De-escalating IT projects: the DMM model

  • Authors:
  • Donal Flynn;Gary Pan;Mark Keil;Magnus Mähring

  • Affiliations:
  • Manchester Business School, University of Manchester, UK;School of Accountancy, Singapore Management University, Singapore;J. Mack Robinson College of Business, Georgia State University, Atlanta, GA;Stockholm School of Economics, Stockholm, Sweden and Ecole de Management Stratsbourg, Stratsbourg, France

  • Venue:
  • Communications of the ACM - A View of Parallel Computing
  • Year:
  • 2009

Quantified Score

Hi-index 0.00

Visualization

Abstract

Introduction Taming runaway Information Technology (IT) projects is a challenge that most organizations have faced and that managers continue to wrestle with. These are projects that grossly exceed their planned budgets and schedules, often by a factor of 2--3 fold or greater. Many end in failure; failure not only in the sense of budget or schedule, but in terms of delivered functionality as well. Runaway projects are frequently the result of escalating commitment to a failing course of action, a phenomenon that occurs when investments fail to work out as envisioned and decision-makers compound the problem by persisting irrationally. Keil, Mann, and Rai reported that 30--40% of IT projects exhibit some degree of escalation. To break the escalation cycle, de-escalation of commitment to the failing course of action must occur so that valuable resources can be channeled into more productive use. But, making de-escalation happen is neither easy nor intuitive. This article briefly examines three approaches that have been suggested for managing de-escalation. By combining elements from the three approaches, we introduce a de-escalation management maturity (DMM) model that provides a useful framework for improving practice.