54 Questions
What percentage of project spend is wasted due to poor performance?
12%
What type of system has stable properties and predictable interactions?
Simple System
What is the estimated contribution of project-oriented industries to the global GDP over the next 20 years?
US$20.2 trillion
According to the modern view of project management, what kind of approach is required for complicated or complex projects?
Systemic pluralist approach
What is a key focus area in traditional project management?
Human Resources
What is the name of the approach required for complex projects?
Experimental approach
What is a key competency required of project managers in VUCA environments?
Emotional intelligence
What is the key to project management education, according to complexity theory?
Embracing complexities and uncertainties
What is the primary goal of PM theory and education?
To develop a learning community and foster critical self-reflection
What is the difference between Cognitive Bias and Political Bias?
Cognitive Bias is unconscious, while Political Bias is conscious
What is the Optimism Bias in project management?
Overly bullish about outcomes, non-deliberate
Which bias involves ignoring general statistical information in favor of specific cases?
Base Rate Fallacy
What is the Escalation of Commitment Bias in project management?
Justifying increased investment despite negative evidence
What is the primary cause of the Groupthink Bias in project management?
Desire for harmony leading to irrational decision-making
What is the primary goal of PM theory and education in developing a learning community?
To foster critical self-reflection and reflexion
What is the key difference between Cognitive Bias and Political Bias?
Cognitive Bias is unconscious while Political Bias is conscious
Which of the following biases involves deliberate distortion of information for strategic purposes?
Strategic Misrepresentation
What is the term for the tendency to believe that past events were predictable?
Hindsight Bias
What is the term for the tendency to overestimate benefits and underestimate costs?
Planning Fallacy
Which bias involves ignoring risks that manifest slowly?
Evolutionist Bias
What is the term for the tendency to rely too heavily on one piece of information?
Anchoring Bias
Which bias involves justifying increased investment despite negative evidence?
Escalation of Commitment Bias
What is the term for the tendency to see one's project as more singular than it is?
Uniqueness Bias
What is the term for the desire for harmony leading to irrational decision-making?
Groupthink Bias
What is the primary driver of the global economy?
Project-based work
What percentage of project spend is productive?
88.8%
What is the main limitation of traditional project management?
It does not prepare managers for change or unexpected difficulties
What is the main difference between simple and complicated systems?
Complicated systems are unpredictable, simple systems are predictable
What is the main characteristic of complex systems?
They are unpredictable and have 'unknown unknowns'
What is the goal of project management education according to complexity theory?
To embrace complexities and uncertainties
What is a key competency required of project managers in VUCA environments?
Humility
What is the modern view of project management?
Projects can be simple, complicated, or complex systems
Why is it important to educate and develop project managers?
To prepare them for change or unexpected difficulties
What is the main focus of traditional project management?
On_cost, scope, risk, human resources, communication, time, quality, procurement
What is the main reason for the need to better educate and develop project managers?
To handle increasing complexity and uncertainty in project environments
What is the primary difference between traditional and modern views of project management?
Traditional focus on cost, scope, and risk, while modern focuses on complexity and uncertainty
What type of system has unpredictable interactions and 'unknown unknowns'?
Complex System
What is the main focus of traditional project management?
Cost, Scope, Risk, Human Resources, Communication, Time, Quality, Procurement
What is the main limitation of traditional project management education?
Lack of focus on complexity and uncertainty
What is a key competency required of project managers in VUCA environments?
All of the above
What is the main goal of project management education, according to complexity theory?
To prepare project managers for complex and uncertain projects
What is the main driver of the global economy?
Project-oriented industries
What is the main characteristic of complicated systems?
Cause-and-effect relationships are identifiable but complex
Why is it important to educate and develop project managers?
To handle the increasing complexity and uncertainty in project environments
What is the primary goal of PM theory and education in developing a learning community?
Encourage critical self-reflection
What is the key difference between Behavioral Biases and Political Bias in project management?
One is unconscious and the other is conscious
What is the term for the tendency to overestimate benefits and underestimate costs in project management?
Planning Fallacy
Which bias involves relying too heavily on one piece of information in project management?
Anchoring Bias
What is the term for the tendency to believe that past events were predictable in project management?
