Product Manager and Stakeholders

4 minutes read

One of the key responsibilities of a Product Manager is to manage stakeholders. So, who exactly is a stakeholder?

A stakeholder is anyone interested in our product or who is influenced by the product or involved in the product. They are not part of the team, but still have a key interest in our product development and its progress. This can include:

  • Current/Future customers
  • Legal entities
  • Suppliers
  • Partners
  • Investors
  • Directors/ Decision Makers at the organization
  • End Users/End Customers
  • Product Sponsors
  • Marketing team
  • Operation and Finance team etc

How should a Product Manager manage stakeholders?

Stakeholders can be very friendly who always encourage the team and provide constructive feedback. However, on the other hand, sometimes stakeholders can also be challenging who don't support or provide any valuable feedback. As a PM, we need to manage both kinds of stakeholders.

Constant communication and collaboration with stakeholders assures them of being more engaged in the product development process. PM’s can invite them for workshops, priority discussions which gives them a sense of inclusivity.

Soliciting their feedback is also necessary as it reassures stakeholders that their opinion is heard and valued. Product Managers can use the power interest matrix to analyse and manage stakeholders more effectively.

Power Interest Matrix

How should a Product Manager say “No’’ to stakeholders?

Stakeholders tend to ask and demand for a lot of things, and as a Product Manager one must know where to put one’s foot down and say 'No'. A Product manager role is to manage and deliver the products and not to please everyone.

All stakeholders are not equally important and therefore we need to prioritise them. Product managers can use the Power interest matrix to understand which stakeholders requests can safely be less focussed upon and which stakeholder requests definitely cannot be ignored.

Conclusion

Managing stakeholder expectations is necessary for building high-quality products. By earning their trust and ensuring their involvement at key points during product development, Product Managers will benefit from their input and interest, and ultimately, deliver higher quality products.