What is stakeholder engagement — and why does it matter?

A project is more than the sum of its parts. Even the smallest task — like making a cup of coffee for someone — involves you, plus resources, plus a recipient.

When you break it down into its various components, there are several things that have to come together to make it possible. And if the recipient changes their mind or doesn’t like the coffee? The project flops, even if everything up to that point went well.

The harsh truth is that no matter how well you plan and execute your project, if your stakeholder gives you the thumbs down, then it’s a failure. This is why it’s important to engage them from the very beginning. Let’s take a closer look at stakeholder engagement, a project management essential. 

What is a stakeholder?

No project is an island. It invoves a range of people who have an interest in its outcome — and these are what’s known as stakeholders. They can be internal, like managers and team members. Or they can be external, like investors, customers, or the general public. 

• Internal stakeholders are team members, managers, or board members — you get the gist. Basically, anyone who works within the company. They might even shape the day-to-day mechanics of the project. 
• External stakeholders are more hands-off, but they’re still affected by the project/its outcomes. Think members of the public, suppliers, clients, and so on.

What is stakeholder engagement?

Stakeholder engagement is about building strong working relationships with everyone who cares about your project. Or, almost everyone — your mum probably isn’t one, but those who can shape the course of events and call its success or failure most definitely are.

Good stakeholder engagement involves the three Cs:

• Communication
• Consultation; and 
• Collaboration. 

You’ve got to communicate regularly with stakeholders, gather feedback (consultation), and work with them to bring the project to a winning conclusion. This is the bedrock of good stakeholder engagement. 

Why do you need to engage stakeholders?

Happy stakeholders = a smoother project.

1. It strengthens trust: Don’t keep secrets from your stakeholders! When you’re crystal clear about what’s going on (the good and bad), they feel confident in your plans. And when they feel like they’re in good hands, they’re more likely to support you.
2. It gives you important insights: Stakeholders have unique perspectives, so be sure to gather all the insights you can. It’s gold for you, but it also helps them feel involved.
3. It boosts your rep: When you treat stakeholders well, you look good and they’re likely to sing your praises to others. This could land you more business. 
4. It keeps the process conflict-free: Involving stakeholders from the second your project kicks off keeps misunderstandings and disagreements to a minimum. Plus, when people feel heard, they’re more likely to be sympathetic if there are any hiccups along the way.
5. It creates a sense of ownership: When stakeholders feel like they’re a valued part of the process, they’re more invested in the results, working harder to make the project a resounding success.

Stakeholder engagement vs stakeholder management

Stakeholder engagement is about building happy, productive working relationships with your VIPs. The process revolves around listening, communicating, influencing, negotiating, and involving them.

Stakeholder management is more about planning and creating strategies to handle their behavior. It centers on identifying them, sussing out their influence and interest, and creating plans to manage their expectations along the way. 

	Stakeholder engagement	Stakeholder management
Focus	Building relationships	planning and control
Approach	Collaborative and proactive	strategic and organized
Activities	Communication, consultation, feedback integration	identification, assessment, expectation management
Goal	Mutual benefits, understanding stakeholders’ needs	aligning stakeholder actions with project goals
Timeframe	Ongoing process	often project-specific

What is a stakeholder engagement plan?

A stakeholder engagement plan (aka a ‘SEP’) is document that sets out, in words, exactly how you’ll communicate with your stakeholders from project beginning to end.

Inside, you’ll find a full list of stakeholders, their rank according to interest and influence (more on that later), and detailed steps for getting them on side. The goal is to keep everyone pulling in the same direction, and having a detailed plan plays a core role in this. 

What are the benefits of a stakeholder engagement plan?

A solid SEP gives you a solid framework for building strong stakeholder relationships. It also means that no matter how hectic the project gets, you have a reliable process to follow when it comes to engagement, so no one falls by the wayside. 

We’ve already covered the benefits of stakeholder engagement as a process, so let’s take a look at the functional benefits of the document itself. 

1. Smarter decision-making: More perspectives, better insight. Stakeholders often spot overlooked issues and opportunities, so it’s good to get their thoughts — and taking a structured approach to gathering helps ensure you don’t miss a thing. 
2. Crystal-clear communication: The SEP sets out how and when you’ll communicate. This means everyone gets the right information at the right time.
3. Structured feedback: The SEP gives you a clear process for collecting and responding to feedback. This helps you tackle hiccups sooner rather than later, while making strong decisions based on actual stakeholder input.
4. Defined roles and responsibilities: The plan clearly sets out who’s responsible for engaging with each stakeholder group. This keeps your engagement actcitties focused and oriductive, while mininizing conflusion.  
5. Proactive risk management: By spotting potential risks and integrating mitigation strategies into the SEP, you can tackle issues before they snowball. 
6. Enhanced transparency: having a documented plan boosts transparency. Stakeholders know what to expect, and they can see exactly how their input is used.
7. Better resource allocation: Having a defined plan helps you allocate resources better. This keeps you focused on your stakeholders and their needs, without getting sidetracked by other demands.
   

