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Who are Business Stakeholders?

Posted by SCRUMstudy® on December 02, 2022

Categories: Agile SBOK® Guide Scrum Scrum Guide Scrum Principles

Who are Business Stakeholders?

The term Business stakeholder creates a lot of confusion in Scrum. Usually the term is confused with the responsibilities of a Product Owner. Let us now clear all the confusion around it.

Best definition of Business stakeholders is that they have legitimate interest in the project and another important point to be noted is that they are not always product owners but product owners are always business stakeholders.

Product owners help define the backlog the Scrum team and also help in prioritizing the work units of the Scrum Team and continually communicate the progress to the business stakeholders.

Business stakeholders are the purpose for which a Product or service is created in the first place. Business stakeholders are the people who have certain necessities, wants and desires; thus in business terms they have certain requirements which needs to be fulfilled. It is the responsibility of the Scrum Team to fulfil the requirements of the business stakeholders and satisfy them. Usually they do not have clear understanding of what they need and even if they do they keep changing their minds very often. Usually figuring out the actual needs of a business stakeholder is achieved through a lot of meetings with the them and also after a lot of trial and error.

The business stakeholders are very vital to the success of the Scrum team as they keep reviewing the team’s products and progress and keep providing continual feedback. There could be many people, who have genuine interest in the Product, but not everyone should be taken in to account as Business Stakeholders – some are purely engrossed bystanders. Clear identification of the business stakeholders who have requirements is as important as determining the exact market segment you need to target for your products.

So, now we get another important question. Who or what qualities make a good business stakeholder in Scrum?

Good business stakeholders are those who provide constant and constructive feedback to the Scrum team and help in improving the product. One big challenge is to manage other business stakeholders who don’t support or just become part of the scene. Good teams need strong leadership that can facilitate positive discussion and create better services or products.

Hence to be successful in a Scrum project understanding the needs and requirements of the business stakeholders plays a very critical part and most of the times make or break the project.