5 Ways to Prioritize Stakeholder Needs in Project Planning

by Daniel Raymond · September 23, 2024

Identification of the numerous needs and expectations of the stakeholders is one of the many keys to the successful execution of a project. The stakeholders ranged from investors down to team members and sometimes even customers. Each group has unique concerns, and often it gets tough to balance their interests. Thereby, the first step to successful prioritization shall be to understand and thus identify individual priorities for each stakeholder. This includes open communication, active listening, and carrying out detailed assessments.

Table of Contents

1. Segmenting Stakeholders by Influence and Interest

All stakeholders do not possess equal degrees of influence or interest in a project. A helpful strategy for prioritizing their needs is to segment the stakeholders into categories of involvement and power to influence. The high-influence stakeholders, like executives or key clients, should be given higher priority as their views are likely to be highly influential in setting the direction of the project. Conversely, stakeholders with low influence but a high interest should also be recognized since their support might well prove to be vital to the success of the project. By segmenting stakeholders, project managers are able to create targeted strategies that respond most strongly to the immediate needs of those who may influence the project’s outcome.

Real-life example: A software company is developing a new application. The project manager identifies the CEO and key investors as high-influence stakeholders because they control the project’s budget and strategic direction. At the same time, the end-users of the app, such as customer support teams, have high interest but low influence. The project manager schedules regular updates for the executives and client briefings to address their concerns while also conducting focus groups with the customer support teams to gather feedback, ensuring both groups are considered.

2. Balancing Short-Term and Long-Term Needs

In project planning there is often the need to balance short-term objectives with long-term goals. Whereas some stakeholders may have an interest in very short-term outputs, such as immediate investment returns, others want to get a view of how the project will sustain and scale over time. Knowing these varied timeframes is important for the management of expectations. By availing information pertaining to the short-term gains and benefits derivable in the long term, project managers are able to ensure that the needs for the short term are satisfied without giving away the success of the project into the future. This balance builds confidence for all stakeholders that their interests are taken into consideration, whether their focus is on the present or the future.

Real-life example: In a construction project for a new office building, local government officials prioritize short-term job creation and immediate tax revenue. In contrast, the corporate stakeholders focus on the building’s sustainability and long-term operational efficiency. The project manager ensures that both short-term objectives, such as hiring local contractors, and long-term goals, like using energy-efficient materials, are incorporated into the project, maintaining balance for both sets of stakeholders.

3. Negotiating Conflicting Interests

With big teams and cross-functional teams, it is very normal for the priorities of different stakeholders to clash. Here, the project manager has to come forward and act as a mediator to help find common ground. In doing so, he might need to negotiate a compromise wherein everybody’s voice is heard and valued. One would be to use data-driven insights into how the attainment of some stakeholder needs would automatically result in the overall success of the project. Knowing the position of every single stakeholder with empathy and communication in a transparent way might ease tension and create a cooperative environment where all interests align toward the same project goals.

Real-life example: During the development of a marketing campaign, the design team wants a visually complex and creative advertisement, while the sales team prefers a straightforward, product-centric approach. The project manager mediates by using market research data, which shows that a balanced design can engage customers without overwhelming them. The compromise is a creative design with clear product messaging, addressing both teams’ priorities.

4. Incorporating Feedback into the Planning Process

It involves incorporating their feedback into the plans as part of prioritizing the needs of stakeholders. Many of them make very valuable contributions to project directions and even indicate risks and opportunities that had not previously been contemplated. Ongoing feedback throughout the project lifecycle, with corresponding adjustments of plans to match the same, can ensure that any concerns of the stakeholders are identified and addressed in a timely manner. This continuous engagement makes stakeholders feel that they own the project in a way since it is ongoing with their active participation, thus making them more committed to its success. Stakeholder engagement software may also help solicit and collate this input, which will assist the project manager in arriving at an informed decision on how project objectives should be aligned with the expectations of the stakeholders.

Real-life example: In an IT infrastructure upgrade, mid-level managers provide feedback that certain software tools being considered may not integrate well with existing systems, posing a risk of downtime. The project manager takes this feedback seriously and works with the IT team to test the integration in a pilot program. This adjustment ensures a smoother rollout and addresses the concerns before the full launch.

5. Regular Communication and Updates

Stakeholder relationship building requires, most fundamentally, keeping them informed. Ensuring the needs of all stakeholders during the course of the project requires regular communication and updates that keep them feeling involved; those whose role in the project may be more passive. Scheduled meetings, status reports, and progress summaries are one way to keep project managers and all other parties current and aligned with the direction of the project. This proactive approach avoids misunderstandings and keeps the stakeholders engaged by not being overwhelmed with too much information. By communicating effectively, the project manager could achieve a better balance among stakeholder needs and deliver value.

Real-life example: In a multinational product launch, stakeholders include the product development team, marketing team, and regional offices across several countries. The project manager sets up weekly status reports and monthly video conferences with all key stakeholders to provide updates on progress, challenges, and milestones. This ensures that everyone remains informed and engaged, preventing any misunderstandings or misalignment in goals across regions.

Conclusion

Prioritizing stakeholders’ needs is an ongoing process that involves a great deal of planning and open communication with strategic consideration. By prioritizing the needs of the stakeholders, by segmenting them based on their influence and interest, and by weighing short-term goals with long-term objectives, the project manager will be in a position to represent all voices that are valued. Where there is a conflict of interest, negotiation and open communication become germane to reach a common understanding. Incorporating feedback into the planning process on a regular basis, coupled with regular communication, will bring about stakeholder satisfaction, which may be used to help drive the project to a successful conclusion.