What should your stakeholder engagement plan include?

While plans will differ, there are a few elements you absolutely need to include. 

• Stakeholder ID: List all the stakeholders, both internal and external. Include their names, roles, and contact information.
• Analysis: Work out each stakeholder’s interest, influence, and potential impact on the project. 
• Engagement objectives: What do you want to achieve with each interaction? Make sure each one lines up with your project’s goals. 
• Communication methods: List how and when to communicate with each stakeholder group, including the channels you’ll use.
• Engagement activities: Note down specific engagement activities, E.g. regular updates, feedback sessions, consultations, collaborative workshops, and so on.
• Roles and responsibilities: Clarify who’s doing what for each stakeholder group and the activities involved.
• Feedback mechanisms: Make sure you have a system in place to collect, track, and address feedback promptly, and list it in your plan.
• Monitoring and evaluation: Set up metrics to monitor and evaluate your engagement efforts. 
• Risk management: Identify risks related to stakeholder engagement and plot strategies to mitigate them. This might involve prepping for conflicts, managing expectations, and having contingency plans in place.
• Timeline: Your timeline should include key milestones and deadlines. This keeps engagement timely and aligned with your goals.

5 steps to creating a SEP 

Follow these steps, and you’ll be well on the way to creating a powerful SEP.

1. Identify your stakeholders

First, scribble down everyone who’ll have an interest in your project, or be affected by its outcomes. Remember to include internal and external stakeholders. 

Top tip: We all have blind spots, so ask your colleagues their thoughts so you don’t leave anyone important out of the mix. Ask your stakeholders themselves, too.

2. Plot stakeholders on a grid

An influence-interest grid helps you prioritize your engagement efforts based on these two very important factors.

Create the grid

• Draw a 2×2 grid. Label the x-axis as ‘interest’ (low to high) and the y-axis as ‘influence’ (low to high).

Plot stakeholders

• High influence, high interest (manage closely): These are your VIPs. They have a big impact on the project and are very interested in its success. Regular, detailed communication and active engagement are a must.
• High influence, low interest (keep satisfied): These folks have the power to affect the project, but they’re not so interested in the details. Keep them informed with occasional updates. 
• Low influence, high interest (keep informed): These people are really interested in the project but have little power over the outcomes. Regular updates and opportunities for feedback help keep them engaged and supportive.
• Low influence, low interest (monitor): These stakeholders are the lowest priority for active engagement. They need basic information but don’t bother with intensive updates. 

Analyze the grid

• Work out where to focus your resources and efforts.
• Pay special attention to those who have significant interest and influence.

Prioritize actions

Develop specific strategies for each quadrant. For example, stakeholders in the ‘manage closely’ quadrant might call for one-on-one meetings and detailed reports, while those in the ‘monitor’ quadrant might just need periodic newsletters or limited access to your project management tool so they can track progress in a more casual way.

Review and adjust

• Stakeholders’ positions on the grid might change over time. Review and adjust 
• based on evolving interests and influence.

3. Create a communication plan

This outlines how you’ll communicate with different stakeholder groups based on their placement in the grid from section 2.

Note down your communication channels

Work out the best channels for connecting with each group. Email, meetings, newsletters, social media, project management tools, reports, and workshops are all good options here.

Define types of communication

Establish the type and frequency of communication for each group.

High influence, high interest (manage closely): Frequent and detailed communication. Use one-on-one meetings, detailed reports, and project updates to keep them informed.

High influence, low interest (keep satisfied): Regular but less frequent updates. Use executive summaries, briefings, and high-level reports to keep them satisfied without overwhelming them with TMI.

Low influence, high interest (keep informed): Regular and engaging updates. Use newsletters, group meetings, and interactive sessions to keep them engaged.

Low influence, low interest (monitor): Minimal communication. Use periodic newsletters or brief email updates to keep them in the loop without over-communicating.

Create a table

Here’s an example communication plan for a product development project:

Stakeholder group	Channel	Frequency	Type of communication
Project sponsors	One-on-one meetings	Weekly	Detailed progress reports, risk assessments
Senior executives	Executive summaries	Monthly	High-level updates, milestone reviews
End-users	Newsletters	Bi-weekly	Product updates, user feedback sessions
Community groups	Workshops	Quarterly	Engagement sessions, feedback collection
Peripheral suppliers	Email updates	Monthly	Brief project status updates

Aim for clarity and consistency

Make sure your communications are clear, concise, and consistent. Use a standard template for reports and updates. Incorporate feedback gathering into the process — this can include surveys, feedback forms, and follow-up meetings to name a few. Adjust based on feedback to improve along the way. 

4. Create a feedback plan and collect data 

Feedback helps you understand your stakeholders’ needs. And actioning on it helps you improve your processes and relationships along the way. 

Define feedback objectives

Outline what you aim to achieve by collecting feedback. This could include understanding stakeholder satisfaction, identifying areas for improvement, and addressing concerns.

