How To Manage Stakeholders

From my experience as an executive, mentor, and coach, I believe that managing expectations is a key skill for executives at any level. Every interaction, from hiring an employee to discussing issues with stakeholders, involves setting and sharing expectations.
Let's explore three key tips for managing stakeholder expectations on a project.

Identifying The Stakeholders

Every project has stakeholders—people who can influence or are influenced by the project. Here are a few examples:

Sponsor: The initiator of the project who defines its goals and secures funding.
Client: The recipient of the completed project, responsible for its formal acceptance.
Employees: Those who will interact with the project outcomes, either using them directly or assisting end customers.
Project Team: The executors of the project, whose roles and allocated budget are crucial for success.
Suppliers: External parties providing services, components, or contractors contributing to the project.
Society: The broader community acting as direct or indirect consumers of the project's results.
State: The legal framework within which the project operates.

Categorize stakeholders

Each stakeholder category deserves its own detailed consideration. It is the manager’s responsibility to set clear rules and maintain focus and goals across all involved members. Otherwise, the project may never end because it is impossible to please everyone.

The initial goal should be to get the project off the ground. Determine who makes the final decision. For example, if you are building a house, its commissioning depends on the government agency that authorizes its use, not just the sponsor or customer.

My first rule: categorize stakeholders by their influence on the project's completion.

This helps maintain clarity and direction from the start.

Grasp the project's context

When dealing with requirements and constraints, always ask, "Why?" For instance, if a customer insists on having an application ready by March 21, understand why that date is crucial. Perhaps the customer's software license expires on that date, necessitating an extension if the new application isn't ready.

Evaluating the details of each scenario can lead to informed decisions, such as:

Spending more than the cost of the license to meet the deadline.
Delivering a basic version on time and adding features later.
Informing the customer of potential delays and negotiating a new timeline.

My second rule: grasp the project's context.

Understand the customer needs and why they need it.

Be reliable and predictable

Consider this scenario: You're in a country where you don't speak the language and can only call a cab through an English-language app. After entering your details and requesting a ride, you receive no updates for two hours. This lack of feedback creates anxiety and forces you to seek alternative solutions.

In such a case:

When would you start to worry?
Would you consider a backup plan?
What would you do if no car arrived at the appointed time?

My third rule: be reliable and predictable by regularly informing clients about your progress.

This experience illustrates the importance of predictability. Regular updates and clear communication can prevent anxiety and build trust.

Conclusion

Start your next project with three key questions:

Who will accept my project?
What is important to them and why?
What do they know about our plans for it?