Transparent Supply Chain in Post-Pandemic World

Transparent Supply Chain in Post-Pandemic World

The COVID-19 pandemic has exposed numerous long-standing vulnerabilities and risks in organizations’ supply chains. As a result, it has sometimes prompted businesses to rethink their processes and business models. Also, it has created new opportunities for post-pandemic innovation, growth, and competitive advantage.

The challenges during the COVID-19 pandemic did not reveal the interconnected or global nature of supply chains; instead, they highlighted that most organizations are not prepared to manage this interconnectivity when adverse impacts occur. In short, the pandemic has demonstrated that if businesses are to thrive in the future, they must adapt. However, supply chain leaders seeking to prepare their organizations’ supply chain processes for thriving post-pandemic can focus on three key areas to “get there”:

Three key areas to focus on developing supply chain

Three key areas to focus on developing supply chain

  • Recognize changes in the customers, business operations and technologies, ecosystems, and workforce: Four fundamental realities have shifted dramatically due to COVID-19. Each of these shifts has direct and indirect implications for supply chains.
  • Examine the organization’s ability to thrive in these changes: Supply chain leaders can ask questions to assess their organization’s readiness to deliver in the face of these shifts.
  • Leaders can take three overarching tactical steps to prepare their organizations to thrive as they assess their readiness across these four shifts.

Better rebuilding: the importance of long-term supply chains in a post-pandemic world

The pandemic has served as a wake-up call to businesses concerned about the fragility of modern global supply chains. As a result, managing supply chain economic, social, and environmental impacts has become a strategic priority.

According to the World Economic Forum, COVID-19 is the final blow to supply chains that revered reliability and efficiency over resilience and sustainability. Enterprises cannot effectively monitor inputs and outputs for sustainable practices unless they have visibility into how materials and products advance via the supply chain.

Supply Chain 4.0

Customers are increasingly demanding faster service, fulfillment, and delivery. As a result, organizations that invest in industry 4.0 and supply chain practices and procedures to assist in meeting these demands.

Supply chain 4.0 includes using new technologies to crunch data streams across departments and organizations to identify new opportunities, highlight any difficulties in the process, and identify system-wide trends in the works. By combining and integrating new technology, business organizations can gain a more comprehensive view of internal and external data while bridging departmental silos.

Gartner Report

Gartner Report

According to a Gartner report, more than half of large global companies will use IoT, artificial intelligence, and advanced analytics in supply-chain operations by 2023. According to the report, this shift toward digitizing supply chain processes will be overseen by humans who will collaborate with new technologies.

Moving Supply Chain 4.0 Forward

While many organizations are implementing supply chain processes and procedure digitization, others have not yet made the switch. But progressing with supply chain 4.0 is essential.

Without taking steps to optimize the supply chain digitally, one risks impairing their ability to synchronize their systems into a cohesive whole.

Tracking and labeling are critical components of supply chain 4.0. The first step is to implement a secure, dependable labeling system that integrates with the supply chain 4.0 practices. One must use a labeling solution that works alongside the internal workflows and systems to improve data management accuracy and evolve with the ongoing business practices. A successful product labeling system will be critical in the organization’s progress toward digitizing supply chain processes.

Supply Chain 4.0 benefits

Supply Chain 4.0 benefits

Supply Chain 4.0 benefits

  • Stronger analytical insights

A focused, digitized supply chain provides stronger analytical insights. This increased visibility improves communication and data transparency among manufacturers, warehouses, vendors, operations, and distribution centers. As a result, operational efficiency, customer experiences, and revenue increase occurs.

  • Increased financial gain

Organizations expect a financial benefit when they invest strategically in digitizing the supply chain. Strong financial results can be the optimal result of smart supply chain investment, according to a 2019 McKinsey & Co. report.

  • Improved efficiency

Moving from a paper-based supply chain to a digitized supply chain will increase the organization’s efficiency. More precise data, greater transparency, and fewer pitfalls and errors exist. In addition, electronic sensors and scans can speed up supply chain practices by eliminating labor-intensive manual processes.