Note down feedback methods

Think carefully about your methods here: different groups might benefit from a certain approach. When it’s time to pick their brains, use unambiguous, concise, and tailored questions. E.g. a survey for end-users might include questions about product usability, while a feedback form for suppliers might focus on communication effectiveness.

Implement feedback collection

Roll out your feedback tools according to your communication plan. Make sure it’s convenient and accessible to encourage participation.

Analyze and act on feedback

Review to identify common themes and concerns. Prioritize issues that need immediate attention and develop action plans to address them. Update stakeholders on any changes made in response to their feedback so they can feel heard. Close the feedback look once it’s been addressed. 

Here’s an example stakeholder feedback plan:

Stakeholder group	Feedback method	Frequency	Key questions
Project Sponsors	One-on-one interviews	Quarterly	Satisfaction with project progress, key concerns
Senior Executives	Executive surveys	Bi-annually	Overall project alignment with strategic goals
End-users	Online surveys	After each release	Usability, feature satisfaction, improvement suggestions
Community Groups	Focus groups	Annually	Community impact, engagement effectiveness
Peripheral Suppliers	Feedback forms	Bi-annually	Communication efficiency, process improvements

5. Monitor and evaluate

Just like an athlete adjusting their routine, fine-tuning your plan is essential to keep it performing at its best.

• Set clear metrics: Note down metrics. You’ll use these to measure the effectiveness of your stakeholder activities.
• Run regular check-ups: Track your engagement activities against the set metrics. Use logs and feedback summaries to keep a record of all your interactions.
• Evaluate engagement outcomes: Periodically review your engagement activities, keeping those all-important metrics in mind.
• Adjust as needed: Based on your evaluations, make adjustments to your strategy. If certain things aren’t working, try a different approach.
• Report findings: Share the findings with your stakeholders. This transparency helps keep trust strong.
• Continuous improvement: Use the insights to refine the process. Collect, measure, improve, repeat. 

Stakeholder engagement plan template

Need a little more guidance? Just copy and paste this, and away you go!

1. Introduction

• Project overview: Describe the project in a few words. Include its objectives, scope, and timeline.
• Purpose of the SEP: Explain the purpose of the plan, focusing on how integral it is to the project’s success. 

2. Stakeholder identification

• List of stakeholders: Note down all your internal and external stakeholders. Include names, roles, and contact information (or primary contacts for groups).
• Stakeholder analysis: Assess each stakeholder’s level of interest, influence, and potential impact on the project.

3. Stakeholder mapping

• Influence-interest grid: Plot stakeholders on an influence-interest grid so you can see who matters most at a glance and coordinate your efforts accordingly. 
• Categorization: Now, sort them into groups based on said interest/influence. 

4. Engagement objectives

• Objectives: Write clear objectives for engaging each stakeholder group. Make sure they line up with your wider goals.

5. Communication plan

• Channels and methods: List the communication methods for each group, plus the channels and frequency for outreach.
• Detailed communication plan: Now, create a detailed plan for each group. It should include who’s responsible for communicating with each one, and how often.

6. Feedback plan

• Feedback methods: Note the methods for collecting feedback (e.g., surveys, interviews, focus groups).
• Feedback tools: Create info-gathering tools like surveys and feedback forms tailored to each group and your own goals.
• Feedback schedule: Set out when and how you’ll collect and review feedback. 

7. Roles and responsibilities

• Team roles: Clarify who’s doing what.

8. Monitoring and evaluation

• Metrics and indicators: Set up ways to measure how effective your engagement efforts have been, plus how you’ll track and measure the results.

9. Risk management

• Risk identification: Note down potential risks related to stakeholder engagement.
• Mitigation strategies: Develop strategies to mitigate these risks and have contingency plans in place.

10. Timeline

• Engagement schedule: Create a timeline for your engagement activities, aligning it with the overall project schedule. Include key milestones and deadlines.

11. Reporting

• Reporting schedule: Outline how and when you’ll report engagement activities and outcomes to stakeholders.
• Report content: Specify the content and format of reports, making sure they’re clear and informative.

12. Appendices

• Supporting documents: Include any supporting documents such as stakeholder lists, survey templates, feedback forms, and detailed schedules.

Connect better with project management software

Stakeholder engagement is more complex than sending out the odd email. Having a solid plan in place keeps things regular, measurable, and focused on results. As a payoff for all your hard work, you’ll have happier, more engaged stakeholders — so it really is a win-win. 

Backlog is a powerful project management tool for stakeholder engagement. Because everything — from tasks to workflows to project roles and more — is stored in one central hub, keeping track is easy. Plus, thanks to a range of sharing capabilities, you can invite stakeholders in, set their access level, and let them keep track autonomously. 

This boosts transparency while cutting down on your workload. They can access the latest info, give feedback, and participate in discussions, all from one place. This means everyone’s on the same page, no matter their involvement, interest, or influence. Ready to take Backlog for a spin?