Hindsight Bias
What is the term for the desire for harmony leading to irrational decision-making in project management?
Groupthink Bias
What is the term for the tendency to see one's project as more singular than it is in project management?
Uniqueness Bias
Which bias involves ignoring general statistical information in favor of specific cases in project management?
Base Rate Fallacy
What is the term for the tendency to justify increased investment despite negative evidence in project management?
Escalation of Commitment Bias
Which bias involves ignoring risks that manifest slowly in project management?
Evolutionist Bias
Study Notes
Why Projects Fail: Key Points
The Importance of Projects
- The global economy is increasingly driven by project-based work, with project-oriented industries forecast to contribute $20.2 trillion to the global GDP over the next 20 years.
- Poor project performance results in a waste of approximately 12% of project spend, equivalent to $120 million for every $1 billion invested.
- There is a growing need to educate and develop project managers to handle increasing complexity and uncertainty in project environments.
Traditional Project Management
- Traditional project management focuses on areas such as cost, scope, risk, human resources, communication, time, quality, and procurement.
- It emphasizes standardization and the ‘one best way’ approach, which does not prepare project managers for change or unexpected difficulties.
Modern View of Project Management
- Projects can be categorized into simple, complicated, or complex systems, requiring different approaches to management.
- Project managers should be reflective and reflexive, asking questions like “How can I get this done?” to adapt to complex project environments.
Types of Systems
- Simple System: Stable properties, predictable interactions, and ‘known knowns’ can be managed using traditional PM methods.
- Complicated System: Cause-and-effect relationships are identifiable but complex, requiring experts and systems thinking.
- Complex System: Unpredictable interactions, ‘unknown unknowns,’ require experimental approaches and diversity.
Complexity Theory
- Recognizes the dynamic and unstable nature of systems, emphasizing the importance of adaptability in project management.
New Project Manager Competencies
- Project managers require competencies such as humility, shared leadership, social competence, emotional intelligence, communication, vision, and understanding of values and beliefs to succeed in VUCA environments.
Behavioral Biases
- Cognitive Bias: Unconscious tendency to lean in a certain direction, influencing project management decisions.
- Political Bias: Conscious misrepresentation of facts due to political pressure.
Common Behavioral Biases in Project Management
- Strategic Misrepresentation: Deliberate distortion of information for strategic purposes.
- Optimism Bias: Overly bullish about outcomes, non-deliberate.
- Uniqueness Bias: Seeing one’s project as more singular than it is.
- Planning Fallacy: Underestimating costs and time, overestimating benefits.
- Overconfidence Bias: Excessive confidence in one’s own answers.
- Hindsight Bias: Believing that past events were predictable.
- Availability Bias: Overweighting whatever comes to mind.
- Base Rate Fallacy: Ignoring general statistical information in favor of specific cases.
- Anchoring Bias: Relying too heavily on one piece of information.
- Escalation of Commitment Bias: Justifying increased investment despite negative evidence.
- Evolutionist Bias: Ignoring risks that manifest slowly.
- Groupthink Bias: Desire for harmony leads to irrational decision-making.
Why Projects Fail: Key Points
The Importance of Projects
- The global economy is increasingly driven by project-based work, with project-oriented industries forecast to contribute $20.2 trillion to the global GDP over the next 20 years.
- Poor project performance results in a waste of approximately 12% of project spend, equivalent to $120 million for every $1 billion invested.
- There is a growing need to educate and develop project managers to handle increasing complexity and uncertainty in project environments.
Traditional Project Management
- Traditional project management focuses on areas such as cost, scope, risk, human resources, communication, time, quality, and procurement.
- It emphasizes standardization and the ‘one best way’ approach, which does not prepare project managers for change or unexpected difficulties.
Modern View of Project Management
- Projects can be categorized into simple, complicated, or complex systems, requiring different approaches to management.
- Project managers should be reflective and reflexive, asking questions like “How can I get this done?” to adapt to complex project environments.
Types of Systems
- Simple System: Stable properties, predictable interactions, and ‘known knowns’ can be managed using traditional PM methods.
- Complicated System: Cause-and-effect relationships are identifiable but complex, requiring experts and systems thinking.
