Stakeholder Management: Why Tech Skills Alone Aren't Enough
The best technical project fails if the wrong people are against it. The mediocre solution becomes a success if the right people are for it.
That's the reality of stakeholder management.
What Is Stakeholder Management?
A stakeholder is any person or group that is affected by your project or has influence over it.
Stakeholder management means:
- Identifying who the stakeholders are
- Understanding what they want and need
- Communicating to manage expectations
- Building relationships for long-term success
Typical Stakeholders in Tech Projects
INTERNAL:
- Product Owner / Product Manager
- Engineering Manager
- CTO / VP Engineering
- CEO / Executive Leadership
- Other teams (dependent/affected)
- Support / Customer Success
- Sales
- Finance
- HR
- Legal / Compliance
EXTERNAL:
- Customers / Users
- Partners
- Investors
- Regulatory bodies
Why Stakeholder Management Matters
The 80/20 of Project Problems
TECHNICAL PROBLEMS: 20%
- Bugs
- Performance
- Scaling
- Architecture
PEOPLE PROBLEMS: 80%
- Different expectations
- Lack of communication
- Political resistance
- Missing resources (decision by stakeholders)
What Happens Without Stakeholder Management
| Situation | Without SM | With SM |
|---|---|---|
| Requirements change | "Why doesn't anyone tell us earlier?" | Early involvement, no surprises |
| Budget decision | Team finds out last | Team had input |
| Launch problems | Blame game | Shared responsibility |
| Prioritization | Whoever shouts loudest | Transparent criteria |
| Resources | Constant fighting | Clear agreements |
Framework 1: Stakeholder Mapping
Power/Interest Matrix
The classic matrix for stakeholder categorization:
INTEREST
Low High
┌─────────────────┬─────────────────┐
High │ KEEP │ MANAGE │
│ SATISFIED │ CLOSELY │
POWER │ │ │
│ Finance, │ CTO, Product, │
│ Legal │ Key Customer │
├─────────────────┼─────────────────┤
Low │ MONITOR │ KEEP │
│ (minimal) │ INFORMED │
│ │ │
│ Other teams │ End users, │
│ │ Support team │
└─────────────────┴─────────────────┘
For Each Quadrant
Manage Closely (High Power, High Interest):
- Regular updates and meetings
- Involve early in decisions
- Nurture relationship
- Examples: CTO, Product Owner, Key Customers
Keep Satisfied (High Power, Low Interest):
- Keep informed, don't overwhelm
- Involve at important milestones
- Don't ignore
- Examples: CEO, Finance, Legal
Keep Informed (Low Power, High Interest):
- Regular updates (newsletter, Slack)
- Gather feedback
- Use as multipliers
- Examples: End users, Support team
Monitor (Low Power, Low Interest):
- Minimal effort
- Inform when needed
- Watch for changes
- Examples: Other teams, external partners
Stakeholder Profile Template
STAKEHOLDER: [Name/Role]
1. INFLUENCE/POWER: [1-5]
2. INTEREST: [1-5]
3. ATTITUDE: [Supporter/Neutral/Blocker]
4. WHAT DO THEY WANT?
- Business goal:
- Personal goal:
- Concerns:
5. WHAT DO THEY NEED FROM US?
- Information:
- Decisions:
- Results:
6. HOW TO COMMUNICATE?
- Frequency:
- Format:
- Channel:
7. RELATIONSHIP STATUS:
- Current:
- Goal:
- Next step:
Framework 2: RACI Matrix
Clarifies responsibilities between stakeholders.
R - Responsible: Who executes?
A - Accountable: Who is responsible? (only 1 person)
C - Consulted: Who is asked? (before the decision)
I - Informed: Who is informed? (after the decision)
Example: Feature Launch
| Tech Lead | PM | CTO | Support | Legal |
--------------------|-----------|-----|-----|---------|-------|
Development | R | I | I | I | - |
Feature Definition | C | R | A | C | - |
Launch Decision | C | R | A | C | C |
Documentation | R | I | - | C | - |
User Communication | I | A | I | R | C |
RACI Rules
- Only one A per row – Clear accountability
- Every row needs an R – Someone must do it
- Not too many C – Otherwise it gets slow
- I is not optional – Informed stakeholders are happy stakeholders
Stakeholder Communication
The Basic Rule
STAKEHOLDERS WANT TO KNOW:
