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Insights into effective stakeholder management

Effective stakeholder management

How to convince all relevant stakeholders of your project plan

Estimated reading time: 8 minutes
What is this article about?

Effective stakeholder management is of crucial importance for companies, as it enables them to identify, understand and address the diverse needs, expectations and interests of the parties involved. In this context, stakeholder analysis and stakeholder communication are important components of stakeholder management.

As effective stakeholder management and therefore communication tailored to the various parties involved are important for companies and their project plans, we explore this topic in more detail in this blog post. You will also learn how to classify stakeholders using the stakeholder matrix and which steps help to implement successful stakeholder communication.

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Definition Stakeholder
Icon Definition Stakeholder

Who/what are stakeholders?

Stakeholders are persons, groups or organizations that are affected by a project or can influence it. This includes, among others, customers, suppliers, employees, NGOs, investors and government authorities. They can therefore be both internal and external.

The stakeholders of a project have different expectations and needs that should be taken into account. In a successful project, it is important to understand the expectations and needs of stakeholders and integrate them into your decisions and activities.

What is stakeholder management?
Icon Definiton stakeholder management

What is stakeholder management?

Stakeholder management refers to the process of identifying, analyzing, planning and monitoring the interactions between a project and its stakeholders.

The aim of stakeholder management is to understand the interests and needs of stakeholders and to ensure that decisions and activities in the project environment are in line with their expectations and requirements. It is therefore about building an appreciative and effective relationship with stakeholders.

Stakeholder management is an important part of project management as it ensures that the views of all stakeholders, including employees, customers and suppliers, are taken into account. Through comprehensive stakeholder management, a company gains the trust and support of its stakeholders and improves its reputation, which in turn leads to long-term success.

Two important components of stakeholder management are as follows and are discussed in more detail in the following sections:

  • Stakeholder analysis
  • Stakeholder communication

Stakeholder management is not a soft management model. It is a hard, economic factor that can determine the success or failure of a company.
R. Edward Freeman
Renowned management scientist

What is a stakeholder analysis and why is it important?

A stakeholder analysis is a process in which a company's interest groups are identified, analyzed and evaluated. Stakeholder analysis enables companies to better understand the expectations and needs of their stakeholders in order to respond appropriately to them.

Here we have listed some reasons for a stakeholder analysis:

1. Reason 04

Identification of key stakeholders

  • Identification of key stakeholders

    By analyzing the interest groups, companies can identify the most important stakeholders who have a significant influence on the company and its project plans and/or are particularly affected.

  • Understanding needs and expectations

    A stakeholder analysis helps companies to understand and respond to the needs, expectations and interests of their stakeholders. This enables them to build a better relationship with stakeholders and gain their trust.

  • Identification of risks and opportunities

    By identifying stakeholders and their interests, companies can also recognize risks and opportunities that may arise from these interests. This enables them to respond proactively and adapt their business strategies and processes accordingly.

  • Development of solutions

    A stakeholder analysis also helps companies to develop solutions that meet the interests and needs of stakeholders. By working closely with stakeholders, companies can ensure that their solutions meet the needs and expectations of stakeholders.

In summary, a stakeholder analysis is important to build a better relationship with stakeholders, identify risks and opportunities and develop solutions that meet the interests of stakeholders. An effective stakeholder analysis helps companies to build long-term and successful relationships with their stakeholders and thus promote their business success.

Stakeholder analysis is an essential step for companies to gain a comprehensive understanding of the needs and expectations of their relevant interest groups.
John Smith
Stakeholder management expert

What is a stakeholder matrix and why is it useful?

A stakeholder matrix is an instrument for analyzing and evaluating a company's interest groups. It is an important tool in the context of stakeholder analysis and supports companies in assessing the interests and influence of the various stakeholders.

The stakeholder matrix is usually presented as a two-dimensional table in which the influence of the stakeholders and their interest in the success of the project are rated on a scale from low to high. Typically, the stakeholders are entered into the matrix based on the information from the stakeholder analysis.

The influence of the stakeholders results from various factors, such as financial strength, political support or influence on decision-makers. Stakeholder interest can range from low to high, depending on how much they are affected by the company's activities and what expectations they have of the company.

By placing the stakeholders in the matrix, companies can quickly identify which stakeholders have a high level of influence and interest and are therefore particularly important for the company. These stakeholders should be prioritized and their interests and needs taken into account as part of stakeholder management.

Accordingly, the stakeholder matrix is a useful tool for companies to develop an effective communication and relationship strategy with the various stakeholders. It helps companies to understand the expectations and needs of their stakeholders and to respond accordingly.

stakeholder matrix
Real communication begins when you stop talking and start listening.
Daniel J. Edelman
Edelman founder

What is effective stakeholder communication and how is it implemented?

Stakeholder communication refers to the process of communicating information to and between the stakeholders of a project in order to promote an effective flow of information and collaboration.

The aim of stakeholder communication is to ensure that all stakeholders of a project are informed about relevant information and developments and that they have the opportunity to express their opinions and concerns.

Effective stakeholder communication helps to gain the trust and support of a project's stakeholders and maintain a positive relationship. Failing to keep stakeholders properly informed leads to misunderstandings, frustration and conflict, which can negatively impact the image and success of the project.

Open and transparent communication, on the other hand, allows stakeholders to develop a better understanding of the project's goals and activities and to identify more strongly with them. The following steps lead to successful stakeholder communication:

effective stakeholder communiaction

Step 1: Analysis of stakeholders’ communication needs and preferences

It is important to consider the communication needs and preferences of stakeholders to ensure that information is communicated effectively. For example, some stakeholders prefer emails, while others prefer face-to-face conversations. Communication preferences are determined as part of the stakeholder analysis.

Step 2: Develop a communication strategy

Based on the stakeholder analysis and the communication needs and preferences of the stakeholders, a communication strategy should be developed. The strategy defines the when? what? how? and who? for a targeted flow of information.

Step 3: Determine communication channels and tools

It is important to choose the appropriate communication channels and tools to ensure that information is communicated effectively. This can include newsletters, press releases, social media, face-to-face meetings, emails or conference calls. The choice of communication channels should be based on the communication needs and preferences of the stakeholders.

Step 4: Implementation of the communication strategy

After developing the communication strategy and choosing the communication channels and tools, the communication strategy should be implemented. Communication activities should be regularly monitored and evaluated to ensure that information is communicated effectively and stakeholder expectations are met.

Step 5: Assessing the effectiveness of communication

It is important to evaluate the effectiveness of communication to ensure that the objectives of the communication strategy are being achieved. This can be done using surveys, feedback from stakeholders or metrics such as email open rates or clicks on social media posts.

Intensive stakeholder analysis and effective stakeholder communication are particularly relevant in stakeholder management
Our conclusion

Stakeholder management and thus stakeholder analysis and stakeholder communication are important elements for the success of a company and its project plans. Through stakeholder analysis, companies can better understand their stakeholders and respond to them appropriately. Stakeholder communication helps companies to build a better relationship with their stakeholders and gain their trust.

Do you want to use the stakeholder matrix or the five steps to effective stakeholder communication?
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LEITWERK contact person Sebastian Karl
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Sebastian Karl
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