The benefits to be accrued from having realistic estimates of project costs and timelines cannot be overemphasized. This article explains how optimism bias and strategic misrepresentation can lead to forecasting errors. The author recommends proactive strategies that can be employed by both the buyer and the seller of project services to limit their negative impact. […]
Expectation versus Reality: Reducing the Estimation Gap Read More »
Levi Strauss started to upgrade its informational technology system to a single SAP system across geographies for a proposed budget of approx. $ 5 million. After roll out the problems were so severe, the company had to a take a $192.5 million charge against earnings to compensate for the several problems created by the project.
Estimation Number Games – powered by Optimism Bias and Strategic Misrepresentation Read More »
The License Application Mitigation Project (LAMP) initiated by the state of Washington, US aimed at automating the state’s vehicle registration and license renewal processes. The project began in the early nineties and was supposed to be online in 1995. It planned to create a relational, client-server system using IBM’s MVS/CICS architecture. Initially budgeted at $16
The Paradoxical Reality Of Estimations Read More »
