A major responsibility of a project manager is to manage stakeholders. Because stakeholder satisfaction contributes to project success, proper attention should be made to this aspect of project management.
Yet, managing stakeholders may be stressful and challenging. To help, this post will focus on seven tips for developing your relationship with project stakeholders and interacting with them. Before going into the tips for dealing with project stakeholders, however, let’s consider who exactly a project stakeholder is.
Who is a Project Stakeholder?
A project stakeholder is an individual, group, or organization with an interest in a project’s result. They can also be project teams, sponsors that put money in the initiative, or even customers. At the end of a project, one or more stakeholders will be either satisfied or displeased with the project’s development. The stakeholders who benefit or lose a lot will have a significant impact on the project’s economic sector.
How to Deal with Project Stakeholders
There are all types of stakeholders. While some are understanding and supportive, giving room for you to manage your team on a project, others may try to micromanage or pose challenge to the project’s success in some other way. Whatever the case is, you can do your part as a project manager to ensure that your team and the stakeholders are on the same page. For that to happen, here are seven important pointers for interacting with project stakeholders.
1. Identify your stakeholders
The ability to identify your stakeholders has numerous advantages. Knowing which stakeholders are likely to find or create issues would help you know who you’d need to focus on. Stakeholders who consistently provide positive input may need less ‘management’, as opposed to the stakeholders that seem to consistently produce unfavorable feedback. Remember that stakeholders have the ability to derail projects, so keeping an eye on them can help you avoid fatal project risks.
2. Categorize your stakeholders
Project stakeholders almost never are on equal footing based on their impact on the project. They can be divided into three major categories, which are as follows:
- Primary stakeholders: These are stakeholders that invest little amount of capital into the project. Primary stakeholders are majorly customers who are aware that they will benefit fully from the project when completed.
- Secondary stakeholders: These are stakeholders that are indirectly affected by the project. They are majorly brought as a support team to the project that is ongoing.
- Key stakeholders: As the name implies, they have invested the most on the project and will by every means gain the most if the project becomes successful. These key stakeholders are majorly commercial workers such as company executives.
If any of these stakeholders tend to have an issue, it will be wise to manage them properly, so you can have control and deal with each project stakeholder.
3. Proper communication
When dealing with project stakeholders, communication is crucial. Communication usually requires listening to what they have to say. Stakeholders may not always convey their ideas and opinions reasonably, therefore it is important to listen carefully to what they have to complain about and when they provide good comments. Always strive to be patient and calm when providing feedback to stakeholders. As a result, an acceptable arrangement that benefits both the stakeholder and the project manager can be reached.
4. Understand what motivates your stakeholders
Understanding what spurs your project stakeholders is essential to interacting with them. Some project stakeholders usually invest in what is convenient for their schedule. Close collaboration with these stakeholders will benefit both parties. Some project stakeholders may provide negative feedback in order to influence the project’s outcome. By identifying what these types of stakeholders like and working them to your advantage, positive feedback will become a ritual among your project stakeholders.
5. Quick response
After discussing and reaching an agreement with a project stakeholder, you should respond quickly to your agreement. When you respond quickly, you help to maintain the peace with your project stakeholders while also building trust in your project team. When these responses are provided quickly and frequently, it will help to avoid future problems with your project stakeholder.
6. Honesty
Honesty is a value, not just a guideline for dealing with project stakeholders. Staying transparent and keeping your promises at all times fosters tremendous trust and relationships among your project stakeholders, resulting in a long-lasting and successful project.
7. Flexibility
The final tip that is necessary to follow is to be flexible. Being adaptable to your project makes you more appealing to project stakeholders. Having so many options to offer project stakeholders can increase the likelihood of a successful project. Giving customers these options demonstrates your professionalism, and they will continue to rely on your project team. Flexibility is quite beneficial and can provide you with a significant advantage in maintaining a consistent success rate.
Why is Properly Dealing with Project Stakeholders Important?
We must value our stakeholders and give them significant weight. This is because stakeholders have a significant impact on the project’s course. Giving these stakeholders what they are due will, thus, result in a long-term connection.
The stronger your relationships with stakeholders, the more efficient you will be in project delivery and completion. Stakeholders assist you in determining where to invest your resources. They also assist in determining who the important decision makers are at any given time, allowing you to guarantee that you are speaking with the appropriate people at the right time.
Based on information from their industry, stakeholders identify limits or requirements. And this useful information will help you understand the primary project hazards. This way, the more stakeholders you involve and engage, the more risks you will find and decrease in your project.
Bottom Line
Project teams, project managers, company executives and stakeholders are all part of what makes a project successful. Without the availability of any of these groups, a project is unlikely to yield success. Since project stakeholders play a very crucial role on the life of a project, they should be dealt with in a very positive manner that will help the growth of a particular project. The seven tips discussed in this article will definitely result in positive relations between you as a project manager and the relevant project stakeholders.
