Stakeholder Management

What is Stakeholder Management?

Stakeholder management is the process of identifying, analyzing, and engaging with the people or groups who are affected by your work — or who can affect it.

These people are called stakeholders. They can support or block your success, so managing their needs and expectations is key.

Why is Stakeholder Management Important?

1. Builds strong relationships 

   • Keeps communication open and trust high.

2. Reduces risk 

   • Early engagement prevents misunderstandings or conflicts.

3. Improves project success 

   • Involved stakeholders help solve problems and provide support.

4. Aligns goals and expectations 

   • Everyone moves in the same direction.

5. Increases accountability 

   • Everyone knows their role and what’s expected.

Importance of Stakeholder Management

Stakeholder management is about identifying and engaging the people who have an interest or influence in your project, decision, or work. It’s important because:

• Builds strong relationships – Good communication leads to trust and support.

• Aligns goals – Helps everyone stay on the same page.

• Reduces risks – Identifying concerns early avoids conflict or delays.

• Improves success rate – Engaged stakeholders help achieve smoother outcomes.

How to Identify Stakeholders

To identify your stakeholders, ask these simple questions:

1. Who is directly affected by this work or project?

2. Who has the power or authority to approve, fund, or stop the project?

3. Who provides input, resources, or feedback?

4. Who might oppose or support your goals?

👥 Examples of stakeholders:

• Internal: Team members, managers, departments

• External: Clients, customers, vendors, investors, government, public

How to Prioritize Work Based on Stakeholders

Use the Power–Interest Grid to prioritize stakeholders and decide how to manage them:

	High Interest	Low Interest
High Power	Manage Closely	Keep Satisfied
Low Power	Keep Informed	Monitor Occasionally

✔ How it helps you prioritize your work:

• Focus first on high power, high interest stakeholders. Keep them engaged and updated.

• For high power, low interest stakeholders, give just enough info to keep them satisfied.

• Low power, high interest stakeholders should be kept informed, but not overloaded.

• Low power, low interest stakeholders need minimal attention — just monitor.

 In Summary:

• Stakeholder management = Better communication + Clear priorities

• Identify stakeholders by asking who’s involved and who’s impacted

• Use the Power–Interest Grid to decide who to focus on and how much effort to invest.