Digitizing supply chains in the supply chain 4.0 era inevitably accounts for greater ordering and spending accuracy. Artificial intelligence models, machine learning processes, and other automated technology can accelerate the business’s innovation, resulting in more precise data and accurate shipments, all topped off with proper labeling for successful distribution.

Challenges faced in Supply Chain

Challenges faced in Supply Chain

Challenges faced in Supply Chain

A healthy supply chain should operate smoothly, with goods being received and delivered between parties. However, today’s market is becoming increasingly volatile. As a result, the supply chain is bottlenecked or completely obstructed at every turn, affecting brands, manufacturers, suppliers, and the consumer. However, here are some of the current supply chain issues and challenges:

  • Keeping up with consumers and buying behaviors
  • Delivery and Logistics
  • Material Scarcity
  • Global Port Congestion and blockage of choke points
  • Increasing freight and transportation Costs
  • Digitizing and Automating key processes
  • Geo-economics and Geopolitics

Impact of Logistics & Supply Chain Drivers – Multi Billon Dollar Projects/Programs

For a firm’s project to succeed, its supply chain and competitive strategies must share a common goal. Strategic fit necessitates alignment between the competitive strategy’s customer priorities and the capabilities the supply chain aims to develop. In other words, strategic fit necessitates that a company achieves the optimal balance of responsiveness and efficiency in its supply chain to meet the needs of the company’s competitive strategy. Here are the seven supply chain performance drivers:

7 Supply Chain Performance Drivers

7 Supply Chain Performance Drivers

  1. Production: Factors like what is produced, how it is made (the manufacturing process used), and when it must be produced all significantly impact the supply chain’s performance.
  1. Inventory: Inventory refers to all raw materials, work in progress, and finished goods in a supply chain. Any change in inventory policies can have a significant impact on the supply chain’s efficiency and responsiveness. Decisions such as how much to store, where to store (at the firm’s or warehouse’s premises or the retailer’s premises) etc., must be made. Reducing inventory, on the other hand, will increase the retailer’s efficiency but decrease its responsiveness.
  1. Transportation: Inventory has been transported along the supply chain using multimodal transportation facilities, each with its performance requirements. Consequently, the choice of transportation modes and routes significantly impacts the supply chain’s responsiveness and efficiency (affecting the speed and cost of transportation). Decisions about the movement of products from one location to another and by what mode of transportation are typically trade-off decisions. On the one hand, the associated economies need evaluation, and on the other hand, the desired level of customer satisfaction needs consideration.
  1. Facility Location: Facilities are locations in the supply chain network where inventory is stored, parts are manufactured, and finished goods are assembled. The location of the facilities (plant), capacity, and flexibility significantly impact the supply chain’s performance. On the other hand, fewer service centers and distributors of spare parts could boost the responsiveness of the supply chain network at the expense of efficiency.
  1. Information: Throughout the supply chain, information consists of data and analysis about inventory, facilities (location, capacity, etc.), transportation, and customers. Because information affects all other drivers, it is the most important driver of supply chain performance. Information is useful in making the supply more efficient and responsive.
  1. Sourcing: Purchasing or obtaining the right materials in the right quantities, from the right supplier, in the right conditions, at the right time, and at the right price is known as sourcing. Purchasing in bulk allows suppliers to improve economies of scale while investing in capacity or processes to improve customer service. However, when a buyer firm relies on a single source of supply, it is more likely to run out of stock if supply is delayed. Managers are responsible for making “make or buy” decisions and deciding which tasks to outsource, whether to a single supplier or a group of suppliers. Managers then choose suppliers and negotiate contracts with each one to improve supply chain performance (flow of materials, information, and funds). The following are examples of crucial sourcing decisions made within a company:
  • In-house manufacture or outsourcing
  • Supplier selection
  • Procurement

Logistics and supply chain management are driven by the sourcing and outsourcing decisions made by managers.

