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Detection of early warning signals for overruns in IS projects: linguistic analysis of business case language
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2020 | European Journal of Information Systems | Citations: 10
Authors: Benschop, Nick; Hilhorst, Cokky A. R.; Nuijten, Arno L. P.; Keil, Mark

Abstract: Many Information Systems (IS) projects fail to be completed within budget and on ... Expand

Abstract: Many Information Systems (IS) projects fail to be completed within budget and on schedule. A contributing factor is the so-called planning fallacy in which people tend to underestimate the resources required to complete a project. In this paper, we propose that signals of the planning fallacy can be detected in a project's business case. We investigated whether language usage in business cases can serve as an early warning signal for overruns in IS projects. Drawing on two theoretical perspectives – the Linguistic Category Model (LCM) and Construal Level Theory (CLT) – two sets of rival hypotheses were tested concerning the relationship between project overruns and whether the language usage in a business case is abstract or concrete. A linguistic analysis of the business cases of large IS projects in the Netherlands suggests that concrete language usage in the business case is associated with bigger budget and schedule overruns. For researchers, our study contributes to the existing literature on the importance of language usage. For practitioners, our study provides an early warning indicator for overruns. Collapse

Semantic filters: planning fallacy

Topics: IT project project management decision making database system IT project management

Methods: chi squared test linguistic analysis statistical hypothesis test mixed method descriptive statistic

Theories: planning fallacy linguistic category model construal level theory
Can the outside-view approach improve planning decisions in software development projects?
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2016 | Information Systems Journal | Citations: 0
Authors: Shmueli, Ofira; Pliskin, Nava; Fink, Lior

Abstract: This study empirically tackles the question of whether taking an outside-view ap ... Expand

Abstract: This study empirically tackles the question of whether taking an outside-view approach, recommended for reducing the irrational behaviours associated with the planning fallacy, can also reduce the time underestimation, scope overload and over-requirement problems plaguing planning decisions in software development. Drawing on descriptive behavioural decision theory, this study examines whether the planning fallacy, a cognitive bias referring to the tendency of people to underestimate costs and overestimate benefits in evaluating a task to be performed, can provide a theoretical platform for mitigating irrational behaviours in the planning of software development projects. In particular, we argue that taking an outside-view approach in planning decisions for software development may have the same mitigating effects on time underestimation, scope overload and over-requirement it has been shown to have on cost underestimation and benefit overestimation. In an experiment investigating this argument, participants were randomly assigned to four groups by manipulating two outside-view mechanisms: reference information about past completion times (present/absent) and role perspective (developer/consultant). After being presented with a to-be-developed software project, they were requested to estimate development times of various software features and to recommend which features to include within project scope given a fixed duration for the entire project. The results confirm that the three problems of time underestimation, scope overload and over-requirement are manifested in planning decisions for fixed-schedule software development projects. Moreover, the results show that these problems are mitigated, yet not eliminated, by presenting reference information about past completion times and by having a consultant role. Collapse

Semantic filters: planning fallacy

Topics: systems development IT development project software developer decision making agile software development

Methods: experiment parametric test ANOVA multivariate analysis of variance experimental design

Theories: planning fallacy behavioral economics decision theory

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Detection of early warning signals for overruns in IS projects: linguistic analysis of business case language

Can the outside-view approach improve planning decisions in software development projects?