1. What's the status? (Green/Yellow/Red)
2. What does this mean for me?
3. What do you need from me?
4. What's next?
THEY DON'T WANT:
- Technical details (usually)
- To read long reports
- Surprises
- Work they didn't expect
Communication by Stakeholder Type
For Executives (CEO, CTO, VP):
FORMAT:
- Executive summary first
- Bullet points
- Red/Yellow/Green status
- Decisions clearly formulated
EXAMPLE:
"Status: YELLOW
- Feature X: On track
- Feature Y: 1 week delayed due to [reason]
- Risk: Z
- Decision needed: [yes/no]"
For Product/Business:
FORMAT:
- Focus on business impact
- User perspective
- Roadmap context
- Make trade-offs transparent
EXAMPLE:
"Feature X enables [business value].
We can deliver it by [date] if we
make [trade-off]. Alternative would be [Option B]
with [consequence]."
For Other Tech Teams:
FORMAT:
- Technical details OK
- Make dependencies clear
- Use common language
- Concrete asks
EXAMPLE:
"We're migrating to Service X.
This affects your API calls to [endpoint].
We need from you: [concrete ask]
by [date]."
Communication Frequency
| Daily | Weekly | Monthly | Quarterly |
--------------------|-------|--------|---------|-----------|
Manage Closely | ✓* | ✓ | ✓ | ✓ |
Keep Satisfied | | ✓* | ✓ | ✓ |
Keep Informed | | ✓ | | |
Monitor | | | ✓* | |
* = Minimum
Managing Difficult Stakeholders
The Blocker
Symptoms:
- Always says no
- Finds problems with everything
- Delays decisions
Strategy:
1. UNDERSTAND
- What's the real concern?
- What are they risking?
- What do they have to lose?
2. ADDRESS
- Take concerns seriously
- Find solutions together
- Enable small wins
3. ESCALATE (if necessary)
- With data, not emotions
- Show alternatives
- Request a decision
The Overwhelmer (HiPPO)
Symptoms:
- Highest Paid Person's Opinion dominates
- Constantly changes direction
- Overwhelms with requests
Strategy:
1. CREATE STRUCTURE
- Clear prioritization criteria
- Capacity transparency
- Make trade-offs visible
2. PUSH BACK WITH DATA
"If we do A, we can't do B.
What has priority?"
3. MANAGE EXPECTATIONS
- Communicate early what's possible
- Give regular status
- Document scope creep
The Invisible Stakeholder
Symptoms:
- Shows up suddenly
- Has veto power
- Was forgotten/overlooked
Strategy:
1. PROACTIVELY IDENTIFY
- "Who else should know about this?"
- "Who could be affected?"
- Org chart analysis
2. INVOLVE EARLY
- Better too much than too little information
- Give opportunity for feedback
- Avoid surprises
The Competitor
Symptoms:
- Sees your project as competition
- Withholds information
- Political games
Strategy:
1. FIND COMMON GOALS
- What connects you?
- Where is win-win possible?
- How can you benefit from each other?
2. CREATE TRANSPARENCY
- Communicate openly
- No secrets
- Build trust
3. AVOID ESCALATION
- But if necessary: With facts
- Manager as mediator
Managing Up
As a tech leader, you also need to manage "upward" – your own manager, CTO, or CEO.
The Basic Principles
1. NO SURPRISES
- Bad news early
- Better over- than under-communicate
- Provide context before being asked
2. SOLUTIONS, NOT JUST PROBLEMS
"We have problem X. I suggest Y.
For that I need Z from you."
3. SPEAK THEIR LANGUAGE
- Business impact, not tech details
- What interests them?
- How do they make decisions?
4. BE PREDICTABLE
- What you commit to, you deliver
- If not possible: Communicate early
- Consistency builds trust
What Your Manager Wants from You
INFORMATION:
- Status: On Track / At Risk / Off Track
- Why: Brief justification
- Forecast: What happens next
- Ask: What do you need?
RELIEF:
- Solve problems, don't delegate up
- Escalate only when necessary
- Prepare decisions
TRUST:
- Honesty, even with bad news
- Reliability
- No surprises
Using the 1:1 with Your Manager
AGENDA (your responsibility):
1. TOP 3 UPDATES
- What should they know?
