The power of stakeholder promises

In the dynamic world of product management, one thing remains constant: the importance of stakeholders. Whether they're customers, employees, investors, or partners - stakeholders play a key role in the success of your product. How can you ensure that you're meeting their expectations and delivering on your commitments? The concept of "Stakeholder Promises" gives you an answer - so let's explore.

And since we're at it, let's start out with an example of stakeholder promises for this article:

Our promises to Product Owners:
1. You will build better products.
2. You will enhance your professional credibility.
3. You will have more effective stakeholder interactions.

The importance of Stakeholder Promises

Stakeholder Promises play a crucial role in guiding your product development journey. They are more than just commitments; they are the pillars upon which trust, credibility, and alignment with organizational goals are built. Focusing on Stakeholder Promises empowers Product Owners to navigate the complex landscape of stakeholder expectations effectively.

Alignment of Goals and Needs

Stakeholder Promises reflect on your values and your commitment to various stakeholders. By aligning your product with these promises, you keep the work in sync with the broader objectives of the company.

Trust and Credibility

Fulfilling Stakeholder Promises demonstrates your dedication to meeting stakeholders' expectations. This, in turn, builds trust and credibility with your customers, employees, partners, and investors.

Effective Prioritization

Defining Stakeholder Promises helps you prioritize features and enhancements that truly matter to your stakeholders. It's a compass that guides you in making informed decisions about what to build next.

Transparency and Communication

Promises serve as a foundation for transparent communication. You can openly discuss how your product aligns with these promises, fostering a sense of inclusivity and cooperation among stakeholders.

What Are Stakeholder Promises?

Stakeholder Promises are explicit commitments made to various stakeholder groups. These commitments are derived from the vision and encompass a wide range of areas - from customer satisfaction over employee well-being all the way to ethical business practices. Essentially, they represent the organization's pledge to contribute positively to the well-being of all stakeholders.

Take the example of Yamaha, where you see promises made to customers, employees, business partners, communities, and even the environment: These promises form the foundation upon which their products and operations are built.

Defining Stakeholder Promises

Here's a simple process that you can apply for defining meaningful Stakeholder Promises:

Step 1: Identify Product Vision

The foundation of Stakeholder Promises lies in your product's vision. Start by clearly defining your product's vision, which serves as the guiding force for all your commitments.

Step 2: Identify Key Stakeholders

Identify the primary stakeholder groups relevant to your product. These may include customers, employees, investors, partners, and other parties with a vested interest in your product.

Step 3: Relate Vision and Stakeholders

Establish a clear connection between your product's vision and the needs, expectations, and aspirations of your identified stakeholders. This step ensures that your commitments align with your product's overarching goals.

Step 4: Define Everyone's WIIFM

For each stakeholder group, define the "What's In It For Me" (WIIFM). In other words, articulate what value, benefit, or impact your product promises to deliver to each group. Be specific and consider how your product addresses their unique needs and concerns.

Step 5: Make Specific Promises

Make your promises effective and actionable:

• Make your promises specific, so there's no ambiguity about what you aim to achieve.
• Quantify your commitments wherever possible. This allows you to track progress and measure success objectively.

Step 6: Collect Feedback

Before finalizing your Stakeholder Promises, share them with the relevant stakeholder groups and seek their input. Such an initial round of feedback provides valuable insights and ensures that the promises resonate with your stakeholders.

This step-by-step guide will equip you to define Stakeholder Promises that are clear and actionable, and also well-aligned with your stakeholders' expectations and your organization's mission.

Successfully using Stakeholder Promises

Here are six tips to support you in maximizing the impact of your stakeholder promises:

Align your strategy: Your product and any work done on it should directly contribute to fulfilling your stakeholder promises - or at least: not contradict them.

Prioritize: Stakeholder promises help you prioritize what matters: Features that directly address one or more stakeholder needs or expectations have more impact on your product's success.

Communicate: Use Stakeholder Promises as a basis for transparent communication. Regularly update stakeholders on how your product aligns with these promises and any progress made.

Seek feedback: Actively seek feedback from stakeholders, especially those for whom promises have been made. Act on what you learn to improve your product.

Continuously improve: Frequently revisit your stakeholder promises, keep them up to date, and use them as a benchmark for improving both your product and pactice.

Be Responsible: Actively align your actions and outcomes with the standards outlined in Stakeholder Promises.

Conclusion

Never underestimate the power of Stakeholder Promises: They serve as a guiding light, directing your product development efforts towards fulfilling commitments to your customers, employees, partners, and the broader community. By understanding, defining, and leveraging these promises effectively, Product Owners and teams can build products that meet and exceed stakeholder expectations, while simultaneously contributing positively to the well-being of all involved parties. By paying attention to your stakeholder promises, you'll not only create better products - you also build trust, credibility, and sustainable relationships with your stakeholders.