Project Management Risks and Strategies

<p>Refusing to acknowledge budget overruns. (A)</p> Signup and view all the answers

<p>Access to service records. (C)</p> Signup and view all the answers

<p>Challenges and resistance from stakeholders. (D)</p> Signup and view all the answers

<p>Avoiding erroneous abandonment. (C)</p> Signup and view all the answers

<p>Gains forgone. (A)</p> Signup and view all the answers

<p>It reduces reliance on target setting. (B)</p> Signup and view all the answers

<p>By adopting the Janus face approach. (D)</p> Signup and view all the answers

<p>Eliminating alternatives to ensure commitment. (D)</p> Signup and view all the answers

<p>Intolerance of failure. (D)</p> Signup and view all the answers

<p>Focus on positive aspects and statements (A)</p> Signup and view all the answers

<p>Heeding intuition as a valuable tool. (A)</p> Signup and view all the answers

<p>The right but not the obligation to act in the future (C)</p> Signup and view all the answers

<p>Becoming publicly committed to specific limits. (B)</p> Signup and view all the answers

<p>Loss of potential option values connected to the project (D)</p> Signup and view all the answers

<p>It allows for a more robust challenge to risk assessment. (C)</p> Signup and view all the answers

<p>Only data-driven approaches can yield successful outcomes. (A)</p> Signup and view all the answers

<p>To assess the potential for future endeavors (D)</p> Signup and view all the answers

<p>A demonstration that problems are being taken seriously (A)</p> Signup and view all the answers

<p>It can contribute to self-fulfilling failures (A)</p> Signup and view all the answers

<p>The option for future construction on that land is lost (C)</p> Signup and view all the answers

<p>To manipulate perceptions toward a more positive outlook (D)</p> Signup and view all the answers

<p>It can potentially lead to greater achievements. (A)</p> Signup and view all the answers

<p>It may increase the risk of erroneous abandonment. (B)</p> Signup and view all the answers

<p>They may become trapped between admitting failure and avoiding increased loss. (B)</p> Signup and view all the answers

<p>Both persistence and abandonment can be seen as costly decision errors. (D)</p> Signup and view all the answers

<p>Potential side effects of their decisions. (D)</p> Signup and view all the answers

<p>It often results in a significant increase in losses. (D)</p> Signup and view all the answers

<p>They can disrupt and ruin effective decision-making. (C)</p> Signup and view all the answers

<p>They are likely to prolong psychological pain and deepen losses. (D)</p> Signup and view all the answers

<p>Strategies for turning around troubled software projects (C)</p> Signup and view all the answers

<p>Sunk cost (A)</p> Signup and view all the answers

<p>Escalation of commitment (D)</p> Signup and view all the answers

<p>The collaboration between the UK’s Ministry of Defense and EDS (B)</p> Signup and view all the answers

<p>The importance of sunk costs in decision-making (B)</p> Signup and view all the answers

<p>Person sensitivity decision bias (C)</p> Signup and view all the answers

<p>The dynamics of failure and investment continuation (D)</p> Signup and view all the answers

<p>McCain (C)</p> Signup and view all the answers

<p>Escalation of commitment to a chosen course of action (A)</p> Signup and view all the answers

<p>Prospect theory (D)</p> Signup and view all the answers

<p>Escalation bias in performance appraisals (D)</p> Signup and view all the answers

<p>Entrapment in waiting situations (B)</p> Signup and view all the answers

<p>The update and appraisal of escalation findings (C)</p> Signup and view all the answers

<p>Research in Organizational Behavior (D)</p> Signup and view all the answers

<p>Determinants of commitment to a chosen course of action (A)</p> Signup and view all the answers

<p>Recognizing prior investments as non-recoverable costs (B)</p> Signup and view all the answers

The tendency to focus on the original investment and ignore the current costs and benefits of continuing a project.

A mental shortcut that can lead to poor decision-making, where managers are quick to abandon a project without considering all the potential benefits.

The benefits that are not immediately apparent but can be significant over time for a project.

Staying the course with a project despite challenges and setbacks.

The fear of admitting failure can lead to continued investment in failing projects to avoid losing face.

The unwillingness to consider alternatives from outside the organization, leading to blind spots and missed opportunities.

The tendency to blame the entire organization for a project's failure, rather than identifying individual accountability.

Using intuition and experience to make decisions when faced with high levels of uncertainty.

Using positive language and framing can help shift the mindset from negative to positive, preventing self-fulfilling prophecy.

Managers should consider the potential loss of future options when deciding to abandon a project.

Symbolic actions can communicate seriousness and commitment to addressing problems.

Avoiding overly negative language and focusing on positive aspects can lessen the psychological impact of failure.

Persistent effort can lead to unexpected benefits and hidden value.

Licensing software or building on land can be valuable options that are lost if a project is abandoned.

Managers should actively consider the potential options that may be destroyed before abandoning a project.

Demonstrating a commitment to fixing problems, such as by bringing in experts, can help rebuild trust and confidence.

Projects that are large enough to be significant but not so large that their failure would be catastrophic. These projects are more likely to cause managers to take risks rather than avoid them.

When project managers choose to accept losses in areas like benefits or features to prevent further budget overruns or delays.

The potential consequences of abandoning a project, which can be significant and damaging to the organization.

Actions taken to prevent or mitigate the risk of abandoning a project prematurely.

The idea that it's easier and more effective to prevent problems than to fix them after they occur. In project management, this means taking proactive steps to avoid abandonment.

The tendency for managers to become more risk-seeking when facing the possibility of significant losses, which can lead to risky decisions and project abandonment.

The feeling of doubt and uncertainty that can arise in project managers when facing challenges and setbacks, potentially leading to abandonment.

The process of securing funding or resources for a project. A lack of renewal can make the project vulnerable to abandonment as it can signal a loss of confidence in its success.

The tendency to continue investing in a failing project despite negative results, often due to sunk costs or fear of admitting failure.

The reluctance to change course, even when there's evidence that the current path is not working.

The belief that abandoning a project means admitting failure, which can lead to continued investment even when it's not rational.

The conflicting forces within a manager that can lead to inaction or a half-hearted approach, making the situation even worse.

Recognizing that changing project managers or other standard escalation control measures can sometimes worsen the problem.

Considering the psychological impact on managers, including the pain of admitting failure and the fear of compounding losses.

The idea that making a wrong decision is better than making no decision at all, as inaction can lead to even worse outcomes.