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Prater, J, Kirytopoulos, K and Ma, T 2017, 'Optimism bias within the project management context: A systematic quantitative literature review', International Journal of Managing Projects in Business, vol. 10, no. 2, pp. 370-385. Emerald Literati Award winning paper: Highly commended article 2018.

DOI: http://dx.doi.org/10.1108/IJMPB-07-2016-0063

Abstract:

Purpose – One of the major challenges for any project is to prepare and develop an achievable baseline schedule and thus set the project up for success, rather than failure. The purpose of this paper is to explore

and investigate research outputs in one of the major causes, optimism bias, to identify problems with developing baseline schedules and analyse mitigation techniques and their effectiveness recommended by

research to minimise the impact of this bias. 

Design/methodology/approach – A systematic quantitative literature review was followed, examining Project Management Journals, documenting the mitigation approaches recommended and then reviewing

whether these approaches were validated by research.

Findings – Optimism bias proved to be widely accepted as a major cause of unrealistic scheduling for projects, and there is a common understanding as to what it is and the effects that it has on original baseline

schedules. Based upon this review, the most recommended mitigation method is Flyvbjerg’s “Reference class,” which has been developed based upon Kahneman’s “Outside View”. Both of these mitigation

techniques are based upon using an independent third party to review the estimate. However, within the papers reviewed, apart from the engineering projects, there has been no experimental and statistically

validated research into the effectiveness of this method. The majority of authors who have published on this topic are based in Europe.

Research limitations/implications – The short-listed papers for this review referred mainly to non-engineering projects which included information technology focussed ones. Thus, on one hand, empirical

research is needed for engineering projects, while on the other hand, the lack of tangible evidence for the effectiveness of methods related to the alleviation of optimism bias issues calls for greater research into

the effectiveness of mitigation techniques for not only engineering projects, but for all projects.

Originality/value – This paper documents the growth within the project management research literature over time on the topic of optimism bias. Specifically, it documents the various methods recommended to

mitigate the phenomenon and highlights quantitatively the research undertaken on the subject. Moreover, it introduces paths for further research.

Keywords Scheduling, Optimism bias, Baseline, Outside view, Reference class forecasting, Reference class

Prater, J, Kirytopoulos, K and Ma, T 2017, 'Optimism bias within the project management context: A systematic quantitative literature review', International Journal of Managing Projects in Business, vol. 10, no. 2, pp. 370-385.

Emerald Literati Award winning paper: Highly commended article 2018.