Effective communication means that you have to be aware of the of the key stakeholder groups

It is of crucial importance to any project manager to work closely with stakeholders – relevant people affiliated with your project whose opinions and actions will directly impact the project outcome. I label it “crucial” because of the whopping 30% of projects that experience failure due to poor communication.

Establishing ground rules for effective stakeholders communication will save time, remove obstacles and ultimately, finish the project on time and within budget. There are several communication methods you should implement when communicating with stakeholders in your company. All methods of communication described below have their upsides and downsides, so make sure you pick the right one depending on the message you are trying to send to your stakeholders.

Schedule a meeting

Stakeholder meetings are the most common communication method in place for corporations, especially since they can save time in conveying the message to a large number of people. Best ways to communicate the message would be PowerPoint, Prezi or any of the mind mapping software solutions available online. Being in the same room with stakeholders should avoid misinterpretation issues.

However, beware that with growing distributed teams, scheduled meetings are becoming a thing of the past. With growing online platforms that ensure real-time transparency, clients are no longer passive consumers of information. Delivering periodic reports without continuous communication will not cut it anymore.

Send out a newsletter

Using the company’s intranet or collaboration platform already in place, you can act proactively and define a newsletter to be sent out to stakeholders at given time periods. It can be great for including even stakeholders who are not directly involved with your project. Beware that e-mail is a one-way communication channel, so you should avoid it for issues that require immediate feedback.

Separate online “screen to screen” meetings

As time-consuming as they can be separate face to face meetings are the best way to get the message across stakeholders. Not everyone responds to your presentation style equally, so by meeting stakeholders separately, you can address their concerns in more detail and with greater control. Of course, again, as a result of the graphically dispersed teams and the growing trend of including independent contractors in projects “screen to screen” is becoming the new “face to face”, since so many of the meetings are held via online communication and collaboration platforms. Having a presentation is optional; you are better off focusing on the dialogue.

Project summary report

Project summary reports are usually sent out in predefined periods (weekly, monthly). The protocol is already agreed upon here, so if your project is running on time and within budget, you should not have any concerns. Backed up with data and statistics you should highlight the top performing parts of your project and reassure the stakeholders you have the situation in control.

Schedule a conference call

Conference calls are most commonly used in situations where the issue is too urgent for a meeting. So whenever you feel there is an obstacle that needs to be resolved immediately you can schedule a conference call, which can be arranged in the matter of minutes/hours. Have in mind that conference calls are better for one way communication so it would be a good idea to have an agenda prepared before the conference call starts.

Lunch meetings

Lunch meetings would fall into the informal communication category of stakeholders meetings. They would be a great idea for getting honest feedback or getting stakeholders to sign off on a particular idea you have in mind. Have in mind that informal meetings can be just as effective as the official ones.

Author:

Stefan Jordev is e-business management MSc and marketing specialist for Seavus’ Project Viewer. Passionate about project management & mind mapping, he is constantly looking for ways to innovate and combine these two. He is a regular contributor to 4 project management blogs and has written over a dozen e-books on the subject.

Introduction

Understanding your stakeholders is vital in modern-day business. This includes listening to the views and beliefs of stakeholders as well as seeking their feedback. After all, these are the people who will shape and influence future successes (or failures).

A stakeholder is anyone with an interest in the business, either having an effect on the business or being affected by it. Typically, stakeholders can be categorized into two groups; internal and external stakeholders. Examples of internal stakeholders are employees, managers and directors. External stakeholders include customers, suppliers, shareholders and funders. Keeping every stakeholder on-side can be difficult, but can be hugely beneficial.

What is it?

The key to keeping stakeholders on-side is consultation. This involves the development of constructive and productive long-term relationships. Stakeholder consultation aims to build relationships based on mutual trust and benefits. Listening to and understanding the views and feedback from stakeholders can help shape and improve the overall operations of a business.

