the nature of the position in the eyes of middle managers.

It is also common for junior staff to display the same attitudes as their line managers. Changing attitudes from the top-down is therefore probably most effective. One of the reasons for hesitation among senior members of staff is their lack of familiarity with partnership arrangements, and they tend to pass on assumptions to more junior members of staff. Junior staff, on the other hand, may have more to lose. They have embarked on a municipal career with a certain expectation as to how a municipality is managed and, despite low pay, they are familiar with the status and power associated with their specific line of work. The impact of partnership approaches and other areas of reform that undermine these expectations should not be underestimated.

Changing the attitudes of technical staff requires an understanding of deeply ingrained professional concerns. These arise from education and from the position adopted by their professional associations. They are reinforced by the operating hierarchy of line departments and the low level of skills in partnerships among senior technical managers. Changing attitudes may also mean creating new opportunities. Many municipal engineers who are interested in the design and construction side of their profession may see that the best long-term solution is for them to join the private sector. Others may be interested in developing capacity to prepare partnerships and to fine-tune the monitoring role. Still others may see their position in terms of regulation, and wish to move into an agency that plays a regulatory role.

Where partnerships have not been preceded by adequate consultation, perhaps the greatest immediate resistance to new partnership arrangements will come from those manual staff currently employed in the service area (see Chapter 6). They will be concerned about job security, opportunity, pay and conditions. Many may wish to remain employed by the public sector (often preferring the known to the unknown, secure in the knowledge of a predictable pension etc.). However, sometimes consultative processes can bring about attitudinal change among local workers that is not reflected in union representation. At an individual level, assurances that jobs are safe and that current terms and conditions - including pensions - will remain at the same level or improve, is often enough to convince unskilled workers of the benefits of moving to the private sector.

There are a number of ways of attempting to overcome resistance to change. The most important factor is to recognise, validate and address the different viewpoints of the actors involved. Another important step is to create a transparent process that removes scepticism and fear of corruption. The involvement of stakeholders in Gweru (see Box 12.7) was successful in changing public opinion for both these reasons: a conscious attempt was made to involve all stakeholders in the discussions about proposed PPPs, and to educate staff in the concept of partnership. A consensus was sought among ratepayers' associations, trade unions, cooperatives and the council. Both the political and administrative arms of the council fostered a series of relationships with key individuals and groups in the community. The fear and scepticism that characterised attitudes at the initial stages were gradually replaced by the support of most stakeholders.

Finally, visible success and sustained capacity building often bring about the attitudinal change required.