How to Manage and Engage Stakeholders in Innovation Design

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Innovation is as much about diplomacy as it is about creativity. Critical to the success of an innovation project is managing the expectations of stakeholders throughout the project life cycle.

This is easier said than done. Stakeholder motivations and expectations can vary widely and that is why it is important to conduct stakeholder interviews at the beginning of the project, ensuring the same questions are asked, the same tools are used (for example SWOT models) and the same language definitions are understood. Language and the definition of everything from what innovation means right through the process is important to understand so that everyone is operating on the same page.

Different stakeholders from internal to external, government, agencies, suppliers, and customers may create tension in the innovation design cycle, so it is critical to get beyond expectations to needs, motivations and perceived barriers to the project. The onus should be on stakeholders to engage and share their expectations and motivations and get involved in the process – which will require the project director to be sensitive, diplomatic, and encouraging. They will need to be able to balance competing needs and whilst this may appear straightforward, hidden motivations can be project derailers and this can happen at critical points in the cycle.

Create a Level Playing Field for Your Project

This can be tough when not all stakeholders can ever be equal. Some will be more demanding than others, some will require egos to be nurtured, some will wish to intervene in the process. The aim here is ensuring equality through developing a stakeholder engagement process with a few rules about how and when to engage. It will be important to understand the need for different styles of engagement and creating working alliances that are the most fruitful.

Diplomacy is also about getting the right people to the table. This means you need the right representatives from stakeholder groups who can speak on behalf of the relevant party they represent. Ensure that representative has enough clout to be able to make decisions if necessary or communicate effectively up and down the line. They should also be able to communicate progress effectively.

Communicate and Construct a Common Language

When communicating with stakeholders you are often talking to people who view the world from different contexts (e.g.: government, regulatory, finance, etc.,). Diplomacy here means looking through different worldviews and lenses. Perhaps their context is from the customer or consumer perspective or even a different culture, age, or mindset.

For many of these reasons, even the simplest of words can mean different things to different people. The word ‘innovation’ itself can have many meanings. As can the word ‘idea’, ‘stakeholder’ and even well-known marketing terms. Thus, it is always best to check definitions, contexts and any ambiguities that may arise.

Then spend some time putting guardrails or definitions together as working guidelines for the project that stakeholders can agree on and refer to later.

Stakeholders once embraced will need regular communication and updates. Create milestones and calendars and agree on frequency and style of communication. Ensure the voice of the stakeholder is resonant in any innovation progression.

Clearly Outline Goals, Impact, and Implications

Beyond communication, stakeholders will need to have an idea of the project goals and objectives. It is important that they know what is at stake, and the impact that will have on either their own business, government goals, regulatory requirements or even customer needs. Communicate these clearly and explicitly.

Stakeholders should also be clear on expectations and understanding of what is required from them. If an innovation requires funding, messaging, job creation, supplier management etc, stakeholders will need to be on board and clear on implications. This can save time, investment, and ‘face’ later. Communicate early and often on implications of ideas and innovation.

Test, test, test: Prototyping and Concept Testing Ideas

Being able to build or create a prototype will help bring ideas to life for stakeholders. More importantly testing ideas early in the innovation process can both save money and build confidence.

Simple concept tests of raw ideas can provide feasibility numbers on how an idea or ideas will sit within an audience. Market research can also be used to bring consumers into the picture to help co create and optimise an idea for market. This can build ongoing stakeholder trust, commitment, and enthusiasm in the project.

In Summary

To ensure the smooth running of your innovation process, managing stakeholders from different perspectives with a common language and clear objectives is critical. Ensure you are bringing them into the picture with regular updates and conduct market research to bring confidence and trust to the table.

Want to know more? Drop us a line at info@rubychacha.com.au.