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In commercial real estate project management, managing stakeholder expectations is crucial for success. A stakeholder is anyone who has an interest or stake in the project, including clients, investors, government agencies, contractors, and the public. These stakeholders have different expectations and needs, and managing these expectations is a key factor in achieving project goals and objectives.
One of the most significant challenges in commercial real estate project management is managing stakeholder expectations. According to a survey conducted by Deloitte, 70% of project managers consider managing stakeholder expectations to be the most challenging aspect of their job. In the same survey, 33% of projects failed to meet stakeholder expectations, leading to project delays, cost overruns, and reduced quality.
To effectively manage stakeholder expectations, project managers must identify stakeholders and their expectations, communicate regularly, and address any concerns or issues promptly. Here are some key strategies that project managers can use to manage stakeholder expectations effectively.
1. The first step in managing stakeholder expectations is to identify stakeholders and their expectations. This includes understanding their needs, goals, and interests. Project managers can use tools such as stakeholder analysis to identify and categorize stakeholders based on their level of influence, interest, and involvement in the project. Once stakeholders have been identified, project managers can use various communication methods, such as meetings, emails, and surveys, to gather information about their expectations and needs.
2. Effective communication is critical in managing stakeholder expectations. Regular communication with stakeholders can help project managers understand their concerns, expectations, and priorities. Project managers should establish a communication plan that outlines how they will communicate with stakeholders, what information will be shared, and when. Project managers can use various communication channels, such as project status reports, progress meetings, and social media, to keep stakeholders informed about project updates and changes.
3. Stakeholders may have concerns or issues that need to be addressed promptly. Project managers should have a process in place to identify, track, and resolve stakeholder issues. Project managers should be proactive in identifying potential issues and should have a plan in place to address them. When stakeholders raise concerns, project managers should listen actively, show empathy, and take appropriate action to resolve the issue. This can help build trust and credibility with stakeholders and ensure project success.
4. Effective stakeholder management can lead to better project outcomes. According to the Project Management Institute (PMI),organizations that focus on stakeholder management are more likely to meet project objectives and have higher project success rates. In a survey conducted by PMI, 86% of high-performing organizations reported that they were effective in managing stakeholder expectations, compared to only 33% of low-performing organizations.
By identifying stakeholders and their expectations, communicating regularly with them, and addressing concerns and issues promptly, project managers can achieve project goals and objectives. Effective stakeholder management can also help build trust and credibility with stakeholders and increase project success rates. As the saying goes, "Manage your stakeholders, or they will manage you."
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