Effective stakeholder communication: What? Why? How?

As a compulsory part of my Digital Marketing course at RMIT, I am required to come up with an implementation plan for a) an SME, or b) a startup. And of course, not so confident in my know-how-a-business-work ability, I went ahead choosing a coffee shop & workplace business. Thinking communicating with stakeholders should be no big deal, turns out, I was horribly wrong. As a marketing consultant, I am not only a solution provider but also a project manager. That means that my idea, my plan pretty much depends on my communication with the stakeholders. 

What is stakeholder communication?

To understand what it is, we must answer the question: "What are stakeholders?". According to Watt (2016), stakeholders are either those who are interested and actively participate in the project or ones who are directly affected by its result. Think of it this way, stakeholders are anyone you see involved. If I were to design a marketing plan for RMIT, the stakeholders would be the students (YES! YOU!), students' parents, the staff, the board members, alumni, teachers, the government, even the whole education industry!

Source: Stakeholder Map, Service-Learning in Asia - Scientific Figure (2019).

Now, you may think: "With so many stakeholders involved, which one do I need to focus on?". Simple as it is: the key stakeholders, the make-it-or-break-it factors - those who are affected the most. 

Stakeholder communication refers to the act of exchanging information and ideas between an individual or a company with the stakeholders. Applying it to my case, for instance, that would be the exchange between me and my teammates with the SME's management board, marketing department, IT department, and the foodie community.

Why effective stakeholder communication is important?

Researches have pointed out that over 30% of projects failed due to a lack of communication. That is to emphasize how important communication is for any marketer while working with clients, if not to say absolutely a requisite.

Before brainstorming the idea or the plan you need to propose, a marketer must think clear and hard about what is the end goal - what they want to achieve through this marketing project. And no one else can give them the answer, other than the stakeholders themselves. Communicating effectively with stakeholders ensures that both sides receive the necessary information that fulfills their aims. Eliminating all miscommunication and lengthy meaningless discussions, effective stakeholders communication helps saving time, cost and ultimately brings an efficient final product that creates values.

Building a strong, positive, and trusting relationship that can create long-term benefits for both sides, who would not love that?

How to communicate effectively with stakeholders?

Back to the story of why I found myself being completely wrong thinking communicating was easy. On my first meeting with the founder of the chosen SME, I spent an hour explaining to him what the purpose of the whole assignment was, and how both parties can benefit from this. To be honest, looking back, that was an hour of waste. Not because the aim or my explanation was bad, it was just because I did not know how to tell him all that information effectively. We could have had an extra hour for discussing the plan or finished early to grab dinner, but no, we all wasted an hour listening to something I could have explained to him through another communication tool.

Here is (probably) an accurate portrayal of my stakeholder:

So I guess after that day, I learned my lesson. So here are 3 tips that I have researched and been implementing in our communication. These turn out to be great, but keep in mind that there are always two sides of a coin, so consider carefully whether if this would work for you and your stakeholders.

#1 Utilize email and automation technology

Sometimes we do not want to read, but sometimes we cannot focus on listening to a 2-hour meeting either. Email has been one of the most popular tools of communication, thanks to all the benefits we can gain from it. Important information with details, time scheduling, communication evidence, meeting notes, etc...nothing can do better than email. I doubt that you would go back to a 2-hour recording to find 10 seconds of your stakeholder mentioning his request. It is so much easier to manage your communication with your stakeholder using email.

Combined with advanced technology, email even works better! You can set up a weekly update email or invitation to the next meeting to all the participants, so that you will not have to recreate those every week. You can customize your message with different templates, so the provided information is not so dry and hard to take in, making it fun for everyone to work.

#2 Active listening

We all listen, but have we really listened effectively? Studies show that an average person only listens with 25% efficiency. This means that we still have so much space for growth because active listening means getting the most out of a conversation. Surveys have pointed out that active listeners tend to build stronger and happier relationships with others. For a marketer to say, this is exactly what we need, because that results in open, effective, and precise communication. The survey also pointed out that in a workspace environment, employees will likely to come to active listeners for sharing and requesting collaboration. If you stakeholder understands that you are listening actively, they will see your commitment and dedication for the project, therefore improves the productivity.

#3 Be prepared

Stakeholders are not only working with you. They are dealing with tons of other issues, and so are you. It is best that you waste each other no time, and that can only be ensured by great preparation. Being prepared will not only save you time, but also clear out for you what are the issues that need to be addressed and which have been resolved since the latest discussion you had. Once you are prepared, you will surely understand the progress of the project, and what are the next steps to be done. Be professional, be prepared.

A few last words

Communication has always been on the top skill list that employers search for in a candidate since it accounts largely for the success of the work. It is impossible to achieve accomplishments without effective communication and a good teamwork spirit. As future marketers, we need to truly acknowledge its importance and master the techniques to acquire efficiency in communication at the workplace.

Until the next thoughts, stay safe.
Hang Nguyen

References:

Kaplan, E 2018, ‘‘Active Listening’: the Key to Strong Workplace Relationships, Productivity, and Personal Empowerment’, Medium, 22 August, viewed 22 July 2021, <https://medium.com/@ellekaplan/active-listening-the-key-to-strong-workplace-relationships-productivity-and-personal-72650f32da4c>

Ma, C, Chiu, T & Wei, L 2019, ‘Service-Learning in Asia’, Engaging Communities in East Asia, vol. 30, no. 3, pp. 3-9.

Raab, D 2017, ‘Deep Listening in Personal Relationships’, Psychology Today, 9 August, viewed 22 July 2021, <https://www.psychologytoday.com/us/blog/the-empowerment-diary/201708/deep-listening-in-personal-relationships?fbclid=IwAR04FHG5RVS9AWJMVZr838b_Q51zHX8p5c7wiX4eC99HQR4P0WZaFo4yXp4>

Watt, A 2014, Project Management, BCcampus, Victoria, B.C.