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How Does the Product Owner Manage Various Stakeholders?

As you know, Scrum has the 3 most important roles, which are Product Owner, Scrum Master, and the Team. Apart from these core roles, we have involved stakeholders. It is very important to manage various stakeholders to let the project go in the right direction. Now, when it comes to the Product Owner, one of the most important roles and responsibilities is to manage stakeholders. Managing their requirements, their areas of interests, areas of conflicts, and a lot more.  This article is going to talk about the Product Owner roles and responsibilities. Furthermore, It gives you insights about who all are the stakeholders, what does it mean to manage the stakeholders, what should be the process, and the further best tips to manage stakeholders. Let’s get started with understanding the basics first. Stakeholder ManagementA stakeholder is anyone interested in the product or we can say who is influenced by the product or involved in the product.This can be anyone who has a certain type of interest in the project, be it financial interest, someone who has invested, or it can be someone who is going to use the product, which could be customers. We will understand the various types of stakeholders in the coming section of this article.Now, coming to stakeholder management. Stakeholder Management plays a vital role in project success. It is basically about maintaining good relationships with the stakeholders, or we can say manage them to make them respond positively towards the project. We will understand various ways to implement this in the coming sections of the article.Let us first understand the roles and responsibilities of a Product Owner before we dive deep into managing stakeholders.Stakeholders and Product Owner Product Owner Role and ResponsibilitiesThe product owner is the most important person, who “owns” the product. This person is responsible for the Product Vision.A key decision-maker and responsible for the ROI of the businessResponsible for understanding the end customers and creating the product backlog requirements accordinglyResponsible for product backlog management (Prioritizing and Managing it)Responsible for reviewing and checking the potentially shippable product increment deliverable at the end of the sprintProviding feedback to the team at the regular intervals to make sure the product development is moving in the right directionRefining the product backlog, based on the feedback and changing market needsAnd not to forget, managing stakeholders!Now that we understand the Product Owner deeply and it’s responsibilities, let us understand the Stakeholders.Understanding the Various StakeholdersStakeholder A famous “Chicken” and “Pig” story in Scrum is one of the very good examples that explain how “Chicken” represents the stakeholders who are merely “involved” and “Pig” represents roles like Product Owner, Scrum Master, and the team, which are not only involved but “committed”. Someone who is not part of the team but still has an interest and involvement in product or project development and it’s progress. However, someone who would be affected by the project or product development.  This can include:Directors, Decision Makers at the organization End Users/End Customers Product Sponsors Marketing team Legal entities Etc. It is very important to take care of these Stakeholders and fulfill all their requirements during and after product development. Now, when we see Stakeholders, this will contain different sets of people and with different roles. This can include some really good stakeholders who would always encourage the team and provide constructive feedback. However, on the other hand, this can include some challenging stakeholders, who don’t support or provide any feedback. This is where comes the need for management of stakeholders. However, if we go with the management, it’s like managing people, because stakeholders would include people with different roles.  However, we will look at the larger picture here and see how to manage stakeholders. Let’s have a look at it by putting our feet into the Product Owner’s shoes.  Reviewing Stakeholder Management Process  As we got an idea that Stakeholder could be someone who would either support or someone who would either oppose. The process of managing these stakeholders is Stakeholder Management Process. It involves managing their expectations, communication, requirements, etc. It involves 4 different steps which will talk about:1. Identifying the StakeholdersIdentifying StakeholdersThe very first step that comes in the Stakeholder management process is “Identifying the Stakeholders”. This can be anyone who is involved in the project or is affected by the project. Let us have a look at different aspects for identifying the stakeholders:Someone who has an impact on the project Someone who has an opinion or a point of view on the project Someone who has a decision making power Someone who would like to see your project successful Someone who would like to see your project fail Someone who has an impact over your team Someone who can help resolve conflicts or remove challenges Someone who simply have an interest in the project Once, we list down and identify the stakeholders, it is easy for us to categorize them based on different aspects. This whole process is identifying the