Since key stakeholders are crucial to your project’s success, you should always have a plan to understand their needs, connect with them, and interact with them.
The most crucial element in overall project planning should be stakeholder relationship management planning.
We’ll look at stakeholder relationship management and the steps involved in this process in this article.
What is Stakeholder Management?
A stakeholder is an individual interested in and concerned about your project and its outcome.
Project team members, project sponsors, managers, clients, suppliers, partners, or government entities are examples of internal and external actors.
Managing these stakeholders’ expectations and obligations is known as stakeholder relationship management.
It entails identifying stakeholders, conducting research, and communicating and interacting with them methodically.
Stakeholder Relationship Management Process
The main steps in stakeholder relationship management are as follows. These procedures will assist you in efficiently meeting stakeholder requests and maintaining high stakeholder satisfaction.
The first stage is finding out your project’s key stakeholders. To begin, make a list of everyone who is participating in the project in some manner.
Those who will be impacted (both positively and negatively) by your project; those who are interested in your project; those who have the power to influence the project’s implementation; those who want your project to fail; those who wish your project to succeed.
In this step, you will examine stakeholders’ powers and interests in your project. You can decide which stakeholders require the most and least attention by categorizing them accordingly.
Matrix of interests and powers
The interest and authority matrix is the most often used in stakeholder analysis. This tool will help determine how often you will communicate with your stakeholders.
High levels of empowerment and interest (full involvement)
The main actors are the stakeholders you place in this quadrant. You’ll have to do the most outstanding work interacting with them because you’ll need to keep them informed.
Low interest/high empowerment (maintain satisfaction)
Put out sufficient effort to satisfy these stakeholders but avoid over-communicating with them.
(“Be aware”) has a low power/high-interest ratio.
Ensure these persons have enough information about the project and that they aren’t having any issues with it.
Low interest/low authority (minimal effort)
Maintain a list of these stakeholders and their level of interest in the project and present them with sufficient information without overloading them.
SWOT analysis of stakeholders
The SWOT analysis is another fantastic tool for examining the relevance of stakeholders and prioritizing them.
Stakeholder relationship management planning
Now that you know how and when you need to interact and engage with your stakeholders, it’s time to devise a strategy for getting the appropriate message to the right stakeholder at the right time.
It would be best to establish a stakeholder profile before you can begin creating a communication plan.
These profiles (you’ll need one for each type of stakeholder) should include information about their needs, interests, goals, duties, amount of influence and interest, communication routes, and so on.
After that, you may create a communication strategy for each stakeholder profile. You must include the following information in the plan:
The method of interaction (primary thesis); communication channels (e.g., emails, newsletters, video calls, etc.); the frequency of exchange, and the phases of the project during which it is scheduled
At this point, you put your communication strategy into action.
You should monitor stakeholders’ problems by actively connecting with them as the project advances.
Take the efforts necessary to fix these concerns to avoid losing their support.
When selecting a method based on the type of stakeholder, be cautious. Involves high-ranking stakeholders who have a vested interest in the outcome (key players). More expensive procedures, such as face-to-face meetings, comprehensive consultations, and so on, can be used.
Leave the less expensive means, such as newsletters and emails, to individuals willing to put in the least effort.
After that, evaluate the efficacy of your engagement approach and make any required improvements to improve it.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.