Podcast Episode 16: How to design effective Stakeholder communication

What are stakeholders? 

Before we dive deeper, let's quickly recap what stakeholders actually are. Stakeholders are individuals or groups who are affected by your project or can influence it. These can be internal actors such as management, team members, or departments, as well as external ones like customers, suppliers, or even the public and regulatory authorities.

It's also important to understand that stakeholders can have either a direct or indirect influence. An indirect influence might arise, for example, from legal requirements set by a regulatory body. In contrast, direct influence can be exerted through decisions or the provision of resources. 

Each stakeholder has different expectations and interests, and that's what makes it both exciting—and challenging.

Stakeholders have very different needs. Let's have a look into a few scenarios:

• Executive Management: Primarily wants to know if the project stays within budget and achieves strategic goals.
  
  
• Sales: Focuses on whether the product will be ready in time to be competitive in the market.
  
  
• IT department: Requires technical details on interfaces, risks, and security concerns.
  
  
• Project team: Needs specific tasks, deadlines, and operational instructions.
  
  
• External stakeholders such as customers: Are interested in the final product, usability, or specific features.
  
  

An example: Imagine you are managing a software project. Your finance manager wants a monthly cost overview with deviations from the plan, the marketing manager requests weekly updates on the launch plan’s progress, and the development team needs daily syncs on bugs and features. Three stakeholder groups, three completely different communication needs!
 

You should also be mindful that stakeholders' priorities aren't just different, but sometimes even conflicting. For instance, marketing may want to release a feature quickly, while the IT department requests more time for testing. These kinds of conflicts need to be mediated.

As a project manager, you are the central communicator. Your task is to prepare information in such a way that it is relevant, understandable and useful for the respective target group. Here are a few tips: 

1) Identify the needs of each stakeholder

Ask yourself: What is the main interest of this stakeholder? Do they need a rough overview or detailed information? Is it about progress, risks, budget or decisions? Use stakeholder analyses and prioritize which stakeholders are particularly critical to the success of the project. 

A practical tool for this is the stakeholder matrix: it helps you visualize each stakeholders’ influence and interest. Stakeholders with high influence and great interest should be deeply involved, while less relevant stakeholders require less communication. 

2) Use adapted communication formats

• Top-Management: Use concise, clear reports, e.g. one-pagers with traffic light status (green = everything is running, yellow = attention required, red = critical). Focus on results and the need for decisions. 
  
  
• Project team: Tools such as Kanban boards or detailed task lists in project management tools like Jira or Trello work well here. The team primarily wants to know: What are the next steps?

• External stakeholders: Keep communication clear and results-oriented, such as milestone presentations. Highlight progress and achievements.
  
  

3) Choose the right channels

• E-Mails for written updates.

• Meetings for detailed discussions. 

• Dashboards for real-time transparency. 

4) Tools for structured reporting

• PowerPoint or Google Slides: Perfect for management presentations. Focus on clear visualizations like charts or KPI dashboards. 
  
  
• Excel or Google Sheets: Ideal for detailed budget overviews and scenario analyses. 
  
  
• Slack or Microsoft Teams: Best for quick, informal updates, especially for internal teams. 
  

Here are some best practices: 

• Traffic light status: Communicate progress and risks clearly. Translate technical or complex content into simple colors: Green, yellow, red. Always provide specific actions when Yellow or Red.
  
  
• KISS principle (Keep It Short and Simple) for management updates: Avoid unnecessary details. Instead, focus on: What’s going well? Where are the issues? What’s being done right now?
  
  
• Regularity: Establish consistent communication rhythms, such as weekly email updates or monthly steering committee meetings. This builds trust and accountability.
  
  
• Individual approach: Personalize your communication. Show that you understand the needs of each stakeholder group. For instance, a technical detail may be irrelevant for management but crucial for the IT department. 

• Obtain feedback: Regularly check in to ensure your reports and updates meet stakeholder requirements. They will appreciate knowing that their feedback matters. 
  
  
• Maintain flexibility: Stakeholder needs can change. Stay open to adjustments and see them as an opportunity to enhance collaboration. 

• Visualization: Use graphics, charts, or dashboards to make complex information more tangible. People often process visual data more quickly. 

• Transparenz: Even when challenges arise, communicate openly. Stakeholders appreciate honesty and proactive problem-solving. 
  
  
• Emotionale Intelligenz einsetzen: Pay attention to how your messages are received. Empathy helps you better understand stakeholder needs and prevent conflicts. 
  

Summary

1. Stakeholders are very different - in their interests, influence, and expectations. Understand who they are and what they need.
   
   
2. Taylor your communication accordingly: Management requires different information than the project team or external customers.
   
   
3. Use the right formats, tools, and channels to communicate messages clearly, convincingly and effectively.
   

Remember: As a project manager, you’re not just a planner and organizer, but also a facilitator. The better you understand and address stakeholder needs, the more successful your project will be.