stakeholders. Once we know them, it is easy for us to manage them.2. Analyzing the StakeholdersAnalyzing the StakeholdersThere are several ways to analyze stakeholders. We will have a look at the two most important ones. The first one is Power-Interest Graph. Power-Interest Graph Power-Interest GraphHigh Power, High InterestThese stakeholders are mostly the decision-makers or the key-players. They can impact in a way that can make the project successful or fail. They are very easy to identify. Now, when it comes to communication, they should be actively engaged! These stakeholders are highly powerful, so we must try to meet their each and every requirement, otherwise they can even cancel our project if not satisfied.High Power, Low InterestThese stakeholders again have decision-making abilities but they are not so much interested. A lot of communication can make them disinterested in the project or product. They lack interest and therefore, they should be kept satisfied!   Do whatever it takes to keep them satisfied.Low Power, High InterestThese stakeholders are the ones who have less power over the project but they are keenly interested in what’s going on. They might impact the project, so it is important to keep them informed!Low Power, Low InterestThese stakeholders are the ones who are merely present and don’t expect to be involved much. They might not be interested and might not be expecting any sort of communication. It is important, you just monitor them!Now that we saw the Power-Interest Graph, another interesting way is the Stakeholder SWOT Analysis. Let us have a look at that one as well.Stakeholder SWOT Analysis. Another way is to analyze the stakeholders based on their Strengths, Weaknesses, Opportunities, and Threats. What will be their Strengths and Weaknesses? What will be the opportunities and threats they would bring to the project? This will help analyze them better. SWOT Analysis 3. Prioritizing the StakeholdersFor a product owner, prioritization is like an ongoing activity. Just like they need to prioritize the backlog, a similar way, they need to prioritize the stakeholders. After the successful identification and analysis, once they are prioritized, they can be taken care of accordingly. This way, product owners can develop the communication plan and can further deliver the right message to the right stakeholder at the right time.4. Engaging the Stakeholders This is the last step where execution takes place. Now that we have identified, analyzed, and prioritized the stakeholders, this is where we will implement the communication plan. Determine different action plans, whether are going to have one on one conversations, meetings, or going to communicate through emails. We define and execute our plan accordingly and keep the stakeholders engaged as required. Thus, managing all their expectations.5 tips for the Product Owners to manage stakeholders effectively   By now, we know how to identify the stakeholders, analyse them, and different steps of the management process. Let's have a look at some of the best practices which Product owners can follow to manage stakeholders effectively: Don’t treat Stakeholders same. As we have seen the matrix above on identifying, analyzing and prioritizing the stakeholders. It is very important for the Product Owners to treat them accordingly. Based on our analysis, we categorize them and then based on our categorization, Product Owners need to treat them. Act like an Owner. Being a Product Owner is a great responsibility. It is the person responsible for the ROI of the business. With responsibility comes the authority. It is very important you act like an “Owner”. This not only gives you the power over stakeholders but also helps manage them more effectively. Communicate Upfront. Never hesitate to say “No” to the stakeholders. Being a product owner, you know what is good for the project and what is bad for the project in order to make it successful. As and when needed, for certain decisions and for the benefit of the project, feel free to say “No” to the stakeholders and be upfront in doing so. Set Expectations. It is very important that being a Product Owner, you set all the expectations with the stakeholders. Understanding what they need to know and what they are expecting out of the project. Further, You should be communicating with them in terms of their expectations only. Involve Scrum Masters. We know that Product Owner is responsible for managing the stakeholders, but this is not mandatory that Product Owner should do it all alone. Have your Scrum Master besides you to support you with all sorts of process questions, which can eventually help you manage the stakeholders more effectively.  These were some of the best tips to manage stakeholders effectively and efficiently.   To conclude, we discussed several types of stakeholders and we looked at the process of managing them. The major takeaway from this article is understanding the stakeholders. For understanding and managing them, Remember the 4 key points, which are Identifying, Analyzing, Prioritizing and Engaging the stakeholders. For engaging with the stakeholders, which involves the execution, we have provided you with 5 tips for the product owners to manage stakeholders effectively. Stay tuned for more such articles!
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How Does the Product Owner Manage Various Stakeholders?

