Handle Stakeholder Demands as a Business Leader
Communicate and work together, not against each other.
Communication with your coworkers and teams is one thing. The second is communication with other stakeholders.
Every business leader, manager, project executive, etc., has to deal with demands from multiple sources. Typically, you have to answer clients and keep them happy. You regularly check your suppliers do the job you agreed on. You report to associations.
That is a lot of competing demands. Can you handle them all?
Map out key stakeholders
Name quickly your stakeholders. Who are they?
You can’t manage stakeholders without knowing who they are. Every team has it different. Every project brings a new set of people you need to work with.
Be a good housekeeper and map all key stakeholders out.
Who are they?
Who are the key contacts?
How are they organized and connected?
It is much easier to see them all together. Thanks to that, you will be able to identify communication cadence, styles, problems, conflicts, and other requirements.
Stakeholder maps are super handy for handovers, too!
Mapping out stakeholders will also show you inconsistencies in communication. It is demanding to keep different processes per each stakeholder.
You often have one or two difficult stakeholders who drain all your energy. You know who I am talking about. That one person who never does what was agreed or completely ignores you as a partner. Hiccups will show up.
Review communication and processes
When you have a list of stakeholders, think about how you communicate with them.
Regular meetings/emails
Monthly wrap-up
Teams messages
Calls
One hat won’t fit them all. But when every stakeholder has his own communication requirements, it is difficult to jump from one to another all the time.
Some flexibility is needed. But so is standardization in processes. It is much easier to handle stakeholders’ demands when there is transparency, processes, and especially a chance to delegate.
Many teams struggle with stakeholders because they are specialized. “I never worked with this client.” “I don’t know what kind of reports they want.” “No one else has the knowledge.” This is holding you back from being efficient.
When there is no substitution and clarity, it puts pressure on you and the individuals who are handling that specific stakeholder.
Always try to standardize how you communicate and what processes you have. Such as project updates, formatting, channels, etc.
Brainstorm with others to see if you could be more consistent across your stakeholder map. It will make your life easier.
Plan communication cadence
Communication regularly and effectively.
Agree with stakeholders on what and how. You want to avoid too many ad-hoc situations. They will be there regardless, but maybe a bit less out-of-blue meetings, multiple emails without proper responses, and delayed materials.
Communication cadence should reflect the type of work you do together. For instance, it follows project plans. It highlights important milestones. It brings people together when needed.
The key to communication is to help each other. Some leaders have a feeling they can’t communicate openly with clients so as not to lose credibility. So, they let them get away with murder.
Yet, try to find a healthy and productive way to give feedback to each other to hit the milestones. Not that they are always late and you have to compensate for that.
Handle it together. You might be surprised how open stakeholders are if you don’t just bring problems up but also suggest solutions. #makelifeeasier
Decisions and concerns
Stakeholder management is full of poor communication, high expectations, and a lack of trust. The vicious circle you want to get out of.
What you actually need to do is to address common concerns and make decisions together. That requires open communication, feedback, and trust. Difficult, though!
Empathy and business understanding are wanted!
Slide into their shoes and discover their needs, priorities, concerns, and expectations. Share the same for your side. Find commonalities. They will help to strengthen relationships. Since you are in the same boat.
When you agree on priorities and concerns to mitigate, you can make decisions together.
How will you work better?
How will you make sure you won’t miss crucial deadlines?
How can you build positive and less frustrating relationships?
Voice your concerns if your clients are pushing you to the corner. Suggest alternatives and be ready to negotiate.
Problem-solving & negotiation
Stakeholder demands are almost a synonym for negotiation. Say ‘yes’ and say ‘no’. Assertiveness is a handy skill to exercise for problem-solving.
Btw. Assertiveness is not aggresiveness.
You don’t want conflicts. You just want to work together smoothly. What should you do?
→ Prioritize
Handling stakeholders’ demands is always compromising. If we…, then you… It is never one street. Many managers say ‘yes’ to everything. They are afraid of losing their clients. I get that. But you set a precedent by doing so. You will be always tiptoeing around and treating some special while others do not.
Get used to negotiating.
Extra task? Extended deadline.
Adhoc priority? Other duties will be postponed.
Cut budget? Cut responsibilities.
Do favors here and there. But not as standard stakeholder management because people get rarely paid for favors or for being nice.
Think long-term. Prioritizing will solve many problems, and negotiating will improve your position in the relationship. Win-win. You are equal partners.
Key points to keep in mind:
Always map out your stakeholders.
Outline communication and processes.
Plan regular communication to stay flexible for ad-hoc situations.
Address shared concerns.
Negotiate and decide together to get to a win-win situation.
PS: Explore the Stakeholder Salience concept proposed by Ronald K. Mitchell, Bradley R. Agle, and Donna J. Wood.