Unravelling the confusion of stakeholder terms

One of the language problems in project teams is understanding the different stakeholder terms and identifying their specific information needs. The confusion comes from terms being used interchangeably, leading to misunderstandings and potential delays.

The State of PM 2022 Report
48% said their projects were delivered with stakeholders satisfaction most of the time – compared to 52% in 2020.
[Published by AIPM and KPMG]

Recently I spent time with a project team to understand their ask for SMEs – subject matter experts – as their project status was reporting blocks in progressing their work. Listening to their situation it was obvious they hadn’t maintained a stakeholder engagement plan based on roles and responsibilities; they had a list of people’s names, and most had moved onto other positions or had even left the organisation.

We discussed these four standard terms and then reviewed the steps to refresh their stakeholder engagement plan.

1.Customer

The customer refers to the end-user of a product, service, or project deliverable. They are the individuals or entities who will directly benefit from the project’s outcomes. The customer’s needs and requirements typically drive the project’s objectives and scope. Project teams must thoroughly understand and prioritise customer expectations to ensure the final product aligns with their needs.

2.Client

The client, on the other hand, is the individual or organisation that initiates and sponsors the project. They are often the ones who directly engage the project team and have the authority to make decisions, provide resources, and approve deliverables.

3.Stakeholder

Stakeholders encompass a broader range of individuals, groups, or organisations that have a vested interest in the project’s success. They can significantly influence or be affected by the project’s outcomes, either directly or indirectly. Stakeholders can include customers, clients, employees, investors, regulatory bodies, local communities, and more. Their roles and expectations vary, and it is vital for project teams to identify, engage, and manage stakeholders throughout the project lifecycle. Effective stakeholder management ensures that their concerns, interests, and expectations are considered, and potential conflicts are mitigated.

4.Subject Matter Expert

A subject matter expert (SME) is an individual with specialised knowledge, skills, or expertise in a particular domain relevant to the project. SMEs possess deep insights and experience in specific areas, such as technology, finance, marketing, or legal matters. They provide valuable guidance, advice, and technical insights to ensure the project’s success. SMEs collaborate with the project team, contributing their expertise to various project phases, including planning, design, and delivery. Their inputs help validate assumptions, assess risks, and improve decision-making.

Although these terms have distinct roles, it’s crucial to recognise their interconnections and overlapping characteristics – for example an SME providing their expertise may also act as a customer or the client if they are the intended beneficiary or sponsor of the project’s outcomes.

Also, it’s important to note that the terminology used may vary based on the specific project methodology or framework being used. Different organisations and industries may also have their own unique terminology for these roles – for example Product Owner, User Representative, Project Sponsor, Domain Expert, Governance Board. Therefore, always align the terminology used in a specific project with the relevant project methodology or industry standards to avoid confusion and ensure effective communication.

These are the practical steps we reviewed to determine the stakeholder types and information needs for their project.

Conduct a Stakeholder Analysis: Identify, categorise, and prioritise stakeholders based on their level of influence, interest, and impact on the project. Brainstorm to create a comprehensive list of potential stakeholders.

Engage Project Sponsors and Key Decision-Makers: Collaborate closely with project sponsors and key decision-makers to understand their expectations and identify stakeholders who have a vested interest in the project’s outcomes. These individuals often have insights into the project’s purpose, goals, and the broader organisational context, making them valuable sources of stakeholder information.

Review Project Documentation and Requirements: Review project documentation, including project charters, business cases, and requirements documents, to identify stakeholders explicitly mentioned or implied within these materials. Analyse the project’s objectives and scope to determine who might be impacted or have a stake in the project’s success.

Conduct Interviews and Surveys: Engage in one-on-one interviews or surveys with individuals who have knowledge about the project or its intended outcomes. This can include subject matter experts, team members from previous projects, or individuals from relevant departments or organisations. These interactions can help uncover stakeholders who may not be immediately apparent.

Utilise Organisational Charts and Hierarchies: Examine organisational charts and hierarchies to identify stakeholders based on their positions, departments, or affiliations within the organisation. This approach can help reveal stakeholders who may have decision-making authority, resources, or dependencies on the project.

Engage with End-Users and Customers: Interact directly with end-users and customers to understand their perspectives and expectations. They are primary stakeholders who can provide valuable insights into their needs, preferences, and potential concerns. Consider conducting focus groups, user interviews, or surveys to gather feedback and identify additional stakeholders associated with the customer or end-user groups.

Explore External Influences: Consider external factors that may impact the project, such as regulatory bodies, industry associations, local communities, or government agencies. Research the project’s external environment to identify stakeholders who might have an interest in or be affected by the project’s outcomes.

Collaborate with Cross-Functional Teams: Involve representatives from different functional areas or departments within the organisation to gain a holistic understanding of stakeholder groups. These individuals can provide unique perspectives on stakeholders relevant to their respective domains and foster collaboration across the organisation.

Leverage Lessons Learned from Similar Projects: Reflect on lessons learned from previous projects or initiatives that share similarities with the current project. Review stakeholder identification approaches utilised in those projects and adapt them to fit the current context.

Regularly Review and Update Stakeholder List: Stakeholder identification is an ongoing process, and it is essential to review and update the stakeholder list throughout the project lifecycle. New stakeholders may emerge, existing stakeholders’ roles may evolve, or some stakeholders may become less relevant. Regularly revisit and refine the stakeholder identification process to ensure its accuracy and relevance.

When project teams implement these steps, they will foster effective communication, engagement, and stakeholder management throughout their project.