Improving Stakeholder Management Skills

Improving stakeholder management skills for project success

Improving stakeholder management skills is vital if you want to drive success for an organisation and a project outcome. Anyone who directly (or indirectly) affects, or is affected by, the outcome of a project counts as a stakeholder (Fredman & Reed, 1983).

Stakeholder management exists because expectations arise from a perceived stake in the entity or task. Those expectations can, in turn, lead to behaviour that is both constructive and destructive (Bourne & Walker, 2006; Sutterfield et al., 2006). A diverse range of stakeholders takes part in any project, so there will be just as many needs and desires to manage.

The project manager owns a large part of stakeholder management. You achieve this by developing a high quality and effective relationship with the stakeholders (Maue & Pisarski, 2015; Daniel & Inim, 2020). It also means addressing surfacing issues, managing conflicting interests, and, as a result, promoting stakeholder commitment to the project (Riahi, 2017; Daniel & Inim, 2020). Information that flows to stakeholders in an accurate and timely manner will, meanwhile, enhance the overall efficiency of the project team (Rajhans, 2018).

Strong communication between the project manager, the team, and the stakeholders is therefore essential for a successful project outcome. Overlook stakeholder management, or fail to plan it carefully, and the project can fail. That failure causes a detrimental monetary loss for businesses (Raiablue, 2014; Daniel & Inim, 2020). The discipline sits, therefore, at the heart of formal project management training. Global bodies such as the Project Management Institute likewise treat it as a core competency.

1. Interpersonal and team skills

You cannot reach a high quality and efficient level of communication without the right soft skills. Those skills are key to managing a team of people. Stakeholders, meanwhile, grow increasingly knowledgeable about their needs and about how to "assess the trade offs of their choices". Foreshadowing people dynamics, and therefore enhancing stakeholder interaction, becomes a crucial skill to have (Renee et al., 2012).

Interpersonal skills include conflict resolution and negotiation. They also cover creative problem solving, strategic thinking, team building, influencing skills, and many more (Renee et al., 2012).

A high level of interpersonal skills helps you manage positive stakeholder relationships. It does so by developing a strong level of trust and long-term loyalty (Renee et al., 2012).

Technical skills still remain important. What will really set you apart, however, is the ability to stay emotionally and socially balanced. Employers and stakeholders increasingly value project managers who can, for example, interact with people from a diverse range of cultures. This matters more as workplaces and projects become global (Dean & East, 2019; Denney et al., 2020).

2. Build a communication plan

The Australian Institute of Project Management (AIPM) estimates that project managers spend roughly 90% of their time communicating with stakeholders. A key skill, therefore, is the ability to carry out efficient and effective communication.

AIPM suggests adding a communication plan to the overall project management plan. That plan outlines the types of communication needs, for example how and what information stakeholders need and how often this will occur. A well defined communication strategy can, as a result, improve project performance and client satisfaction (Rajhans, 2018).

Source: AIPM

An outlined communication plan, together with a record of project updates, lets you maintain transparency. It also signals to stakeholders that you value their involvement in the project. To push productivity further, meanwhile, make use of AI software that can relay updated information on a scheduled basis.

3. Involve and engage your stakeholders

Engaging stakeholders effectively is a vital skill for improving stakeholder management skills and leading successful project outcomes. Engagement, meanwhile, also lets teams work with transparency to enhance their performance. It helps them meet the needs and expectations of a wider scope of shareholders.

The idea of stakeholder engagement is to get people to "adopt new behaviors and to think and feel differently" (Janellis, 2021). Consulting firm Janellis outlines several strategies to guide such a change in behaviour. These include:

- Engaging in progressive dialogue - Using visuals and storytelling approaches within the communication strategy - Communicating in a persuasive manner

Sharpening each of these habits will, over time, strengthen how you lead people and projects alike.