Why Big Projects Run Over Budget and Behind Schedule

Have you been involved in a major project that ran well over budget and way behind schedule?  I'm sure the answer is yes.  We all have experienced this misery at times.  Why do so many large projects encounter these problems, while failing to deliver the expected benefits as well?  University of Oxford Professor Bent Flyvbjerg and journalist Dan Gardner wrote a terrific book about this topic.  The book is titled, How Big Things Get Done: The Surprising Factors that Determine the Fate of Every Project, From Home Renovations to Space Exploration, and Everything in Between.  

The book is chock full of insights about why projects go off the rails, and how we can approach projects more effectively.  They argue that a bias for action gets many project leaders in trouble.  They rush to execute before planning adequately.  "Just do it" becomes a dangerous mantra.  Moreover, they argue that some project leaders engage in strategic misrepresentation.  In other words, they know the budget and schedule are not reasonable at all.  Yet, they "start digging a hole" knowing that it will be hard for those providing resources to not fund the overruns once the project has begun.  

The authors argue that experience is essential in managing large projects.  They are big fans of the practical wisdom and learning that emerges from experience.  However, they argue that many project funders and leaders marginalize experience.  Why?  One key reason is what they call the "uniqueness bias."  In short, people always seem to believe that their project is unlike any other that has been done.  Thus, they think there's little to learn from others.  Moreover, many of them strive to produce something that is the first of its kind or the "biggest, tallest, longest, fastest" of its kind. This desire to produce something unique means that they can take huge risks, and they fail to learn from the experience of others.  Thus, we should all ask ourselves:  Is our project truly unique?  Moreover, do we need it be unique?  Is it ok if it is NOT the tallest, biggest, or first of its kind?"  

The Downfall of Many Cross-Disciplinary Teams

Yesterday, one of my former students asked for advice.  He has been selected to lead one of six task forces focused on different dimensions of quality for his company.   These six task forces have senior executive sponsors, and they will be responsible for reporting findings and recommendations to the chief executive.  He's very excited about the opportunity.   The responsibility and visibility associated with this project do not usually fall to people at this relatively early stage of his career.  He sat with me to talk about this new role, and he wanted to know what challenges or obstacles he should be prepared to face.  I offered the following observation.  On these types of cross-disciplinary teams, the leader needs to be extremely mindful of the fact that each team member has a "full-time job" in the organization.  Tensions may emerge between the team member and the manager to whom they report on a day-to-day basis.  The manager may become upset that this special project is soaking up significant amounts of the employee's time.  As the leader of the cross-disciplinary team, you need to be prepared to work with each team member to address this potential obstacle to success.  The project leader must be able to outline expectations with each member, and to speak directly with the day-to-day managers so that they understand their employees' roles and responsibilities on the project.  The leader also must be respectful of team members' commitments, particularly at times when they might be especially busy in their day-to-day job.   In my experience, this struggle to balance the obligations of team members serves as the largest pitfall that cross-disciplinary teams face in organizations.