Digital transformation is a complex journey that requires strategic stakeholder management to ensure success. Engaging and managing stakeholders effectively across the four key phases—Strategy to Plan, Plan to Execution, Execution to Integration, and Sustainable Adoption to Value Realization—is essential. Below, we explore how to assess and engage key stakeholder groups throughout the transformation, leveraging three industry-proven frameworks I have applied in several different formats.

Using Mendelow’s Power-Interest Matrix for Stakeholder Assessment

To determine which stakeholders to focus on, organizations can use Mendelow’s Power-Interest Matrix, which categorizes stakeholders based on their level of influence (power) and engagement (interest). Stakeholders with high power and high interest should be closely managed, as they are critical to transformation success. Those with high power but low interest should be kept satisfied with updates, while those with low power but high interest should be informed and engaged appropriately. Finally, stakeholders with low power and low interest require only periodic monitoring to ensure alignment.

Applying the ADKAR Model to Assess Stakeholder Participation

The ADKAR model (Awareness, Desire, Knowledge, Ability, Reinforcement) is useful for evaluating where stakeholders stand in terms of engagement. Leaders should assess whether stakeholders are aware of the transformation, desire to participate, have the knowledge and ability to support the changes, and receive reinforcement to sustain engagement. This structured approach helps tailor communication and interventions to move stakeholders through the engagement journey effectively.

Leveraging Kotter’s Change Model for Stakeholder Engagement

Once stakeholders are assessed, Kotter’s 8-Step Change Model provides a roadmap for actively engaging them. This includes creating urgency, building coalitions of support, developing a clear vision, removing obstacles, generating quick wins, and institutionalizing change. By applying these principles, organizations can maintain momentum and ensure stakeholders are aligned and invested throughout the transformation.

In the following section, I will describe how to assess and engage with five main stakeholder groups—Employees, Managers, Executives/Leadership, Board of Management/Shareholders, and Customers/Suppliers/Industry Stakeholders—leveraging the aforementioned models.

1. Employees

Assessing Employees

The ADKAR model provides a structured approach to assessing employees’ engagement in digital transformation. Organizations should evaluate:

• Awareness: Do employees understand the need for transformation?
• Desire: Are they motivated to participate and embrace change?
• Knowledge: Do they have the necessary training and information to contribute?
• Ability: Can they effectively apply new skills and technologies?
• Reinforcement: Are there mechanisms in place to sustain long-term adoption?

By leveraging this model, leaders can identify gaps and tailor interventions to support employees throughout the transformation journey.

Activities Across the Phases:

• Strategy to Plan: Measure awareness, attitudes, and perceived impact on roles.
• Plan to Execution: Identify resistance points and skill gaps.
• Execution to Integration: Measure adoption levels and operational challenges.
• Sustainable Adoption to Value Realization: Track engagement and digital proficiency.

Engaging Employees

• Strategy to Plan: Communicate the vision, expected impact, and upskilling opportunities.
• Plan to Execution: Involve in pilot programs and provide structured change management support.
• Execution to Integration: Celebrate quick wins and reinforce cultural alignment.
• Sustainable Adoption to Value Realization: Foster continuous learning and career growth.

2. Managers

Assessing Managers

For managers, the ADKAR approach can also be applied. The activities across the four phases include:

• Strategy to Plan: Evaluate readiness to champion change and operational alignment with business plans.
• Plan to Execution: Determine their ability and capacity to lead teams through change.
• Execution to Integration: Assess change leadership effectiveness.
• Sustainable Adoption to Value Realization: Ensure they incorporate the new ways of working into daily practices and sustain leadership in digital culture.

Engaging Managers

• Strategy to Plan: Provide training and involve them in shaping implementation roadmaps, ensuring they are part of the guiding coalition as per Kotter’s model.
• Plan to Execution: Equip with leadership coaching and transformation frameworks, enabling them to remove barriers and create short-term wins.
• Execution to Integration: Ensure ongoing coaching and recognition programs to sustain acceleration and institutionalize changes.
• Sustainable Adoption to Value Realization: Embed digital thinking in business processes and continuously reinforce new behaviors.

3. Executives/Leadership

Assessing Executives/Leadership

Executives and leadership play a crucial role in digital transformation due to their high power and interest, as highlighted in Mendelow’s Power-Interest Matrix. Given their influence, continuous engagement is essential to ensure alignment and sustained commitment.

Engaging Executives/Leadership

• Strategy to Plan: Secure sponsorship, define measurable transformation goals, and obtain commitment on resources.
• Plan to Execution: Maintain active participation in governance structures and involve them early through pilots and demos.
• Execution to Integration: Adapt strategies based on real-time insights and ensure transformation adoption is part of leadership reviews.
• Sustainable Adoption to Value Realization: Ensure transformation becomes an ongoing capability.

4. Board of Management/Shareholders

Assessing Board of Management/Shareholders

• Strategy to Plan: Identify expectations and risk tolerance.
• Plan to Execution: Monitor risk perceptions and alignment with corporate goals.
• Execution to Integration: Measure financial and strategic outcomes.
• Sustainable Adoption to Value Realization: Validate return on investment and future opportunities.

Engaging Board of Management/Shareholders

• Strategy to Plan: Present a compelling business case with ROI projections.
• Plan to Execution: Provide transparent reporting on progress and early wins.
• Execution to Integration: Align transformation metrics with business performance.
• Sustainable Adoption to Value Realization: Demonstrate sustained business value and future scalability.

5. Customers, Suppliers, and Industry Stakeholders

Engaging Customers

• Strategy to Plan: Communicate potential benefits and involve key customers in feedback loops.
• Plan to Execution: Gather feedback through prototype testing and focus groups.
• Execution to Integration: Showcase improvements and deepen customer relationships.
• Sustainable Adoption to Value Realization: Reinforce engagement through personalization and innovation.

Engaging Suppliers/Partners

• Strategy to Plan: Engage in co-innovation discussions and assess digital readiness.
• Plan to Execution: Co-develop implementation roadmaps.
• Execution to Integration: Strengthen collaboration through integrated systems.
• Sustainable Adoption to Value Realization: Strengthen ecosystems with emerging technologies.

Engaging Community & Industry/Competitors

• Strategy to Plan: Share thought leadership and collaborate on industry best practices.
• Plan to Execution: Establish partnerships for innovation and shared learning.
• Execution to Integration: Share success stories and participate in industry forums.
• Sustainable Adoption to Value Realization: Lead industry conversations and future transformations.

By structuring stakeholder management through a stakeholder-centric approach across the four phases of digital transformation, organizations can maximize adoption, mitigate risks, and ensure long-term success.