Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster

TL;DR

This paper examines why large infrastructure projects often fail to meet cost and performance expectations, proposing models to understand and prevent executive-driven delusions and deceptions.

Contribution

It introduces two models that explain the causes of project failures and offers strategies to improve planning and execution of large infrastructure investments.

Findings

Identifies key psychological and organizational factors leading to project failures

Proposes preventive measures to reduce delusions and deception in decision-making

Highlights the importance of improved governance in infrastructure projects

Abstract

The Economist recently reported that infrastructure spending is the largest it is ever been as a share of world GDP. With $22 trillion in projected investments over the next ten years in emerging economies alone, the magazine calls it the "biggest investment boom in history." The efficiency of infrastructure planning and execution is therefore particularly important at present. Unfortunately, the private sector, the public sector and private/public sector partnerships have a dismal record of delivering on large infrastructure cost and performance promises. This paper explains why and how to solve the problem.