  1. Pricing: Pricing is how a company determines how much it will charge customers for its goods and services. Pricing has an impact on the price-sensitive customer segment. Customers’ expectations are also influenced by the prices they pay for goods purchased. As a result, pricing impacts supply chains regarding the level of responsiveness required and the demand profile that the supply chain tries to meet. Pricing is also used as a lever to balance supply and demand.

Understanding “Supply Chain Disruption” along with “Digital Disruption”

A supply chain disruption is a break in the flow of a process involving any entities involved in the production, sale, or distribution of specific goods or services. A well-organized supply chain is critical for maintaining product quality from beginning to end and ensuring that all resources are of the highest or required quality. To effectively manage supply chain disruptions, one must be able to respond quickly when adverse events occur in your operations. Here are a few essential steps:

  • Rapidly evaluate critical events
  • Determine any risks associated with the delivery of goods from your suppliers
  • Examine your suppliers’ viability
  • Ensure supply and your ability to meet customer commitments
Causes of Supply Chain Disruption

Causes of Supply Chain Disruption

Causes of Supply Chain Disruption

Internal or external factors can be the source of supply chain disruption in various industries. The following are the typical factors that may cause these disruptions and should be considered by businesses and organizations:

  • Cyber and security attacks, such as ransomware or data leaks
  • Financial and corporate viability – any internal or corporate concern that may impede production, including revenue forecast
  • Weather, traffic, shipping damages, or delays are all transportation or logistics issues.
  • Man-made disasters include human errors, fires, and warehouse explosions.
  • Any disruption caused by global political events is defined as geopolitical instability.
  • Natural disasters, such as earthquakes, wildfires, and extreme weather, can significantly impact the supply chain.

Three ways to manage disruption in your supply chain

The pandemic’s effects on the economy, various industries, government bodies, and societies are constantly manifesting — it is not a stretch to say that they are here to stay. But companies must make their supply chains more resilient and strategic to keep up with changing conditions. The following are some factors that businesses should consider when dealing with disruption:

  • Be aware of the risks of supply chain disruptions and the potential consequences for production. This understanding can aid in proactively identifying and resolving issues. A predictive analytics tool is an excellent way to accomplish this.
  • Diversifying supply chains and evaluating sourcing strategies: Businesses should have secondary to tertiary backup plans for material resources to mitigate disruption if the primary supplier is compromised.
  • Reallocating capital as needed – the sudden lockdowns at the start of the pandemic reinforced the need for employees to be able to work from home, causing a shift in business capital allocation that would most likely continue post-pandemic.
  • Following good distribution practices will protect distributors from situations that will not only harm their industry reputation but may also harm consumers and result in a significant loss of customers.
  • Enterprises should essentially have an effective Business Continuity Plan to ensure continuous production during a business disruption.
  • Use big data, intelligent systems, and connected ecosystems to implement Supply Chain Transparency. The advantages of doing so are as follows:
  1. This allows for the accessible communication of shortages/issues at any point in the supply chain, making it adaptable.
  2. Secure consumer delight and brand allegiance by ensuring the products’ origins.
  3. Improve industry practices that are not limited to a single business but can benefit the entire industry.

Building Digital Resilience with Supply Chain

Global disruptions have significantly impacted supply chain management in recent years. Labor shortages worsen as more workers reach retirement age, for example, forcing businesses to reconsider how to compensate and distribute labor. At the same period, the e-commerce mania has heightened customer expectations, with more customers demanding faster delivery times. As a result, supply chains must become faster, more granular, and more precise to keep up with these trends. Digitization provides one solution, allowing businesses to meet changing expectations while remaining efficient in the face of disruption.

Supply Chain 5.0

Supply Chain 5.0 addresses hyper-personalization and hyper-customization of customer needs, which necessitates the right combination of human creativity and machine efficiency. While machines do the grunt work, humans can concentrate on creative tasks and cognitive problem-solving.

Robots are frequently used in the manufacturing industry to perform repetitive tasks, thereby streamlining the assembly workflow. In that sense, using robots is extremely valuable for manufacturers attempting to maintain both product standards and a high production volume. However, what robots cannot do is interact with customers who require additional assistance and guidance. This space is where the human factor comes into play. More importantly, human-machine collaboration can enable the flexibility and efficiency needed to achieve resilience in a changing world.

