IS STAKEHOLDER MANAGEMENT REALLY THAT IMPORTANT?
SUMMARY OF BLOG
In this blog you will learn the definition of stakeholder management, why it is important in projects and the consequences of stakeholder management if done badly.
WHAT IS STAKEHOLDER MANAGEMENT?
Stakeholders, as defined by the APM, refer to individuals or groups who have an interest, or role in the project, programme or portfolio. Therefore, stakeholder management is the process of creating and maintaining relationships with the people that are impacted or associated with a project.
Stakeholder management can be defined in projects using a stakeholder management plan. This will establish who are the stakeholders in your project and plan how you will engage, manage and monitor them throughout the project lifecycle. The stakeholder management plan will also influence and be referenced to your communication management plan.
WHY IS STAKEHOLDER MANAGEMENT IMPORTANT?
- Efficient decision making and effective communication
- Having good stakeholder management doesn’t always mean that you will get the answers that you want but creating a good relationship makes it easier to compromise and come to a clear and easy decision.
- Builds trust
- Stakeholder management allows you to build trust with the people involved in the project. If there is a problem with the delivery or communication in a project, it could potentially reduce likelihood of conflict with a stakeholder if they have a good working relationship with you and trust you to resolve the issue.
- Better teamwork
- Building relationships with stakeholders, you can create a better understanding of how individuals like to work and their style to approaching challenges. You can then implement the appropriate techniques to ensure cohesiveness with problem solving.
IF DONE BADLY, WHAT CAN BE THE CONSEQUENCE?
- Delays in decision making
- If your relationship with a stakeholder is poor, they could be reluctant to make a decision, or be slower to respond to a decision.
- Cost implications
- By not having a good relationship with stakeholders, it can result in errors being made that set back the project. For example, cost implications, such as more resources or misused equipment.
- Reduced quality of work
- If you don’t have a good relationship within the project team, their motivation and effort with be reduced and it will be harder to achieve the quality of work desired.