- Complex System: Unpredictable interactions, ‘unknown unknowns,’ require experimental approaches and diversity.
Complexity Theory
- Recognizes the dynamic and unstable nature of systems, emphasizing the importance of adaptability in project management.
New Project Manager Competencies
- Project managers require competencies such as humility, shared leadership, social competence, emotional intelligence, communication, vision, and understanding of values and beliefs to succeed in VUCA environments.
Behavioral Biases
- Cognitive Bias: Unconscious tendency to lean in a certain direction, influencing project management decisions.
- Political Bias: Conscious misrepresentation of facts due to political pressure.
Common Behavioral Biases in Project Management
- Strategic Misrepresentation: Deliberate distortion of information for strategic purposes.
- Optimism Bias: Overly bullish about outcomes, non-deliberate.
- Uniqueness Bias: Seeing one’s project as more singular than it is.
- Planning Fallacy: Underestimating costs and time, overestimating benefits.
- Overconfidence Bias: Excessive confidence in one’s own answers.
- Hindsight Bias: Believing that past events were predictable.
- Availability Bias: Overweighting whatever comes to mind.
- Base Rate Fallacy: Ignoring general statistical information in favor of specific cases.
- Anchoring Bias: Relying too heavily on one piece of information.
- Escalation of Commitment Bias: Justifying increased investment despite negative evidence.
- Evolutionist Bias: Ignoring risks that manifest slowly.
- Groupthink Bias: Desire for harmony leads to irrational decision-making.
Why Projects Fail: Key Points
The Importance of Projects
- The global economy is increasingly driven by project-based work, with project-oriented industries forecast to contribute $20.2 trillion to the global GDP over the next 20 years.
- Poor project performance results in a waste of approximately 12% of project spend, equivalent to $120 million for every $1 billion invested.
- There is a growing need to educate and develop project managers to handle increasing complexity and uncertainty in project environments.
Traditional Project Management
- Traditional project management focuses on areas such as cost, scope, risk, human resources, communication, time, quality, and procurement.
- It emphasizes standardization and the ‘one best way’ approach, which does not prepare project managers for change or unexpected difficulties.
Modern View of Project Management
- Projects can be categorized into simple, complicated, or complex systems, requiring different approaches to management.
- Project managers should be reflective and reflexive, asking questions like “How can I get this done?” to adapt to complex project environments.
Types of Systems
- Simple System: Stable properties, predictable interactions, and ‘known knowns’ can be managed using traditional PM methods.
- Complicated System: Cause-and-effect relationships are identifiable but complex, requiring experts and systems thinking.
- Complex System: Unpredictable interactions, ‘unknown unknowns,’ require experimental approaches and diversity.
Complexity Theory
- Recognizes the dynamic and unstable nature of systems, emphasizing the importance of adaptability in project management.
New Project Manager Competencies
- Project managers require competencies such as humility, shared leadership, social competence, emotional intelligence, communication, vision, and understanding of values and beliefs to succeed in VUCA environments.
Behavioral Biases
- Cognitive Bias: Unconscious tendency to lean in a certain direction, influencing project management decisions.
- Political Bias: Conscious misrepresentation of facts due to political pressure.
Common Behavioral Biases in Project Management
- Strategic Misrepresentation: Deliberate distortion of information for strategic purposes.
- Optimism Bias: Overly bullish about outcomes, non-deliberate.
- Uniqueness Bias: Seeing one’s project as more singular than it is.
- Planning Fallacy: Underestimating costs and time, overestimating benefits.
- Overconfidence Bias: Excessive confidence in one’s own answers.
- Hindsight Bias: Believing that past events were predictable.
- Availability Bias: Overweighting whatever comes to mind.
- Base Rate Fallacy: Ignoring general statistical information in favor of specific cases.
- Anchoring Bias: Relying too heavily on one piece of information.
- Escalation of Commitment Bias: Justifying increased investment despite negative evidence.
- Evolutionist Bias: Ignoring risks that manifest slowly.
- Groupthink Bias: Desire for harmony leads to irrational decision-making.
Learn about the importance of projects in the global economy, the forecasted contribution to the GDP, and the need for better project management to minimize waste.
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