Want Fewer Failed Projects? Start with Better Stakeholder Management
By Incountr
Introduction: The Silent Killer of Projects
In companies of all sizes, project failure is a recurring problem. Poor stakeholder management is one of the most frequently mentioned reasons why over one-third of projects fall short of their initial objectives, according to the Project Management Institute (PMI).
It's not that the teams weren't qualified or that the strategies weren't sound. Frequently, it's because important individuals were either uninformed, uninvolved, or both. Progress is gradually undermined by misalignment, poor communication, and mistrust until the project crumbles under the weight of opposition and misunderstanding.
The truth? If you want fewer failed projects, you need better stakeholder management.
Why Stakeholder Management Matters in Project Success
Stakeholder management is more than ticking a few boxes on a RACI chart. It's the difference between momentum and roadblocks, between success and stagnation.
Here’s what effective stakeholder engagement enables:
Faster decisions: Aligned stakeholders remove friction in governance and approvals.
Greater adoption: Engaged users are more likely to embrace change rather than resist it.
Proactive risk management: Informed stakeholders help surface and mitigate risks early.
Stronger ongoing support: Projects don’t die after go-live when advocates are already on board.
A project doesn’t happen in a vacuum. It happens in a web of expectations, power dynamics, and human behavior. Ignoring that web means setting your project up for failure from day one.
The Risks of Poor Stakeholder Engagement
It’s easy to see stakeholder management as a soft skill — a nice-to-have — when budgets are tight and timelines are aggressive. But poor engagement often shows up in hard ways:
Symptoms of poor stakeholder management:
Conflicting priorities: Different departments pulling in opposite directions.
Lack of sponsorship: Executive support in name only, with no real influence exerted.
Resistance to change: Users blindsided by the “solution” because they were never consulted.
Communication breakdowns: Misinformation, duplication, and finger-pointing.
Scope creep or abandonment: Constant changes from unaligned voices, or projects dying in limbo.
In short: When stakeholders aren’t managed well, projects become political minefields. And no methodology — Agile, Waterfall, hybrid — can save you from that.
How to Identify and Understand Key Project Stakeholders
Stakeholder management begins with one deceptively simple question: Who really matters to this project?
Not just the people listed on the org chart — but those who influence, resist, sponsor, or ultimately use the solution.
Use these steps to clarify your stakeholder universe:
Map your stakeholders:
Use the classic Power/Interest grid:
High power, high interest → Manage closely
High power, low interest → Keep satisfied
Low power, high interest → Keep informed
Low power, low interest → Monitor lightly
Understand their motivations:
What do they stand to gain or lose?
What does “success” look like to them?
What do they fear about this change?
Be curious:
Conduct interviews, not just surveys.
Ask open-ended questions, and listen deeply.
Look for underlying concerns, not just surface-level complaints.
Empathy is your most powerful stakeholder tool. The more you understand their reality, the better you can navigate it.
Creating an Effective Stakeholder Management Plan
Too often, organizations treat stakeholder management as a communications checklist. But real engagement requires a plan, discipline, and active effort.
A strong stakeholder management plan includes:
Clear stakeholder segmentation
Not all stakeholders need the same level of attention.
Define tiers based on influence, interest, and impact.
An engagement strategy for each group
For example:
Executives: strategic briefings, performance dashboards.
End-users: hands-on workshops, regular feedback loops.
Middle managers: change impact updates, coaching resources.
A communications matrix
Specify:
What info each group needs
When they need it
How they receive it (email, workshop, dashboard, etc.)
Who is responsible for delivering it
Relationship-building activities
Create informal touchpoints: coffee chats, roadshows, pilot previews.
Don’t underestimate the power of small, personal gestures.
A feedback and adaptation loop
Monitor stakeholder sentiment (see next section).
Adjust your plan as relationships evolve or new voices emerge.
The best stakeholder plans are living documents, not static artifacts.
Project Communication Best Practices for Stakeholder Engagement
Communication is often confused with information delivery. But broadcasting a status update isn’t the same as creating engagement.
High-impact communication strategies include:
Two-way feedback loops:
Don’t just inform — invite dialogue.
Use surveys, Q&A sessions, and interactive channels to collect responses.
Tailored messaging:
Customize language for each audience.
Translate technical details into business value for execs, and vice versa.
Consistent cadence:
Set expectations for when updates happen.
Use rituals (weekly standups, monthly steering committees) to create rhythm.
Narrative framing:
Frame updates as a story: “Here’s where we started, what we’ve learned, and what’s next.”
People respond to progress, not just tasks.
Great stakeholder communication builds trust, transparency, and shared purpose.
Tools to Improve Stakeholder Management and Engagement
Technology can help you track, coordinate, and scale your stakeholder efforts — but it’s most effective when paired with the right behaviors.
Helpful tools include:
Stakeholder registers (Excel, Smartsheet, or project management tools)
RACI matrices for clarifying roles
Engagement dashboards to visualize sentiment and communication status
Survey tools (e.g., Typeform, Microsoft Forms) for pulse checks
Collaboration platforms (e.g., Microsoft Teams, Miro, Confluence) for ongoing dialogue
CRM or stakeholder maps to track relationship health over time
Choose tools that integrate well with your delivery workflows, and ensure they support—not replace—real conversations.
Turning Resistant Stakeholders Into Project Advocates
Every project has skeptics. But with the right approach, even the most resistant stakeholder can become a powerful champion.
Here’s how to shift the dynamic:
Acknowledge the resistance:
Don’t dismiss or downplay concerns.
Often, resistance is based on valid fears or past failures.
Involve them early:
Co-create solutions instead of imposing decisions.
Give them a sense of ownership, not just responsibility.
Show quick wins:
Demonstrate tangible value early and often.
Use small victories to build confidence and trust.
Recognize contributions:
Celebrate input, even from critical voices.
Public recognition reinforces their influence and value.
Coach, don’t coerce:
Provide the tools, support, and space for them to shift their stance.
Let them arrive at advocacy through engagement, not pressure.
Remember: resistance is just engagement in disguise. Lean into it.
Real-World Example: Stakeholder Engagement That Saved a Failing Project
Context: A global financial services company launched a multi-year transformation initiative to consolidate its customer data platforms. Six months in, the project was behind schedule, with mounting frustration from business units.
The turning point? Stakeholder engagement.
What they did:
Mapped all impacted stakeholders — including mid-level managers who had been excluded initially.
Held discovery workshops to uncover pain points and expectations.
Shifted the engagement strategy:
Weekly updates for execs
Hands-on demos for end-users
Change champions embedded within each department
The result:
Project delivery realigned within four months
User adoption exceeded 80% within the first quarter
Several former critics became project ambassadors
The lesson: Technical problems weren’t the issue. People problems were. And people were the solution.
Why Leaders Must Prioritize Stakeholder Management to Reduce Project Failure
Stakeholder management isn’t a side task for the comms team. It’s a core leadership responsibility.
When leaders invest in understanding, engaging, and aligning the people who matter most, they unlock:
Faster delivery
Smarter decisions
Greater adoption
Stronger ROI
If your projects are stalling, spiraling, or simply surviving — look at your stakeholder map. The gaps there might be telling you everything you need to know.
Final Call to Action
Want fewer failed projects?
Audit your current stakeholder engagement strategy.
Talk to someone who's resisting.
Make people alignment a strategic priority, not an afterthought.
Because at the end of the day, projects don’t fail on paper — they fail in the gaps between people. And those gaps are yours to bridge.