Stakeholder management, also referred to as project stakeholder management (PSM), encompasses the process of identifying and actively engaging with the parties who stand to gain from the successful completion of a project. Remember, listening to and acting upon input from all relevant parties is the key to effective project management. Adhering to the four distinct phases of the Professional Scrum Master (PSM) is crucial for achieving favorable outcomes and fostering positive relationships among stakeholders. This article delves into a four-step process that involves identifying the target audience, analyzing their needs, developing tailored content, and effectively communicating it to them.

Identifying Stakeholders

The initial step in Process Safety Management (PSM) revolves around pinpointing the right individuals to engage with. Identifying those who bear responsibility takes precedence in any project. Stakeholders can encompass individuals, groups, or even entire communities that possess a vested interest in the project’s outcome or may be impacted by it in some way. Numerous elements and people can significantly influence the success or failure of a project.

Key activities in Identification are:

• Register: A complete directory of all influential people and organizations, along with links to their websites, email addresses, and bios. Gathering this information is crucial since it will facilitate productive communication and teamwork among all parties;
• Categorizing: Sort the many involved parties by their influence, importance, proximity, and veracity. This makes it easier to grasp the various needs and expectations of all parties, allowing us to prioritize suitable steps and contact.

Power	Interest	Urgency	Legitimacy
The ability to enforce their will.	The level of concern about the project outcomes.	The need for immediate attention.	Their appropriateness of involvement in the project.

These categories help in creating effective strategies for engaging with each stakeholder.

2. Stakeholder Analysis

When performing analyses, it is crucial to use a comprehensive strategy that accounts for the varying requirements and points of view of all parties involved. Managers of projects can benefit from a deeper comprehension of stakeholder needs, their impact, and the best ways to incorporate them into the project by following this procedure.

Key activities involved in Stakeholder Analysis are as follows:

• Assessing Influence and Impact: There are some aspects that have a much higher impact on the final results of projects than others. It’s important to consider all the people who could be affected by the outcome and who might be able to contribute to the effort. An Influence-Impact Grid is a useful tool to consider if you need guidance. 

	Low Influence	High Influence
Low Impact	Minimal Management (e.g., General public)	Keep Informed (e.g., Media)
High Impact	Keep Satisfied (e.g., Local community)	Key Player (e.g., Project sponsor)

• Identifying Stakeholder Interests and Expectations: There is a need for thoughtful deliberation of the interests and concerns of all project stakeholders. In order to keep goals in line with expected results, a thorough familiarity with these aspects is essential.

3. Stakeholder Engagement Planning

Stakeholder Engagement Planning’s goal is to create a plan that will keep stakeholders interested and participating in the project from start to finish. The plan includes actions to increase joy and lessen stress.

Key activities in Stakeholder Engagement Planning include:

• Creating a Stakeholder Engagement Matrix: The shown matrix highlights the current and desired levels of involvement, which may range from complete disinterest or outright hostility to neutrality, support, or even leadership.

Stakeholder	Current Engagement	Desired Engagement
Local Government	Unaware	Supportive
Sponsor	Leading	Leading
Employees	Neutral	Supportive

• Developing Engagement Strategies: Using the matrix, the management can develop strategies that will bring the stakeholders closer to the ideal state.

4. Stakeholder Communication

Making sure everyone is on the same page is an essential part of Process Safety Management (PSM). That calls for constant communication and a free flow of data. Stakeholders should be updated often and asked for feedback to ensure they are satisfied with progress.

Key activities in Communication include:

• Establishing Communication Methods: There are many channels of interaction available to stakeholders, such as emails, meetings, reports, and more;
• Creating a Communication Matrix: This resource can help you convey your message more clearly and effectively by analyzing your audience, time, and delivery options.

Information	Frequency	Method	Stakeholders
Status	Weekly	Email	All stakeholders
Risk Report	Monthly	Meeting	Sponsor, Project Team

Conclusion

It’s crucial to keep in mind the four cornerstones of stakeholder management: identification, analysis, engagement strategy, and communication. Do not worry yourself unnecessarily; instead, take things slowly and carefully. Keeping in touch with everyone who has a vested interest in a project is essential for its success. Our ultimate goal is to keep everyone happy by seeing to it that their needs are met. The likelihood of successfully completing the project has lately increased.

FAQ