Stakeholder Engagement in Project Management

A stakeholder is any individual, group or organization directly or indirectly affected by a project. That means they are interested in its success and can influence its outcome. This can include the project manager, project team, customers, suppliers, executives, regulatory bodies and sometimes the community impacted by the project. Stakeholder engagement helps manage these various influencers.

To understand how to manage stakeholders, we’ll begin by defining stakeholder engagement and a stakeholder engagement plan. Then we’ll outline what should be included in the stakeholder engagement plan and how the process is played out in project management. Then download a few free related templates to help when managing stakeholders

What Is Stakeholder Engagement?

Stakeholder engagement in project management refers to the process of identifying, communicating with and managing relationships with individuals or groups who have an interest in or influence over a project. These stakeholders may include clients, sponsors, team members, regulatory bodies and end users. Effective engagement ensures that their expectations, concerns and contributions are considered throughout the project lifecycle.

Engaging stakeholders involves active communication, collaboration and feedback mechanisms to align project goals with their needs and priorities. It helps prevent misunderstandings, reduce risks and increase project buy-in. This engagement can take various forms, including regular meetings, status updates, surveys and workshops.

By prioritizing stakeholder engagement, project managers can enhance decision-making, improve project outcomes and increase overall satisfaction among those impacted by the project. A well-executed stakeholder engagement strategy ensures smoother project execution, fosters trust and minimizes resistance to change.

Project management software is critical to successful stakeholder engagement. ProjectManager is award-winning project and portfolio management software with multiple project views to plan, manage and track projects in real time and keep stakeholders informed. The project manager is a stakeholder and can use robust Gantt charts to schedule tasks, resources and costs.

But our Gantt charts go the extra mile. They can link all four types of task dependencies to avoid delays and cost overruns, filter for the critical path to identify essential tasks and set a baseline to track progress in real time. Stakeholders can execute their tasks on the tool they prefer, such as kanban boards or task lists. Other stakeholders can get guest passes to see the calendar view and stay updated on progress or their responsibilities. Get started with ProjectManager today for free.

ProjectManager's Gantt chart with filter — ProjectManager’s Gantt charts help manage stakeholder engagement. Learn more

What Is a Stakeholder Engagement Plan?

A stakeholder engagement plan is a strategic document that outlines how a project will identify, communicate with and manage relationships with stakeholders throughout its lifecycle. It helps ensure that stakeholders’ interests, concerns and expectations are actively considered, minimizing risks and increasing project success.

This plan defines the key stakeholders, their level of influence, communication preferences and the engagement strategies to use. It also establishes a structured approach to keeping stakeholders informed and involved through meetings, reports, feedback sessions and collaboration tools.

A well-designed stakeholder engagement plan helps build trust, enhance transparency and improve decision-making by fostering positive relationships with those who impact or are impacted by the project.

What Should Be Included in a Stakeholder Engagement Plan?

A stakeholder engagement plan provides a structured approach to identifying, analyzing and managing relationships with project stakeholders. It ensures that stakeholders remain informed, engaged and aligned with project objectives. Below are key components that should be included.

Stakeholder Register

A detailed list of all stakeholders, including their roles, contact information, level of influence and interest in the project. This helps track and manage stakeholder relationships effectively.

Stakeholder Map (Power-Influence Matrix)

A visual representation that categorizes stakeholders based on their level of power and influence over the project. This helps determine the appropriate level of engagement for each stakeholder group.

Stakeholder Engagement Matrix

A table that outlines how, when and with whom engagement efforts should take place. It helps project teams tailor communication strategies for different stakeholder groups.

Salience Model Chart

A model that classifies stakeholders based on their power, legitimacy and urgency, allowing project managers to prioritize engagement efforts with the most critical stakeholders.

Current and Desired Stakeholder Engagement Levels

This section assesses where stakeholders currently stand in terms of engagement and where they need to be for project success, which is as follows.

Unaware: Stakeholders unaware of the project.
Resistant: Stakeholders opposed to the project.
Neutral: Stakeholders neither supporting nor opposing the project.
Supportive: Stakeholders in favor of the project.
Leading: Stakeholders actively engaged in and championing the project.

Stakeholder Engagement Objectives

Defines the goals of engagement based on stakeholder needs and project requirements:

Inform: Keep stakeholders updated with relevant information.
Consult: Gather stakeholder feedback to refine project decisions.
Collaborate: Work together with stakeholders to co-develop solutions.
Empower: Give stakeholders decision-making authority in specific areas.

Communication Plan

The communication plan outlines how information will be shared with stakeholders, including the communication channels, frequency and responsible parties to ensure timely and effective engagement.

Stakeholder Engagement Metrics

Defines key performance indicators (KPIs) to measure engagement success, such as stakeholder feedback scores, participation rates and response times to communications.

