Table of contents:
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Stakeholder Groups
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Managing Different Stakeholders
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Challenges in Stakeholder Management
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Effective Communication
If you want to deliver a successful product, and you want to do it in time, you need to understand how to manage stakeholder expectations. However, given the different expectations - oh, and opinions - it can become quite challenging. This art on how to manage people involved in a project and their relationships with each other is key to delivering a killer product.
In this article, we'll dive into how to manage different stakeholder groups such as customers, executives, engineering, design, QA, marketers, sales, and others. Additionally, we'll discuss the challenges of stakeholder management and look at some strategies - I hope you will find them useful. So, let's dive in.
Stakeholder Groups
Understanding the different stakeholder groups is the first step. We can name four groups: players, context setters, subjects, and the crowd:
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you collaborate with players - they have the highest interest and power - have workshops with them, work on a roadmap together and make sure you engage them on the sprint reviews
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you consult context setters - they have low interest but high power - get direct inputs from them
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you involve subjects - they have high interest but low power - engage them on the sprint reviews
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you inform the crowd - they have low interest and low power - use Slack or an email to let them know
Or you can divide them by role:
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executives - they focus on vision and strategy, they want to see how a different product version impacts the company
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developers - they are interested in the product roadmap and efficient processes within agile development cycles
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salespeople - they care about how the product or its new features give them competitive edge in the market
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marketers - they want to know what are the product's key attributes and benefits for customers
Managing Different Stakeholders
Ok, let's look at some strategies to manage different stakeholders:
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customers - the key to success is simplicity. Customers are interested in how your product can solve their problems, so keep your communication short and to the point. Consider their feedback, but don't forget that sometimes even customers don't know what they want. Make your decisions based on data, understanding, and - yup - gut feeling.
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executives - keep your communication high-level and only go into details when asked. Focus on how the company will benefit from the product and try to be a good storyteller for your product. Also, be sure to keep executives in the loop throughout the product development lifecycle.
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product team (engineers, design, QA) - explain the "what" and the "why" and leave the "how" to their area of expertise. Help them understand the impact the product will have and how it benefits the customer. While providing enough information to get them started on their work, make sure not to micromanage them (that one is the greatest curse).
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marketing, sales, customer support, operations - explain the "what", "why", and "how" of the product, so they understand how the product will make the end customer's life easier. Consider their feedback and prioritise it in the product roadmap. Of course, you also need to share your plans with them.
Challenges in Stakeholder Management
Stakeholder management can be really complex and challenging, especially for product managers. Managing people with different opinions, expectations, agendas, and ways of communicating is an art that requires skill and patience. These groups have different needs and expectations from the product team. As a PM, your responsibility is to balance these expectations with the constraints of scope, budget, and resources.
One of the biggest challenges is communication. With so many moving parts, effective communication can be challenging. Miscommunication can lead to gaps in understanding and poor execution. It's important to actively listen to stakeholders to understand their needs and concerns and work collaboratively to address them.
Another challenge is to understand that people have different personalities and ways of working. It's important to establish trust and build relationships with stakeholders to better navigate these differences. Empathy - it's a powerful tool for addressing these differences.
PM's goal is to establish clear communication channels and expectations from the start. Regular check-ins, progress reports, and status updates can help maintain alignment and prevent misunderstandings. Another strategy is to create a (sort of) shared sense of ownership among stakeholders. This can be done through involving them in the decision-making process and actively seeking their input and feedback.
Effective Communication
You noticed that I mention communication quite a lot - not without a reason. Effective communication is the foundation of a successful stakeholder management. As a product manager, you must be an active listener to ensure that you understand the needs and expectations of different stakeholder groups. Empathy to build relationships with stakeholders is critical - it helps you connect with stakeholders on a personal level.
Keep your communication simple, precise, compelling. Remember, it is not just about what you say, but how you say it. Use humour, sarcasm to hook, but make sure it aligns with your brand persona.
Also, communicating is a continuous process, you need to keep fine-tuning your messaging to ensure that all stakeholders are on the same page.
