Managing Isn’t Enough — Avoid the #1 Stakeholder Mistake That Kills Projects

8 min read6 days ago

Stakeholder Engagement: The New Era of Project Success

Because of failed Stakeholder Engagement, the UK Passport Agency had to pay millions in compensation and suffered a massive loss of credibility.
The project had a solid plan, strict timelines, and a controlled budget — so why did it still fail? Because “Managing” isn’t enough. You need to “Engage.”
So why is Stakeholder Engagement more important than traditional stakeholder management? And how can you ensure your project actually delivers results?

From Managing to Engaging: What’s the Difference?

🔹 Management is about structure and control — it ensures tasks are planned, teams are organized, and operations run smoothly. It’s predictable, consistent, and essential for delivering projects successfully.

🔹 Engagement, on the other hand, is about involvement, commitment, and enthusiasm. It’s what makes stakeholders feel heard, valued, and invested in the project’s success. Unlike management, which follows a straightforward equation — 1 + 1 = 2 — ensuring responsibilities are met, engagement creates exponential value. It can be 1 + 1 = 3 or more because it doesn’t just make people do their assigned work — it encourages them to take ownership, improve processes, and innovate. Engaged stakeholders don’t just follow orders; they actively seek ways to make the project better.

That’s why the focus is shifting from stakeholder management to stakeholder engagement — because real success comes from working with people, not just overseeing them.

Why Stakeholder Engagement Matters More Than Ever

In the past, “stakeholder management” was the norm. But today, in a fast-moving, project-driven world, we interact with more diverse and powerful stakeholders than ever before. Some of them simply can’t be managed — but they can be engaged. Projects with effective stakeholder engagement plans have a success rate of 83%, compared to only 32% for those without such plans. (Source: Zoe Talent Solutions)

🚑 Who can’t be managed?
✔️ Clients & Customers — You can’t control them, but you can build relationships with them.
✔️ Senior Leadership — You don’t manage your executives — you align with their vision.
✔️ Project Critics — Instead of trying to control opposition, involve them in discussions and address concerns.

Everyone has their own priorities and often does not fully understand the project’s broader scope. People naturally see things from their own perspective due to anchoring bias, making it difficult to align all stakeholders from the start. If we rely solely on management tactics, we may struggle to overcome these biases and differences. However, engagement allows us to bridge gaps, bring stakeholders onto the same page, and create shared understanding. Stakeholder engagement is identified as the most valuable project management process, emphasizing its critical role in achieving project objectives. (Source: TeamStage)

By shifting to engagement, you turn resistance into support, create buy-in, and build trust — leading to smoother projects and stronger results.

4 Ways on How to Engage Stakeholders Effectively

If you want people to support your project, you need to engage them the right way. Here are four powerful strategies:

1️⃣ Listen Before You Lead

Instead of jumping straight into execution, take time to understand stakeholders’ needs, concerns, and expectations. People don’t always express their true concerns outright — sometimes, you need to observe their body language and emotional cues to truly understand how they feel. Not all issues are purely about work; emotions play a significant role.

You also need to ensure that people perceive that you are genuinely listening. This was a valuable lesson I learned from my closest person — even though he doesn’t always fully understand my problems, his behavior makes me feel heard and valued. Simply acknowledging concerns isn’t enough; demonstrating active listening through body language, eye contact, and verbal affirmations can make a significant difference in engagement. When stakeholders feel that their voices matter, they are more likely to stay invested in the project rather than disengaging or resisting change.

For example, if you acknowledge their concerns but don’t clearly communicate why certain suggestions can’t be implemented, stakeholders may feel undervalued. Over time, this can lead to disengagement or even resistance, not because they intend to block progress, but because human emotions, moods, and subconscious biases shape behavior in ways we can’t always control.

Try this:
💬 Conduct stakeholder interviews or surveys.
💬 Hold informal check-ins to get real-time feedback.
💬 Pay attention to non-verbal cues, such as tone, facial expressions, and body language.
💬 Explain decisions transparently to ensure stakeholders feel heard and respected.

2️⃣ Communicate Openly and Clearly

Lack of transparency leads to resistance. Keep stakeholders informed about progress, challenges, and decisions. The more they understand, the more they’ll trust. However, we often assume that others have the same level of knowledge or understanding as we do, which is rarely the case. People come from diverse backgrounds and interpret information differently. Even when they say they understand, they may not fully grasp the details.

Overcommunication is key. This is a lesson I learned from my ex-boss, who encouraged me to over-communicate to ensure alignment. To avoid misunderstandings, try recalibrating their understanding by:

Asking stakeholders to summarize your message in their own words. This helps confirm that the key points were correctly understood.
Summarizing their statements in your own words to ensure you’re on the same page.
Providing written summaries of crucial details to refer back to later.
Encouraging quick notes from all parties, as different individuals have different priorities. This ensures that all concerns are addressed and nothing is lost in translation.

Try this:
📢 Use storytelling — explain the “why” behind decisions.
📢 Encourage mutual summarization to verify understanding.
📢 Provide written recaps of key discussions to avoid misalignment.

