3 steps to successful stakeholder management
- Project Management
- Stakeholder management
- 4 min reading time
Julian Both
Stakeholder management is a key success factor for every project. It includes the identification, analysis and involvement of people or groups who are directly or indirectly affected by a project or who can influence it. Effective stakeholder management helps to avoid misunderstandings, manage expectations and improve cooperation between those involved. This article examines how stakeholders can be managed systematically and which instruments are helpful in this regard.
Stakeholders are all people or groups who are affected by a project or who can influence it. These include internal interest groups such as management , project teams or departments as well as external actors such as customers, suppliers or authorities. They have requirements, expectations and resources that can influence the course and success of a project.
The effort required for stakeholder management varies depending on the size and complexity of the project. While smaller projects often use informal processes, large projects require a structured approach based on standards such as the PMBOK® Guide .
When does stakeholder management begin?
The best time to start with stakeholder management is in the initiation phase of a project. This is where the relevant stakeholders are identified, their influence and expectations analyzed, and initial measures for involving them in the project defined. This process continues throughout the entire project lifecycle, as stakeholder interests or influence can change over time.
Structured stakeholder management ensures that:
- Important interest groups are involved at an early stage
- communication strategies are clearly defined
- risks are minimized and opportunities are better exploited
The 3 Steps to Successful Stakeholder Management
Successful stakeholder management follows a systematic approach that is implemented in three main steps:
1. Identification of stakeholders
The first step is to identify all relevant stakeholders. This is done using a stakeholder register , which documents the names, roles, interests and influence of those involved, but the document is not limited to this information. The stakeholder register is ideally created after the project charter has been approved and is continuously updated.
To create a stakeholder register, it is sufficient to use a common tool such as Microsoft Excel or Google Sheets.
2. Planning stakeholder involvement
In this phase, it is defined how and to what extent the stakeholders will be involved in the project. A stakeholder management plan helps with this, which contains key information such as:
- communication strategies (e.g. meetings, reports, digital tools)
- responsibilities in the project team
- measures to promote stakeholder engagement
- schedules for regular votes
The communication strategy should be adapted to the needs of the stakeholders. High-level stakeholders with a lot of power require detailed information, while stakeholders with little influence can receive shorter updates.
The stakeholder management plan serves as a guideline that project managers and other project members can use throughout the entire project lifecycle. The document remains flexible and can respond to changing conditions or new insights into the stakeholders.
Example of a stakeholder management plan:
3. Management and monitoring of stakeholder engagement
Throughout the project, it is important to monitor stakeholder engagement and adjust it as needed. Tools such as the Stakeholder Engagement Assessment Matrix and the Power-Interest Matrix support analysis and categorization.
The Engagement Assessment Matrix evaluates whether a stakeholder shows the desired level of engagement and helps to derive measures for improvement:
C (Current): The current level of engagement
D (Desired): The desired level of commitment
The goal is to analyze the current status of stakeholders and develop strategies to bring them to the desired level of engagement so that they actively contribute to the project's success and represent a valuable asset through their resources and support.
The power-interest matrix categorizes stakeholders according to their influence and interest:
Keep Satisfied : High power, low interest.
Manage Closely : High power, high interest.
Keep Informed : Low power, high interest.
Monitor : Little power, little interest.
It serves as a basis for determining how and at what frequency communication should be carried out with the individual stakeholders. However, it should also be noted that this is a dynamic document. If the circumstances of a stakeholder change, their influence and interest can also change.
Conclusion
Stakeholder management is more than just a supporting process - it is a key success factor for every project. Early identification and structured involvement of relevant stakeholders help to minimize risks, exploit opportunities and promote positive collaboration. With a clear strategy, well-documented information and continuous monitoring, misunderstandings can be avoided and strong acceptance for the project can be created.
By using tools such as the Stakeholder Register, the Power Interest Matrix and the Stakeholder Engagement Assessment Matrix, project managers can both meet the expectations of stakeholders and ensure the long-term success of the project. Well-thought-out stakeholder management not only creates added value for the current project, but also strengthens relationships and trust for future projects.
Investing in stakeholder management pays off – both in the short term through smoother processes and in the long term through better project results and stronger support from all those involved.
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