If senior management are sufficiently preoccupied with other things and some Machiavellian schemer is sufficiently preoccupied with increasing their own influence over the organization, it's entirely possible that no level of detailed daily status updates and well-structured regular webconferences can undo the amount of FUD the schemer can spread by having water-cooler chats and asking "quick questions" of exactly the same members of management that don't read the status updates.

And at the risk of stating the obvious, watercooler chats can have non-negative outcomes in other situations too!