Delivering a socially responsible procurement strategy with McConnell Dowell
Image Supplied by McConnell Dowell of Puhinui Station Interchange
How construction firm McConnell Dowell is delivering a socially responsible procurement strategy.
“Going early” and being bold can seem like a big call in business, but for McConnell Dowell, when it came to committing to a socially responsible procurement strategy, it was a sure bet.
The innovative construction company crossed paths with impact consultants the Ākina Foundation, who were launching a social procurement programme to connect corporate purchasers with socially and environmentally minded businesses. The programme included a directory which introduces buyers with impact certified suppliers – for-purpose businesses like social enterprises.
Procurement Manager Gareth Redman joined McConnell Dowell in 2018, around the same time as they committed to being a foundation member of Ākina’s social procurement programme.
“Having a positive impact on people’s lives is something which resonates with who we are as a company. It’s part of our DNA. Our purpose is providing a better life for people,” he says.
McConnell Dowell has been in New Zealand for 60 years, formed by two engineers who wanted to do things differently. Early on they won the Marsden Point off-shore circulatory water cooling system with their design.
They became an international expert in remote location projects. McConnell Dowell was responsible for Auckland’s Waterview connection project, part of an alliance to build Australasia’s largest ever road tunnel. They now have offices across New Zealand, the Pacific, Australia, and South East Asia.
“Having a positive impact on people’s lives is something which resonates with who we are as a company. It’s part of our DNA. Our purpose is providing a better life for people”
Innovation has always been their signature, and they were keen to get on board in the early stages of Ākina’s project. It wasn’t without some push back though.
Gareth says the idea of an impact journey was pretty new then and there were some pockets of initial resistance from inside the company: “any change is difficult. People wanted to know why we need to put our energy here?”
McConnell Dowell has come a long way, with teams seeing the benefits of delivering on impact, the measurement of it and the relationships which come from it.
The Puhunui Station Interchange, which has delivered broader benefits for Auckland Transport and Aucklanders themselves is a good example, Gareth says.
Just as important as a slowly growing internal shift in momentum, there was a call for action coming from outside the business.
“Our clients were asking for it – for action on social impact accountability. And if your clients are asking for it, you need to get on board or you’re going to get left behind.”
Ākina presented to management who encouraged attendance at staff Lunch and Learn sessions, which allowed anyone interested in the social procurement journey to come on board and speak about the opportunities.
And while success is currently measured by dollar spend, Gareth says when clients see they have been able to deliver on impact, there will be tangible rewards in the shape of repeat business.
Ākina’s Director of Impact Clementine Baker says having substance behind the will to “do good” is the key to getting more investment and people on board, something Ākina can help with through measurement and reporting frameworks.
“The people we work with are champions for change and are committed to supporting the organisation they work for to increase their impact. We know that their jobs become a lot easier if they have a strong business case for “doing good”. Rather than just saying “if we do good, we’ll get more customers”, it is very powerful to measure what’s happening so you can prove you are having an impact and that it’s resulting in you winning more contracts. That then supports the company to invest more in doing good.”
Ākina worked with McConnell Dowell to provide a framework for infrastructure procurement opportunities, Gareth says. It allows the team to easily identify engagement opportunities with accredited businesses and social enterprises and look for further opportunities to collaborate with them.
“Rather than just saying ‘if we do good, we’ll get more customers’, it is very powerful to measure what’s happening so you can prove you are having an impact and that it’s resulting in you winning more contracts. That then supports the company to invest more in doing good.”
The accredited businesses have “tags” in McConnell Dowell’s database and can be easily identified as Māori-owned or run, or as a social enterprise, making it easier to identify them.
McConnell Dowell now has a senior leadership team member specifically championing social procurement and broader outcomes (Sara Paris, Human Resources General Manager), underlining its “top down” support and a social procurement team charged with keeping up with new initiatives and opportunities. They have also just employed a Social and Broader Outcomes Advisor to further support the business on its Social Procurement journey.
While McConnell Dowell extends to Australia and other international markets, Gareth says the business is agile, allowing quick action.
“We’ve come a long way in a short time. But we’re not there yet, it’s a process.”
The team at Ākina agrees it is a process. Communication and flexible thinking is always key in maintaining momentum on the impact journey.
Learn more about Ākina Impact Consulting
Learn more about Ākina Social Procurement
