Effective Stakeholder Engagement for Project Success: 5 Golden Rules for Building Trust and Collaboration
Effective stakeholder engagement is a critical part of successful project management. Positive stakeholder relationships will increase the chances of the project delivering the desired impact.
Stakeholder engagement is often seen as a risk management activity. Which is partly true. But it is mostly about building long term, meaningful relationships.
In this article I’m going to explore why stakeholder engagement is so important. And I will share my five golden rules for building lasting, beneficial relationships that will contribute to project success.
What is stakeholder engagement?
Stakeholders are those with a vested interest in your project and the outcomes it will deliver. Stakeholder engagement focuses on building and maintaining positive relationships with these stakeholders. Some activities involved in stakeholder engagement include:
· Identifying stakeholders
· Prioritising stakeholders based on their level of interest, influence and impact
· Understanding individual stakeholder needs, expectations and concerns
· Communicating with stakeholders through different channels
· Consulting with stakeholders to involve them in decision making
· Managing risks associated with stakeholder objections
Common stakeholders can include:
· The funding body (i.e. Government Departments)
· The project owner (the recipient of the grant or tender to deliver an outcome)
· The project team
· The end user
· Industry bodies (e.g. grower networks, agriculture associations)
· Broader community the end user belongs to
· Support networks (e.g. mental health providers)
· Local/State/Federal politicians
· Local/Regional/National media
· Bank managers
· Communication/PR firms
The larger the project, the more stakeholders likely to be involved.
Why is stakeholder engagement so important for project delivery?
Stakeholder engagement is crucial to successful project delivery because it directly contributes to:
· Building trust, support and buy-in
· Managing expectations
· Fostering collaboration
· Managing risks and overcome objections
· Avoiding roadblocks and delays
· Delivering maximum impact and value
The role of a project manager in stakeholder engagement
Stakeholder engagement can quickly become a sticking point within a project. Project success is dependent on effective stakeholder engagement. But the project manager doesn’t own the relationships with all the stakeholders. And so the project manager is dependent on others to ensure all stakeholders are being appropriately engaged and managed.
A project manager is often seen as the key contact point for a project, and so they may have direct contact with many stakeholders. They need to be kept informed about expectations, concerned and objections across stakeholder groups so they can respond appropriately.
The best foundation for effective stakeholder management within a project is open communication. The project owner and project manager need to agree upfront who handles the relationship with key stakeholders. They also need to agree on how feedback will be shared and how relationships will be tracked.
The 5 Golden Rules for effective stakeholder engagement
1. Build relationships, not checklists
Meaningful stakeholder engagement is not a box ticking exercise. It is not an opportunity to go in and preach. It should be driven by a genuine desire to deliver the best possible outcome, and to do that in collaboration with those involved.
Yes, sometimes there is tension. Yes, sometimes stakeholder expectations don’t match the project objectives. And yes, sometimes people have their own agendas that might be in conflict with the project. But the whole point of engaging with stakeholders is to find ways towards a common understanding and commitment to the end goal.
2. Make it mutually beneficial
The best way to approach stakeholder engagement is to create win-win situations. To do this you need to understand what each stakeholder wants and needs from the project. And what they are most worried about. Use that to inform the way you engage with them, and offer value.
3. Tailor your communication
It is important to have consistent messaging about the project objectives and impact. But different stakeholders will have different levels of knowledge and interest. So you need to tailor your communications to be engaging and relevant to them. Looking at the messages, language and channels used for each stakeholder group will increase the chance they will understand and support the project.
4. Value their perspective
Let’s be honest…you don’t know everything. Stakeholders have incredible value to add to a project from their personal experiences and insights. And they might have great ideas about how to maximise the impact of the project outcomes. Or how to better engage with other stakeholders.
Authentic stakeholder engagement is a two-way relationship. Create opportunities for them to provide their feedback and ideas. Find ways to involve key stakeholders in decision making and co-design. This is going to ensure the project is aligned with the true needs and priorities of the people most impacted.
5. Be transparent and honest
Be open and honest with your stakeholders. Share your project goals, strategies, risks and challenges. Communicate any changes or delays as early as possible. Then it is more likely stakeholders will be open and honest with you.
Effective stakeholder engagement takes considerable time and effort. But it is effort that pays off in delivering better project outcomes. On the flip side, the risks associated with not building positive relationships with project stakeholders are considerable. Stakeholder engagement is an opportunity to build mutually beneficial, collaborative partnerships that will drive project success.
If you’ve just had your funding proposal or tender accepted and are looking for project management support, Cross Country Management can help. Get in touch and let’s have a conversation about setting your project up for success.