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How Does the Product Owner Manage Various Stakeholders?

As you know, Scrum has the 3 most important roles, which are Product Owner, Scrum Master, and the Team. Apart from these core roles, we have involved stakeholders. It is very important to manage various stakeholders to let the project go in the right direction. 

Now, when it comes to the Product Owner, one of the most important roles and responsibilities is to manage stakeholders. Managing their requirements, their areas of interests, areas of conflicts, and a lot more.  

This article is going to talk about the Product Owner roles and responsibilities. Furthermore, It gives you insights about who all are the stakeholders, what does it mean to manage the stakeholders, what should be the process, and the further best tips to manage stakeholders. Let’s get started with understanding the basics first. 

Stakeholder Management

A stakeholder is anyone interested in the product or we can say who is influenced by the product or involved in the product.

This can be anyone who has a certain type of interest in the project, be it financial interest, someone who has invested, or it can be someone who is going to use the product, which could be customers. We will understand the various types of stakeholders in the coming section of this article.

Now, coming to stakeholder management. Stakeholder Management plays a vital role in project success. It is basically about maintaining good relationships with the stakeholders, or we can say manage them to make them respond positively towards the project. We will understand various ways to implement this in the coming sections of the article.

Let us first understand the roles and responsibilities of a Product Owner before we dive deep into managing stakeholders.

Stakeholders and Product Owner

Stakeholders and Product Owner

 
Product Owner Role and Responsibilities

The product owner is the most important person, who “owns” the product. This person is responsible for the Product Vision.

  1. A key decision-maker and responsible for the ROI of the business
  2. Responsible for understanding the end customers and creating the product backlog requirements accordingly
  3. Responsible for product backlog management (Prioritizing and Managing it)
  4. Responsible for reviewing and checking the potentially shippable product increment deliverable at the end of the sprint
  5. Providing feedback to the team at the regular intervals to make sure the product development is moving in the right direction
  6. Refining the product backlog, based on the feedback and changing market needs
  7. And not to forget, managing stakeholders!

Now that we understand the Product Owner deeply and it’s responsibilities, let us understand the Stakeholders.

Understanding the Various Stakeholders

Stakeholder

Stakeholder

 A famous “Chicken” and “Pig” story in Scrum is one of the very good examples that explain how “Chicken” represents the stakeholders who are merely “involved” and “Pig” represents roles like Product Owner, Scrum Master, and the team, which are not only involved but “committed”. Someone who is not part of the team but still has an interest and involvement in product or project development and it’s progress. However, someone who would be affected by the project or product development.  

This can include:

  • Directors, Decision Makers at the organization 
  • End Users/End Customers 
  • Product Sponsors 
  • Marketing team 
  • Legal entities 
  • Etc. 

It is very important to take care of these Stakeholders and fulfill all their requirements during and after product development. Now, when we see Stakeholders, this will contain different sets of people and with different roles. 

This can include some really good stakeholders who would always encourage the team and provide constructive feedback. However, on the other hand, this can include some challenging stakeholders, who don’t support or provide any feedback. 

This is where comes the need for management of stakeholders. However, if we go with the management, it’s like managing people, because stakeholders would include people with different roles.  

However, we will look at the larger picture here and see how to manage stakeholders. Let’s have a look at it by putting our feet into the Product Owner’s shoes.  

Reviewing Stakeholder Management Process  

As we got an idea that Stakeholder could be someone who would either support or someone who would either oppose. The process of managing these stakeholders is Stakeholder Management Process. It involves managing their expectations, communication, requirements, etc. 

It involves 4 different steps which will talk about:

1. Identifying the Stakeholders

Identifying Stakeholders

Identifying Stakeholders

The very first step that comes in the Stakeholder management process is “Identifying the Stakeholders”. This can be anyone who is involved in the project or is affected by the project. Let us have a look at different aspects for identifying the stakeholders:

  • Someone who has an impact on the project 
  • Someone who has an opinion or a point of view on the project 
  • Someone who has a decision making power 
  • Someone who would like to see your project successful 
  • Someone who would like to see your project fail 
  • Someone who has an impact over your team 
  • Someone who can help resolve conflicts or remove challenges 
  • Someone who simply have an interest in the project 

Once, we list down and identify the stakeholders, it is easy for us to categorize them based on different aspects. This whole process is identifying the stakeholders. Once we know them, it is easy for us to manage them.

2. Analyzing the StakeholdersAnalyzing the Stakeholders

Analyzing the Stakeholders


There are several ways to analyze stakeholders. We will have a look at the two most important ones. The first one is Power-Interest Graph. 

Power-Interest Graph Power-Interest Graph

Power-Interest Graph

  • High Power, High Interest

These stakeholders are mostly the decision-makers or the key-players. They can impact in a way that can make the project successful or fail. They are very easy to identify. Now, when it comes to communication, they should be actively engaged! These stakeholders are highly powerful, so we must try to meet their each and every requirement, otherwise they can even cancel our project if not satisfied.

  • High Power, Low Interest

These stakeholders again have decision-making abilities but they are not so much interested. A lot of communication can make them disinterested in the project or product. They lack interest and therefore, they should be kept satisfied!  

