How to create a stakeholder management plan
Successfully navigating the expectations of everyone involved in a project can determine its outcome. A common point of confusion is the difference between engaging with people and managing their influence. A stakeholder management plan provides the governance framework for the project. It outlines who the most important people are, what they require, and how the project manager can steer these relationships throughout the project lifecycle.
A well-crafted plan helps project managers and their teams maintain clear decision-making, minimise project risks, and maintain healthy relationships. This is an ongoing process, not a static document. Its purpose is to support project goals, monitor progress, and ultimately drive project success.
Stakeholder management vs stakeholder engagement
It's important to know the difference between stakeholder engagement and management.
- Stakeholder management is about managing relationships, influence, expectations, and potential risks.
- Stakeholder engagement refers to designing activities and moments for collaboration.
One establishes the framework for the relationship, while the other puts it into action. Both are vital for success, but they serve different functions and lead to different project outcomes.
A step-by-step guide to creating your plan
1. Identify stakeholders
The first step is to compile a complete list of everyone with an interest in the project. It’s important to think beyond the obvious executives or department heads.
Consider both internal and external stakeholders:
- Internal stakeholders: internal team members and the broader project team
- External stakeholders: Anyone affected by the project's progress, including regulatory bodies, suppliers and investors.
This initial list is the foundation of your stakeholder register, a vital tool for knowing who the project depends on.
2. Conduct a stakeholder analysis
The analysis process helps you understand the landscape of influence. You will want to determine how much power each person or group holds and their level of interest in the project. This helps you anticipate potential concerns and gauge the influence certain individuals have over progress.
A helpful tool in project management for this stage is an influence or interest matrix. This allows you to categorise individuals. For instance, some will have high power and high interest, while others may have low power and low interest. This sorting exercise is fundamental to shaping your engagement strategies.
3. Document stakeholder expectations
This step is the core of project stakeholder management. The goal is to comprehensively capture what people need and anticipate their reactions. You should document their primary objectives and any concerns that could impede success.
It's also crucial to understand their preferred channels for communication and what they expect their level of involvement to be at each project phase. Understanding these stakeholder expectations early prevents misunderstandings later.
4. Build your communication strategies
Your communication plan sets the tone for your entire management plan. It must be tailored to the different categories you identified during your analysis. You would not communicate with a key investor in the same way you would with a peripheral supplier.
Here is an example of how you might tailor your communication strategies:
- High power / high interest: Manage this group closely. Keep them aligned and actively involved. Open communication is key.
- High power / low interest: Keep these individuals satisfied. Provide concise updates and avoid overwhelming them with information.
- Low power / high interest: Keep this group informed. Transparency helps address stakeholder concerns before they escalate.
- Low power / low interest: Monitor this group but limit communication to essential updates.
Define who is responsible for communication, the frequency of updates, and the channels used. This ensures everyone stays informed without feeling overwhelmed.
5. Mitigate risk and define escalation paths
An effective plan must include risk mitigation. This involves identifying potential issues before they arise and assigning ownership for resolving them. A crucial part is defining clear escalation paths for when a problem threatens the project's success. The key is to act quickly while documenting everything in your stakeholder plan to ensure consistency and alignment within your team.
6. Track progress and review regularly
Stakeholder management is a continuous loop. Set up systems to track progress and monitor how relationships and influence levels change over time. It's good practice to update your register at major milestones. This allows you to adapt your approach as the project evolves. You should also build in a regular review cadence to keep the plan current and aligned with objectives. To effectively manage these relationships, you must plan regularly.
What an effective plan achieves
A well-crafted plan gives your project a solid foundation. Key benefits include:
- Stronger relationships through clear communication.
- Clear direction for decision-making processes.
- Fewer roadblocks thanks to proactive stakeholder engagement strategies.
- Valuable early input from key stakeholders.
- A reliable plan for managing expectations and keeping everyone on the same page.
Ultimately, strong stakeholder management skills give you a competitive edge. They allow you to navigate influence, balance needs, and manage expectations efficiently. This practice is what helps project managers deliver better outcomes with fewer disruptions.