Impactful Stakeholder Management & Communication 👨‍💼

Hey awesome PM!

It’s Aneesha 👋 

At any level of your product management career, stakeholder management and communication are always daunting 😨.

Either a CS guy is always telling you that you’re wrong to build a feature with that user flow, or top management isn’t ready to understand why you cannot build a feature right now 😤! Ugh!

That’s terrible! But what if I told you that can change!?

The other day, I was speaking to Areesha, and we started talking about communicating with people. We exchanged our personal experiences good and bad conversations.

Just then, she pointed out this amazing insight about communication: “People often want supporting proofs and in-depth justifications to believe your point”.

Just then it hit me. Failure to do that is exactly why most PM-stakeholder communications fail! Of course, there are many more reasons, but this comes as the most basic reason.

Today, I am helping you with practical, to-the-point strategies to master the art of stakeholder communication and management 😎🚀!

Let’s go!

Who is a Stakeholder in a Company? 🤔

As a PM, your life revolves a lot around “stakeholders”

Let’s first know who are the “stakeholders” a PM interacts with when working in a company.

We’ll be classifying them as internal and external stakeholders.

Internal Stakeholders 👨‍💼👩‍💼

Internal stakeholders are present inside your company. They work for the same organization as you.

1. Your product team:
   
   I consider these as the prime types of internal stakeholders.
   
   This includes designers, developers, engineers, user experience (UX) researchers, and quality assurance (QA) testers who work directly on building the product.
   
   You collaborate closely with them to ensure the product meets its goals and timelines.
   

2. Executive Team (aka Product Sponsor): 
   
   These are high-level decision-makers who provide funding, resources, and strategic direction for the product.
   
   You keep them updated on progress and seek their approval for major decisions.
   

3. Department Heads: 
   
   Depending on the product and organization structure, You might collaborate with department heads like marketing, sales, R&D, or customer support to ensure the product aligns with their inputs and strategies.
   

4. Internal Customers: 
   
   These could be other teams within the organization who will be using the product internally. Understanding their needs is important for product development.

External Stakeholders 📤️

External stakeholders do not work at your company. They either use your company’s products or services, sell or resell them, or offer services to your company to conduct business activities smoothly.

• Customers/End Users: 
  
  Needless to mention, these are the prime types of external stakeholders.
  
  This is the ultimate target audience of your product. You conduct user research and gather feedback to ensure the product addresses their needs and pain points.
  

• Suppliers/Vendors: 
  
  These are external companies that provide resources or services needed to develop or sell the product. You collaborate with them on things like contracts, delivery schedules, and quality control.
  

• Investors: 
  
  For startups or venture-backed companies, PMs might need to communicate with investors to keep them informed about product progress and potential returns on their investments.
  

• Partners/Channel Partners: 
  
  Depending on the product and business model, you might work with external partners or channel partners who help distribute or sell the product.
  

• Government Agencies/Regulatory Bodies: 
  
  In some industries, PMs might need to comply to specific regulations or obtain approvals from government agencies before launching the product.

That’s stakeholders for you, my friend.

Now, let’s take a brief look at what it really means to communicate and manage your stakeholders. 😎

What does Stakeholder Management and Communication Mean? 🗣️ 

Okay, come out of the serious PM life for a minute.

You and your friends decide to take a trip in the woods and spend quality time with mama nature.

To make the trip even more fun, you all plan to build a nice little treehouse where you’d spend the night.

To make it happen, you'll need all sorts of help – from your friend who's a whiz with carpentry to someone who has the perfect climbing rope.

But how do you ensure everyone's on the same page, working towards a fun and safe treehouse? That's where communicating and managing stakeholders comes in!

In the world of product development, stakeholders are anyone with a vested interest in this "treehouse" – the product you're building.

This could be your team of designers and engineers, the members who fund the project, or even the future users who will climb and play in your creation (the product).

Communication is all about clearly sharing your vision, plans, and progress with these stakeholders. It's like telling your friends, "Hey, the treehouse will have three levels, a slide, and a lookout post!"

You want to keep them informed, excited, and answer any questions they might have.

Management goes a step further.

It's about understanding each stakeholder's needs and concerns. Maybe your friend prefers working with nails, while the other wants a specific type of rope.

It's like working together to find the best materials and construction methods for your treehouse. Effective communication and management are like the strong beams that hold your treehouse together.

Moving on, let’s take a good look at why PMs really fall flat when communicating with stakeholders 🥴.

Why Most PMs Suck at Stakeholder Communication and Management? 😢 

Here’s a thing — the fault doesn’t always lay on you, the PM.

With that said, here’s why most PMs cannot do communication and management of stakeholders the right way.