2. DECISIONS / INPUT NEEDED
- What decision is pending?
- What's your proposal?
3. BLOCKERS
- What's in the way?
- How can they help?
4. FEEDBACK
- What's going well/not well?
5. CAREER / DEVELOPMENT
- Long-term topics
Creating Stakeholder Alignment
The Kick-off Meeting
GOAL:
Get all relevant stakeholders on the same page.
AGENDA:
1. Why this project? (Vision, business case)
2. What's the scope? (In/out of scope)
3. Who's involved? (RACI)
4. How do we communicate? (Frequency, channels)
5. What are the milestones?
6. What are known risks?
7. Questions / concerns
OUTPUT:
- Documented shared understanding
- Clear next steps
- Commitment from all stakeholders
The Stakeholder Check-in
FREQUENCY: Weekly or bi-weekly
FORMAT:
30 minutes, same structure every time
AGENDA:
1. Status Update (5 min)
- Red/Yellow/Green
- Top 3 accomplishments
- Top 3 next steps
2. Risks & Issues (10 min)
- New risks
- Escalations
- Decisions needed?
3. Questions & Discussion (10 min)
4. Action Items (5 min)
The Steering Committee
FOR LARGER PROJECTS:
WHO:
- Key decision makers
- Budget owners
- Dependent teams
FREQUENCY:
- Monthly or at milestones
GOAL:
- Strategic alignment
- Resource decisions
- Escalation resolution
FORMAT:
- Executive summary in advance
- Meeting only for discussion/decisions
- Document clear outcomes
Conflicts Between Stakeholders
When Stakeholders Have Different Goals
EXAMPLE:
- Sales wants Feature A (helps selling)
- Support wants Feature B (reduces tickets)
- Finance wants less spending
- Engineering wants to reduce tech debt
SOLUTION:
1. MAKE GOALS TRANSPARENT
All interests on the table
2. DEFINE PRIORITIZATION CRITERIA
- Business impact
- Effort
- Strategic relevance
- Customer value
3. PRIORITIZE TOGETHER
With the defined criteria
4. DOCUMENT TRADE-OFFS
"We're doing A because X. B comes later because Y."
5. GET COMMITMENT
Everyone supports the decision
Escalating the Right Way
WHEN TO ESCALATE:
- Stakeholders can't agree
- Blockade for > 1 week
- Business impact threatens
- Not: At every conflict
HOW TO ESCALATE:
1. Present both positions neutrally
2. Give your own recommendation (with reasoning)
3. Request decision from escalation level
4. Communicate result to everyone
ANTI-PATTERN:
- Escalate behind backs
- Escalate without own recommendation
- Escalate too early or too often
Tools for Stakeholder Management
Stakeholder Map (Visual)
Create a visual diagram:
- Your project in the center
- Stakeholders around it
- Lines show relationships
- Colors show attitude (Supporter/Neutral/Blocker)
- Size shows influence
Communication Plan Template
| Stakeholder | What | When | How | Who |
|-------------|------|------|-----|-----|
| CTO | Status Update | Weekly | 1:1 | Tech Lead |
| Product | Sprint Demo | Bi-weekly | Meeting | Team |
| Support | Feature Updates | At release | Slack | PM |
Stakeholder Sentiment Tracking
Track over time:
- Stakeholder satisfaction (1-5)
- Open issues per stakeholder
- Communication frequency
- Sentiment in meetings
Helps spot trends before they escalate.
Conclusion: Stakeholder Management as a Leadership Skill
Technical excellence is necessary but not sufficient for project success. Stakeholder management is the multiplier.
Core Principles:
- Identify: Who are your stakeholders?
- Understand: What do they really want?
- Categorize: Power/Interest Matrix
- Communicate: Right frequency, right format
- Nurture relationships: Think long-term
Your Challenge for This Week:
Create a stakeholder map for your most important project:
- List all stakeholders
- Place them in the Power/Interest Matrix
- Identify the top 3 you should communicate more with
- Schedule a conversation with each
You'll be surprised how much easier things become when the right people are on your side.
Want to understand how you build relationships and create trust as a tech leader? Our guide to Servant Leadership shows a leadership style that puts people at the center.