Implementing a Collaborative Supply Chain

Supply Chain 5.0’s hybrid human-machine model assists businesses in surviving disruption without compromising competitiveness or profitability. Digitization and human collaboration are critical for building resilience in the supply chain without changing personnel or asking the customers or suppliers to change their processes. Here are some of the best practices:

  1. Automate data management and acquisition: Manual data entry takes time, is prone to errors, and is rarely up to date. Digital data management enables businesses to collect more robust data and analyze it in real time, all while saving valuable labor time. Accurate data is essential for workflow automation, reporting, and AI.
  2. Collaborate on process optimization: Many businesses have implemented an integrated planning process in silos. Ensure that each business sector knows what the others are doing and why. Digitization can make real-time information accessible across an organization, allowing all departments to stay up-to-date and collaborate on solutions. Everyone in the company might get benefited from this type of collaboration.
  3. Begin small and work your way up: Empower employees who thoroughly understand the company’s goals to take on mentoring roles. Do provide them with the tools and authority to communicate the corporate mission effectively. More employees will have learned from their superior’s guidance over time and will pass on that knowledge to the next wave of new employees.

Is disruption ever beneficial? It certainly could be. Because digital disruption enables businesses to capitalize on and create new opportunities, digitalization can be categorized as disruptive supply chain technology. And using artificial intelligence might assist leaders in identifying, assessing, and mitigating risk.

Hybrid Supply Chain – Advantages and Disadvantages

Hybrid supply chains are an evolution of agile supply chains that produce product components before determining final demand levels. A hybrid approach uses forecasting and real-time data to assist in making better decisions. A hybrid supply chain strategy combines Lean and agile practices. A hybrid supply chain strategy may be appropriate for a company attempting to become a “mass customizer,” producing progressively smaller batch sizes (sometimes as little as one item) specific to customers’ sometimes unique needs.

The age of mass customization has replaced the age of mass production. Mass customization refers to producing customized goods to meet customers’ specific needs while keeping production costs per unit low, as in mass production. Companies must cater to the needs of various customer segments in today’s highly competitive industry environment. A hybrid supply chain allows far more efficient production of smaller batches. Companies with such a strategy can also effectively respond to changing demand situations.

Companies can reduce their inventory holdings by utilizing supply chain agility. Such agility reduces inventory carrying costs. In addition, eliminating waste in the supply chain adds to businesses’ cost advantage from a hybrid supply chain. In today’s business environment, this cost is a major competitive factor.

According to a Gartner survey, 61% of supply chain leaders anticipate a permanent hybrid work model for frontline workers. As a result, supply Chain Management has become one of many businesses’ most important sources of long-term competitive advantage. The right supply chain plan can make or break a business. A hybrid approach to supply chain management is a comprehensive approach that can reduce costs, improve product quality, and boost customer satisfaction.

Hybrid Supply Chain - Advantages and Disadvantages

Hybrid Supply Chain – Advantages and Disadvantages


  • Alignment of corporate and divisional objectives
  • Functional knowledge and efficiency
  • Divisions must be adaptable and flexible


  • Disagreements between corporate departments and units
  • Administrative overhead is excessive
  • Slow reaction to exceptional circumstances

Final Thoughts

To create a supply chain ready to thrive in the future, supply chain leaders should consider how key forces of change will affect their supply chains and look to evolve their supply chain management strategies accordingly. This tipping point represents an opportunity for forward-thinking supply chain leaders to build future-fit supply chains that drive progress on top procurement priorities while advancing the sustainable business agenda. Though considerable uncertainty about how these forces of change will manifest, supply chain leaders can take concrete steps to plan for a wide range of possible future scenarios.

The following are five recommendations for how businesses can embrace and capitalize on the key forces of change that are changing supply chains while also achieving their top procurement priorities.

