Did you know projects are 57% more likely to succeed when stakeholders are actively engaged?
Source: Project Management Institute
Stakeholder engagement refers to the active involvement and collaboration of individuals or groups that have a vested interest in or influence on the project’s outcome. Stakeholders typically include staff, project sponsors, management, and any other external parties impacted by or involved in the project.
An effective and practical document for managing stakeholders is the Stakeholder Analysis. It is vital in project delivery as it identifies stakeholders’ interests and influences, enabling tailored communication and effective resource allocation. This analysis also helps in managing risks by anticipating challenges and fostering stakeholder support.
A Stakeholder Analysis should be conducted at critical junctures of a project to ensure effective engagement and alignment:
- Project initiation – the analysis should identify and understand all potential stakeholders.
- Project planning – the analysis should be revisited to adapt to as details and scope is refined.
- Project delivery – the analysis should be continuously updated and referenced to manage evolving relationships and expectations.
- Project closure – the analysis serves as a crucial tool to evaluate stakeholder satisfaction and gather feedback for future improvements.
From my experience, an impactful Stakeholder Analysis should capture the following details:
- Stakeholder group – is the categorisation of stakeholders who share similar characteristics, interests, or roles within a project.
- Stakeholder name – the individual who is the point of communication and
- Role – specific function or position that an individual or group holds within the project, which influences their interests, responsibilities, and level of involvement in project-related activities.
- Email address – an email address of a stakeholder or their representative, enabling direct communication and dissemination of project-related information.
- Business area – functional or organisational domain to which a stakeholder belongs, providing context for understanding their perspectives, priorities, and potential impact on the project.
- Location – physical or geographical location where a stakeholder or stakeholder group is based.
- Level of influence – the level of influence categorises stakeholders based on their power to affect project outcomes, ranging from high influence with significant decision-making power, to low influence with minimal impact on the project’s direction.
- Level of interest – the level of interest categorises stakeholders based on their concern or stake in the project’s outcomes, ranging from high interest where stakeholders are highly engaged and invested in the project’s success, to low interest where stakeholders may have minimal concern or direct outcomes from the project’s completion.
- Action for requiring stakeholder/group – action based on level of influence and interest involves prioritising stakeholders for tailored engagement strategies. High-influence, high-interest stakeholders require active collaboration and communication, while low-influence, low-interest stakeholders may necessitate minimal involvement to maintain awareness.
- Notes – To serve as a repository for additional information, observations, or details relevant to individual stakeholders or stakeholder groups.
Below is an example of the Stakeholder Analysis template.
With extensive experience in project and change management, I have successfully led complex stakeholder engagement initiatives across 4 large federal government agencies in Australia. My strategy focuses on a listen-first approach, which is critical for thoroughly understanding the unique viewpoints of each stakeholder group. By employing a detailed Stakeholder Analysis, I was able to tailor communication and collaboration methods effectively. This has not only built trust and respect but also fostered robust, collaborative relationships, enhancing the inclusivity and effectiveness of the engagement process.
As an example, within a one-week timeframe, I proactively and respectfully engaged 30 stakeholders (as per the Stakeholder Analysis) to establish a baseline of the status of each project change request within the portfolio. This rapid yet thorough stakeholder engagement allowed for timely identification of concerns, alignment of expectations, and informed decision-making to drive the progress of the projects forward.
Through methods like the Stakeholder Analysis, which assesses stakeholders’ influence, interest, and communication preferences, projects can effectively prioritise engagement efforts, mitigate risks, and foster collaborative relationships.
About the Author
Kirtan Jamnadas is a management consultant with over seven years of experience successfully delivering complex IT projects at four large federal government agencies in Australia.
Kirtan is passionate about initiating and driving projects forward while ensuring that all stakeholders are engaged and on board with the project’s goals.
With his employer’s support, Kirtan established the company’s project management practice – this included developing all the frameworks, tools and templates to ensure projects are set up for success.
Kirt’s mission is to provide current and aspiring project managers with simple and practical tools to help streamline operations, optimise performance and achieve project success.
