What is the process for engaging with stakeholders?

Managing complex projects or initiatives requires paying close attention to the relationships and voices of stakeholders that can shape outcomes. The stakeholder engagement process, when implemented strategically, fosters stronger connections between organizations and their stakeholders. It helps to foster collaboration, balance expectations, fuel two-way communication, and address potential challenges. In this blog, we'll define the stakeholder engagement process, its importance, the basic steps that guide it, and how to engage with stakeholders in a meaningful way. But before we dive any further, let's start by looking at what we want to achieve: effective stakeholder engagement.

What is effective stakeholder engagement?

Effective stakeholder engagement is the intentional and continuous process of building strong, trusting relationships with an organization's various stakeholders. It requires keeping stakeholders informed throughout projects, understanding their pain points and expectations, and creating meaningful opportunities for collaboration and engagement.

When stakeholders feel engaged, they are likely to:

• Support projects
• Bring unique perspectives and insights
• Help companies meet regulatory requirements
• Speak positively about an organization

Effective stakeholder engagement can be achieved and maintained through implementing the stakeholder engagement process.

What is the stakeholder engagement process?

The stakeholder engagement process is a series of steps that organizations take to identify their stakeholders, develop effective communication methods, and prioritize the involvement of individuals and groups who are interested in, affected by, or have some level of influence over their business or project.

Why is the stakeholder engagement process important?

The stakeholder engagement process is crucial for organizations to establish trust, foster collaboration, and gather diverse perspectives from relevant stakeholders, thereby helping to shape successful outcomes. Engaging with stakeholders is critical to the success of projects and initiatives as it ensures that the needs, concerns, and interests of those involved are properly understood and addressed. Organizations should undergo the stakeholder engagement process to develop effective communication strategies and collaborate successfully with stakeholders.

What are the steps in the stakeholder engagement process?

There are five basic steps fundamental to the stakeholder engagement process. Although it is often referred to as a process, stakeholder engagement is, in fact, an ongoing dialogue that fosters mutual respect, transparency, and collaboration between organizations and their stakeholders. Here are the steps in the stakeholder engagement process:

1. Identify stakeholders: The first step is to identify the individuals, groups or organizations that may be affected by, have an interest in, or can influence project outcomes. This includes identifying internal stakeholders (e.g., employees, managers, shareholders) and external stakeholders (e.g., local and Indigenous communities, government officials, regulatory bodies). The best way to identify your stakeholders is through brainstorming, reviewing organizational charts and listing all those connected geographically who have influence or interest. Compiling a comprehensive list is crucial to ensure no key parties are overlooked.

2. Analyze, map, and prioritize stakeholders: After identifying your stakeholders, it's time to analyze and categorize them. This entails assessing their levels of interest and concerns, their level of influence, and how they might be affected by the project. Through this stakeholder analysis, you will gain a deeper understanding of each stakeholder group's needs, expectations, and potential impact.

Using a stakeholder mapping tool, such as Mendelow's Power-Interest Matrix, helps categorize and visualize where your stakeholders fall in terms of their levels of interest and influence. By mapping stakeholders into categories, you can now prioritize who your key stakeholder groups are and concentrate your engagement efforts and resources where they will have the most significant impact on your project.

To learn more about stakeholder analysis, read our blog → 

3. Develop a stakeholder engagement plan: The next step is to create a stakeholder engagement plan. This plan outlines your engagement timelines and the tactics you will use to communicate. More specifically, it details your engagement objectives, key messages, and goals, and assigns responsibilities within teams. A clear plan provides a roadmap for proactive stakeholder engagement, ensuring consistency and accountability.

For more details on creating a stakeholder engagement plan, check out our blog →

4. Engage and communicate: Effectively engaging with stakeholders requires a two-way approach, allowing stakeholders to feel heard and fostering trust. It requires regular, open, and transparent communication, ensuring that information flows in both directions and feedback can be received. Engaging with stakeholders is not a one-off activity and involves constantly communicating and updating stakeholders as projects progress. Organizations often share engagement reports or have active conversations, which are essential for effective engagement.

5. Monitor, report, and evaluate: After actively engaging and communicating, it's best practice to review and assess stakeholder engagement activities continuously. Key performance indicators, feedback surveys, or independent evaluations can do this. The information collected enables you to measure your engagement success, identify gaps, and provide a valuable metric to refine your approach for improved results in the future.

How can stakeholders be engaged in the strategic planning process?

There are a few ways to engage stakeholders in the strategic planning process, and it begins with identifying all relevant stakeholders (prioritizing engagement efforts based on their interests and influence). This helps you to determine which stakeholders you believe would have the most impact on the success of your project and whom to prioritize. Once determined, the following are a couple of ways to engage your stakeholders in your strategic planning process:

1. Gather input early: When undertaking projects to understand stakeholder needs, concerns, and expectations, it's best to collect information as early as possible. Multiple methods for collecting information include surveys, feedback, town halls, and focus groups.
2. Facilitate inclusive participation: Throughout your project, you can invite stakeholders to participate at key stages, such as priority-setting workshops and planning sessions. This can be done in various formats, including in-person,  virtual, or through written communication, to reach all stakeholders, ensuring that communication is accessible and culturally appropriate.
3. Maintain two-way communication by establishing ongoing, open dialogue channels through regular updates or feedback sessions. This encourages stakeholders to ask questions, share ideas, and voice concerns.
4. Incorporate stakeholder feedback: Document and show how stakeholder feedback shapes your decisions.
5. Share progress and outcomes: Inform stakeholders at key stages, highlighting their contribution to project progress, and clarify next steps.
6. Continue engagement beyond planning: Post planning, it's essential to maintain relationships with stakeholders throughout project execution. To keep everyone connected and engaged with ongoing initiatives, you can use formats such as newsletters, meetings or digital tools.

Find out how stakeholder engagement software makes the stakeholder engagement process easier →