3️⃣ Involve Stakeholders Early & Foster Long-Term Engagement

Don’t wait until the last minute to get stakeholder input. If they feel involved from the beginning, they’ll be more invested in the outcome. The longer stakeholders stay engaged with a project, the deeper their commitment becomes — especially if they stand to gain direct or indirect benefits from its success. People are naturally more engaged when they feel like they are part of something meaningful and when their contributions shape the final outcome.

If we share a common purpose, we align in the same direction and work towards the same goals. Stakeholders who feel personally or professionally invested are more likely to support, enhance, and advocate for the project rather than resist or disengage.

Try this:
🤝 Invite key stakeholders to planning sessions.
🤝 Co-create solutions instead of just presenting them.
🤝 Continuously involve them in decision-making to strengthen long-term engagement.

4️⃣ Create a Shared Purpose

People support what they believe in. Connect your project’s goals to something stakeholders care about. Show how it benefits them, the team, or the organization. When everyone feels a sense of ownership, they naturally work towards the project’s success rather than seeing it as just another task.

Try this:
🎯 Align project goals with company vision.
🎯 Highlight personal or team benefits (e.g., efficiency, growth, recognition).
🎯 Reinforce how their contributions lead to shared success.

Real-world Case Study: Starbucks’ sustainability strategy vs UK Passport Agency

Effective stakeholder engagement can significantly influence the success or failure of organizational initiatives. Let’s explore two contrasting cases: Starbucks’ sustainability strategy, which thrived due to robust stakeholder engagement, and the UK Passport Agency’s project, which faltered partly because of inadequate stakeholder communication.

☕Case Study 1: Starbucks’ Sustainability Success Through Stakeholder Engagement

📌 Situation: Starbucks aimed to improve its sustainability efforts, focusing on ethical coffee sourcing, reducing environmental impact, and minimizing waste.

📌 Challenge: The company needed to balance business efficiency with ethical sourcing, ensuring that farmers were fairly compensated while maintaining high-quality standards. Additionally, Starbucks had to reduce its carbon footprint and convince customers to adopt more sustainable habits.

✅ C.A.F.E. Practices: Starbucks collaborates with farmers to ensure ethical and sustainable sourcing, aligning with their business goals.
✅ Environmental Commitments: Engages employees and communities in reducing carbon emissions, waste, and promoting eco-friendly practices.
✅ Reusable Cup Initiatives: Customers are incentivized to participate in sustainability efforts, fostering shared ownership.

📌 Result: Due to these efforts, 99% of Starbucks’ coffee is now ethically sourced, meeting high environmental and social standards. The company continues to reduce its carbon emissions and encourage sustainability among its customers. This case highlights how proactively engaging stakeholders — rather than just managing them — creates lasting, positive impact for both business and society.

📜Case Study 2: UK Passport Agency’s Failure Due to Poor Stakeholder Communication

📌 Situation: In 1999, the UK Passport Agency implemented a new digital system to process passport applications faster. The goal was to modernize the process and reduce waiting times.

📌 Challenge: the agency failed to properly engage its key stakeholders — employees and the public — which led to widespread system failures and public frustration.

❌ Lack of Staff Training: Employees were not properly engaged or prepared for new systems, causing massive delays.
❌ Poor Public Communication: Applicants were left frustrated due to lack of transparency and updates.
❌ No Contingency Plans: The agency failed to involve stakeholders in risk planning, leading to system failure and public outrage.

📌 Result: The project led to 500,000 delayed passports, causing severe travel disruptions. Public outrage forced the UK government to step in, and the agency had to pay millions in compensation. This failure demonstrated that poor stakeholder communication can lead to costly mistakes, reputational damage, and operational breakdowns.

🚀 Key Lesson from Both Cases:

Stakeholder engagement is a key factor in determining project success or failure. Starbucks demonstrates how proactive engagement fosters trust and sustainability, while the UK Passport Agency highlights the risks of poor communication, leading to operational failures and public backlash.

Again!

1️⃣ Listen Before You Lead — Understand stakeholders’ needs, emotions, and concerns before making decisions, ensuring they feel heard and valued.
2️⃣ Communicate Openly and Clearly — Overcommunicate to avoid misunderstandings, using storytelling, mutual summarization, and written recaps.
3️⃣ Involve Stakeholders Early — Engage stakeholders from the start and involve them in decision-making to strengthen long-term commitment.
4️⃣ Create a Shared Purpose — Connect project goals to stakeholders’ interests and values, showing how their contributions lead to shared success. 🚀

The Future is Engagement, Not Just Management

Projects aren’t just about tasks, deadlines, and budgets. They’re about people — and people don’t like being managed, but they do love feeling engaged.

The best projects don’t just check all the boxes; they bring people together, create alignment, and inspire action. If you want lasting success, don’t just manage your stakeholders — engage them.

🚀 Are you ready to make the shift?

If you’re interested in learning more about Empathetic Communication, let me know the challenges you face. I’m here to help!

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