ILM by City & Guilds · 8723-317Mandatory unit

Unit 317: Managing external stakeholder relationships

This unit equips the learner with the knowledge and skills required to build, manage, and sustain effective relationships with external stakeholders. Learners will assess stakeholder influence, adapt communication, manage expectations, and monitor relationships to support organisational success and mitigate risks.

In short

Unit 317 Managing external stakeholder relationships is an optional Level 3 unit covering stakeholder power and influence, trust, and relationship risks. The evidence requirement is specific: at least two external stakeholders must be demonstrated across the LO2 assessment criteria.

Level

RQF Level 3

Credit value

5 credits

Guided learning

25 hrs

Assessment criteria

14 criteria

Learning outcomes and assessment criteria

To achieve unit 317 your portfolio must evidence every assessment criterion below. There is no exam and no written assignment — you demonstrate each criterion using evidence from your own work.

Learning outcome 1

Understand external stakeholder relationships

  • 1.1

    Explain the importance of developing and maintaining positive relationships with external stakeholders

    What this covers: External stakeholders: customers/clients/end users, suppliers/contractors, regulators/government agencies, media/press.

  • 1.2

    Identify the impacts of stakeholder power and influence in relationships

    Evidence requirement: Evidence must include at least two impacts.

  • 1.3

    Describe approaches to establish trust and promote respect with external stakeholders

    Evidence requirement: Evidence must include at least two approaches to establish trust and promote respect with external stakeholders.

  • 1.4

    Explain ways to effectively manage relationships with external stakeholders

    Evidence requirement: Evidence must include at least two ways to effectively manage relationships with external stakeholders.

  • 1.5

    Examine potential organisational risks and impacts arising from ineffective stakeholder relationship management

    What this covers: Risks and impacts: reputation/brand, stakeholder disengagement, financial performance, compliance/legal considerations, operational disruption.

Learning outcome 2

Be able to engage external stakeholders effectively

  • 2.1

    Identify the level of power and influence of different external stakeholders

  • 2.2

    Review the appropriate communication requirements for the different external stakeholders

    What this covers: Communication requirements: frequency, methods/format, purpose.

  • 2.3

    Adapt communication to meet the individual needs of external stakeholders

    What this covers: Adapt communication may include but not linted to: type of format, channel, individual stakeholder preference, cultural sensitivity, accessibility.

  • 2.4

    Present complex information to external stakeholders that aligns to their needs

    What this covers: Complex information (technical, detailed and supported by evidence) and may include but not limited to: non-routine, requiring choices, involving variables.

Learning outcome 3

Be able to build and maintain positive relationships with external stakeholders

  • 3.1

    Prioritise external stakeholders based upon their influence and impact

  • 3.2

    Take action to establish trust and mutual respect with external stakeholders

  • 3.3

    Manage stakeholder expectations to align with organisational goals

    What this covers: Stakeholder expectations: clarifying needs, negotiating/compromising, making realistic commitments, managing change/scope creep.

  • 3.4

    Respond constructively to stakeholder feedback

  • 3.5

    Monitor stakeholder relationships to ensure ongoing effectiveness

    Evidence requirement: Evidence must include at least two examples of monitoring across a period of 0-6 months. Evidence must include an assessment of the risks and impacts.

    What this covers: Monitor may include but not limited to, review/evaluation, formal or informal feedback.

How to approach unit 317

Written by our assessment team: what the criteria mean in practice, the evidence that works, and where learners get caught out.

What this unit is really about

Unit 317 turns on one word: external. Your own team, your manager and other departments are internal stakeholders and will not evidence this unit. External means suppliers, customers and clients, contractors, regulators and inspectors, auditors, local authorities, funders, community groups, partner organisations, trade bodies and agencies.

The spec sets the scope precisely: LO2 evidence must include at least two external stakeholders demonstrated across the assessment criteria. Two, and they should be genuinely different — a supplier and a regulator gives you far more to work with than two similar customers, because their power, influence and communication needs differ.

