Do you ever wish that all your project stakeholders were cooperative, supportive, and fully onboard with your plans and decisions?
I think most people would answer with a resounding “yes” to that question.
However, based on my own 20 years of project management experience, I have to say that this ideal scenario is unlikely to ever materialize.
Of course, this doesn’t mean that working on projects has to be a constant source of frustration due to difficult stakeholders. There are ways to mitigate these challenges.
But before we delve into that, let’s review some fundamental principles.
Who Are The Stakeholders In A Project?
The stakeholders are any individuals or organizations with an interest (or a stake) in the project.
Going by this definition, a project usually has more stakeholders than you initially thought.
You can sort the stakeholders into two groups:
1. Internal Stakeholders:
This is your delivery team, project sponsor, design team, operation team, senior management, or any other function within the business.
For example, someone in the marketing team, who is interested in knowing about the delivery progress of a new contract so that they can use it to promote the business, is a Stakeholder.
2. External Stakeholders:
Include the client and their organization, as well as third-party organizations involved in the project and the community affected by or interested in it.
Why Is Stakeholders Management Critical, and How Does It Impact The Project’s Success?
Stakeholder management is crucial to project success because individuals involved in the project often have diversified or conflicting interests.
Imagine you are managing a project that is experiencing delays, and the client is pushing for a new delivery method to speed up the work.
However, your organization’s manager is resisting this proposal because it could harm the project budget.
As the project manager, it is important to resolve this conflict to prevent a potential stand-off between the parties that could lead to a commercial dispute.
This brings us back to the main question:
How To Manage Project Stakeholders?
The stakeholders’ management process is very similar to the risk management process and includes the following steps:
1. Identify Stakeholders.
One effective method is to write down the project stakeholders using a spreadsheet containing their names, job titles, company affiliations, and contact information.
As it may not be possible to identify all stakeholders at the outset of the project, it is recommended to keep the spreadsheet updated throughout the project’s duration.
This includes the removal of stakeholders who leave the project and adding new ones who join in, which ensures that the spreadsheet remains an accurate and current document.
2. Assess the Stakeholder’s Influence and Interest.
It’s important to recognize that not all stakeholders have equal influence or interest in a project. To assess each stakeholder, consider these two criteria: influence and interest.
Influence:
Refers to how much a stakeholder can impact the project work.
For instance, the client typically has a significant influence on the project, while the environmental protection authority could hold a lot of sway on environmentally sensitive projects.
Interest:
On the other hand, it reflects how invested a stakeholder is in the project work.
Using the example of the client again, they would certainly have a high level of interest in the project, but someone on the maintenance team might not be as invested.
I suggest using a 1-5 scale to rate each stakeholder based on these two criteria.
3. Develop a Stakeholder Management Plan.
After conducting a stakeholder analysis, you will have identified the following four distinct groups.
To effectively manage your stakeholders, consider the following recommendations for each group.
| A– High Influence – High Interest | They need to be closely managed, spending significant amounts of time with them. |
| B– High Influence – Low Interest | Regular project updates should be provided but in less detail. These stakeholders should be involved in key decisions. |
| C– Low Influence – High Interest | Regular and detailed project updates should be provided to keep them informed. |
| D– Low Influence – Low Interest | No immediate action is required, but their status should be monitored. |
How Do You Handle and Win Over Difficult Stakeholders?
It’s important to analyze and manage each stakeholder group individually.
However, what should you do when encountering high-influence, high-interest stakeholders who are challenging to work with?
My approach is based on two essential factors that are not only beneficial for managing stakeholders but also are good project management practices overall:
Alignment
As a project manager, you have a vision for how the project should be planned and executed.
Sharing this vision with stakeholders will help them understand your leadership and planning abilities, which is a crucial step in gaining their trust and respect.
Over time, this will align them with the project’s goals and decisions.
Another useful tip is to refer to “the project” instead of individuals during discussions. For example, “The project requires that we do x and y based on the balance of cost, time, and risk.”
Communication
It’s best not to wait for stakeholders to ask for updates or project information. Instead, you should establish periodic communication that addresses their queries, such as:
- Minutes of meetings.
- Weekly or monthly reports.
- Progress photos.
- Emails.
Other Tips for Managing Stakeholders
Here are some additional suggestions for effectively managing stakeholders:
- Build strong relationships with your stakeholders.
- Be adaptable, attentive, and open-minded when considering others’ perspectives.
- Don’t hesitate to raise concerns or escalate issues as necessary.
- Recognize and celebrate important project milestones with both your team and stakeholders.
- When working on larger projects with significant public involvement, ensure that there is a dedicated resource for community engagement.
