Internal Stakeholder Management in Product Development
Practical advice keeping stakeholders in the loop
Introduction
Stakeholder management is a key part of a Product Manager’s role. While external stakeholders such as regulatory bodies and end-users are important, internal stakeholders also play a pivotal role in the success of your product. These stakeholders seek transparency about your squad’s roadmap, a clear vision of where the product is heading, and have invaluable personal experiences to share. Effective stakeholder management is a critical component of change management. Stakeholder insights provide essential telemetry to consider when designing initiatives on your roadmap.
1. Mapping Internal Stakeholders
Understanding who your internal stakeholders are is the first step toward effective management. In a science-based company, internal stakeholders typically include:
Other Product Squads: Developers, designers, and product managers in other squads where dependencies exist with your roadmap.
Regulatory Affairs: Professionals ensuring compliance with relevant regulations.
Quality Assurance: Teams overseeing quality management and product testing.
Senior Management: Executives providing strategic direction and resource allocation.
Sales and Marketing: Teams responsible for promoting and selling the product.
Customer Support: Personnel handling user enquiries and issues post-launch.
Laboratory Staff: For products related to laboratory services, such as those under ISO 15189.
2. Applying the Power/Interest Grid
To prioritise and engage internal stakeholders effectively, we can use the Power/Interest Grid (also known as Mendelow’s Matrix). This method categorises stakeholders based on their level of power (influence) and their level of interest in the initiative.
Why Use the Power/Interest Grid?
Not all stakeholders have the same level of influence or interest in your initiative. The Power/Interest Grid provides a structured framework to:
Prioritise Engagement: Allocate time and resources based on stakeholder importance.
Tailor Communication: Develop customised strategies that address the specific needs and concerns of each stakeholder type.
Improve Efficiency: Focus efforts where they will have the most significant impact, ensuring that high-priority stakeholders are adequately engaged without diluting resources on less critical ones.
Categories:
High Power, High Interest: Manage Closely
High Power, Low Interest: Keep Satisfied
Low Power, High Interest: Keep Informed
Low Power, Low Interest: Monitor
3. Personalising Stakeholder Engagement for High Power, High Interest Stakeholders
After categorising stakeholders using the Power/Interest Grid, the next step is to personalise your engagement strategies specifically for those in the High Power, High Interest category. This ensures that these key stakeholders receive the appropriate level of attention and communication tailored to their unique contributions and expectations.
Introducing Stakeholder Personas
One effective framework for personalising engagement is the Stakeholder Personas approach. This involves creating detailed profiles of typical stakeholders to better understand their motivations, concerns, and preferred communication styles. Below is an example adopting the Miller Heiman strategic selling method towards customer development.
Adapted Miller Heiman Strategic Personas:
Economic: Individuals who have the final say on resource allocation and decisions (e.g., CFO, CEO, CPO).
User: Those who will use the product or are affected by it (e.g., other product teams, go-to-market, customer support, lab staff).
Technical: Experts who assess the product's feasibility and compliance (e.g., regulatory affairs, QA, CTO, principal engineers, lab director).
Coaches: Stakeholders who support and advocate for the delivery of the product or initiative within the organisation. These are typical managers who want better outcomes for their teams.
Why Combine Power/Interest Grid with Stakeholder Personas?
By integrating the Power/Interest Grid with Stakeholder Personas, product managers can:
Deepen Understanding: Gain insights into what each stakeholder type values in the updates they receive. This allows us to develop more effective and meaningful interactions tailored to each stakeholder’s role and influence.
Address Jobs to Be Done: Understand and address the specific tasks and objectives each stakeholder aims to accomplish through the delivery of that milestone.
Example:
For Economic, understanding their primary focus on return on investment (ROI) and strategic alignment can help tailor presentations and reports to highlight financial metrics and long-term benefits.
For Technical, emphasising compliance details, technical specifications, and risk mitigation strategies ensures their concerns are adequately addressed.
4. Establishing Engagement Frequency and Weighting Opinions
Effective stakeholder management should be an ongoing process, particularly as your initiative progresses through different milestones on the roadmap. Stakeholders may change from milestone to milestone, necessitating regular reassessment and adjustment of engagement strategies.
