sunk cost

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Three Options to Escape the Sunk Cost Fallacy and Reframe Into Savings

Acme’s project portfolio team was stuck. Three months ago, they’d funded five experimental projects at $150k each. The portfolio team hoped those projects might offer the organization new customers and revenue streams. Now, the project teams reported several concerns: The technology was more complex than anyone had expected. Instead of the teams’ typical 2-4 days […]

MPD, portfolio management

Estimation and the Sunk Cost Fallacy

I’m not a fan of using schedule or cost estimate as a way to value the projects in your project portfolio. If you do, you are likely to miss the potentially transformative projects or programs. In Manage Your Project Portfolio, I have an entire chapter devoted to ways to evaluate your project portfolio: business value

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