Do whatever it takes to keep them satisfied.

  • Low Power, High Interest

These stakeholders are the ones who have less power over the project but they are keenly interested in what’s going on. They might impact the project, so it is important to keep them informed!

  • Low Power, Low Interest

These stakeholders are the ones who are merely present and don’t expect to be involved much. They might not be interested and might not be expecting any sort of communication. It is important, you just monitor them!

Now that we saw the Power-Interest Graph, another interesting way is the Stakeholder SWOT Analysis. Let us have a look at that one as well.

Stakeholder SWOT Analysis. 

Another way is to analyze the stakeholders based on their Strengths, Weaknesses, Opportunities, and Threats. What will be their Strengths and Weaknesses? What will be the opportunities and threats they would bring to the project? This will help analyze them better. 

SWOT Analysis

SWOT Analysis

 

3. Prioritizing the Stakeholders

For a product owner, prioritization is like an ongoing activity. Just like they need to prioritize the backlog, a similar way, they need to prioritize the stakeholders. After the successful identification and analysis, once they are prioritized, they can be taken care of accordingly. This way, product owners can develop the communication plan and can further deliver the right message to the right stakeholder at the right time.

4. Engaging the Stakeholders 

This is the last step where execution takes place. Now that we have identified, analyzed, and prioritized the stakeholders, this is where we will implement the communication plan. Determine different action plans, whether are going to have one on one conversations, meetings, or going to communicate through emails. We define and execute our plan accordingly and keep the stakeholders engaged as required. Thus, managing all their expectations.

5 tips for the Product Owners to manage stakeholders effectively   

By now, we know how to identify the stakeholders, analyse them, and different steps of the management process. Let's have a look at some of the best practices which Product owners can follow to manage stakeholders effectively: 

  1. Don’t treat Stakeholders same. As we have seen the matrix above on identifying, analyzing and prioritizing the stakeholders. It is very important for the Product Owners to treat them accordingly. Based on our analysis, we categorize them and then based on our categorization, Product Owners need to treat them. 
  2. Act like an Owner. Being a Product Owner is a great responsibility. It is the person responsible for the ROI of the business. With responsibility comes the authority. It is very important you act like an “Owner”. This not only gives you the power over stakeholders but also helps manage them more effectively. 
  3. Communicate Upfront. Never hesitate to say “No” to the stakeholders. Being a product owner, you know what is good for the project and what is bad for the project in order to make it successful. As and when needed, for certain decisions and for the benefit of the project, feel free to say “No” to the stakeholders and be upfront in doing so. 
  4. Set Expectations. It is very important that being a Product Owner, you set all the expectations with the stakeholders. Understanding what they need to know and what they are expecting out of the project. Further, You should be communicating with them in terms of their expectations only. 
  5. Involve Scrum Masters. We know that Product Owner is responsible for managing the stakeholders, but this is not mandatory that Product Owner should do it all alone. Have your Scrum Master besides you to support you with all sorts of process questions, which can eventually help you manage the stakeholders more effectively.  

These were some of the best tips to manage stakeholders effectively and efficiently.  

To conclude, we discussed several types of stakeholders and we looked at the process of managing them. The major takeaway from this article is understanding the stakeholders. For understanding and managing them, Remember the 4 key points, which are Identifying, Analyzing, Prioritizing and Engaging the stakeholders. For engaging with the stakeholders, which involves the execution, we have provided you with 5 tips for the product owners to manage stakeholders effectively. Stay tuned for more such articles!

Ridhi

Ridhi Chhabra

Blog author

Ridhi Chhabra is working in the field of Project Management from last 8 years. She is also a Certified Scrum Master (CSM). She has been implementing Scrum Framework in 80% of her projects which are resulting in Successful Project Completion and Great Customer Experience. She has great Communication skills and got a proven experience in interacting with customers around the globe, across US, UK, Australia and South Africa.
She is currently working as an Executive Assistant Project Manager at KOHLEX Design India Pvt. Ltd., It is US Based Organization which is having main headquarters in California, United States and is handling operations in Hyderabad, India.


She enjoys meeting new people, traveling and writing blogs and articles. Refer to her LinkedIn for more articles.

