MAINTAIN STAKEHOLDERS’ RELATIONSHIP
Stakeholder Identification
Stakeholder identification is the process of recognizing and categorizing individuals, groups, or
organizations that have an interest in or may be affected by a project, initiative, or decision.
Understanding who these stakeholders are and what their needs and expectations are can
significantly enhance project planning and execution.
Steps in Stakeholder Identification:
1. List Potential Stakeholders:
o Internal Stakeholders: Employees, management, departments, teams.
o External Stakeholders: Customers, suppliers, investors, regulatory bodies,
media, competitors, the local community, etc.
2. Categorize Stakeholders:
o Primary Stakeholders: Directly affected by the project or initiative (e.g.,
customers, employees).
o Secondary Stakeholders: Indirectly affected (e.g., the media, local community).
o Key Stakeholders: Those who have significant power and influence over the
project (e.g., project sponsors, senior management).
3. Analyze Stakeholders:
o Power/Influence: Identify how much power or influence each stakeholder has
over the project.
o Interest: Determine the level of interest each stakeholder has in the project's
outcome.
o Attitude: Understand their likely response to the project (supportive, neutral,
opposed).
4. Engagement Strategy:
o Develop strategies for engaging with stakeholders based on their power, interest,
and attitude.
o Prioritize communication efforts for stakeholders who have high power and high
interest.
5. Create a Stakeholder Map:
o Visualize stakeholders on a matrix (e.g., power vs. interest) to identify which
groups to prioritize.
6. Regular Updates:
o Regularly revisit the stakeholder list and engagement strategy, as stakeholders and
their influence can change over time.
Stakeholder Communication
Stakeholder communication is a crucial part of stakeholder management, ensuring that all parties
involved in or impacted by a project are informed and engaged appropriately. Effective
communication helps manage expectations, reduces misunderstandings, and ensures alignment
between the project and its stakeholders.
Key Elements of Stakeholder Communication:
1. Stakeholder Analysis:
o Before developing communication plans, it’s essential to understand the needs,
concerns, and influence of each stakeholder (as discussed in stakeholder
identification).
o Communication preferences: Understand whether stakeholders prefer face-to-
face meetings, emails, phone calls, or digital platforms.
o Frequency: Determine how often stakeholders need updates (weekly, monthly, as
milestones are reached).
2. Communication Objectives:
o Define clear objectives for communicating with each stakeholder. Some common
objectives might include:
Informing about project progress.
Seeking feedback or approval.
Managing risks or conflicts.
Addressing concerns and expectations.
3. Tailored Communication:
o Different stakeholders have different needs. For example:
Investors might want high-level financial progress and return on
investment.
Project team members need detailed updates on tasks, timelines, and
deliverables.
Customers may require updates on how the project will impact them or
when new products/services will be available.
o Customize your message to suit their concerns and level of understanding.
4. Communication Channels:
o Different stakeholders may prefer different communication channels. Some
common options include:
Emails/Newsletters for regular updates.
Reports and presentations for more formal or detailed information.
Meetings (in-person or virtual) for more interactive or important
discussions.
Surveys or feedback forms to gather input from stakeholders.
Social media for public-facing communications or community updates.
5. Stakeholder Engagement Matrix:
o Map each stakeholder to a matrix based on their influence and interest. This helps
prioritize communication efforts. A common tool is the Power/Interest Grid:
High power, high interest: Engage closely and regularly.
High power, low interest: Keep satisfied but don’t overload with
information.
Low power, high interest: Keep informed, often through passive
communication channels.
Low power, low interest: Monitor with minimal communication.
6. Timing and Frequency:
o Define when stakeholders should be informed and how often. For example,
stakeholders with high power and interest may need weekly updates, while others
may only need quarterly check-ins.
o Ensure the timing of communication matches key project milestones or decisions.
7. Feedback Mechanism:
o Effective communication isn’t just about delivering information, it’s also about
listening. Implement a way to gather feedback (e.g., surveys, discussions,
informal chats) and ensure that stakeholders feel heard and understood.
o Feedback should be acted upon where appropriate.
8. Crisis Communication Plan:
o Prepare for any issues or crises by having a clear communication plan in place.
This plan should address how to communicate during unexpected events, who
will speak for the project, and how stakeholders will be kept in the loop.
9. Monitor and Adjust:
o Keep track of the effectiveness of your communication efforts. If certain
stakeholders aren’t engaging or misunderstandings occur, adjust your approach to
better meet their needs.
10. Documentation and Reporting:
o Ensure that communications are well-documented for future reference. Create
regular reports to track how stakeholder engagement and communication evolve
throughout the project.
Example of Communication Strategy for Key Stakeholders:
Communication
Stakeholder Preferred Channel Frequency Message Content
Objective
Keep informed about High-level updates on
Project Monthly status
progress, seek Bi-weekly milestones, budget,
Sponsor report, meeting
approval and risks
Detailed updates on
Provide task updates, Team meetings,
Project Team Weekly task progress, issues,
clarify responsibilities emails
and dependencies
Keep updated on Product updates,
Monthly or
Clients product delivery and Newsletters, email timelines, new
as needed
changes features
Inform about the Public Changes in local
Local
project’s impact on announcements, As needed services, timelines,
Community
them community meetings and benefits
Investors Report on financial Quarterly reports, Quarterly Financial health of the
Communication
Stakeholder Preferred Channel Frequency Message Content
Objective
project, milestones,
performance and ROI email
forecasts
