What is stakeholder management?

Stakeholder management is the process of managing the various requests, demands and concerns of different people and groups who may influence the result of a project. This implies identify the main stakeholders of your projectby analyzing the impact of each stakeholder on your project and consulting them throughout the process. the project life cycle.

The best way to understand stakeholder management is to take an example. Let’s say you’re building new software to sell. Examples of stakeholders could include:

• The chief financial officer (CFO) of your company: They have direct financial control over your project budget.
• Investors: They can influence the costs and results of your project and bring changes to your company’s management team.
• Your company’s sales team: They understand your customers’ needs and can provide important information about what features your software should include.
• Customers who will use the software: They have an impact on the ultimate success of your project. For example, if your software doesn’t have the features they’re looking for, they won’t use it.

Managing these different stakeholders may involve weekly one-on-one calls with your company’s CFO and monthly calls with your sales team, as well as publishing information on your progress to keep investors and customers informed. You can also send a survey to customers to better understand their needs and integrate the features they want into your project.

This example shows that projects can have both internal stakeholders And external stakeholderswho may have different interests that you need to balance. For example, your company’s CFO will likely be concerned about your project’s budget, while your customers will be eager to get the features they’re looking for.

Why is stakeholder management important?

Stakeholder management is important to ensure the success of a project. Here are some of the benefits of strong stakeholder management practices:

• Avoiding project pitfalls: Failing to meet the expectations and requirements of internal and external stakeholders could lead to project delays or even cancellation. Stakeholder management helps you anticipate potential issues and prevent them from disrupting your work.
• Increased employee morale: Managing employees as key stakeholders through surveys, meetings, and other communications can make them feel like their voices are heard. This is important for employee morale and retention.
• More diverse perspectives: Including the perspectives of several different stakeholders can make your project more successful. For example, discovering the key features customers want in a product.