Biases in Project Management
Contents |
Abstract
The human mind is an effective and powerful tool. However, it is not faultless and has some limitations. These limitations include, but are not limited to, bounded rationality and many different types of biases. Being aware of these limitations is crucial for all project managers in order to offset them. By acknowledging biases and applying appropriate measures, it is possible to counter the effects.
What is bias?
The definition of bias in the Oxford dictionary is split in four meanings, two of whom are relevant in project management and will be addressed in this article:
1. “a strong feeling in favour of or against one group of people, or one side in an argument, often not based on fair judgement.” 2. “the fact that the results of research or an experiment are not accurate because a particular factor has not been considered when collecting the information.” The first definition is tied to people and communications between either team members or stakeholders and is often called cognitive bias. The latter can be related to uncertainty and risk management e.g., optimism bias.
What is bounded rationality?
The human mind has limited capacity to make decisions which can lead to approximating or simple choosing a satisfactory solution instead of the optimal one. This concept is known as “bounded rationality”. The approximate methods are called “heuristics”.
Cognitive Bias is important in a team setting and therefore falls under the realm of project management. It can be found in project management literature e.g. in Guide to the Project Body of Knowledge everywhere "Interpersonal and Team Skills" or "Expert Skills" are mentioned.
Optimism Bias and bounded rationality are important factors in decision making and risk management and therefore are listed in the Guide to the Project Body of Knowledge in chapter 11.
In this article the different types of biases related to Project Management will be examined in more detail and measures to counter them are presented.