Stakeholder Management per Milestone
Each milestone in your roadmap represents a critical phase where specific stakeholders may play different roles or require different levels of engagement. By managing stakeholders at each milestone, you ensure that the right people are involved at the right time, improving alignment and product success.
Frequency of Engagement:
High Power, High Interest (Manage Closely): Engage frequently through regular meetings and direct communication to ensure their needs and expectations are met. These stakeholders will also be asked to contribute to the PRD.
High Power, Low Interest (Keep Satisfied): Invite them to monthly roadmap updates to keep them satisfied without overwhelming them with unnecessary details.
Low Power, High Interest (Keep Informed): Provide regular updates through weekly newsletters or briefings to keep them informed and engaged.
Low Power, Low Interest (Monitor): Minimal engagement required, but keep them on your radar for any changes in their status.
By tailoring the frequency and depth of engagement based on the Power/Interest Grid and stakeholder personas, you can efficiently manage your internal stakeholders, ensuring that high-priority individuals receive the attention they deserve.
5. Involving Stakeholders in the PRD
The Product Requirements Document (PRD) is a central tool for aligning stakeholder expectations and gathering input. Effective collaboration on the PRD ensures that all internal stakeholders are on the same page regarding product requirements and development progress.
Strategies for PRD Collaboration:
Invite High Power, High Interest stakeholders to contribute to the PRD early during the discovery phase. This proactive engagement helps identify requirements and potential issues early on. Create stub sections within the PRD for stakeholders to fill in missing details or provide specific input. This approach encourages active participation and ensures that all necessary information is captured. Additionally, encourage stakeholders to make comments directly in the document for clarity and transparency. This fosters an open dialogue and facilitates collaborative refinement of requirements.
Benefits:
Collaborative PRDs ensure all stakeholders are aligned on product requirements, reducing misunderstandings and misaligned expectations. Early feedback can identify potential issues and enhance the overall quality of the product by incorporating diverse perspectives. Moreover, involving stakeholders increases their commitment to the product's success, fostering a sense of ownership and accountability.
Regulatory and Quality Considerations:
Depending on the regulatory tier or product classification, include sections in the PRD for regulatory or quality sign-offs. For example, if a product falls under a specific regulatory standard like ISO 15189 or ISO 13485, dedicate a section where regulatory or quality stakeholders can review and approve relevant requirements. This ensures that all necessary compliance aspects are addressed early in the development process.
6. Optimising Communication Channels
Effective communication is vital for maintaining stakeholder engagement and ensuring product alignment. While some stakeholders may request broad communication platforms, such as a large Slack channel for all stakeholders, this approach can be overwhelming and ineffective.
Challenges with a Mega Chat:
Excessive messages can lead to information overload, making it difficult to follow important updates. Additionally, diverse topics may dilute relevance for individual stakeholders, and stakeholders may disengage if communication isn't directly pertinent to them.
Alternative Approach: Milestone-Specific Channels
To address these challenges, consider implementing milestone-specific communication channels. This approach ensures that communication remains focused and relevant, enhancing stakeholder engagement and collaboration.
Create temporary channels dedicated to each milestone in the roadmap. Limit participation to stakeholders directly involved in that milestone and set clear objectives to keep discussions aligned and productive. After the milestone is delivered, close the channel to maintain a streamlined communication environment and prevent ongoing distractions. Additionally, document key decisions and lessons learned for future reference to retain valuable insights.
Advantages of Milestone-Specific Channels:
Milestone-specific channels keep discussions relevant and efficient, reducing noise and enhancing clarity. They encourage active participation from stakeholders most affected by the milestone and prevent ongoing distractions by closing channels when no longer needed, maintaining a streamlined communication flow.
By adopting milestone-specific channels, you can ensure that stakeholder communication remains targeted and effective, fostering better collaboration and product outcomes.
Conclusion
Effective internal stakeholder management is essential for the success of product development. By mapping stakeholders using the Power/Interest Grid, personalising engagement for high-priority stakeholders through Stakeholder Personas, and optimising communication channels, you can ensure all internal parties are aligned and contributing positively to the product.
Embracing structured communication strategies, such as involving High Power, High Interest stakeholders in the PRD and creating milestone-specific channels, improves collaboration and product quality while avoiding the pitfalls of unfocused communication platforms.