Focus on Features over Benefits 🤓

You may be focusing too much on the technical details and features of a product. This slowly leads to neglecting to communicate the value proposition and benefits to stakeholders.

Lack of Tailored Communication 🖌️

A one-size-fits-all approach doesn't work ❌

You need to adapt their communication style and content to resonate with different stakeholder groups (e.g., technical details with product goals for engineers, and user experience for executives).

Unrealistic Expectations and Missed Deadlines 👀

Overly optimistic timelines or failing to manage expectations often lead to stakeholder frustration and distrust.

Here’s how to set realistic and achievable timelines with effective sprint planning with your cross-functional team.

Information Overload or Lack of Transparency 🚚

Bombarding stakeholders with excessive information or failing to provide timely updates can be detrimental. Striking a balance between transparency and conciseness is key.

Not Speaking the Right Language 🙊

PMs might use technical jargons that stakeholders may not understand. It's crucial to translate product concepts into clear and easy-to-understand language.

Poor Listening and Unmanaged Feedback 🙉 

Not actively listening to stakeholder concerns and failing to address their feedback effectively can lead to miscommunication and missed opportunities.

Lack of Communication Plan 📘

Without a clear communication plan outlining who gets what information, when, and how, confusion and missed messages can occur.

Not Prioritizing Stakeholder Relationships 😶

Building strong relationships with stakeholders takes time and effort. Neglecting to nurture these relationships can make communication more challenging.

With the problems identified, I am going to tell you in-depth about how you can approach stakeholder communication and management better going forward.

Doing Stakeholder Communication and Management Right ✅

Successful stakeholder communication and management is about clear, consistent, and transparent communication that builds trust and fosters collaboration.

I am walking you through some really impactful and practical steps to achieve it 👇️:

1. Identify Your Stakeholders 🔍️

Start by mapping out everyone who has a vested interest in your product or organization.

This could include internal stakeholders like employees, executives, and departments, as well as external stakeholders like customers, investors, and partners.

2. Prioritize and Stakeholder Needs ✔️

Not all stakeholders are created equal. Analyze their influence and level of impact on the product. This will help you prioritize communication efforts.

Once prioritized, take time to understand each stakeholder's unique needs and concerns. What information do they require? How often do they need updates?

3. Craft a Communication Plan 📋

Develop a communication plan that outlines the who, what, when, why, and how of stakeholder communication.

• Who: Which stakeholders will receive communication for each topic?

• What: What information will be communicated in each message?

• When: How often will updates be provided?

• Why: What is the purpose of each communication?

• How: What communication channels will be used (email, meetings, reports)?

4. Customize Your Communication Style 🪡

Avoid a one-size-fits-all approach.

Consider the preferred communication styles of different stakeholders. Some might prefer concise emails, while others might appreciate detailed reports or in-person meetings.

5. Transparency and Honesty are Key 🔑

Maintain open and transparent communication with all stakeholders. Share both good news and bad news promptly.

Being honest builds trust and allows for course correction when needed.

6. Active Listening and Two-Way Communication 👂️

Effective communication is a two-way street. Actively listen to stakeholder concerns and feedback.

Address their questions and demonstrate that their input is valued.

7. Utilize Effective Communication Tools 🛠️

Leverage different communication tools to best suit the message and audience. This could include product management platforms, online collaboration tools, or video conferencing software.

8. Manage Expectations Proactively 💬

Set realistic expectations with stakeholders throughout the project lifecycle. This includes timelines, budgets, and potential roadblocks.

By proactively managing expectations, you can minimize surprises and frustrations.

9. Build Relationships Over Time 🤝 

Effective stakeholder management is an ongoing process, not a one-time event. Invest time in building relationships with stakeholders throughout the project and beyond.

A strong foundation of trust will make communication more effective in the long run.

10. Seek Feedback and Adapt 🔁

Regularly solicit feedback from stakeholders on the effectiveness of your communication strategies. Double-check with them if you’ve clarified their queries before you close the conversation.

Be open to adapting your approach based on their input.

11. Maintain Product Documentation

A comprehensive and informative product documentation helps you educate stakeholders about your product in detail.

PRDs and FSDs are essential to highlight the product’s features, their purposes, and technical functionalities in detail to internal stakeholders. This helps in securing trust and stakeholder buy-ins for your product.

User manuals and other guiding documents help external stakeholders to learn how to use your product to their benefit.

Start applying these steps today and see what begins to change 🚀!

That’s all for today !

Product Meme of the Day 🤣

Stay tuned for some freshly baked PM tips, strategies, insights, weekly Q/A digests, and more right into your inbox!🚀

Cya!
Aneesha ❤️ 

Connect with us on LinkedIn:

• Areesha Shaikh

• Aneesha S

• Twice the Impact PM