Is Your Project Turning into a Black Hole Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Any experienced executive knows that information technology (IT) projects have a high failure rate. Large IT projects can be a business equivalent of what astrophysicists know how black holes that absorb a large amount of matter and energy. Resources are drawn into the system, but little or nothing comes out. Of course, the projects do not become black holes for the night. They get there one day at a time through a process known as the escalation of commitment without action. Without the interference of the executive, these projects will almost inevitably turn into black holes. This article throws light on the insidious process by which projects that consume resources but do not lead to business value, create and gradually turn into black holes. It is a framework that explains the creation of a black hole in the project as a series of three steps: drifting, treating the symptoms, as well as continued rationalization. Framework is shown in two cases: Eurobank and California DMV. Further, the article provides guidelines to prevent the escalation projects become black holes and provides a means to identify problems at an early stage. "Hide
by All Keil, Magnus M hring Source: California Management Review 27 pages. Publication Date: November 1, 2010. Prod. #: CMR468-PDF-ENG