ILM by City & Guilds · 8725-525Mandatory unit

Unit 525: Managing stakeholder relationships

The aim of this unit is for learners to develop the understanding and ability to be able to manage stakeholder relationships. In today’s interconnected and fast-changing environment, effective stakeholder relationship management is more important than ever. On completion of this unit, learners will be able to manage stakeholder relationships utilising influencing, negotiation and conflict management skills to support the delivery/achievement of organisational objectives.

In short

Unit 525 Managing stakeholder relationships is a four-outcome optional Level 5 unit covering stakeholder management, conflict, influencing and negotiation. LO4 is practical: produce plans, engage stakeholders, apply influencing, negotiation and conflict management techniques, then review the impact of your approaches.

Level

RQF Level 5

Credit value

5 credits

Guided learning

25 hrs

Assessment criteria

14 criteria

Learning outcomes and assessment criteria

To achieve unit 525 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 stakeholder relationship management

  • 1.1

    Explain what is meant by the term stakeholder

  • 1.2

    Describe the importance of communication in managing stakeholder relationships

  • 1.3

    Explain how to manage stakeholder relationships

    What this covers: Manage stakeholder relationships: stakeholder mapping, stakeholder engagement plan.

  • 1.4

    Identify the strengths and limitations of different stakeholder management models

    Evidence requirement: The learner must identify strengths and limitations of three stakeholder management models.

Learning outcome 2

Understand how to manage conflict in stakeholder relationships

  • 2.1

    Describe different types of conflict

    What this covers: Different types of conflict: positive, negative, people process.

  • 2.2

    Evaluate different approaches used to manage conflict

    Evidence requirement: The learner must refer to at least three theories and/or models. The learner must engage with a minimum of two different stakeholders.

Learning outcome 3

Understand influencing and negotiation in stakeholder relationships

  • 3.1

    Describe the differences between influencing and negotiation

  • 3.2

    Explain influencing techniques

    Evidence requirement: The learner must explain a minimum of three influencing techniques.

  • 3.3

    Explain the negotiation process

    Evidence requirement: The learner must explain a minimum of three negotiation processes.

Learning outcome 4

Be able to manage stakeholder relationships to achieve organisational objectives

  • 4.1

    Produce plans to manage stakeholder relationships

    Evidence requirement: The documentation needs to include a minimum of three different stakeholders.

    What this covers: Plans: stakeholder mapping document, stakeholder engagement plan.

  • 4.2

    Engage with stakeholders

  • 4.3

    Apply influencing and negotiation techniques in stakeholder relationships

  • 4.4

    Apply conflict management approaches to stakeholder relationship challenges

    Evidence requirement: The learner must apply techniques to resolve at least two stakeholder relationship challenges involving competing priorities. Across the chosen examples, conflict management strategies must include at least three of the following: • collaboration • compromise • accommodating • competing • avoidance • mediation/facilitation – involving a neutral third party.

  • 4.5

    Review the impact of own approaches to managing stakeholder relationships

    Evidence requirement: The learner should reflect on the outcomes of own actions in managing at least two stakeholder relationship challenges. Across the chosen examples, communication techniques must include at least three of the following: • active listening • assertiveness • framing and reframing • non-verbal communication awareness • feedback techniques • influencing and persuasion. The learner should refer to the organisational objectives.

How to approach unit 525

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 525 is the Level 5 stakeholder unit, and unlike the Level 3 equivalent (317, which is external stakeholders only) it covers stakeholders generally — internal and external — and adds conflict, influencing and negotiation as substantive outcomes in their own right.

LO4 is where the evidence lives: a stakeholder management plan, engagement records, applied influencing and negotiation, applied conflict management, and a review of the impact of your approaches. All five criteria need real situations.

The evidence that works

Learning outcomeEvidence that works well
LO1 — stakeholder managementWhat a stakeholder is, the importance of communication, how relationships are managed, and the strengths and limitations of stakeholder management models
LO2 — conflictTypes of conflict, and an evaluation of approaches to managing it
LO3 — influencing and negotiationThe difference between the two, influencing techniques, and the negotiation process
LO4 — manage relationshipsYour stakeholder plan, engagement evidence, influencing and negotiation applied, conflict management applied, and a review of impact

The models, with their limitations

Criterion 1.4 explicitly asks for strengths and limitations of stakeholder management models, so do not just draw the grid:

ModelStrengthLimitation
Power–interest grid (Mendelow)Simple, actionable, widely understoodA snapshot; positions shift, and it flattens "power" into one dimension
Salience model (Mitchell, Agle and Wood) — power, legitimacy, urgencyExplains why some stakeholders get attention they should notHarder to apply quickly; judgement-heavy
Stakeholder circle / influence mappingCaptures relationships between stakeholdersTime-consuming to build and maintain
RACIPrecise on decision rights for a piece of workSays nothing about relationship or influence

The observation that lifts this criterion: these models tell you how to categorise stakeholders, not how to change a relationship — and the informal influence network usually matters more than the formal grid.

Influencing versus negotiation

Criterion 3.1 asks for the difference, and it is worth being crisp. Influencing changes what someone wants or believes — it works on preferences and is often one-directional, with no explicit trade. Negotiation starts from acknowledged differing interests and trades to reach an agreement; there is something on the table.

For techniques (3.2), Cialdini's principles — reciprocity, commitment and consistency, social proof, authority, liking, scarcity, unity — are the standard reference, and using them means naming which you actually used and why it fitted. For the negotiation process (3.3): preparation, opening, exploring interests, proposing and trading, agreement and implementation. Preparation is where negotiations are won, and knowing your BATNA — your best alternative if no deal is reached — is the concept most worth applying to a real case.

Conflict, properly framed

For LO2, distinguish task conflict (about what to do — often productive), process conflict (about how and who), and relationship conflict (personal, and generally destructive). The evaluative point is that task conflict left unmanaged usually converts into relationship conflict, which is why early handling matters more than the technique chosen.

The Thomas–Kilmann modes — competing, collaborating, compromising, avoiding, accommodating — are the standard frame for criterion 2.2, and the evaluation is that no mode is best: avoiding is right for a trivial issue that will resolve itself, competing is right where safety or compliance is at stake, and collaborating is expensive in time. Show a real situation where you deliberately chose a mode you would not usually use.

Useful reading

Supporting information for unit 525

Unit aim: The aim of this unit is for learners to develop the understanding and ability to be able to manage stakeholder relationships. In today’s interconnected and fast-changing environment, effective stakeholder relationship management is more important than ever. On completion of this unit, learners will be able to manage stakeholder relationships utilising influencing, negotiation and conflict management skills to support the delivery/achievement of organisational objectives.

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. Stakeholder Mapping Complete Guide – Tractivity (2024)

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 525 counts

This unit sits in the ILM Level 5 Leadership and Management suite (8725) and counts towards the pathways below, from £695.

Frequently asked questions

What is the difference between influencing and negotiation?

Influencing changes what someone wants or believes, working on preferences with nothing formally traded. Negotiation starts from acknowledged differing interests and trades towards an agreement — there is something on the table.

How does unit 525 differ from Level 3 unit 317?

317 covers external stakeholders only. 525 covers stakeholders generally and adds conflict management, influencing and negotiation as substantive outcomes, with LO4 requiring all of them applied in real situations.

Is unit 525 mandatory?

Yes. Unit 525 is a mandatory unit — every learner on the relevant pathway must complete it.

How is unit 525 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 525?

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 525?

It counts towards the Level 5 Award, Level 5 Certificate, Level 5 Diploma, Level 5 Extended Diploma.