Top Tips For Managing Stakeholder Expectations

In my 15+ years experience handling projects across scale and complexities, I have seen one underlying theme. I have learned that properly managing stakeholders expectations is vital for project success. 

In my corporate stint, many techniques and strategies have helped me cultivate stakeholder engagements that have proven beneficial for successful project execution. These are the core insights that I want to present in this blog. 

When you finish with this post, you will know about the key elements to successful management of stakeholder expectations.

So, let’s get started.

What Are Stakeholder Expectations?

Stakeholders judge the progress of a project based on their expectations. They consider the project successful, if it meets their expectations. These often include the following- 

• Delivering a high-quality product or service

• Finishing on time

• Staying within budget

Stakeholders expect regular updates. A smart project management professional manager can use this demand to manage their expectations. Several project management tools provide robust reporting capabilities. This lets users report in various formats to update stakeholders. These tools enable easy creation of status and variance reports. They can be easily customized to show only the stakeholders’ interest.

Why Managing Stakeholder Expectations is so Important

You can’t always fulfill every one of your stakeholders’ wants and demands. Sometimes, you must make compromises. A few stakeholders might feel like victors while others feel like they have not gained much. 

Proper stakeholder management is not about giving everybody precisely what they need. But it means including them in the process. It lets them alter and impact the outcome as much as possible.

Stakeholders may not necessarily agree with the result. Yet, they should feel that the process was fair and inclusive. This doesn’t necessarily happen, particularly if they are unhappy with the result. Hence, managing their expectations during the process can help a lot.

With this move, your stakeholders will -

• Comprehend the procedure

• Recognize what can and cannot be done

• Be sure to be forthright and truthful

• Determine the reasons behind choices

This will give them added impetus to support your project. It might also help them be more realistic about the outcomes to avoid disappointment.

Managing stakeholder expectations is a vital part of PMP certification. It can - 

• Give value to relationships

• Improve satisfaction

• Increase Trust

• Build better relationships

• Gain social approval to operate

This will result in smoother operations for your project or organization.

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Top Ways to Manage Stakeholder Expectations

Keeping everybody on the same page throughout the task is fundamental. It means talking and listening to the stakeholders. Doing this ensures that they understand that things might not always go as planned, but their input does matter.

Here are four important tips for managing expectations well.

1. Ensure your stakeholders understand what a successful venture will resemble

Take the time to know organizational goals. It will help you figure out what you want the venture to accomplish before it begins. If you don’t sketch out the task scope from the start, it will be difficult to get stakeholder buy-in.

2. Clearly define the levels and frequency of engagement

You should be clear about how much involvement each stakeholder needs to have in your plan. Identify who should be informed or involved in collaboration.

To work efficiently and satisfy all stakeholder groups, you need to know exactly how much engagement each group requires.

Provide regular value to your stakeholders to maintain their attention and interest. Share relevant information frequently to keep them engaged. This is especially true for long projects that require patience.

3. Manage Expectations

It might happen that you will do your best to engage everyone involved in your project. Still, you might face unrealistic or conflicting expectations. Stakeholders might have a different view of the project or be more difficult to work with.

In such a scenario, it is wise to listen to their concerns and negotiate with them to find a middle ground. When doing this step, you should be ready to compromise for the sake of successful project execution. 

You must understand their individual perspective. This step will help develop creative solutions that meet the project’s goals as well as the stakeholders’ needs.

4. Show Proof and Research

The people you are dealing with might know different things from different places. Don’t assume they know everything, and don’t think you know everything, either.

When you communicate, tell them the facts from a trusted source. It is also important to listen to what stakeholders want to say because they might have good ideas. Keep a record of all your talks and be ready to change your plans if you need to, based on what you learn from them.

Examples of Stakeholder Expectation Management

Let us examine two situations. They will throw more light on how to manage stakeholder expectations realistically.

Example 1: Government Agency Planning Big Changes to Laws or Rules

You are in charge of ensuring everyone knows what to expect when a government agency is about to share a new plan for land use. This plan could affect local governments and businesses that work with property.

a. Real Estate Expectations

• How much will it cost, and when must we follow this new policy?
• Management of expectations

Give a deadline for when businesses must follow the rules, and say how much it might cost them based on their size. Also, mention any ways they can save money in the long run and suggest ways the government can subsidize and help them.

b. Local councils and the government department’s expectation 

This policy will allow us to do much more work. How will we get the support we need, and what will we gain from it?

Management of expectations

• Highlight how past energy and environmental policies have affected businesses and jobs.

• Show how this policy can help small businesses and job seekers.

• Adjust the policy if there are big concerns.

Example 2: Bank Launching a New Product

In this situation, you manage what different stakeholders expect. Here are some common expectations from key stakeholders and how you might handle them.

a. Shareholders’ Expectation

• This will be successful and add to our topline.
• Management of expectations

Communicate clearly with shareholders. You should offer realistic and current updates on the progress of the project and the likely outcomes.

b. Customer Expectation

• I want a product that solves all my problems. 
• Management of expectations

Understand customers’ main issues and how the product can help. This guarantees that marketing materials sincerely portray the product’s abilities without misdirecting the clients.

When you take a PMP course, you would come across many such examples to understand the concept better.

Conclusion

Managing expectations of stakeholders is crucial for fruitful projects and organizations. To do this, you need to - 

• Understand their needs

• Communicate and engage with them

• Set achievable goals

• Be transparent

This approach builds trust and ensures projects go smoothly. Excellent stakeholder management prompts practical projects and strengthens relationships for future cooperation. Given its immense importance in business outcomes, you will come across this topic when you go for PMP certification.

FAQ

1. How to manage stakeholder expectations in terms of realistic deadlines?

Communicating is key when managing stakeholder expectations. You should set realistic goals and timelines. Any possible problems and slowdowns must be discussed as well. It also helps establish trust and ensures that everyone agrees and moves in the same direction.

2. Why is it important to actively manage stakeholder expectations?

When you manage expectations, it helps a lot. You can avoid potential misunderstandings. Plus, you can ensure that all stakeholders are focused on the project goals and ETAs. It minimizes the possibility of a clash and enhances the project’s overall work.

3. What happens if stakeholder expectations are not met?

If you fall short of meeting stakeholder expectations, it may lead to dissatisfaction and conflict. This is likely to trigger project complications or even failure. This is why I strongly believe that expectations management is key to successful relations and project outcomes.