Stakeholder consultation can be project-based or on-going. Specific project-based consultation is generally used for the development of new products and services. For example, a company may consult with customers to establish specific needs of the target market. On-going consultation, however, is generally used to track the progress of a company in regards to stakeholder expectations and to maximize buy-in. For example, a company may consult with stakeholders regarding changes to the company’s direction or its branding.

What are the benefits?

The benefits of stakeholder consultation are clear, with some of the most significant reasons listed below:

  • Enable more informed decision making
  • Lead to greater stakeholder satisfaction
  • Improves chances of project/initiative success
  • Promote open, two-way communication

The 4-step process

The stakeholder consultation process is an opportunity for key groups to be kept informed, and for their views and feedback to be heard. It is important that any consultation is thoroughly planned with clear objectives set at the beginning.

Regardless of the aims and objectives of the stakeholder consultation, the process typically consists of four steps: Planning, Process, Presentation and Promise (the 4Ps).

Planning

The “planning” stage is where the aims and objectives of the stakeholder consultation are discussed and agreed upon. After the aims and objectives have been determined, the “planning” stage is used to discuss how the process will be carried out. Process owners allocate resources and select an appropriate consultation method. Several questions need to be asked at this stage to ensure every facet of the process is considered.

  • Why do we need to consult?
  • Who are we consulting?
  • What resources do we have?
  • How are we going to do it?
  • What materials will be needed?

Process

The “process” stage is where the stakeholder consultation is actually carried out. It is important at this stage to develop effective two-way communication with the stakeholders in order to promote open and honest sharing of views and beliefs. The process and data will then need to be accurately recorded for the final stages.

Presentation

The “presentation” stage is where the data gathered is analyzed and reported on. The aims of this stage are to ensure the data is an accurate representation of the stakeholder views, and to prepare the report ready for presentation. The report is typically presented to the process owners, such as the company itself or policy makers. However, feedback will also be provided to those who took part in the process.

Promise

Lastly, the “promise” stage is where actions are put in place in response to the information gathered. The ‘promise’ of action on the back of the stakeholder consultation process helps drive the development of a long-term relationship based on transparency and collaboration.

How is it done?

Methods of stakeholder consultation are largely the same as those used for market research. The key question is whether the consultation requires depth of knowledge or breadth of knowledge. The answer generally determines which method will be chosen.

If depth of knowledge is required, a qualitative study is usually appropriate. These are studies which encourage open styles of discussion and debate. The most common methods used to gather depth of information are focus groups, individual depth interviews and observation (or ethnography). If breadth of knowledge is required, a more quantitative study is usually appropriate. These are studies which encompass large number of respondents but are restricted to closed style questions, aimed at providing generalist viewpoints. The most common methods used to gather breadth of information are online surveys, telephone surveys, and short street interviews.

Concluding thoughts

As understanding stakeholders becomes more and more important for businesses, stakeholder consultation will become a vital process to maximize success. Stakeholder consultation can be used to evaluate reactions and to track the perceptions of a company’s activities, and ensure collaboration and partnership with all stakeholders. The long-term effectiveness of an organization can depend on its relationships with stakeholders, ensuring commitment and buy-in to any future strategies and challenges. This makes for a more informed organization that is responsive to the needs of all its users and stakeholders.

Why is it important to have effective communication with stakeholders?

Providing ongoing and meaningful opportunities for communication and input allows stakeholders to contribute as experts in their field, have their issues heard, and contribute to the decisionmaking process.

How do you effectively communicate with stakeholders?

5 Tips on How To Communicate With Stakeholders Effectively.
Email and Newsletter..
Email Automation..
Online/Virtual Presentations..
Project Summary Report..
Group Video Call..

What is effective communication?

Effective communication is the process of exchanging ideas, thoughts, opinions, knowledge, and data so that the message is received and understood with clarity and purpose. When we communicate effectively, both the sender and receiver feel satisfied.

What does it mean to communicate with stakeholders?

Stakeholder communication is the correspondence among all of the people invested in a project or business. Stakeholders include project managers, team members, clients, department heads and company executives. Some common stakeholder communication mediums include: Regular meetings via video or in person. Emails.