How can you measure the ROI of stakeholder networking?

1 Define your objectives

Before you can measure the ROI of stakeholder networking, you need to have a clear idea of what you want to achieve from your interactions. Your objectives should be specific, measurable, achievable, relevant, and time-bound (SMART). For example, you might want to gain access to a new project, secure a promotion, or influence a policy change. Your objectives should also align with your personal and professional values and vision.

2 Identify your stakeholders

Once you have your objectives, you need to identify who are the key stakeholders that can help you reach them. Stakeholders are anyone who has an interest, influence, or impact on your work or career. They can be internal or external, formal or informal, supportive or resistant. You can use a stakeholder analysis tool, such as a matrix or a map, to prioritize and categorize your stakeholders based on their power, interest, attitude, and relationship with you.

3 Track your activities

The next step is to track your networking activities and the outcomes they generate. You can use a simple spreadsheet, a CRM system, or a dedicated app to record and monitor your interactions with your stakeholders. You should capture data such as the date, time, duration, mode, topic, and feedback of each contact. You should also note any actions, results, or opportunities that arise from your networking efforts.

4 Calculate your costs

To measure the ROI of stakeholder networking, you also need to consider the costs involved. These can be direct or indirect, tangible or intangible, monetary or non-monetary. For example, some direct costs are travel expenses, event fees, or gifts. Some indirect costs are time, energy, or reputation. You should estimate the value of each cost and add them up to get the total investment.

5 Compare your benefits and costs

The final step is to compare the benefits and costs of your stakeholder networking and calculate the ROI. You can use a simple formula, such as ROI = (Benefits - Costs) / Costs x 100%. However, you should also be aware of the limitations and challenges of this approach. Not all benefits and costs are easily quantifiable or comparable. Some benefits and costs may occur in the short term or the long term. Some benefits and costs may depend on external factors or assumptions. Therefore, you should use the ROI as a guide, not a definitive measure, and supplement it with qualitative feedback and insights.

Stakeholder networking is a worthwhile investment for senior managers who want to leverage their relationships for career development. By measuring the ROI of stakeholder networking, you can evaluate your performance, identify your strengths and weaknesses, and adjust your strategy accordingly. You can also communicate your value and impact to your organization and your stakeholders more effectively.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?