Successful stakeholder participation is essential for the achievement of any project. For UpValley, recognizing and executing the most efficient stakeholder strategies guarantees streamlined project execution, enhances collaboration, and mitigates risks. In this two-part series, we explore the most effective stakeholder engagement strategies that UpValley can employ to ensure the success of its initiatives and long-term objectives. In Part 1, we focus on the importance of identifying and prioritizing stakeholders, supported by empirical data and examples.
Stakeholder Identification
Accurate identification of stakeholders is crucial. In 2017, a report by the Project Management Institute (PMI) found that 33% of projects fail due to poor stakeholder engagement. Stakeholders include internal team members, clients, investors, and regulators, all of whom have differing priorities. For example, IBM engages diverse stakeholders such as government entities, local communities, and customers to ensure a holistic approach in its sustainability projects.
Key Strategy: UpValley should implement stakeholder mapping using the Salience Model, as seen in Maersk’s Triple E project, which involved 30 stakeholders, including governments, environmental groups, and suppliers, to ensure balanced priorities. This helps categorize stakeholders based on their power, legitimacy, and urgency, leading to more effective management of their needs.
Stakeholder Prioritization
The International Finance Corporation (IFC), in its projects, prioritizes stakeholders through a formal framework that assesses their influence on project outcomes. A study by Deloitte showed that organizations with a formal prioritization process are 60% more likely to achieve project success.
Key Strategy: UpValley can utilize the Power-Interest Matrix, as employed by Shell during its Niger Delta development projects, to manage conflicting interests among environmentalists, local governments, and communities. This framework allowed Shell to focus its resources on stakeholders with high influence while addressing concerns of other interested groups.
Early Engagement and Expectations Setting
Early engagement helps avoid scope creep and miscommunication. According to a study by KPMG, 56% of companies that engage stakeholders early in the project lifecycle are more likely to deliver successful projects. The London Crossrail Project effectively engaged over 200 organizations early on, resulting in high public satisfaction rates.
Key Strategy: UpValley should follow a structured engagement process like Siemens used for its smart grid projects, involving stakeholders from the local government, public, and utility companies during the planning stage. This helped Siemens align expectations and avoid costly delays.
Takeaway
In this first part of the series, we emphasized the importance of stakeholder identification, prioritization, and early engagement. By applying frameworks like the Salience Model and Power-Interest Matrix and learning from real-world examples such as Crossrail and Shell, UpValley can ensure a strategic and efficient approach to stakeholder management, leading to long-term success