Who are Stakeholders?

Some might say stakeholders encompass everyone, but that definition lacks clarity. I differentiate between those you interact with regularly through structured processes and those who represent distinct segments within your organization, necessitating customized collaboration.

To clarify this, let's consider some examples:

1. Software Engineers: Your engineering team is a primary group with whom you'll frequently collaborate through meetings, demonstrations, and retrospectives, placing them outside the traditional stakeholder category.
2. UX Designers: Similar to engineers, you likely have ongoing interactions with one or more UX professionals.
3. Customers: Customers are categorized into personas representing various segments. You should be meeting these individuals on a weekly basis. I refrain from calling this group stakeholders, as interaction methods with customers are well-established, involving journey mapping, interviews, A/B testing, and more. For a deeper dive into engaging this group, I recommend Teresa Torres’ Continuous Discovery Habits.

This leaves us with the remaining categories, including various functions and their respective levels. Common stakeholder groups include Analytics/Data Science, Marketing, Sales, Finance, and HR. Additionally, there will be specialized groups that vary across companies, such as domain specialists in Payments, Customer Success, or regional market representatives.

Now, let's examine how to manage these stakeholder groups.

Identifying Key Stakeholders

Recognizing which groups constitute stakeholders doesn’t automatically clarify who you should engage within those functions. It’s essential to consider: Who do you need to influence? Who should you keep close and who can be left uninvolved?

Attempting to manage and influence all stakeholders is impractical and will lead to overwhelm. Concentrate your efforts on those who matter most.

One effective tool for this purpose is the Power/Interest Matrix, created by Aubrey Mendelow in 1991. This straightforward method helps visualize an individual's potential to influence or impact your project. By approximating someone’s power and interest in your product, you can effectively position them on this matrix and tailor your engagement strategies accordingly.

Now that we have identified which stakeholders to focus on, we can determine whether to engage them actively or simply keep them informed.

Managing Key Stakeholders: Group Dynamics

It’s common to see discussions in group settings that would be better addressed in private one-on-one conversations. My advice is to minimize contentious topics in group forums. If you have concerns about a performance issue in a department or a particular behavior during the meeting, consider how to handle that delicately.

You might wonder: Isn’t it better to confront issues directly? While I’ve previously emphasized the value of courage for Product Managers, the real bravery in group settings lies in utilizing your interpersonal skills to navigate conflicts without escalating them. Confrontation often leads to heated arguments that can cloud judgment and logic.

If you choose to confront directly and succeed, you risk alienating others publicly. Conversely, if you lose, your credibility may take a hit. Instead, aim to remove contentious discussions from the group setting, opting for a one-on-one conversation afterward where you can address issues calmly and logically.

1–2–1 Conversations: A Powerful Tool

Why are one-on-one meetings so effective? Group dynamics differ significantly from individual interactions. In private, individuals tend to communicate more openly and rationally. In contrast, group settings can trigger defensive behaviors, leading to confirmation bias and resistance to new ideas.

The philosopher Nietzsche once noted that "In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule." For me, one-on-ones are the most potent tool in stakeholder management.

Approaching stakeholders effectively requires adaptability. You should aim to align your communication style—be it dialogue, humor, or body language—with that of the person you're engaging with. Establish rapport before delving into more challenging subjects to determine if they are allies or detractors.

Building Alliances

While the term "alliances" may sound militaristic, it simply refers to forming collaborative relationships. Mastering the nuances of group dynamics and bilateral management will naturally lead to the development of strong alliances.

In practice, alliances are invaluable in decision-making contexts. Before entering a critical meeting, such as a sponsorship approval or vision alignment session, seek to solidify support from colleagues. Avoid being the lone advocate for your idea, as this poses a significant risk.

Relying solely on your immediate manager for backing is a common but risky strategy, as it creates a single point of failure. Instead, cultivate support from multiple sources before entering high-stakes discussions.

Navigating Technical and Non-Technical Stakeholders

Stakeholders can be divided into technical and non-technical categories. For non-technical stakeholders, analogies are your best allies. Given the complexity of product work, simple analogies can help demystify dense concepts. For instance, I once illustrated a data issue by comparing it to a flood: "We’ve built a dam to prevent it, but the tap is still running—my proposal is to turn off the tap." This analogy resonated and engaged stakeholders effectively.

Visual aids also play a crucial role in communicating complex ideas. While some organizations prefer written narratives, effective visualizations can simplify intricate topics. High-quality slides should be clear and colorful, requiring minimal text. This places more responsibility on the presenter to provide context and answer any questions that arise.

For technical stakeholders, my personal experience has led me to focus less on technicalities and more on the customer and business implications of our work. Engaging in discussions centered around customer issues and organizational strategy fosters a more constructive dialogue. Redirect technical discussions to those who are deeply involved in the engineering aspects, allowing you to concentrate on higher-level business conversations.

In summary, here are the six essential strategies for managing stakeholders effectively:

1. Identify your stakeholders.
2. Assess their importance and prioritize your focus.
3. Avoid conflict in group settings.
4. Utilize one-on-one conversations for contentious discussions and alliance building.
5. Use analogies for non-technical audiences to simplify complex topics.
6. Shift technical discussions toward business outcomes with senior stakeholders.

I hope you find these insights beneficial! I welcome your feedback and encourage you to follow me for more content like this.