Stakeholder Management is NOT the same for Agile vs Waterfall. Did you know that?

Introduction to Stakeholder Management

Contents hide

1) Introduction to Stakeholder Management

2) Stakeholder Management in Agile vs Waterfall methodologies

3) Stakeholder Identification

4) Stakeholder Analysis

5) Stakeholder Communication Plan

Stakeholder management is the effective engagement of the Stakeholders, who are individuals or groups of people who have a vested interest in the project and/or can significantly impact the outcome of it. In the world of projects, the journey to success is often defined by the extent of successfully managing it.

The process of Stakeholder management includes-

Stakeholder identification
Stakeholder analysis
Stakeholder communication plan

Effective stakeholder management is crucial in IT projects. It ensures alignment between project goals and stakeholders’ expectations, mitigates risks and fosters collaboration.

It facilitates better decision-making and helps secure necessary resources, leading to project success. It is the cornerstone for project viability, sustainability, and overall organizational success.

Stakeholder Management in Agile vs Waterfall methodologies

While Agile is iterative and more fluid, Waterfall is more structured and well-planned. Each model has its benefits, works best in different situations, and has its strengths and weaknesses. However, amidst the whirlwind of tasks and timelines, differentiated stakeholder management for each model is often ignored.

Both Agile and Waterfall delivery models offer contrasting approaches to this essential aspect of it, shaping how Stakeholders are identified, engaged, and managed throughout the lifecycle.

However, the sad truth is that 68% of project managers don’t know that Stakeholder management must be handled differently in Agile and Waterfall for projects to be successful.

So, let’s step into the world of Stakeholder management to see how these two methodologies differ and what strategies work best for each.

Stakeholder Identification

This phase is a process of identifying every single person in the space who is directly or indirectly connected, Influenced, Impacted, Invested, or Interested in the project’s outcome.

In Agile world:

Imagine you’re throwing a party. Your guest list might look like a constantly evolving role. Agile projects are all about flexibility and adapting to change, so your Stakeholders are diverse and ever-changing.

Here, the list is so fluid that, your Stakeholders of one party/sprint might not be the same for the next party or sprint.

Key differentiations in this phase are –

Identification: Stakeholders are identified iteratively as the project progresses with each sprint, with new ones identified as the need arises.
Dynamics: Stakeholders come in all shapes and sizes, each one with their perspectives, inputs and expectations. Agile teams continuously revisit and refine their understanding of Stakeholders throughout the project lifecycle.
Composition: Stakeholders include everyone from product owners, investors, developers, and testers to end-users.

In Waterfall world:

Waterfall projects resemble more of a formal dinner party. The guest list is set in stone from the beginning, and each Stakeholders has a specific role to play at different stages of the project.

Here, Stakeholders don’t usually change, and they remain the same for the entire project.

Key differentiations in this phase are –

Identification: Stakeholders are identified Comprehensively and almost exhaustively at the beginning of the project.
Dynamics: Each Stakeholders has defined responsibilities and expectations, which are almost static throughout the project.
Composition: Stakeholders include sponsors, clients, senior leadership, project managers, SMEs, architects, designers, engineers, business users, regulatory bodies etc.

Stakeholder Analysis

Now that you have identified all people connected directly or indirectly to your project, the next phase of Stakeholder management is to understand their priorities, expectations, needs, and how they can help or influence the project’s success, positively or negatively, how they can help achieve/ detract the project’s success.

Please NOTE that not all Stakeholders are interested in the success of your project. Those who are interested in the project’s success are called promoters, and those who aren’t are called detractors.

In both Agile and Waterfall methodologies, Stakeholders analysis matrices serve as valuable tools for project managers to prioritize and understand the needs of various Stakeholders , including their interests, expectations, and influence.

These matrices help prioritize communication and engagement efforts, ensuring that the right Stakeholders are kept informed at the right time.

However, the approach to Stakeholder management, analysis and the utilization of the matrix differ significantly between both models due to their distinct characteristics and project execution processes.

In Agile world:

Agile methodologies emphasize direct and frequent interaction, prioritizing collaboration over documentation.

Analysis: It is process of Continuous Assessment. It is an ongoing process in agile, very fluid, and evolves alongside the project based on the identification of new Stakeholders, their needs, priorities, and relationships.
Priority: Focus is on continuous communication and feedback, building close relationships, adaptability, and collaboration.
Categorization: The analysis matrix categorizes Stakeholders mostly based on their level of interest and availability.

In Waterfall world:

In the waterfall model, the stakeholder analysis is more rigorous, and it is mostly done one time. It helps project managers prioritize communication and engagement efforts, ensuring that all related Stakeholders are adequately informed and involved.

Analysis: In Waterfall, there is a detailed assessment. Stakeholders interests, expectations, influence, and potential impact on the project are analyzed thoroughly, typically during the planning phase, often using predefined criteria or metrics.
Priority: The focus is on understanding which Stakeholders need what level of information, at what frequency, and in what format.
Categorization: The analysis matrix categorizes Stakeholders based on their level of authority, interest, or impact on the project.

Stakeholder Communication Plan

Communication is the lifeblood of any project, and having a solid plan in place can make all the difference.

In Agile world:

Picture a busy marketplace where the product owner sets up shop, engaging with customers and gathering feedback. Vendors shout out their offerings, customers share their preferences, and everyone works together to create something amazing.

It’s all about constant communication and collaboration.

Communication Style: The approach is often less formal, more frequent, and collaborative. It resembles a lively conversation in a crowded square.
Communication Forums: Agile teams often rely on daily stand-up meetings, sprint reviews, backlog grooming sessions and retrospectives to keep the conversation flowing.
Reporting formats: Progress is often tracked as Jira stories completed in Jira / Kanban board.
Involvement levels: Agile model Stakeholders are not just passive recipients of information but actively participate throughout the project, providing feedback insights, refining requirements, and influencing the direction of development at every sprint.

In Waterfall world:

Picture a well-organized mall where everyone visits shops at given timeslots, and each one already knows what to buy and where to find it. There is no hustle and no surprises, atleast in governance.

Communication Style: Here, the approach is more formal, structured, and well-scheduled, much like a well-defined irrigation system. It’s like sending out formal invitations to a dinner party months in advance and sticking to a set agenda.
Communication Forums: Updates are typically scheduled at predetermined milestones, with formal reports and documentation serving as the primary means of communication. This approach emphasizes clarity and predictability, ensuring that stakeholders are informed but not overwhelmed by excessive communication.
Reporting Formats: Weekly Status Reports (WSR), Monthly Business Review (MBR), Quarterly Business Review (QBR), Gate reviews, and formal sign-offs at each stage of the project are used for progress reporting about major milestones.
Involvement levels: Waterfall methodology is a linear system of working, with less customer interaction during the development phase, and each phase must be completed before the next phase can begin.

Conclusion

In summary, while both Agile and Waterfall methodologies emphasize the importance of Stakeholder management, they differ greatly in terms of identification & analysis process, in terms of categorization, flexibility, frequency of comms, communication style, and documentation.

Stakeholder management in Agile is like navigating a bustling marketplace, and in Waterfall, it’s like orchestrating a formal dinner party.

Only when the project managers are able to understand and appreciate these differences can they apply them effectively to manage stakeholders’ expectations, needs, and priorities and influence and engage with them in appropriate forms while dealing with different delivery models. This knowledge enables the project managers to tailor stakeholder management strategies and chart a course to success.

So, apply the apt variant of the Stakeholder management approach and excel in your project management journey.