Below you'll find a list of all posts that have been tagged as “risk”
From “How Companies Spend Their Money” [PDF] (McKinsey Global Survey) A survey of executives from around the world highlights how frequently — and why — a company’s resource allocation decisions go wrong. Companies start off well, respondents say: senior executives are heavily involved in these decisions and routinely assess the prior performance of business units and the value creation protential …
In Waltzing With Bears, Lister and DeMarco describe the benefits of running IT projects within a portfolio. Not every one of them would have to succeed: you could take on several very high-risk (but high-payoff) projects and balance it with several low risk / low payoff projects. Having low-risk/high pay-off projects would be great, but most of the time those …
!["Bessemer converter (iron into steel) Allegheny Ludlum Steel e Corp Brackenridge, Pa (LOC)" [crop]. Ca. 1940. Alfred T. Palmer via Library of Congress](https://i0.wp.com/www.manasclerk.com/wpress/wp-content/uploads/2013/08/1a35063u-Bessemer-converter-iron-into-steel-Allegheny-Ludlum-Steel-e-Corp-Brackenridge-Pa-LOC-1600x995.jpg?fit=862%2C536&ssl=1)
Since IT projects are particularly prone to ignoring risk and escalation of commitment, reviewing some of the research on how we make decisions will benefit any IT manager or PM.
When a project starts heading south, you would think that the rats would start abandoning the ship and the sponsor would quickly pull the plug to minimize losses. But that’s not what happens. Sponsors’ commitment to projects going bad actually seems to grow. The literature is littered with examples of sponsors continuing to spend money on a project that is …
There is a large body of work dealing with the escalation of commitment in IT projects, how managers continue to throw good money after bad, increasing their commitment to a project that has little chance of succeeding. For example, Gustavo Dimello has an interesting summary (“To Pull or Not To Pull the Plug: When Managers Commit Themselves to Failure”) of …
You’re never going to burn bright when your goal is to not get your fingers burnt.