Stakeholder Engagement Process in Project Management

The stakeholder engagement process ensures that all relevant parties are properly identified, analyzed, and involved throughout the project life cycle. Effective engagement helps manage expectations, minimize risks and increase stakeholder support. Below are the key steps in the process.

1. Identify Project Stakeholders

The first step is to create a list of all individuals, groups or organizations that have an interest in or can impact the project. This includes internal stakeholders (e.g., project team, executives) and external stakeholders (e.g., clients, suppliers, regulatory bodies).

2. Use Stakeholder Management Charts to Analyze and Prioritize Stakeholder Engagement Efforts

Tools like a stakeholder analysis, stakeholder map and stakeholder register help categorize stakeholders based on their level of interest, influence and urgency. This prioritization allows project managers to focus engagement efforts on the most critical stakeholders.

3. Define Stakeholder Expectations and Requirements

Engaging with stakeholders early in the project helps uncover their specific needs, concerns and success criteria. Understanding these expectations ensures project goals align with stakeholder interests and helps prevent conflicts later.

4. Identify Stakeholders’ Communication Preferences

Different stakeholders require different levels of communication. Some may prefer detailed reports, while others need brief email updates or face-to-face meetings. Defining the right communication approach ensures that stakeholders remain informed and engaged without unnecessary overload.

5. Keep Stakeholders Informed on Project Status Periodically

Regular updates through status reports, meetings and presentations help maintain transparency and trust. Keeping stakeholders engaged throughout the project ensures that their concerns are addressed promptly and that they remain supportive of the project’s progress.

Why Is It Important to Build a Stakeholder Engagement Strategy?

A well-defined stakeholder engagement strategy ensures all project stakeholders are properly identified, analyzed and involved throughout the project. It helps align stakeholder expectations with project objectives, reducing risks and increasing the likelihood of project success. Without a clear engagement strategy, misunderstandings and misalignment can lead to delays, conflicts and resistance to change.

Engaging stakeholders effectively enhances collaboration and decision-making by fostering open communication and transparency. When stakeholders feel heard and involved, they are more likely to support project initiatives and contribute valuable insights. A structured engagement strategy ensures stakeholders receive relevant updates, provide timely feedback and remain engaged throughout the project life cycle.

A strong stakeholder engagement strategy also helps build long-term relationships and trust between the project team and key stakeholders. By proactively managing concerns and addressing expectations, organizations can create a positive reputation and increase stakeholder buy-in for future projects. This not only improves the success of the current project but also strengthens partnerships for future collaboration.

Stakeholder Management Templates

We’ve mentioned tools that are part of the process of stakeholder engagement. Those tools can be found among our over 100 free project management templates for Excel and Word. These free templates cover all aspects of managing projects across multiple industries. Here are a few that can help when managing stakeholders.

Stakeholder Map Template

Stakeholder engagement begins with identifying the stakeholders of a project. Use this free stakeholder map template for Excel to find and identify stakeholders’ impact and influence, whether individuals, groups or organizations.

Stakeholder Register Template

Use this free stakeholder register template for Excel to understand how each stakeholder influences the project. This will inform how to communicate and manage them better. This free template helps address stakeholders’ needs and plans to effectively communicate with them.

Stakeholder Analysis Template

Another free template that can identify and manage stakeholders is the stakeholder analysis template for Excel. This free template collects the key stakeholders by group, which is determined by their level of participation, interest and power or influence on the project.

How ProjectManager Helps With Stakeholder Engagement

While templates can help identify stakeholders and help determine what stakeholder engagement should look like, they fall short when it comes to managing them during the planning and execution of the project. Managing stakeholders is dynamic and Excel spreadsheets are static documents. Project managers need real-time project management software. ProjectManager is award-winning project and portfolio management software with multiple project views and all the features needed to manage, track and report on progress to manage stakeholder expectations.

Robust Resource Management

Stakeholders have a vested interest in the project’s success. Project managers set the stage for this by scheduling resources, both human and nonhuman, on Gantt charts. Before assigning teams to tasks, project managers can set their availability, such as PTO, vacation, global holidays and skill sets, to ensure the right person is assigned the right task at the right time. This leads to a smoother execution.

However, it’s also important to have an overview of resource allocation to ensure no one is overallocated or underutilized. The color-coded workload chart gives this information with only a glance, and can also balance the workload to keep teams working at capacity and productive without burnout. The team page provides a daily or weekly summary of the team’s activities, which can also be filtered by priority, progress and more.

Real-time Project Management Dashboards and Reports

The key to stakeholder engagement is providing them with updates to manage their expectations. Our software has many ways to monitor the project, from the high-level overview of the real-time project or portfolio dashboards to customizable reports. All reports can be filtered to highlight the data stakeholders care about and then shared with them across several different formats. Even our secure timesheets help by tracking labor costs to help deliver the project on budget.