Seven Planning Pitfalls: III

In two previous posts, I examined four reasons why planning complex projects is so difficult. In the first of these two posts, I explored how we can be limited by our ability to imagine what we're planning, and by our access to knowledge of past failures. In the second post, I considered external influences. One set of external influences is associated with a group of cognitive biases known as priming effects. A second set of external influences includes fads, dogma, regulations, and traditions.

Continuing this exploration of difficulties encountered in planning complex projects, I turn now to internal causes of trouble, namely, patterns in the way we think when we're constructing plans.

Magical number 7

In one of most-cited papers in the entirety of the psychology literature, George Miller reported experimental results regarding numerical limits to human cognition [Miller 1956]. There are limitations to the number of "chunks" people can hold in short term memory. And there are limits to our ability to distinguish among a defined set of stimuli to govern a choice among a defined set of associated responses. These limits, coincidentally, appear to lie in the range of 7±2 items.

The effects of these limits on planning activities are both subtle and profound. For example, a widely believed maxim in the presentation architecture community is known as the 6x6 rule. It states that presentation slides should contain no more than six bullet points of not more than six words each. Although it is motivated by Miller's observations, experimental confirmation of its value has been elusive.

However, the limits Miller described are real. They can play a role in planning efforts for complex projects that have parallel efforts that number more than 7±2. For example, managing a project with 19 parallel streams of tasks would tend to become unwieldy because project managers might not be able to keep the various attributes of so many work streams in their minds.

The usual approach for dealing with this is to "chunk" the effort into pieces that are more manageable in number. Then if necessary, chunk each piece. This approach is usually called analysis and synthesis.

Some of what we attribute to "poor planning"
is perhaps better regarded as an inevitable
result of how humans thinkAnalysis and synthesis can be problematic, because the chunks sometimes interact with each other in unexpected ways, outside the descriptions we use for the synthesis.

Ambiguity effect

The ambiguity effect is a cognitive bias that affects how we make decisions under uncertainty [Ellsberg 1961]. When choosing among options that have favorable outcomes, we tend to favor those options for which the outcome is more certain, even if less favorable. And we tend to avoid options for which the probability of a given favorable outcome is unknown, even if all possible outcomes of that option are favorable.

When devising plans for projects, the ambiguity effect can be costly indeed. For example, when considering a novel approach that offers great savings in cost and schedule, we might compare it unfavorably to a more familiar approach that's slower and more costly. The ambiguity effect causes us to favor the conventional approach more than might be justified by the uncertainties of using an unconventional approach for the first time.

Mitigating the ambiguity effect requires careful estimation and objective computations.

The planning fallacy

In a 1977 report, Daniel Kahneman and Amos Tversky identify a particular cognitive bias, the planning fallacy, which afflicts planners [Kahneman 1977]. They discuss two types of information used by planners. Singular information is specific to the project at hand; distributional information is drawn from similar past efforts. The planning fallacy is the tendency of planners to pay too little attention to distributional information and too much attention to singular information, even when the singular information is scanty or questionable. Planners tend to underestimate cost and schedule by failing to harvest lessons from the distributional information, which is inherently more diverse and reliable than singular information.

The tendency to attend too little to distributional information afflicts us all as people, but it can afflict organizations as well. For example, many organizations conduct retrospectives or "lessons learned" exercises in connection with projects. But the information they collect, valuable though it might be to subsequent projects, isn't always archived in ways that facilitate its use by the leaders of those subsequent projects. It might be scattered, or stored within the project that generated it, rather than collected with other similar volumes into an organized library. In some organizations, it is actually classified and its use is restricted.

Such practices intensify the effects of the planning fallacy.

Knowing these patterns, and others like them, provides enormous advantages to planners. They can check their plans for these effects, and when they find indications of their presence, they can revise those plans to mitigate the effects. Of course, you have to plan on taking these steps from the outset. And that plan is itself subject to these same effects. First in this series   Top  

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Footnotes

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More articles on Cognitive Biases at Work:

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Despite our awareness of scope creep's dangerous effects on projects and other efforts, we seem unable to prevent it. Two cognitive biases — the "hot hand fallacy" and "the illusion of control" — might provide explanations.

Wishful Significance: I

When things don't work out, and we investigate why, we sometimes attribute our misfortune to "wishful thinking." In this part of our exploration of wishful thinking we examine how we arrive at mistaken assessments of the significance of what we see, hear, or learn.

Effects of Shared Information Bias: I

Shared information bias is the tendency for group discussions to emphasize what everyone already knows. It's widely believed to lead to bad decisions. But it can do much more damage than that.

Perfectionism and Avoidance

Avoiding tasks we regard as unpleasant, boring, or intimidating is a pattern known as procrastination. Perfectionism is another pattern. The interplay between the two makes intervention a bit tricky.

The Trap of Beautiful Language

As we assess the validity of others' statements, we risk making a characteristically human error — we confuse the beauty of their language with the reliability of its meaning. We're easily thrown off by alliteration, anaphora, epistrophe, and chiasmus.

See also Cognitive Biases at Work and Project Management for more related articles.

Forthcoming issues of Point Lookout

Coming September 23: Seven More Planning Pitfalls: I

Planners and members of planning teams are susceptible to patterns of thinking that lead to unworkable plans. But planning teams also suffer vulnerabilities. Two of these are Group Polarization and Trips to Abilene. Available here and by RSS on September 23.

And on September 30: Seven More Planning Pitfalls: II

Planning teams, like all teams, are susceptible to several patterns of interaction that can lead to counter-productive results. Three of these most relevant to planners are False Consensus, Groupthink, and Shared Information Bias. Available here and by RSS on September 30.

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