Welcoming in a new year includes rolling out the welcome mat and ushering in new opportunities to analyze mineral asset performance, negotiate stronger leases, strengthen ownership cohesion, and quell conflict before it can start.
Do you know what we have found to be universally true of mineral owners who are individuals, nonprofits, familial groups and investment funds?
Communication crafts deals, and investing in strong communication pathways is a no-risk investment that can generate dual dividends: financial and relational.
Why?
Strong communication builds cohesion, and that cohesion translates into gains. When communication is scattered, it creates confusion, misinformation, and relationship friction, which can cause an operator to reconsider a pending offer. Owners and operators are looking for profitable partnerships, so when an operator sees dissension amongst the stakeholders, they lose confidence in the deal.
Guardian Mineral Management and Consulting was founded on the principles of owner advocacy and industry transparency, and we want to help you launch into a new year with confidence.
Here are a few ideas on how to strengthen communication strategies by identifying silos and applying engagement techniques.
STRONG OWNERSHIP GROUPS ARE INTENTIONALLY INCLUSIVE
Have you seen the buzz around ‘emotional intelligence’ in the news? While the term is relatively new compared to the history of commerce, the principles are rooted in the history of strong businesses. If you want to succeed in business, you first have to succeed with people.
A lack of engagement from a member often signals an issue, because a lack of inclusivity is often marked by silence and non-engagement. Leaders need to be cognizant of different communication styles and the balance amongst the stakeholders.
Here are steps you can take towards intentional inclusivity:
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Keep track of participating by adding a tally to each member’s name when he/she asks a question, raises an issue or contributes to the conversation. If your tally marks are uniformly distributed, then you’re already doing a great job! If the tally marks are skewed- try one of these communication tactics.
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Bookend the meeting with an old school approach using index cards. Simply ask each member to write a question or agenda item on their card and submit it to the meeting leader at the beginning of the meeting and prior to its conclusion. This low-tech solution ensures that everyone engages, poses new business items and feels comfortable asking questions.
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Create an online survey or text poll and ask members to send in questions and vote on items using their phones throughout the meeting.
These methods encourage communication among all stakeholders. If there are less assertive members, a poll or survey gives them the opportunity to respond without requiring a verbal interjection. When there’s a knowledge gap or strong personalities in the group, it can create an unintended element that intimidates members into silencing their questions or objections.
By identifying engagement gaps and opening new communication channels—leaders close this gap and build cohesion.
TRUE TRANSPARENCY CREATES TRUST
How are you creating transparency among your stakeholders? Are you sharing updates and highlights along the way, or does every stakeholder have equitable access to documents, data, and knowledge?
What we often see with ownership groups is that one owner serves as the leader and receives all communications, reports and documents, and shares highlights and updates with the ownership group.
The issue with this set-up is that only one owner has access, which can create perceived bias. Even if the leader routinely volunteers to send any information upon request, there’s a barrier between owners and information. Outlining (and communicating) who has access to documents and creating a formal filing system ensures each stakeholder has equitable access. A simple change in file storage creates transparency, which can strengthen confidence in leadership and build stronger trust within the group.
Do you know what makes transparency such a powerful force?
It doesn’t actually matter if the stakeholders ever exercise their right to access the documents and information—the value is in the access possibility.
It creates an additional level of trust and prevents complaints that an owner was not made aware, did not have the information or that the information shared was biased. They have equitable access to the information, so the ‘Monday Morning Quarterback’ loses his/her foothold to contest a decision.
CRAFT ACTIONABLE GOALS AND AGENDAS FOR 2020
The new year is packed with potential as we launch into strong production predictions for oil and natural gas. Need a start to setting great goals for 2020? Here are some items to consider adding to the agenda:
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How will we actively identify and recoup payment errors?
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What is the status of our current leases?
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How are we documenting and organizing our information?
This is the perfect season for organizing your information, because owners are already preparing for taxes.
One of the ways our team helps owners is by accepting boxes full of information and reports. Our team quickly tames clutter to identify critical paperwork, and then creates an organized binder or digital library for the owners. Additionally, many owners use their organized binder or digital library as an educational tool to prepare the next generation of mineral owners.
How are you strengthening your approach to mineral ownership this year?
Have questions? Send us a note, so we can schedule a time to connect.