In every project, the roles will differ, but key players always include a project manager and primary stakeholders who are directly affected by the project’s outcome. These can be team members, senior leaders, customers, and the project sponsor. Secondary stakeholders, whose work is less directly impacted, may also be involved.
Understanding the personalities of your team and stakeholders is crucial for effective project management. Tailoring your approach to fit their styles ensures smoother collaboration.
Types of Stakeholders
Primary Stakeholders benefit directly from the project’s success.
Secondary Stakeholders are indirectly impacted by the project’s success.
Stakeholder Analysis
Stakeholder analysis visually maps out all stakeholders. This helps avoid surprises, build partnerships, and ensure the right people are involved at the right times. It identifies opportunities, potential risks, and the responsibilities of each stakeholder. Here are the key steps:
- List Stakeholders: Identify everyone impacted by the project.
- Assess Interest and Influence: Determine each stakeholder’s power and interest in the project.
- Involve Stakeholders: Find ways to engage them based on their level of interest and influence.
Using the Power-Interest Grid
The power-interest grid is a 2×2 matrix used to categorize stakeholders based on their power (influence) and interest. This helps prioritize communication and involvement:
- High Influence, High Interest (Key Players): Partner closely to ensure project success.
- High Influence, Low Interest: Consult and meet their needs; their input is crucial.
- Low Influence, High Interest: Keep them informed; they need updates but less involvement.
- Low Influence, Low Interest: Monitor and keep in the loop, but they are less critical.
Forming a Steering Committee
A steering committee comprises high-influence, high-interest stakeholders who can make significant decisions about the project, such as budget changes or timeline adjustments. The project manager presents necessary information to this committee to facilitate quick decision-making.
Engaging Stakeholders
Effective stakeholder engagement varies based on the situation. Some stakeholders need daily updates, while others require periodic check-ins. High-impact stakeholders need to feel involved and see how the project aligns with their goals to gain their support.
Communication Tips
- Constant Communication: For highly influential stakeholders, maintain frequent updates.
- Tailored Information: Provide the right level of detail to each stakeholder. For example, the facilities team may need less frequent updates than the sales team, which requires regular information on pricing and availability.
- Early Engagement: Over-communicate at the project’s start to give stakeholders enough time to make informed decisions.
Prioritizing Stakeholders and Generating Buy-In
Balancing stakeholder requirements, obtaining their buy-in, and knowing when and how to involve them is crucial for a project’s success. Use stakeholder analysis to minimize issues and keep the project on track.
Conducting a Stakeholder Analysis
- Identify Stakeholders: Determine who is invested, impacted, or contributing to the project.
- Evaluate Interest and Influence: Prioritize stakeholders based on their interest and influence.
- Assess Participation: Understand their ability to participate and find ways to involve them effectively.
Conclusion
Stakeholder management tools like the power-interest grid help organize and visualize stakeholder information. However, the real key to successful engagement is the project manager’s ability to understand stakeholders’ motivations and needs. This requires interpersonal skills and insight into the organization’s dynamics.
By following these techniques and trends, project managers can effectively manage stakeholders to ensure project success.
