Stakeholder consultation involves initiating and sustaining external relationships over time. When organizations start the consultation process early and strategically, they're actively developing their social license to operate. Keep in mind that consultation is not a singular event, but a series of interactions that allow stakeholders to understand the project and its potential effects, while enabling the company to gain insights into stakeholder perspectives and concerns.
In this blog, we define the stakeholder consultation process, outline the steps involved, and offer guidance on managing it effectively. Also, we'd like to provide a template to help you develop your consultation plan.
What is the stakeholder consultation process?
The stakeholder consultation process is a systematic and iterative procedure for gathering feedback, input, and perspectives from individuals or groups that have an interest in or may be affected by a project, policy, or decision. This process is crucial for informed decision-making, mitigating risks, building trust, and ensuring the long-term success and social acceptance of initiatives.
How do you plan an effective stakeholder consultation?
How do you plan an effective stakeholder consultation? The process generally involves the following key steps:
1. Situation assessment and goal setting
The initial step involves defining the purpose and objectives of your consultation (e.g., gathering information, securing support, managing conflicts, or complying with regulations). This also includes understanding the context, potential impacts, and desired outcomes.
2. Stakeholder identification and analysis
A comprehensive list of all your potential stakeholders is compiled, encompassing both internal and external parties (e.g. community members, local authorities, NGOs, and investors). They are then analyzed and mapped based on their influence, interest level, and potential impact on your project to determine the appropriate level of engagement for each group.
3. Planning and strategy development
A detailed plan is developed, outlining the engagement strategies, communication channels, timelines, and required resources. This involves selecting appropriate consultation methods (e.g., surveys, public meetings, focus groups, interviews) tailored to the specific needs and preferences of your different stakeholder groups, ensuring accessibility and inclusivity.
4. Process and event management (execution)
This is the "doing" stage, where your planned activities are implemented. It involves sharing information clearly and transparently with your stakeholders, facilitating open dialogue, actively listening to their concerns, and accurately documenting all interactions and feedback.
5. Data collection and analysis
Feedback and data collected during your consultation activities are systematically gathered, documented, and analyzed to derive insights and conclusions that inform the direction of your project.
6. Integration and reporting
The analysis results are integrated into your project's strategic planning and decision-making processes. A report is prepared for relevant audiences, and feedback is provided back to your stakeholders, showing how their input influenced the final decisions and explaining any comments that were not incorporated.
7. Monitoring and evaluation
The effectiveness of the consultation process itself is assessed, and mechanisms for ongoing input and grievance management are established to maintain long-term relationships and address new concerns throughout your project's lifecycle.
How do you manage the stakeholder consultation process?
Managing the stakeholder consultation process involves a continuous and systematic approach to ensure that your stakeholders' input is used effectively and that relationships are maintained throughout your project's lifecycle. Key stakeholder consultation management strategies include:
1. Implement your tailored plan
Once your consultation plan is in place, execute the outlined activities, using the communication channels and methods (e.g., surveys, meetings, workshops) selected for each stakeholder group.
2. Prioritize two-way communication and active listening
Ensure that communication is not just about information dissemination, but also about genuine dialogue and mutual understanding.
- Listen actively: Pay close attention to concerns, ask clarifying questions, and paraphrase to confirm understanding. This shows respect and helps build trust.
- Be transparent and honest: Provide clear, consistent, and truthful information about the project's progress, challenges, and how their input is being used.
3. Proactively manage expectations and concerns
Address potential issues and conflicts early on to prevent them from escalating.
- Understand motivations: Determine what is important to each stakeholder and how the project might affect them (positively or negatively).
- Handle resistance empathetically: When stakeholders push back, understand their perspective and align outcomes with their interests where possible to reduce opposition.
- Implement a grievance mechanism: Establish a straightforward and accessible process for managing complaints and feedback, ensuring every concern is recorded, assessed, and addressed promptly.
4. Use appropriate tools and resources
Leverage technology to streamline data management and communication.
- Stakeholder relationship management (SRM) software: Specialized software can help centralize data, track interactions and commitments, and generate reports, which is more effective than using insecure spreadsheets or manual tracking for complex projects.
- Documentation: Maintain a detailed online stakeholder register and communication logs for all interactions to ensure team understanding and facilitate future reference.
5. Monitor, evaluate, and adapt continuously
Stakeholder opinions and situations can change, making the process dynamic and requiring ongoing attention.
- Track changes: Regularly monitor whether stakeholders' opinions have shifted or if new stakeholders have emerged.
- Assess effectiveness: Evaluate the consultation process against its initial objectives to identify areas for improvement and refinement.
- Provide a feedback loop: Report back to stakeholders on the outcomes of their input, showing them how their involvement made a difference and explaining the decisions made.
Stakeholder consultation plan template example
Here's a stakeholder consultation plan template to guide you in drafting your stakeholder consultation plan:
| Section | Description |
| Project overview | A summary of the project's purpose, scope, and key objectives. |
| Purpose and objectives of consultation | Clearly state the specific goals for engaging with stakeholders (e.g., to inform, consult, collaborate, empower) and the key questions the consultation is intended to answer. |
| Regulatory and internal requirements | List all relevant internal policies and external regulations, standards (e.g., local government guidelines) that govern the consultation process. |
| Stakeholder identification and analysis | An exhaustive list of all stakeholders, categorized by internal/external, and mapped based on their influence and interest levels in the project (e.g., high influence/high interest; low influence/low interest). |
| Key messages | Main messages related to the project and the consultation process itself, ensuring a consistent and transparent narrative. |
| Consultation activities and methods matrix | A detailed table outlining specific consultation activities, methods, target stakeholders, frequency, timeline/milestones, and responsible parties. |
| Data management method | Describe where consultation data will be stored and define the process for logging data to ensure consistency. |
| Resources and responsibilities | Details on the internal team structure, including assigned owners for specific stakeholder relationships and defined roles and responsibilities. |
| Monitoring and reporting | The methods for tracking interactions, monitoring the effectiveness of the plan, and reporting progress and outcomes back to stakeholders and internal management. |
| Budget | An overview of the allocated budget for the consultation activities. |
Improve your stakeholder consultation activities with Jambo SRM
Jambo Stakeholder Relationship Management (SRM) software streamlines and enhances the entire stakeholder consultation process by providing a centralized, secure platform that enables users to track all stakeholder interactions, concerns, and commitments within detailed stakeholder profiles. This ensures that team members have consistent and reliable records of every consultation activity.
Jambo facilitates proactive risk mitigation and accountability through dedicated issue tracking, robust reporting features, and analytical dashboards that provide insights into sentiment and consultation effectiveness. This enables organizations to build stronger relationships, ensure compliance, and achieve better project outcomes.
You can book a demo to determine if Jambo is the right consultation software for your organization.
