The stakeholder management process involves nurturing relationships, balancing diverse interests, and actively communicating with those who may influence or be affected by your project. As a project manager, you manage evolving relationships, navigate conflicting priorities, and ensure everyone stays aligned with the project's vision.
Given these complexities, following a formal and systematic stakeholder management process is crucial. In this blog post, we'll explore the stakeholder management process, outline the four key stakeholder management processes every project manager should know, and highlight practical tools and techniques to help you successfully manage stakeholder relationships throughout your project lifecycle.
The stakeholder management process is a continuous, strategic effort to identify, analyze, and communicate with all individuals, groups, or organizations that have an interest or influence in a project or initiative. The goal is building and maintaining positive relationships, managing expectations, and fostering cooperation to ensure the project's successful outcome. This proactive approach allows project managers to gain stakeholder buy-in, mitigate potential issues, and make more informed decisions by incorporating diverse perspectives throughout the project's lifecycle.
New to stakeholder manager, this comprehensive guide provides a clear understanding→
Stakeholder management involves four phases or steps: identifying stakeholders, planning stakeholder engagement, managing stakeholder engagement, and monitoring stakeholder engagement. From the project's initiation to its closing, following a step-by-step stakeholder management process ensures that all stakeholder needs and expectations are appropriately identified, analyzed, and addressed.
An effective stakeholder management process involves gathering information, planning communication, and continually adapting to feedback. It minimizes risks from potential opposition, leverages key stakeholders' support, and builds transparency to ensure successful project completion.
Identifying project stakeholders is the first phase of project stakeholder management. It involves recognizing who your stakeholders are, what they care about, and their preferred methods of communication. This can be performed periodically throughout the project as needed.
A project charter, a business case, and a communication management plan are some documents that can help identify your stakeholders in a simple or complex project.
To identify your stakeholders, you can use tools and techniques like stakeholder mapping using power-interest grids, stakeholder cubes, surveys, or focus groups. You will then analyze them to determine their priority (high or low interest and high or low power).
After identifying and analyzing your stakeholders, document their information in your stakeholder management tool. You can then create a stakeholder risk register. This document identifies and tracks risks associated with individual stakeholders and their relationship to a project. The register should contain information such as:
By documenting this information, project managers can clearly understand the stakeholders essential to the project and who must be included in the stakeholder engagement plan.
The second key phase in the stakeholder management process is planning stakeholder engagement. According to project management statistics from TeamStage, stakeholder engagement is the most critical process to project success.
In the engagement stage, the project manager develops a stakeholder engagement strategy and an actionable implementation plan to involve stakeholders based on their interests, level of influence, expectations, and potential impact on the project's success. This helps ensure that each stakeholder is appropriately engaged throughout the project lifecycle.
Project managers can use resources such as a project charter, risk management plan, and resource management plan to develop a stakeholder engagement strategy. A risk management plan includes information on risk thresholds and suitable engagement strategies. A resource management plan contains details of the roles and responsibilities of team members and other project stakeholders.
Other resources and tools for planning stakeholder engagement include contractual agreements, historical information, an assumption and constraint analysis, mind mapping, and a stakeholder engagement assessment matrix.
At the end of the second phase of the stakeholder management process, you should have a stakeholder engagement plan which outlines:
Learn more about planning your next online stakeholder engagement event from experts→
The third step in the stakeholder management process is managing stakeholder engagement. This phase focuses on actively engaging your stakeholders to inform them of project information and progress, address concerns, facilitate involvement, and nurture positive relationships.
With your stakeholder engagement plan developed, you can start engaging stakeholders, managing their expectations through communication and negotiations, and identifying and addressing potential concerns.
To successfully manage stakeholder engagement, you need the documents we already mentioned, like a stakeholder register, a communication plan, and a risk management plan. Additional documents that may be useful include a stakeholder management plan and a change management plan.
A stakeholder management plan provides guidance and information on handling stakeholder expectations, and a change management plan details the process for submitting, evaluating and implementing project changes.
Stakeholder management skills, such as communication and interpersonal skills, are essential in this stage. Stakeholder satisfaction assessment tools are too. Surveys and feedback forms can measure stakeholder satisfaction to ensure you're on track. Log stakeholder sentiment in your stakeholder management tool. Some stakeholder management tools may have built-in AI to help analyze the sentiment of stakeholder communications.
Not sure of the stakeholder management skills
Implement your engagement plan: You made the plan, now stick to it, follow the strategies and actions in the plan and adjust based on feedback and project changes.
Monitoring stakeholder engagement is the fourth key phase in the stakeholder management process. This phase focuses on continuously tracking stakeholder relationships and engagement efforts to ensure they remain effective and support project objectives throughout the project lifecycle.
This step ensures that the stakeholder engagement strategy achieves the desired outcomes and modifies approaches based on changes in stakeholder influence, feedback, or project requirements. It's essential to ensure stakeholders receive accurate information about the project and are involved at the correct times.
The stakeholder engagement, resource, and communication management plans are among the documentation and resources needed during this step.
When your project ends, reflect on your stakeholder engagement strategy. Identify what went well and what could have been improved. Document key lessons learned for future projects. Another tip is always to remain appreciative of your stakeholders' willingness to participate and, if possible, let them know how their feedback was included or influenced the project outcomes.
To support your stakeholder management efforts, consider utilizing these tools and techniques:
You might also be interested in the frameworks and tools for managing stakeholder relationships→
Improving your stakeholder management process can significantly improve project outcomes. Jambo offers a user-friendly platform designed to streamline tasks such as managing your stakeholder register, tracking your stakeholder communications and interactions, analyzing stakeholder sentiment, and managing tasks and responsibilities.
By simplifying these steps, Jambo helps support your efforts to build stronger stakeholder relationships, manage risks, and keep your projects moving forward. If you're interested in exploring how Jambo can fit into your workflow, consider setting up a discovery call to see its features in action.