Breakthrough IT

Chapter 8. Cashing in the Chips

One of the most difficult decisions an executive team must make is when an investment is no longer meeting its targets, and any associated resources should be allocated elsewhere. This is clearly the case with a financial instrument, and the pain of the decision is even more acute when dealing with strategic projects. Large commitments of money, personnel, and management oversight are required, and often careers and reputations are staked on the success of a large project. Like the gambler putting his or her last few chips into play and hoping for a miracle, we often throw more resources at a losing proposition rather than walking away from the table.

Of the many risks to strategic projects, not facing a cancellation decision head on and considering the option of canceling a project at the first signs of distress can cause far more damage to the organization than making a swift and momentarily painful decision. With so much on the line, how do you know when a project is hopeless versus a project that just needs one final push to overcome those last few roadblocks? This chapter examines these questions.

My Little Runaway

Most of us have heard stories in the business press of runaway projects, those well‐intentioned endeavors that kept needing “just a little more” money or time. They gradually stretch out, requiring two, three, or more times their original budget and implementation time. Very rarely was the team comprised of complete incompetents, and ...