Why Projects Fail | Reason #7 | Lack of Stakeholder Involvement

...and how to fix it

In project management, the role of stakeholders—those individuals or groups who can impact or be impacted by the project—is critical to success. However, one of the most common reasons for project failure is a lack of stakeholder involvement. When stakeholders are disengaged or not actively participating in key decisions, a project becomes at risk to fall off the rails. Today, we’ll explore why stakeholder involvement is crucial, how the absence of stakeholder involvement can lead to project failure, and strategies to ensure strong stakeholder engagement.

Why Stakeholder Involvement is Essential

Stakeholders often hold the keys to critical information, resources, and strategic alignment. Their buy-in and ongoing involvement ensure that a project aligns with business needs, has the necessary support, and meets the expectations of everyone affected. Here’s why stakeholder involvement is so important:

Clear Vision and Objectives

Stakeholders help define the scope, vision, objectives, and success criteria. Without their input, teams may work toward goals that don’t align with business needs, resulting in misaligned work.

Resource Allocation

Stakeholders, especially those in leadership or management roles, control the allocation of critical resources such as budget, human power, and tools. Their active involvement ensures the project is adequately resourced.

Decision-Making Support

During a project’s lifecycle, key decisions need to be made. Without timely and informed stakeholder input, decision-making can be delayed, leading to project inefficiencies and even failure.

Change Management

Stakeholders help manage and approve any changes to project scope, direction, or strategy. Their involvement ensures that any changes are aligned with broader organizational goals and that risks are appropriately assessed.

How Lack of Stakeholder Involvement Leads to Project Failure

If the vision and objectives are unclear, resources are at risk, decisions are delayed, or change management is obsolete, there is a chance that the project is headed to failure because of:

• Misaligned objectives - project deliverables and stakeholder expectations, resulting in dissatisfaction, rework, and wasted resources
• Scope creep - refer back to a previous article in which I talk about scope creep. That article can be found HERE
• Lack of ownership - making it difficult to resolve issues, allocate resources, or make critical decisions. Note: this is where a clearly defined RASCI comes into play
• Inefficient decision-making - teams may make decisions in isolation, leading to outcomes that stakeholders later reject or oppose, resulting in rework and lost time
• Risk of resistance or pushback - stakeholder involvement is needed for buyin

How to Improve Stakeholder Involvement

To avoid these common pitfalls, it’s critical for project managers to actively involve stakeholders at every stage of the project. Here are strategies to ensure strong stakeholder engagement:

Identify Key Stakeholders Early: Early in the project, identify who your key stakeholders are. This includes not only those who have a direct influence on the project (e.g., project sponsors, senior management) but also end-users and other impacted groups. Understanding who will be affected and who holds decision-making power is essential. RASCI, RASCI, RASCI

Clarify Roles and Expectations: Clearly define stakeholder roles and expectations from the outset. Establish who needs to be consulted for decisions, who has approval authority, and who will be kept informed of progress. By setting these expectations early, you can avoid confusion later. RASCI, RASCI, RASCI

Involve Stakeholders in Planning: Engage stakeholders early...from discovery sessions to scoping. Encourage them to provide input on project goals, risks, resource requirements, and timelines. This involvement helps ensure that the project plan reflects the organization’s priorities and stakeholder needs.

Establish Regular Communication: Consistent communication is key to keeping stakeholders engaged. Establish regular updates, meetings, and reports to ensure stakeholders are informed of progress, risks, and changes. Identify who and how communication should happen.

Use Stakeholder Feedback: Actively solicit and use stakeholder feedback throughout the project lifecycle. This ensures that the project stays aligned with their evolving needs and expectations. Incorporating feedback early on can prevent costly changes or rework later. Depending on the project, this could be through show-n-tells or retrospectives.

Resolve Conflicts Quickly: Stakeholders may have competing interests, and conflicts may arise. Project managers should address conflicts quickly by facilitating discussions and finding common ground. Effective conflict resolution ensures that the project stays on track and maintains stakeholder support.

Engage Stakeholders in Decision-Making: Involve stakeholders in critical decisions. Whether it’s a change in scope, timeline adjustments, or risk mitigation strategies, their input can help you make informed decisions that are aligned with organizational priorities. Identify if a formal approval is needed - and from who.

Don't worry, even if any of these are missed, you can easily begin at any point of the project to get everyone on track.

By recognizing the importance of stakeholder involvement and actively managing their participation, project managers can avoid one of the most common reasons projects fail and increase the likelihood of delivering value-driven, successful projects.

Remember, stakeholders are not just bystanders—they are essential partners in your project’s success, consider them a key member of your project team.