Project Management

Stakeholder Management - A 4-step Process

From the Team building for success - from the Project Manager up! Blog
Passion for project management combined with a passion for people creates energy, enthusiasm and engagement. Engagement leads to success. It is when we are most engaged that we will "run through walls" for others. This blog focuses on ways to keep our project teams engaged and the way we can keep ourselves engaged and effective. As Lori Wilson ( described it "Project management is like tap dancing on a moving floor". Let's LEARN TO DANCE!

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A few weeks ago, a coaching client of mine asked me to explain stakeholder management. He wanted me to provide him with a definitive list of his stakeholders for his particular project. He described the project to me as follows:

“We are developing a new customer accounting system that will allow customers easier access to their financial accounts while increasing security, reducing the opportunity for accounts to be “hacked” and supporting greater self-service. While customer support staff will still be needed for special activities, large financial transactions, handling overseas wire transfers and the final steps in account opening, most account activities will be put in the hands of the account owner.”

“Who are my stakeholders?” he asked.

Four stages of Stakeholder Management

There are four basic steps in stakeholder management.

  1. Identifying the list of stakeholders to be considered and whether their interest is positive or negative (or neutral).
  2. Clarifying the interest, involvement and sphere of influence of each stakeholder/ stakeholder group in the project.
  3. Agreeing the process by which engagement will take place.
  4. Managing the ongoing relationship until the project is completed making adjustments as needed.
  1. Stakeholder list:

First, we want to identify who the stakeholders are. Often, we focus on the people who will benefit from the initiative, supporters of the project. It is important to remember that the broad group “stakeholders” includes anyone who has an interest in the project – positive or negative.

Clearly, in the case of my coaching client, this would include the customers who will change the way they do business, and it will include the sponsor of the project, the team designing, building and testing the new software, any department whose workflow will be impacted,

We loosely identified stakeholder groups as people who:

TIP: Brainstorm the list with as many people as possible. Using a RACI or RASCI matrix can help you focus on what sort of involvement you expect them to have. Get all the possible stakeholders on the list that you can. It is easy to remove people. It can be painful to bring someone new up to speed that you missed first time around.

  1. Interest, involvement and sphere of influence

For each stakeholder group, my client made a further list of the members and he started to highlight those who might have special requests or special interest in the project beyond that suggested by their organizational role.

My client continued to fill out his grid, assessing which stakeholders warranted individual attention and which could be gathered together as a group. He then planned a series of meetings and calls to explore expectations, next steps and the process for building the ongoing relationship. He paid particular attention to the sphere of influence and discovered that several of the individual stakeholders had influence beyond the scope of their official role. This led to him adding two stakeholders who at first did not seem to be impacted by the project:

  1. Head of tax and compliance – he had expressed concerns to the CEO in the past about the security features of the existing system and wanted to make sure the new system would address those concerns. He had a direct line to the CEO and met regularly with the CEO to review the progress on the project.
  2. The security guard Mr. Smith, on the front desk – he had developed a friendship with the head of customer experience and was a long-time user of the bank’s services. The Head of Customer Experience considered Mr. Smith as a good benchmark of success for the new system, so he was invited to see prototypes and answer questions from a user perspective even before User Focus Groups were implemented.

TIP: Consider sphere of influence and be ready for surprise stakeholders!

  1. Agree the process by which engagement will take place.

This comes down to discussing and agreeing expectations with each stakeholder or stakeholder group. Explore their ideas for how to be engaged. Come up with four or five key ways to engage and communicate.

My client spoke with his stakeholders and came up with the following menu of options:

  • Weekly lunch and learns – agreed on Monthly
  • Daily status emails
  • Weekly status emails – signup offered so that those that don’t want them don’t have to get them
  • Monthly status roundup email
  • Weekly status meetings
  • Dashboard available in a shared location
  • Weekly personal updates – phone or in person – reserved for project sponsor and senior management team (as a team).
  • Vlog- video update combining PM on camera and a PPT of current concerns
  • Open question time – an hour a day set aside when anyone can call and speak to the PM. First come first served.
  • Attendance at design meetings – as appropriate based on stage and product
  • Attendance at prototype review meetings – as appropriate based on stage and product
  • Weekly newsletter replaced with monthly status roundup
  • Recorded team meetings shared online - no
  • News wall – a wall of materials sharing details about the program progress, next key dates, key upcoming deliverables, Q&A wall.
  • Wiki page for the project
  • FAQ on the project Wiki page
  • Transparency of ALL project artifacts.
  • Bi-monthly project review and planning meeting for all interested parties
  • Include updates from team leads – not all from the PM.
  • Surveys

Not all the options highlighted were used all the time. My client created a communication plan that incorporated all these various forms of communication. He also worked out with various team members roles for them in the dissemination of information. For example, one of his colleagues with great handwriting updated the new wall on Mondays, Wednesdays and Fridays.

TIP: make communications interesting  (and reduce PM overwhelm) by changing them at different stages of the project. The News Wall may be more useful during testing that during development, the bi-monthly review may work better in the early stages of the project when things are moving more slowly and more groundwork is underway.

  1. Managing the ongoing relationship until the project is complete

PMI shares an interesting statistic that is based on research by Andy Crowe[1] that says that project managers spend more than 90% of their time communicating. My own research has shown that 80% of people related to projects - project managers and non-project managers alike - expect us to provide context and purpose and to make sure everyone knows who is on point (90%). When asked what the best thing about a project manager is, many people say that they provide a single point of contact and that they ensure constant and consistent communication. Our interaction with stakeholders is critical to ensuring that project outcomes are predictable, consistent and result in the benefits expected by the consumer. Realized benefit is what projects are about – even more than the triple constraint, because sponsors may live with cost and time overruns if the bang for the buck is high enough. An on time on budget project that does not deliver the expected ROI is a failure.

A relationship is not static and nor is the relationship we have with our stakeholders. The individuals may change, their level of interest in the project may wax and wane. I had a stakeholder who said his only interest was knowing when the project was done. He told me the only communication he wanted was a call to say, “the project has been completed and the product is ready for use.”

A common theme I hear with project managers is that all this communication is very time-consuming. In my experience, the time spent to find out how individual stakeholders process information is the best investment. Often you can reduce the number of touchpoints if you can make each touchpoint really count.

TIP: Consider at least these five elements as you design your stakeholder management plan and the communication plan to go with it:

  1. Detail vs Summary
  2. Visual vs Auditory vs Kinesthetic
  3. Heart vs Mind
  4. Feeling vs Thinking
  5. Personal vs Impersonal

And finally, the check in. Creating a regular check-in to make sure the communication is working helps keep the stakeholders engaged and the project on track.


[1] Crowe, Andy. Alpha Project Managers: What the Top 2% Know That Everyone Else Does Not. Velociteach, 2016.


Posted on: March 19, 2019 07:00 AM | Permalink

Comments (9)

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Interesting and Informative Post. Thanks for sharing it.
Stakeholder management is very important for project success.

Very comprehensive article on stakeholder management and very well presented. Your suggestions about different type of engagement options are really very useful. Tips sharred for stakeholder management plan and communication plan is very helpful.

Thank you Ruth Pearce!!

The stakeholder's list describes at point 1, need to be reevaluated periodically. At least that is my experience.

Nicely explained Ruth. Thank you

Good information about stakeholder, Ruth. Thank you

Good article Ruth, I agree with Vincent, the stakeholders list and interest for me is a "live" document.

Very detailed and useful! Many thanks for sharing.

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