  • Plan for the effects of Automation and Migration on the Supply Chain
  • Build Responsible Regional Sourcing Hubs
  • Digitalize Supplier Assessment and Engagement
  • Strengthen Supply Chain Transparency and Disclosure
  • Embed Climate-Smart Supply Chain Planning

Feel free to check out my discussion on this topic with Thomas Walenta in YouTube

For any questions related to your Project Management career, training, and certifications, you can book an obligation free 15 minutes session with me by visiting

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The Paradox of Project Sponsors to Stakeholders

The Paradox of Project Sponsors to Stakeholders

A project is deemed successful when it meets or exceeds the expectations of its stakeholders. Every project has a unique set of stakeholders—sometimes far too many. Trying to meet all of their requirements is more often an impossible task. Nonetheless, the project manager must deal with all stakeholder situations smoothly because the stakeholders and the people they represent often evaluate the project’s success.

Project Stakeholders

Project Stakeholders

But who are the stakeholders? According to PMI, “Project stakeholders are individuals and organizations who are actively involved in the project, or whose interests may be positively or negatively affected as a result of project execution or successful project completion.”

Stakeholders can be internal or external to the organization that is carrying out the project.

“Project Sponsor” is also a stakeholder, typically an organization executive with authority to assign resources and enforce project decisions. Project sponsors are called internal stakeholders in the project. Stakeholders include the project manager, project team members, and managers from other departments within the organization. Identifying all project stakeholders as early as possible in a project is critical. Leaving out key stakeholders or the department’s function and not discovering the fault until the project is well underway could be disastrous.

Types of Stakeholders

Types of Stakeholders

Types of Stakeholders

There are two types of project stakeholders:

  • Internal Stakeholders
  • External Stakeholders

Internal stakeholders are individuals or businesses whose relationship with a company is determined by their position within its structure. As the name implies, these individuals are involved in a project from the inside. They are as follows:

  • A project sponsor
  • An internal customer or client
  • A project team
  • A program or portfolio manager
  • Management
  • Another team’s manager of the company

External stakeholders are those interested in a company’s operations. Still, they do not necessarily have a role in the decisions of the business. However, they can influence success or failure based on their vested interests. They can be just as powerful as internal stakeholders. These stakeholders are not directly involved in the project but are affected by its outcome.

  • An external customer or client
  • An end-user
  • Subcontractors
  • A supplier
  • The government
  • Local communities
  • Media

Characteristics of Stakeholders in a Project 

  • When contributing to a project, stakeholders have varying levels of responsibility and authority. This level may change as the project progresses. It can range from one-time contributions to complete project sponsorship.
  • Some stakeholders may also actively or passively undermine the project’s success. These stakeholders require the project manager’s attention throughout the project’s life cycle.
  • Stakeholder identification is a continuous process throughout the project’s life cycle. Identifying them, understanding their level of impact on a project, and meeting their demands, needs, and expectations are critical to the project’s success.
  • Just as they can positively or negatively impact a project’s objectives, stakeholders can perceive a project to have positive or negative outcomes.
  • A project manager’s most important role is managing stakeholder expectations, which can be challenging because stakeholders often have different or conflicting goals.

Stakeholder Management

Stakeholder management is the process of organizing, monitoring, and improving relationships with stakeholders. It entails systematically identifying stakeholders, analyzing their needs and expectations, and planning and carrying out various tasks to engage them. In addition, a good stakeholder management process will allow them to coordinate their interactions and evaluate the status and quality of their relationships with various stakeholders.

A critical component of running a successful project is developing and maintaining positive relationships with the affected communities and other stakeholders.

Investing time in identifying and prioritizing stakeholders, as well as assessing their interests, provides a solid foundation on which to build the stakeholder engagement strategy. In addition, good stakeholder management includes ‘business intelligence.

Benefits of Stakeholder Management

Benefits of Stakeholder Management

Benefits of Stakeholder Management

  • Build Reputation
  • Competitive advantage
  • Corporate governance
  • Risk management
  • Social license to operate
7 Principles of Stakeholder Management

7 Principles of Stakeholder Management

7 Principles of Stakeholder Management

Clarkson Centre created the seven principles of Stakeholder Management for Business Ethics under the leadership of Max Clarkson. The Clarkson Principles are, in many ways, “meta-principles” that encourage management to embrace specific stakeholder principles and implement them according to the norms.

