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  • Essay / Optimism Bias in Project Management - 3404

    IntroductionProjects are widely used by many organizations and government institutions in conducting their business. One reason for this is that they have proven effective in initiating change and translating strategic programs into daily activities. However, it has been established that most projects fail to meet deadline, budget and client specifications. In most cases, this failure is due to excessive optimism on the part of the project management team. This excess optimism, commonly called optimism bias, can simply be defined as an overestimation of the benefits of the project and, conversely, an underestimation of its cost and duration. Research has shown that this is often due to the failure to identify, understand and effectively manage the risks associated with the project, thereby jeopardizing its success (Mott McDonald, 2002). Fortunately, this bias can be detected and minimized during the project bridging process. Project Gateway Process This process aims to ensure that the project being pursued has the potential to be delivered on time, on budget and, very importantly, meeting client specifications. (Mott McDonald, 2002). This involves evaluating the project at critical stages (also known as gates) of its life cycle and thus ensuring that it can successfully move to the next stage. This function is carried out by an independent and experienced team, after which it assures the primary responsible owners that the project can progress successfully (National Academies US & National Research US, 2004). There are six critical stages (gateways) in the life cycle of a project that the independent Gateway Review Team will evaluate and thus provide the middle of the document......0: Strategic Assessment. Retrieved from http://www.ogc.gov.uk/documents/cp0004.pdf.Office of Government Commerce. (2007b). OGC Gateway Process Review 1: BusinessRationale. Retrieved from http://www.ogc.gov.uk/documents/cp0005.pdf.Office of Government Commerce. (2007c). OGC Gateway Process Review 2: Delivery Strategy. Retrieved from http://www.ogc.gov.uk/documents/cp0006.pdf.Office of Government Commerce. (2007d). OGC 3 Gateway Process Review: InvestmentDecision. Retrieved from http://www.ogc.gov.uk/documents/cp0007.pdf.Office of Government Commerce. (2007e). OGC Gateway Process Review 4: Readiness for Service. Retrieved from http://www.ogc.gov.uk/documents/cp0008.pdf.Office of Government Commerce. (2007f). OGC Gateway 5 Process Review: Review of Operations and Realization of Benefits. Retrieved from http://www.ogc.gov.uk/documents/cp0009.pdf.