How Product Managers Can Collaborate with Stakeholders to Drive Successful Digital Transformations
Introduction: Why Most Change Initiatives Fail
Your latest initiative is doomed to fail. And the data backs it up.
Did you know that 60–70% of change initiatives fail? Millions of dollars wasted, employees disengaged, and stakeholders frustrated. But here’s the kicker: it’s not because of bad strategy–it’s because of bad collaboration.
Imagine this: A major utility company invests $140 million in a digital transformation project to modernize its grid operations. Within two years, a key initiative collapses. Why? They ignored one key stakeholder group–solar developers. Sound familiar? It happens every day.
As a product manager, you are uniquely positioned to prevent these failures. You sit at the intersection of strategy, execution, and stakeholder engagement. This article explores why change management fails and how product managers can act as catalysts for collaboration and innovation. We’ll draw on real-world examples and actionable strategies to show you how to turn resistance into results.
Why Change Management Fails
Change management efforts often fall short due to predictable pitfalls. Let’s break them down–and explore how product managers can address them.
1. Resistance to Change
People resist what they don’t understand or trust. In fact, research shows that:
Product Manager’s Role:
As a product manager, you are the bridge between leadership and teams. Translate high-level strategies into clear, actionable steps that resonate with stakeholders. For example, when introducing a new feature, explain how it solves a pain point for users or aligns with broader business goals.
2. Misaligned Priorities
Ever seen an executive push a “game-changing” initiative–only for everyone else to quietly hate it? That’s what happens when organizations prioritize their own agendas over stakeholder needs.
Product Manager’s Role:
Use tools like stakeholder mapping to identify competing priorities early. For instance, during roadmap planning, ensure that sales-driven goals (e.g., revenue growth) align with engineering priorities (e.g., scalability). This alignment prevents conflicts down the line.
3. Poor Communication
Want people to resist your change? Simple: Spring it on them without warning. Works every time.
Product Manager’s Role:
Communication is your superpower. Regularly update stakeholders on progress, challenges, and wins. Use storytelling techniques to make your updates engaging and relatable–through visuals in presentations or anecdotes in team meetings.
4. Overemphasis on Technology
You can buy the best tools. Hire the best consultants. And still fail–because change isn’t about software; it’s about people.
Product Manager’s Role:
Balance technical innovation with cultural transformation. For example, when rolling out a new platform, pair it with training programs that empower teams to adopt it effectively.
Case Study: How Collaboration Transformed a Utility Company’s Digital Initiative
Several years ago, I worked with a large utility company struggling to implement dynamic curtailment–a mechanism allowing them to shut off solar farms’ connections to the grid during peak load times. The goal was grid stability, but the approach alienated solar developers and their capital partners by threatening their financial viability.
The Problem
The Solution
We co-created a mechanism that redirected curtailed power to battery storage, allowing solar developers to:
This approach aligned incentives across all stakeholders:
The Results
This case study underscores the importance of collaboration in driving successful digital transformations–and highlights how product managers can lead the charge. It's also backed by data: A Gallup Study stated that organizations engaging employees in the change process see significantly less resistance and higher profitability.
How Product Managers Can Foster Stakeholder Collaboration
Building on these lessons, here are five actionable strategies for product managers:
1. Understand Stakeholder Needs
Start by mapping out stakeholder journeys:
For example, during backlog prioritization sessions, include user feedback alongside business metrics to ensure features address real-world needs. I wrote about how to implement the Stakeholder Salience Matrix previously.
2. Co-Create Solutions
Collaboration isn’t just nice-to-have–it’s essential for buy-in. Organize workshops where stakeholders brainstorm solutions together.
Example:
When designing the battery storage integration for the utility company, we invited solar developers and capital partners to co-create the model. Their input ensured the solution met everyone’s needs.
3. Communicate Transparently
Transparency builds trust–and trust drives adoption.
Tips for Transparent Communication:
4. Align Incentives
Misaligned incentives are a recipe for failure. Ensure every stakeholder sees value in your initiative.
Example:
In our case study, aligning incentives meant creating financial opportunities for solar developers while maintaining grid stability for the utility.
5. Focus on Long-Term Relationships
Successful transformations depend on trust and mutual respect built over time.
How to Build Relationships:
Conclusion: A Call-to-Action for Product Managers
Change is inevitable–but failure doesn’t have to be. As a product manager, you have the power to transform resistance into collaboration and chaos into clarity.
The next time you kick off a big initiative, do this: Before you pitch a single feature or strategy, ask your stakeholders one question–“What’s in it for you?” Their answer might just save your project.
Want to assess whether your team is set up for success? Take 10 minutes today:
Small steps like these build momentum for transformation–and position you as the change agent your organization needs.
Remember: Digital transformation isn’t just about technology–it’s about people. Lead with empathy, communicate with clarity, and innovate boldly.