  1. Managers must acknowledge and actively monitor all legitimate stakeholders’ concerns and consider their interests in decision-making and operations.
  2. Managers must listen to and communicate openly with stakeholders about their respective concerns and contributions and the risks they face from their involvement with the corporation.
  3. Managers must implement processes and behaviors sensitive to each stakeholder constituency’s concerns and capabilities.
  4. Managers should be aware of the interdependence of stakeholder efforts and rewards and make an effort to fairly distribute the costs and benefits of corporate activity among them while taking into account their risks and vulnerabilities.
  5. Managers should work with other public and private entities to ensure that risks and harms resulting from corporate activities are minimized and compensated appropriately where they cannot be avoided.
  6. Managers should avoid activities that could jeopardize inalienable human rights or create risks that, if clearly understood, would be patently unacceptable to relevant stakeholders.
  7. Managers should be aware of potential conflicts between their role as corporate stakeholders and their legal and moral obligations to all stakeholders and address such conflicts through open communication, appropriate reporting and incentive systems, and, if necessary, third-party review.

Understanding the Stakeholders

A good understanding of the stakeholders is the key to successful stakeholder engagement. In addition, understanding stakeholder concerns and interests can lead to product or service ideas that address stakeholder needs while allowing the company to cut costs and maximize value.

1. What else can you learn about stakeholders to better understand their needs, priorities, preferences, and concerns? Consider:

  • Demographic data- Ensure to engage with a diverse community and stakeholder groups.
  • Social networks- Focus on the important, often undocumented, social connections between stakeholders.

2. Stakeholder Mapping – Stakeholder mapping is the visual process of depicting all stakeholders of a product, project, or idea on a single map. The main advantage of a stakeholder map is that it provides a visual representation of all the people who can have an impact on your project and how they are connected.

3. Salience model – investigate the power, urgency (need for immediate action), and legitimacy (appropriate stakeholders), as well as the interaction or groups of stakeholders that result.

4. Determine stakeholder expectations and compare them to the scope and expectations of the project or organization for which the engagement program is being run. Is there a mismatch in expectations, and how will this be addressed? Consider the following:

  • What information do they need from you, how often, and in what format/channel do they want it?
  • What is their financial/social/emotional stake in the outcome of the work? Is it favorable or unfavorable?
  • What primary motivations will shape their perceptions of your project or organization and their interactions with you?
  • What are their current feelings about the organization and project? Is it founded on reliable data?
  • Who influences their thoughts, and who are they influenced by?

Ways to deal with common stakeholder problems and challenges

  • Stakeholder conflict occurs when different stakeholders have incompatible goals. It causes a “problem” for the company because it can impact its performance and success.
  • Conflict necessitates that businesses effectively manage stakeholder interests. Not all stakeholders are strategically important to the company. As a result, businesses must determine which ones should be prioritized.
  • Potential problems can be avoided by conducting an upfront analysis of who the stakeholders are and how and when to involve them in the project.
Analysis of common stakeholder issues

Analysis of common stakeholder issues

Analysis of common stakeholder issues 

As no two stakeholders are the same, the issues they may introduce into a project will be vastly different. This factor means there could be many reasons why a project encounters stakeholder resistance or the project team struggles to gain traction. Identifying stakeholder issues during the project can help with planning ahead of time and preparing an appropriate response.

  1. Trying to align different stakeholders.

It is generally a good thing to have a variety of interests in the project and its outcome, but having a lot of different stakeholders can also pull the project team in too many different directions. In addition, it can be challenging for project managers to coordinate too many different stakeholders, which could add new difficulties to the project.

  1. Competing priorities between stakeholders

Stakeholders bring their objectives and expectations to the project. However, at least a few of these priorities frequently conflict with or compete with one another. In addition, priorities may vary depending on the department, the role, or the professional backgrounds of the individuals.

