A major part of your stakeholder management will often include managing stakeholder expectations. It is among the trickiest and the most important parts of managing your stakeholders. Let us dig deeper and know why it is important and what are essential tips to manage expectations.
Why Managing Stakeholder Expectations Is So Important
First, you need to understand that you are not always able to fulfill the needs of your stakeholders. There is usually a trade-off involved and often there are losers and winners in a project. It is not necessary for good stakeholder management to give the exact amount your stakeholder wants. But it is about supporting them through the procedures and giving them as many opportunities as possible. It helps them to shape the outcome.
Your stakeholders may not like the outcome, however, they should at least endorse the procedure and recognize that it was inclusive and fair. Of course, that will not always happen and you will find that most stakeholders will attack the procedure if they are unsatisfied with the outcome. If you manage stakeholder expectations at every step of the process, the stakeholders will:
- Understand the process
- See that you are honest and open
- Understand the boundaries and see what is and is not possible
- Listen to the reasons behind any decisions made
In some scenarios, this procedure can help increase stakeholder optimism and also encourage support for your organization or project. It can also help your stakeholders be more realistic about possible outcomes and prevent disappointment.
Either way, through stakeholder expectations management, you can increase their levels of trust. It will also improve satisfaction among external and internal parties. Moreover, it also builds better relationships, creates a social license to function, adds value to the relationships, and leads to smoother operations for your project.
Steps to Manage Stakeholder Expectations in Real Estate Projects
We have mentioned some of the key steps to manage stakeholder expectations. It is possible that you may have been practising some of them already.
Identify Stakeholders
Before managing your stakeholder’s expectations, you must know who your stakeholders are. Your stakeholders involve anyone who may be influenced by or have an influence on your organization or project. This includes the people inside your organization such as managers, shareholders, employees, and executives. These also include external people people like customers, suppliers, locals, and others.
Manage Stakeholders Differently
Many projects have a diverse range of different stakeholders. They will most likely have a wide range of expectations as well. You will need to approach each group differently and give them only the information that is relevant to them. This is where stakeholder mapping becomes important. You can use different stakeholder mapping tools to understand and visualize your stakeholder with three key criteria:
- Influence
- Impact
- Interest
There is also built-in AI-driven sentiment analysis. It automatically tags stakeholders and interactions according to how they feel about certain issues. Utilize contact groups to segment stakeholders into lists so you can customize your messages according to their expectations.
Keep Stakeholders in the Loop
“Make sure to give regular updates to your real estate stakeholders. Firstly, explain the process, the exact scope, and the timing it is for stakeholders to impact decisions. It is a crucial starting step to make sure that everyone understands the process and the influence they can have in the process.
Put a roadmap or plan in place and share it with the stakeholders. If your project is continued, your stakeholders will see it go through different transitions and stages. When you clearly communicate it with a written plan, they will understand what is happening, why and when. Moreover, whenever you communicate with your stakeholders, ensure you are ready to listen and receive feedback. Always be ready to direct stakeholders towards aspects they can influence so they can take part in the process.” - Daniel Cabrera, Owner and Founder of Fire Damage House Buyer
Share Evidence and Research
Your stakeholders are probably informed by different information sources and perspectives outside of your control. So do not assume you have all the facts and also that they have all the facts, either. It means when you communicate you may need to eliminate the myths and clearly state the facts from only reliable sources.
Also, do not forget to listen to their perspectives. Many stakeholders make valid points that you must take into consideration. So keep track of all your interactions and be willing to adjust your stakeholder management plan. Sometimes, you may also need to adjust your project approach which is not a problem if it is worth it.
Produce Value Regularly
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Show that you are making progress and moving towards the overall result. Do regular communication for project progress. It also depends on the stakeholders and project timelines for regular updates. You may need to give progress updates from every two weeks to two months. Here are some ways you can update your stakeholders:
- Calling them on the phone
- Sending an email
- Sharing social media posts
- Posting an update on your website
- Hosting a meeting
There are also many integrated communication and reporting tools that you can use. These tools give an easy way to share regular expected updates with your stakeholders.
Track Sentiment
How your stakeholders feel about the project and any latest issues that may come up is stakeholder sentiment. Knowing stakeholder sentiment is essential as it helps you understand your stakeholders better. Moreover, it also helps to see how you can direct each group to appropriate expectations. A good way to track sentiment is with the help of stakeholder management systems.
How to Handle Scope Changes and Manage Disappointments
“Scope changes often happen in a real estate development project. It often emerges from changing market demands, customer feedback, or business strategy shifts. It is essential to manage these effectively to maintain stakeholder trust and ensure alignment. Structured processes, transparent expectations, and clear communication are crucial. It helps to navigate scope changes without causing disappointment or frustration.” Te Wu, CEO of PMO Advisory
Early Recognition and Communication of the Change
“Minimize the influence of the scope changes. You can do that by addressing them instantly and openly with stakeholders. It is better to communicate the changes soon after the scope adjustments arise.
Through early recognition, you can adjust expectations and avoid delays or misunderstandings. Prompt communication is important to show respect for stakeholders’ investments and time. It builds a culture of transparency and trust.” - Mike Khorev, Founder at Cloomtech
Here are some actionable steps that you can follow:
- As soon as you identify a scope change, combine relevant details. After that, evaluate its potential influence on the project.
- Inform stakeholders about the change by arranging a formal meeting or announcement. You can arrange that according to the significance of the scope change.
- Present the change with context and explain the reasons plus the business case behind the shift.
Through these initial steps, you can make the stakeholders feel valued and informed. It will also reduce the chances of frustration and surprise.
Update the Roadmap
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Revise the roadmap and reflect changes. Manage stakeholder expectations around new milestones and timelines. Updating the roadmap offers stakeholders a real reference point. It shows them exactly how the scope change influences the project’s milestones, resources, and timeline.
Present a revised roadmap and realign expectations to avoid potential frustrations down the line. Make sure that the new roadmap is detailed and realistic and acknowledges any dependencies and delays introduced by the change.
Some actionable steps you follow are:
- Adjust milestones, deliverables, and timelines in the roadmap. It helps to account for the scope change.
- Share the revised roadmap with stakeholders. You can share it either as a document or in a meeting, walking them through the updates.
- Clarify any new risks, challenges, or dependencies that the scope change may introduce.
Through a revised map, stakeholders can see a clear new direction. It will help them to adjust their expectations and stay aligned.
Acknowledge Disappointments and Provide Solutions
“Show empathy for any disappointments stakeholders may feel. Give them alternatives or solutions whenever possible. It is true that scope changes can result in disappointments. This is especially true when they impact high-priority timelines or features. You can maintain a strong relationship with your stakeholders when you recognize their emotions and show empathy.
Here is how you can acknowledge and empathize with your stakeholder's emotions.
- Acknowledge the potential frustration the change might cause. Show that you understand the stakeholder’s perspectives.
- If possible, provide compromises or alternatives that address stakeholder needs without drifting from the new scope.
- Reinforce your commitment to the success of the project. Encourage that the change serves the wider vision and long-term goals.
Solutions with empathy can diffuse disappointment. It shows stakeholder that their concerns are considered. Moreover, it helps your team to look committed to meeting their demands within the updated scope.” Brian Bosscher, owner and founder of Condo Control
Conclusion
Stakeholders make it easy for you to examine communication and spot rising issues through sentiment analysis on every interaction. You have to focus on some potential points to keep your stakeholder satisfied that their expectations are valued. Always make sure that their expectations are your first priority and design your plan according to that. You must create a relationship of trust and reliability with your stakeholders for a smooth development project.
