Managing Stakeholder Expectations: A Guide to Stakeholder Management for Product Success

Introduction

Managing stakeholder expectations is an integral part of product management. Stakeholders can be anyone who is involved in or affected by the product, such as customers, investors, employees, suppliers, and partners. Managing their expectations is critical to ensure product success and build long-lasting relationships. In this guide, we will discuss the importance of stakeholder management, the challenges product managers face, and how to overcome them. We will also review a case study of stakeholder management in the tech industry.

The Importance of Stakeholder Management

Stakeholder management is crucial because it helps product managers to identify, prioritize and satisfy the needs and expectations of different stakeholders. By doing so, product managers can achieve a balance between stakeholder needs and product goals. Stakeholder management also enables product managers to build trust, credibility, and reputation with their stakeholders, which can lead to increased customer loyalty, repeat business, and referrals.

Challenges in Stakeholder Management

Managing stakeholder expectations can be challenging, especially in the tech industry, where stakeholders often have high expectations for new and innovative products. Some of the challenges product managers face include:

Conflicting priorities: Different stakeholders have different priorities, and it can be challenging to balance them.

Unclear expectations: Stakeholders may have different expectations, and it can be challenging to understand and manage them.

Limited resources: Product managers may have limited resources, such as time, budget, and personnel, to meet stakeholder expectations.

Changing requirements: Stakeholder requirements may change over time, and it can be challenging to adapt to those changes.

How to Manage Stakeholder Expectations

Product managers can overcome these challenges by following a few key strategies:

Identify and prioritize stakeholders: Product managers should identify all stakeholders and prioritize them based on their impact on the product’s success. This prioritization can help product managers allocate resources and manage stakeholder expectations more effectively.

Communicate clearly and often: Product managers should communicate with stakeholders regularly and clearly, setting expectations and managing them throughout the product development cycle. Product managers should also be transparent about progress, challenges, and decisions.

Set realistic expectations: Product managers should set realistic expectations for stakeholders and ensure they understand the product’s capabilities and limitations.

Involve stakeholders in decision-making: Product managers should involve stakeholders in decision-making processes, such as product roadmap planning and feature prioritization, to ensure they have a voice in the product’s direction.

Anticipate and manage change: Product managers should anticipate and manage changes in stakeholder expectations, requirements, and priorities, ensuring the product stays aligned with stakeholder needs.

Case Study: Apple’s Stakeholder Management

Apple is a company that has long been known for its stakeholder management practices. One of the ways they manage stakeholder expectations is by launching products with a high degree of secrecy. By keeping products under wraps until they are ready for launch, Apple can control the messaging and ensure that stakeholders are not disappointed by a product that does not meet their expectations.

Another way Apple manages stakeholder expectations is through their product design. Apple’s products are known for their sleek design and innovative features, which can create a sense of excitement and anticipation among stakeholders.

Apple also prioritizes stakeholder engagement, regularly holding product launch events and keynotes where they can showcase new products and engage with stakeholders directly. By doing so, they can gather feedback and respond to stakeholder concerns, building trust and credibility.

Conclusion

Managing stakeholder expectations is critical to product success, especially in the tech industry, where stakeholders often have high expectations for innovative products. By identifying, prioritizing, and satisfying stakeholder needs and expectations, product managers can build trust, credibility, and reputation with their stakeholders. By communicating clearly and often, setting realistic expectations, involving stakeholders in decision-making, and anticipating and managing change, product managers can overcome the challenges of stakeholder management.

The case study of Apple’s stakeholder management practices highlights the importance of secrecy, product design, and stakeholder engagement in managing stakeholder expectations. Apple’s approach shows that successful stakeholder management requires a combination of strategies that are tailored to the specific needs and expectations of each stakeholder.

In conclusion, managing stakeholder expectations is a complex task that requires product managers to be proactive, communicative, and flexible. By following the strategies outlined in this guide and leveraging best practices from companies like Apple, product managers can build long-lasting relationships with their stakeholders and drive product success. By doing so, they can establish themselves as effective leaders and drive innovation in the tech industry.

Originally published at http://theproductthinking.wordpress.com on September 18, 2020.