The evidence that works

Learning outcomeEvidence that works well
LO1 — understand the relationshipsWhy external relationships matter to your organisation, how power and influence play out, approaches to building trust, how relationships are managed, and the risks of doing it badly
LO2 — engage effectivelyA power-and-influence assessment for your two stakeholders, a review of their communication requirements, evidence of adapting your communication, and an example of presenting complex information in a form that suited them
LO3 — build and maintainYour prioritisation, actions taken to build trust, evidence of managing expectations, a constructive response to feedback, and how you monitor the relationship

Criterion 2.4 — present complex information to external stakeholders that aligns to their needs — is the one that needs a real artefact. A technical issue explained to a non-technical client, a delay explained to a customer with options, a compliance position summarised for an auditor. Keep the document you sent, redacted.

Power and influence, done properly

Criteria 1.2 and 2.1 are about power and influence, and the standard tool is a power–interest grid (often attributed to Mendelow): high power/high interest manage closely, high power/low interest keep satisfied, low power/high interest keep informed, low power/low interest monitor.

Use it, but say what it misses. Two limitations worth naming: it is a snapshot, and positions move fast — a regulator has low interest until an incident, and then has all of it. And "power" is not one thing; a small supplier with no commercial leverage can hold enormous practical power if they are the only firm certified to service your equipment. Making that distinction is exactly the kind of judgement that lifts a Level 3 portfolio.

For criterion 1.5 — organisational risks arising from ineffective stakeholder management — the credible answers are specific: a regulatory finding, a lost contract, reputational damage in a local community, a supplier deprioritising you when capacity is tight, a funder withdrawing support. A real near-miss from your own organisation, described carefully and anonymised, is stronger than a general list.

Confidentiality with external parties

External stakeholder evidence often contains commercial terms, pricing, contract detail or complaint information belonging to another organisation, and it may be covered by an NDA. Redact organisation names and commercial figures, check whether a confidentiality clause applies, and if the material cannot be shared, use a reflective account plus a witness testimony from your manager instead.

Useful reading

Supporting information for unit 317

Unit aim: This unit equips the learner with the knowledge and skills required to build, manage, and sustain effective relationships with external stakeholders. Learners will assess stakeholder influence, adapt communication, manage expectations, and monitor relationships to support organisational success and mitigate risks.

Evidence requirements: LO2 Evidence must include at least two external stakeholders demonstrated across the assessment criteria.

Suggested learning resources: These suggestions are current at the time of publication. The following resources are provided as guidance only. Centres should select current and relevant resources and encourage learners in self-guided reading. Practical people engagement: Leading change through the power of relationships, Patrick Mayfield, Elbereth Publishing Stakeholder relationship management: A maturity model for organisational implementation, Lynda Bourne, Routledge Stakeholder engagement essentials you always wanted to know, Michelle Bartonico, Vibrant Publishers

Evidencing this unit

All evidence for the skills learning outcomes must be generated in the workplace or a realistic working environment, and must be valid and attributable to you.

  • Workplace documentation and records — team development plans, project implementation reports, meeting agendas and minutes, training materials
  • Video clips, up to a maximum of 15 minutes
  • Projects
  • Reflective accounts, journals and logs
  • Assessment observation
  • Witness testimonies

Where unit 317 counts

This unit sits in the ILM Level 3 Leadership and Management suite (8723) and counts towards the pathways below, from £449.

Frequently asked questions

How many stakeholders do I need for unit 317?

At least two external stakeholders, demonstrated across the LO2 criteria. Pick genuinely different ones — a supplier and a regulator, for example — so their power, influence and communication needs contrast.

Do internal stakeholders count for unit 317?

No. The unit is specifically about external stakeholders: suppliers, customers, contractors, regulators, auditors, local authorities, funders, community groups and partner organisations.

Is unit 317 mandatory?

Yes. Unit 317 is a mandatory unit — every learner on the relevant pathway must complete it.

How is unit 317 assessed?

Assessment is a portfolio of evidence, centre-devised and internally set and marked. There are no exams and no written assignments.

What evidence can I use for unit 317?

All evidence for the skills learning outcomes must be generated in the workplace or a realistic working environment, and must be valid and attributable to you. Workplace documents, projects, reflective accounts, observation records and witness testimonies are all valid sources.

Which qualifications include unit 317?

It counts towards the Level 3 Award, Level 3 Certificate, Level 3 Diploma, Level 3 Extended Diploma.