In the age of social media activism and online media, effective stakeholder management has taken on more important than ever.
The influence of corporate stakeholders on your project can be immense. If it is not managed correctly, these stakeholders can lead to launch delays, resource drain, political intervention or even project termination.
Worldcom partners at Phillips Group argue that there are several elements that are important for stakeholder management. These elements include:
- effective identification,
- understanding and management of your stakeholders,
- reducing risk by understanding their triggers and expectations
- tailor mitigation measures and deliver a successful project
Phillips Group identifies five specific strategies that will aid in stakeholder management:
1. Stakeholder mapping
Start your project on solid footing by conducting a thorough stakeholder analysis early on. Identify and examine the people and groups who matter most to your work, considering factors such as their proximity to the project, their needs and concerns, relevant demographics, their level of interest, what they expect to see, and any public positions they’ve already taken.
Equally important is understanding your internal stakeholder team — immediate staff, suppliers and contractors, affiliated companies or alliances, and shareholders. Mapping your internal stakeholders gives you a clear picture of whether you have the right resources in place and whether your team is set up to work effectively together.
2. Level of Influence
Knowing how much influence a stakeholder holds helps you anticipate how they might engage — whether directly with your project team or through others in the wider community. Stakeholder influence spans a wide spectrum, from active support and positive advocacy to organized opposition and efforts to mobilize others against your project.
Understanding where each stakeholder falls on that spectrum allows you to engage strategically and proactively. To measure the possible influence of your stakeholders, identify their level on a scale ranking from high, medium to low:
- High: indicates a stakeholder who has significant power to impact decisions, timeframes, or outcomes.
- Medium: indicates a stakeholder with a significant interest in the project, however with a lower level of power to effect project change.
- Low: indicates a stakeholder with little ability to change project outcomes.
3. Triggers and Mitigation
Stakeholders respond differently to different project actions — but many complaints are preventable when you identify likely triggers early and plan your response in advance. Reactions most commonly occur when stakeholders experience changes to their environment or when a business behaves in ways that don’t meet their expectations.
Map your stakeholder list against known potential triggers: noisy or dusty construction activity, impacts to visual amenity, or disruptions to established routines and patterns. From there, assess the likely impact of those reactions on your project and determine where targeted communication, mitigation measures, or an alternative approach may be needed.
The more proactively you plan, the better positioned you are to maintain trust and keep your project moving forward.
Want to learn the other stakeholder management strategies from Phillips Group? Read 5 strategies for effective stakeholder management blog post. Or, learn more with their post 3 Insights for Positive Stakeholder Engagement.
You can also find insights from other partners on Management and PR Strategy.
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Phillips Group is an award winning, strategic Public Relations, Communications, Digital Marketing and Creative company based in Brisbane, Queensland. Since 1976, Phillips Group has provided their expertise in Corporate, Infrastructure, Energy & Resources, Public Sector and Stakeholder Engagement to clients.
