Why projects escalate Flashcards
1
Q
Runaway systems
A
projects that go widely over budget
2
Q
theories that explain escalation behaviour
A
- self-justification behavior
- prospect theory
- agency theory
- approach Avoidance theory
3
Q
Self-Justification behaviour
A
individuals escalate their commitment in order to prove themselves or others
4
Q
prospect theory
A
people make decisions based on perceived gains or losses
( pt and self-just bhvr strongest predictors for escalation)
5
Q
agency theory
A
agents act to maximise own utility
6
Q
approach avoidance theory
A
reasons to continue are stronger than reasons to stop:
-reward for goal attainment
- cost of withdrawal
(weaker impact)
7
Q
how to prevent IT projects failure
A
- train managers to avoid emotional attachment
- independent reviews
- clear exit strategies
