During one of my early projects in IT transformation, I remember a particular moment that shaped my understanding of stakeholder engagement. We were halfway through the implementation when a critical business unit raised concerns about the new system's alignment with their operations. These concerns or perceptions, left unaddressed early on, snowballed into significant delays. I realised that successful projects aren’t just about the technology and solution; they’re about engaging the right stakeholders at the right time. That experience made me rethink how I approach stakeholder engagement in complex projects and professional collaborations.

In today’s digital age, IT and business transformation projects are crucial for organisational growth. A large percentage of projects fail to meet their expected objectives, not due to technical deficiencies, but because of inadequate stakeholder management. A key issue is that many organisations tend to engage stakeholders reactively, addressing concerns only when problems arise.

For business and digital transformation projects, this approach is particularly problematic. These initiatives often involve multiple departments with diverse goals, leading to conflicting expectations. As projects progress, unaddressed misalignments can result in scope creep, delays, and budget overruns.

So, how can we overcome these challenges? Drawing from a range of sources and my own experience, I suggest three impactful strategies:

1. Start with Proactive Stakeholder Mapping: It's essential to identify all relevant stakeholders from the start. As McKinsey points out, using a data-backed approach to classify stakeholders based on their influence and needs helps create targeted engagement strategies that prevent misalignments before they escalate [1].
2. Commit to Continuous Engagement: Stakeholder needs evolve as the project progresses. PMI highlights that engagement is not a one-off task but a continuous effort that requires regular check-ins to ensure alignment with project goals [2].
3. Foster Transparent and Open Communication: In any transformation, communication is the backbone of engagement. Clear, targeted and timely communication ensures that stakeholders remain informed and can provide feedback throughout the project lifecycle. As research from the Harvard Business Review suggests, consistent communication helps mitigate risks by creating trust and maintaining transparency [3].

By strategically addressing stakeholder engagement, organisations can significantly enhance the likelihood of project success, particularly in business and digital transformation initiatives. As these projects reshape the organisation, aligning stakeholders effectively is the key to driving sustainable business outcomes.

References

[1] B. Schaninger and T. Lauricella, "A Data-Backed Approach to Stakeholder Engagement," McKinsey & Company, 2020.

[2] PMI, "Engaging Stakeholders for Project Success,"PMI.org, 2021.

[3] D. Garvin and M. Roberto, "What You Don’t Know About Making Decisions," Harvard Business Review, vol. 79, no. 8, pp. 108-116, 2001.

‍