What Most People Get Wrong About Project Stakeholders
If you had a dollar for every time someone said the word ‘stakeholder’ in a meeting, you would be rich by now. But here are two important things to keep in mind about stakeholders: Most people get the idea of a stakeholder wrong, and most people also underestimate the impact of wrongly identifying project stakeholders.
Mary Beth Imbarrato, the founder of MBI Consulting project management consulting and strategic planning consultancy, broke down everything you need to know about project stakeholders below. You’ll never feel the same about throwing the word around after reading this.
What are project stakeholders?
First things first, if you’re confused about who is a stakeholder and who isn’t, rest assured that it is normal because a stakeholder can be just about anyone who has stakes in your project.
“The definition of a stakeholder is anyone who could be negatively or positively impacted by a project. If you think about it that way…that could be a lot of people!” says Imbarrato. “Depending on your project, you may need to identify a representative for a group of people.”
For example, if you were involved in building a new building in a new neighborhood, and you were the project manager in charge, you would want to know whether there is a neighborhood association, and, if so, whether there is a president or board member that could represent it. That would be a relevant stakeholder, as the neighborhood association has a direct interest in the outcome of the project, and could also influence the successful completion of your project.
“As noted above in the definition, you are considered a stakeholder if you could be impacted by some element of the project. Keep in mind that someone could be impacted by the project process or the project deliverable,” adds Imbarrato.
So to narrow down your project stakeholders, ask yourself the following questions: Who will be impacted by either the process or deliverables? Who is a decision-maker who could make or break this project?
Poor stakeholder management is common
According to Imbarrato, poor stakeholder management is common: “In my opinion, the most important elements of stakeholder management are communication management and change management.”
“Communicating to the stakeholder group about various elements of the project (not everything!) that they may have a specific interest in and establishing a change management plan that will enable the stakeholders to adapt to the changes that may be coming as a result of the project is essential.”
Without a plan for keeping your project stakeholders in the loop in a way that is understandable and relevant to them, you could be setting your project up for failure. What does that mean in practice? Focus on the changes that stakeholders will experience and see, and what the project team will be doing to help them adapt to those changes–offering a training or workshop, for example.
“Communication is critical for all projects and a poorly communicated project effort can significantly reduce the overall value, and success, of a project,” says Imbarrato.
Stakeholders are not static
Another common misconception about project stakeholders is that they are static. “Wrong! The stakeholders that you identify at the beginning of a six to eight-month project may not be the same stakeholders at the end of the project. This is why stakeholder management is an ongoing process of identification, onboarding, and communication,” says Imbarrato.
Stakeholders can make or break a project
She recommends having a comprehensive stakeholder management plan for every project. Your plan should include the identification of stakeholders, a communication component, and an effective management process that includes the periodic review of stakeholders, a survey of their experiences, discussions around their change management needs, as well as a continuous assessment of the overall effectiveness of your plan.
“By not having a detailed, active, stakeholder management plan you are jeopardizing the success of your project deliverable. Can you imagine delivering a project when your stakeholder community is unprepared, angry, shocked, and confused about the project, the deliverables, and the impact on their lives?” she says.
“Now, imagine a project deliverable where the stakeholders have been communicated with, engaged, trained, listened to, and acknowledged. Can you see the difference in your mind? The bottom line is that your stakeholders can make or break the success of your project deliverable. And in a world with hyperactive social media outlets, I would want to make sure that my stakeholder community was identified, engaged, and acknowledged.”
