Gartner Research

PPM Leaders Must Take a Rational Approach to Irrational Decision Making

Published: 25 September 2015

ID: G00291110

Analyst(s): Robert Handler

Summary

We offer ways to resolve some of the most common and vexing human behaviors as they pertain to project and portfolio management. Our focus is initially on the individual and then on the group or team and its decision-making dynamics.

Table Of Contents
  • Impacts

Analysis

  • Introduction

Impacts and Recommendations

  • Increased sophistication and interconnectivity of projects, programs and portfolios amplify downside consequences of irrational decision making for PPM leaders
    • Overconfidence
    • Sunk-Cost Effect
    • Confirmation Bias
    • The Recency Effect
    • Anchoring
    • Illusory Correlation
    • Hindsight
    • Egocentrism
  • PPM leaders who deny normal human behavior in PPM processes set these processes up for failure — at the project, program and portfolio levels
    • Process Losses
    • Groupthink
    • Process Fairness
    • Cultural Challenges
  • Recommendations

Gartner Recommended Reading

©2020 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Purchase this Document

To purchase this document, you will need to register or sign in above

Become a client

Learn how to access this content as a Gartner client.