Cognitive Biases and Organizational Culture in Project Management
Wardan Hawa
Cognitive Biases Affecting Project Timelines
Student Syndrome (Ariely, 2008)
This describes the tendency for individuals (often students) to succumb to temptation and only begin work when the deadline is imminent, often leading to the invention of excuses.
The Planning Fallacy: Optimism vs. Experience
The Planning Fallacy (Buehler et al., 1997) suggests that optimism often trumps past experience. Examples include:
- Students who believed they would finish their work on time often fell behind.
- Taxpayers expected to mail their returns on time were often a week late (Buehler, Griffin & Ross, 2002).
Kahneman and Tversky’s Cognitive Model (1979)
This model outlines the components contributing to the Planning Fallacy:
- Inside Planning: Focuses on the task itself, ignoring outside factors, which often leads to optimism bias.
- Outside Planning: Considers external factors and incorporates learning from past experiences.
- Optimism Bias: A higher degree of optimism regarding time allocation correlates with less success in meeting deadlines.
- Procrastination: An emotional problem stemming from motivation failure. This results in poor outcomes due to insufficient checking and the cutting of key project stages.
Cultural Approaches to Time and Work
Monochronic vs. Polychronic Culture
Key contrasting factors define how different cultures perceive and manage time (E. T. Hall and M. R. Hall, 1997):
| Monochronic Culture | Polychronic Culture |
|---|---|
| One thing at a time | Many things simultaneously |
| Consider when | Consider what |
| Job first | Relationships first |
| Time is inflexible | Time is fluid |
Geographic Examples (E. Meyer, 2015)
- Monochronic (Mono): Germany, Switzerland, Japan, Sweden.
- Polychronic (Poly): India, Nigeria, Kenya, China.
Core Elements of Project Planning
Key Elements of Project Planning (Pr Pl)
(Zilicus Solutions, 2012) identifies the following core elements:
- Scope
- Schedule
- Requirements
- Cost Estimation
- Quality
- Risk
Defining Project Scope
Project scope acts as a map detailing the extent of project deliverables. It outlines expected achievements, budgets (time and costs), and helps organize work to ensure effective project delivery.
Models of Organizational Structure and Power
Handy’s Four Power Cultures (1993)
- Power Culture (Web)
- Entrepreneurial and political; bureaucracies are minimized.
- Role Culture (Greek Temple)
- Based on logic and rationality, offering security and predictability. Characterized by specified authorities and hierarchical bureaucracies. Power is derived from position, not expertise, leading to slow change.
- Task Culture (Net)
- Focuses on teamwork. Power is derived from expertise (when required); highly compliant.
- Person Culture
- Individuals are superior to the organization. Managed by mutual approval; the power base is expert knowledge, making it difficult to manage.
Trompenaars’ Four Corporate Cultures (1993)
Trompenaars categorized cultures based on two dimensions: Egalitarian vs. Hierarchical, and Person vs. Task orientation.
Egalitarian Cultures
- Incubator (Person): Focuses on self-expression; ideation is key to performance. Highly individualistic and creative (Redmond, 2014). Examples: Sweden, Canada, Switzerland. Often described as “herding cats.”
- Guided Missile (Task): Objective-first orientation, fostering a great sense of ownership, but potentially leading to separate agendas. Examples: USA, Ireland.
Hierarchical Cultures
- Family (Person): Built on reputation and influenced by family structures, emphasizing loyalty. Examples: India, Spain, Japan.
- Eiffel Tower (Task): Highly bureaucratic; requires respect for power and position (e.g., the Volvo and Renault case study). Examples: Germany, France, Netherlands.
Deal and Kennedy’s Four Culture Types (1982)
- Tough-Guy Macho Culture (Fast Feedback/Reward, High Risk):
- Stress results from high risk and the potential volatility of rewards.
- Focus is on the immediate present; individualism prevails over teamwork.
- Examples: Advertising, brokerage, professional sports.
- Work-Hard, Play-Hard Culture (Fast Feedback/Reward, Low Risk):
- Stress results from the quantity of work rather than uncertainty.
- Focus is on high-speed action and high levels of energy.
- Examples: Sales, restaurants, software companies.
- Process Culture (Slow Feedback/Reward, Low Risk):
- Stress is generally low, but may arise from internal politics and systemic inefficiencies.
- Focus is on details and process excellence.
- Examples: Bureaucracies, banks, insurance companies, public services.
- Bet-Your-Company Culture (Slow Feedback/Reward, High Risk):
- Stress results from high risk and the significant delay before knowing if actions have succeeded.
- Focus is on long-term strategy, preparation, and planning.
- Examples: Pharmaceutical companies, aircraft manufacturers, oil prospecting companies.