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Top Agile Methods for Better Productivity

When a Scrum development team works on the productivity of a team using the Agile methodology, the first thing that comes to attention is the metric used to measure how much work the team does in an iteration: velocity. On the contrary, using velocity helps a Scrum development team to determine a team’s average capability on a normal sprint followed by how much they will agree to achieve in the next sprint iteration. The velocity is not preferred to determine the team’s productivity as it is just a simple indicator based on past sprints.The thing that matters at the end is the result and what the team has produced. A team is not recommended to be pushed to fasten its velocity. In the end, the outcome might be unpredictable as the team might economize on acceptance testing, avoid fixing bugs, or minimize restructuring to reach the target velocity. The key to increasing the velocity of the team is to resort to focusing on optimal velocity over time instead of maximized velocity. This also determines the overall quality of the finished product. Here are the top Agile methods involved in Scrum to allow the team to be more productive over time. 1. Eradicating obstaclesOne of the most important duties of a Scrum Master is to get rid of obstacles early and throughout the development process. This begins with asking appropriate questions while User Stories are being written. This gives developers space and time to do their work. While they are working, a Scrum Master also protects the development team from any disturbances from the stakeholders.In situations when the team does get interrupted, it is recommended for the team members to contact the Scrum Master to get their queries and issues resolved. Having a clear and focused mind is the key to operating at the highest level.The most obvious step is to avoid distractions as they are the primary reason for decreasing a team’s productivity. The team is unable to focus when they are asked to clarify why their productivity went down.2. Daily scrum meetings An efficient team always has a small group of professionals, the numbers can go to a maximum of 9. Anything more than that leads to communication issues and more consumption of time in meetings or huddles. A bigger team, in cases, can be split into two or more. A big team leads to more complications and misunderstandings and hence, is not a good idea. A larger team means more loss in information while exchanging thoughts and ideas and that will result in everybody in the team spending more time and effort to get any message or data across. 3. Team Capacity It is a known fact that all the team members must attend the daily scrum every day. The meeting can last for not more than 15 minutes every day to get an overview of the proceedings and the advancement of the undertaken work. All the concerns and ideas put across and need solutions during the meetings can be parked so that all of them can be addressed together. Any topic not related to the purpose of the meeting can be talked about at a fixed but separate time of the day.Furthermore, communicating with each other during the meeting will help in exchanging more information.4. Product backlog The backlog is the key to knowing where a product goes and what needs to be created on priority. So, everything in a project must be kept and properly maintained via a backlog. User Stories should have enough details and can be reordered in case of a change in priority. More accurate User Stories lead to less time consumption for the development team to understand them.An up to date and well-maintained backlog during an Agile project should have enough User Stories for at least one or two sprints.5. Constantly improving mindsetScrum is a continuous method that involves development because the whole method can be changed, not just the software. The point is to find something that requires alterations and to achieve it in the next sprint. This allows the team to tackle one issue at a time and move forward.Finding a clear move in the sprint retrospective to support the team is necessary. Someone must take ownership to act and make things work. This can be achieved by initiating small, easy actions that are less time-consuming first. During a sprint retrospective, it is recommended to take suggestions from each attendee and go for the most appropriate one. After that, a plan will be laid out to realize the chosen idea.6. Interruption bufferWhile running an application in production, it is necessary to keep maintaining and providing new features. However, there can be interruptions, like a bug that needs to be reported urgently or another team needing a developer for assistance. The point is, Sprints will be prone to interruptions, and provisions must be made to deal with these problems. A capable Scrum Master will log all these interruptions noting the number of interruptions, the time consumed in dealing with them and then add them to the next sprint.7. Have a vision of the task at handThe team works more efficiently in getting the deliverables when the Scrum Master already has laid out a blueprint to work on. This also includes having metrics and other relevant charts displayed, doing which will also let stakeholders and colleagues track the production rate.Refreshing the burndown chart daily and displaying the desired sprint result will reflect the customer or team satisfaction. Furthermore, a roadmap showing the working of the product will further enhance the vision of the team. There are multiple ways of sharing information to give everybody the idea of how things are going on while working on the product.To concludeWhen looking at the broader picture of the correct way to motivate a team to get the desired output, a successful team follows a very realistic and simple approach by using plain common sense that is instilled by the Scrum Master. Understanding how the team works and realizing the working style of each team member is one of the most important observations of an adept Scrum Master. It is a collaborative effort that cannot be done by one person but needs responsible efforts from every working member on the task. After all, it is not about ‘Me’ but ‘Us’ that helps in building a product successfully on time.
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Top Agile Methods for Better Productivity

When a Scrum development team works on the product... Read More