In any successful business or project, understanding and managing your stakeholders effectively is crucial. Stakeholders, whether they are customers, employees, investors, or suppliers, each have different expectations, needs, and levels of influence.
A strong stakeholder management strategy helps you anticipate potential challenges, foster positive relationships, and ensure smooth project execution. But where do you start?
Boost business adviser Amir Shafiq, who is part of the Boost Growth Catalyst team, offers ten practical steps to create an effective stakeholder management strategy.
The first step is to know exactly who your stakeholders are. Stakeholders can be internal (e.g. employees, board members) or external (e.g. customers, suppliers, investors). Begin by listing every individual or group that could influence or be influenced by your business.
Once you have a comprehensive list, classify your stakeholders based on their level of influence and interest in your project. High-influence stakeholders may require more attention and regular updates, while low-influence stakeholders need less frequent communication.
Tip: Use a stakeholder map to visually plot their influence and interest, which will help you allocate time and resources more efficiently.
Every stakeholder has their own set of needs, expectations, and potential concerns. Engage directly with key stakeholders through surveys, one-on-one meetings, or focus groups to gather insights into what matters most to them.
Define clear objectives for managing each stakeholder or group. These objectives should be aligned with your broader business goals. For example, keeping customers satisfied might be crucial for sales, while ensuring shareholders or investors are confident in your business decisions can secure long-term financial backing.
Tip: Use the SMART framework (Specific, Measurable, Achievable, Relevant, Time-bound) to set your stakeholder engagement objectives.
A strong communication plan is the backbone of stakeholder management. For each stakeholder group, define how often and through which channels you will communicate. Tailor the frequency and method of communication based on their influence and interest.
Example: For high-priority stakeholders like major suppliers or investors, regular online virtual meetings and detailed monthly reports may be required, while for customers, an email newsletter and occasional social media updates may suffice.
Proactively address potential concerns before they become problems. This involves listening carefully to feedback and being transparent about project challenges or setbacks. When stakeholders feel their concerns are taken seriously, they are more likely to stay supportive, even when issues arise.
Stakeholder management isn't just about formal processes; it’s also about building genuine meaningful relationships. Foster trust by being transparent, showing empathy, and regularly updating stakeholders on the project's progress. Strong relationships lead to higher levels of engagement and cooperation.
Stakeholder needs and opinions can shift over time. Regularly request feedback and be prepared to adjust your strategy accordingly. Continuous engagement and flexibility will help you address changing priorities and new concerns as they arise.
Tip: Use feedback tools like surveys or post-project reviews to gauge satisfaction and identify areas for improvement.
Technology can greatly enhance stakeholder management. Use CRM tools, project management platforms, and communication software to streamline stakeholder engagement, track communication, and keep stakeholders informed in real-time.
Stakeholder management is an ongoing process. Continuously monitor the effectiveness of your strategy and adjust your approach when necessary. Set up regular checkpoints to evaluate whether stakeholder needs are being met and adjust your tactics as needed.
Creating a successful stakeholder management strategy requires foresight, planning, and continuous improvement. By following these ten steps, you’ll be able to foster strong relationships with your stakeholders, ensuring smoother project implementation and long-term business success.
Whether you're launching a product, scaling operations, or managing day-to-day activities, an effective stakeholder management strategy will help you avoid common pitfalls and stay on track to achieve your business goals.
About the author
Amir has 20 years’ experience working in business advisory and project management roles across Lancashire and the North West.
His areas of specialism include strategic business planning, leadership development, project management, and fostering innovation-led growth. Amir particularly specialises in guiding businesses through growth phases, navigating challenges, and optimising operations for long-term sustainability and success.
What Amir enjoys most about helping businesses in Lancashire is witnessing their transformation and growth. It's fulfilling to contribute to their success stories by overcoming challenges, implementing strategies, and seeing tangible results that positively impact the local economy and communities.
If you’re looking to grow, scale or start your business, use Boost; Lancashire’s Business Growth Hub. We offer a range of funded business support services. Call our Business Support Helpdesk on 0800 488 0057 to find out more or complete our enquiry form.
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