  1. Resource constraints 

It’s possible that the team lacks some of the resources they require or that the project is utilizing resources that other stakeholders consider crucial to their projects. Resource competition is common in organizations and can lead to conflict.

  1. Breakdowns in communication

Effective communication between stakeholders and the project team is crucial for everyone to achieve their objectives and for the project to be successful. When there are communication breakdowns, the project may be delayed, or the team may not receive the necessary information. Without deliberate communication, stakeholders might unintentionally hinder the project’s success.

  1. Stakeholders are resistant to sharing information. 

At times, important project sponsors are more focused on their success and fail to promptly or completely provide the stakeholders with the required information. As a result, stakeholders may attempt to disrupt a project unintentionally or on purpose.

  1. Potential implications of conflict with a sponsor

Conflict with project sponsors may have many consequences on the project management, such as these typical ones:

  • The project’s progress is being slowed
  • Reducing the effectiveness and timeliness of decision-making
  • Putting team cohesion in jeopardy
  • Undermining a project manager’s authority
  • Fostering hostility and encouraging uncooperative behavior
  • Creating a fearful environment for other stakeholders
  • Obscuring the project’s vision
Methods for dealing with common stakeholder conflicts

Methods for dealing with common stakeholder conflicts

Methods for dealing with common stakeholder conflicts

  1. Stakeholder analysis 

Stakeholder analysis can offer insightful information and guidance, just as project managers must carefully examine resources and specifics. It can be helpful to respond appropriately by taking the time to consider how stakeholders affect the project’s progress.

By conducting a stakeholder analysis, one can learn how to control expectations, channel stakeholder influence toward project objectives, and deliver the information and updates that stakeholders expect from their team.

  1. Identify stakeholders

One must first identify the stakeholders to analyze them effectively. List every stakeholder that comes to mind, then include more individuals and organizations as necessary. As stakeholders, all parties involved in the project, those with authority over it or an interest in its success, should be listed.

  1. Prioritize stakeholders

The list of stakeholders can then be ranked according to impact, interest, and power. For instance:

  • Key stakeholders: This first group heavily influences and controls the project. This group is frequently accurate for executive leadership at the company.
  • Primary stakeholders: The project immediately affects the key stakeholders. This pack may include team members, departments, and internal or external clients who stand to gain from the project’s outcomes.
  • Secondary stakeholders: The secondary stakeholders are those who play a supporting role, are indirectly impacted or have a less significant stake in the project.

Understand the key stakeholders

A few stakeholders are usually critical to the project. Key stakeholders invoke more power and may have a more significant stake in the project’s success than primary or secondary stakeholders. For example, key stakeholders could include their boss, company executives, or team leaders.

Finding the key stakeholders and understanding what they need can help keep the project on track because they may control important resources, have a significant impact on the project, or grant the necessary approval.

Create a communication plan 

With a communication plan, project leaders will be better prepared to manage their stakeholders on the fly and keep the project moving forward.

  • Create your communication strategy based on what the project leader knows about their stakeholders.
  • Keeping track of what the stakeholders require from themselves allows project leaders to stay organized and focused on managing the project.
  • Gaining the stakeholders’ trust is essential once the developed strategy has been implemented. Rather than dictating the project to them, make each stakeholder a priority – as appropriate – and give them space to contribute.

Final Thoughts

Different stakeholders in the project have different expectations. Project managers should look for potentially hazardous situations when those expectations might clash. Then, they must address and resolve the conflict or risk endangering the project and themselves.

Resolving stakeholder expectations conflicts is always linked to project success. Furthermore, using various forms of communication among the project team, such as senior management and stakeholders, increases the likelihood of mutual understanding. These techniques help project managers align stakeholder expectations and reduce the possibility of project distress.

Feel free to check out my discussion on this topic with Thomas Walenta in YouTube

For any questions related to your Project Management career, training, and certifications, you can book an obligation free 15 minutes session with me by visiting

You can subscribe to the vCare Project Management YouTube Channel to catch future videos of our Q&A series and certification success stories:

You can subscribe to and follow my podcasts and interviews with Project Management Experts on YouTube at