Black and white image of a handshake between two people in formal suits, symbolizing agreement or partnership, epitomizes effective project stakeholder management.

Trust based project stakeholder management

Apr 22, 2024 | Articles

The role of emotional intelligence and soft skills in project stakeholder management  

It’s not uncommon for project managers to encounter difficulties in managing diverse project stakeholder expectations, resolving conflicts, and obtaining buy-in from key stakeholders. Particularly in complex or politically sensitive projects. 

The power of the emotional bank account in project stakeholder management

It can’t be overstated how powerful high degrees of trust, goodwill and emotional connection are in working through issues, risks, and problems towards win-win solutions.  

Project stakeholder management

An enormous amount of time can be saved, and more satisfying and workable solutions agreed, when a person has built strong emotional bank accounts with the players involved. This supports them in exploring the overlap between stakeholder interests rather than focussing on the marginal differences.  

Leveraging individual trust, goodwill and emotional connection – for the benefit of all. 

Sometimes individual stakeholders may not trust each other. However, if they trust you, the project manager, you will be able to support them in exploring opportunities for both compromise and mutual benefit. 

Where challenges arise it’s useful to explore positions in private initially. This allows a full an frank discussion and exploration of interests and issues without upsetting or entrenching other stakeholders.  

Misunderstandings can colour views. Leading, in some cases, to strong emotions and talk, which can be harmful to collaboration and compromise. So containing these views within a private conversation allows the project manager to address them with tact and diplomacy. 

Careful selection of communication channels and audiences 

In complex or politically sensitive situations the project manage should think carefully about the best form of communication to use. They should consider whether to use face to face, telephone, email etc and for telephone and face to face conversations, the best location for it to take place.  

Positions, thoughts or sentiments expressed in email for example, when shared with groups, can be particularly unhelpful in the early stages of exploring stakeholder issues. This is because they can inflame and entrench positions before misunderstandings and misconceptions have been flushed out, and opportunities for compromise explored.  

Diplomacy, tact and discretion in project stakeholder management

Positions and communications based upon misunderstandings can be a great source of embarrassment for stakeholders in some situations. So there is much a project manager can do to support stakeholders in avoiding these situations, and saving face when changing their position on an issue.  

Once again, the use of diplomacy, tact and discretion by a project manager in complex, emotive or politically sensitive situations, can build a high degree of trust and goodwill with stakeholders. And this, whilst finding solutions and successfully navigating projects through such challenges.

Project stakeholder management

Project soft skills and trust based project stakeholder management

Here are the most useful soft skills for project managers in handling stakeholder challenges, Bear in mind that proactive use of the emotional bank account and reciprocation compliment and enhance the effects of these skills, when used to work through stakeholder challenges: 

Communication:

Clear and effective communication is paramount for managing stakeholder challenges. Project managers need to communicate project goals, progress, and potential issues with stakeholders in a timely and transparent manner. They should also tailor their communication style to suit the needs and preferences of different stakeholders. 

Empathy:

Understanding the perspectives, concerns, and motivations of project stakeholders is essential for building positive relationships and addressing their challenges effectively. Project managers should demonstrate empathy and actively listen to stakeholders to identify their needs and expectations. 

Influence and Persuasion:

Project managers often need to influence and persuade project stakeholders to support project objectives and decisions. Strong influencing skills enable them to articulate the benefits of the project, address concerns, and negotiate compromises to achieve stakeholder buy-in.

 

Project stakeholder management

Finding common ground 

Sometimes, project stakeholders will focus upon relatively small areas of disagreement and dissatisfaction and not fully appreciate larger areas of common ground. So using project soft skills to fully understand the position of stakeholders, allows the project manager to support them in finding and appreciating win-win solutions and compromises. 

Dealing with stakeholder challenges requires a nuanced approach and a variety of soft skills, to effectively manage relationships, expectations, and communication.  

Conflict Resolution:

Conflict among project stakeholders is common in projects and can hinder progress if not addressed promptly. So project managers need skills in conflict resolution techniques and must understand how to leverage the trust, goodwill and emotional connections they have built with stakeholders through use of the emotional bank account. This way they may facilitate constructive dialogue, find common ground, and resolve disputes amicably. 

Stakeholder Management:

Effective stakeholder management involves identifying key stakeholders, understanding their interests and influence, and engaging them appropriately throughout the project lifecycle. Project managers should build positive emotional bank accounts with stakeholders, manage their expectations, and address their concerns proactively. 

Negotiation Skills:

Negotiating with project stakeholders is often necessary to reconcile conflicting priorities, manage scope changes, or secure additional resources. Project managers need to be skilled negotiators, capable of finding win-win solutions. So that they may satisfy the needs of both the project and its stakeholders. 

Adaptability:

Projects are dynamic, and project stakeholder requirements may change over time. So project managers must be adaptable and flexible. Ready to adjust project plans and strategies in response to evolving stakeholder needs and expectations. 

Leadership:

Strong leadership skills are essential for guiding stakeholders through project challenges and fostering a collaborative environment. Project managers should inspire confidence, provide direction, demonstrate accountability. They must also proactively manage the emotional bank accounts of those involved to earn the trust and respect of stakeholders. 

Problem-solving:

Project stakeholder challenges often require creative problem-solving skills to identify root causes, explore alternative solutions, and implement effective strategies for resolution. Project managers should approach project stakeholder issues with a proactive and analytical mindset. 

Project stakeholder management

Resilience:

Dealing with difficult stakeholder challenges can be demanding and stressful. Project managers must be resilient in the face of setbacks. Project soft skills help project managers to remain calm under pressure, and persevere in their efforts to address stakeholder concerns and keep the project on track. 

Summary

Stakeholder management is an area that lends itself particularly well to a blend of project technical skills and project soft skills. By leveraging both of these skills sets against the backdrop of strong emotional bank accounts, trust, goodwill and strong emotional connections are generated. This helps project managers navigate project stakeholder challenges much more successfully. 

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