“Think slow, act fast.” In this must-read book on project management, Flyvberg applies this golden rule of project management to various cases in different industries. Other useful planning tools include reference-class forecasting, risk & black swan management, the importance of experience (experiri), Pixar planning, and thinking from right to left. These are the essential tools for thinking slow in planning before acting fast in delivery. (the basic idea is the same everywhere: Think first, then implement. First, planning. Second, delivery.)
This book is a near perfect non-fiction book and a model of how they should be written: the concepts are well-organized and presented, the cases he uses as evidence are adequate and easy to understand, the chapters are short, well-written and superbly-edited… And most importantly, it’s a short read at around 250+ pages and includes a well-written conclusion on heuristics that ties the main concepts together. Furthermore, the Danish Flyvberg is the unquestioned world leader in project management data and analysis:
The database that started with 258 projects now contains more than 16,000 projects from 20-plus different fields in 136 countries on all continents except Antarctica, and it continues to grow.
Notes:
- “Think slow, act fast.”
- fat tailed distribution of megaprojects. They include nuclear power plants, hydroelectric dams, information technology, tunnels, major buildings, aerospace, and many more. In fact, almost all the project types in my database are fat-tailed.
-Pixar Planning: any planning that develops a tested and tried plan; that is, a plan worthy of its name.
-commitment fallacy: “Lock-in,” as scholars refer to it, is the notion that although there may be alternatives, most people and organizations behave as if they have no choice but to push on
- strategic misrepresentation: the tendency to deliberately and systematically distort or misstate information for strategic purposes.
- “Hofstadter’s Law” : “It always takes longer than you expect, even when you take into account Hofstadter’s Law.”
- Projects are not goals in themselves. Projects are how goals are achieved. (box on the right logic:
With the goal always in view, there is no getting lost. That’s thinking from right to left. )
- One is a very short press release (PR) that summarizes what the new product or service is and why it is valuable for customers. The other is a “frequently asked questions” (FAQ) document with more details about costs, functionality, and other concerns. Bezos’s brainstorm was to make that last step in a conventional project the first step in Amazon projects.
- Third, an iterative process such as Pixar’s corrects for a basic cognitive bias that psychologists call the “illusion of explanatory depth.”
- When a minimum viable product approach isn’t possible, try a “maximum virtual product” —a hyperrealistic, exquisitely detailed model like those that Frank Gehry made for the Guggenheim Bilbao and all his buildings since and those that Pixar makes for each of its feature films before shooting.
- Better to be—like Apple following Blackberry into smartphones—a “fast follower” and learn from the first mover.
- If decision makers valued experience properly, they would be wary of a technology that is new, because it is inexperienced technology. (Olympics example)
- tacit vs explicit knowledge : explicit knowledge can be formally documented and shared, tacit knowledge exists inside the heads of your employees.
- Hire experienced people (with experience in PM). Rely on the reliable. Don’t gamble if you can avoid it. Don’t be the first. Remove the words custom and bespoke from your vocabulary.
- In psychology, the process Caro used to create his forecast is known as “anchoring and adjustment.”
Use a good anchor, and you greatly improve your chance of making a good forecast; use a bad anchor, get a bad forecast.
- reference class forecasting RCF: Kahneman and Tversky dubbed these two perspectives the “inside view” (looking at the individual project in its singularity) and the “outside view” (looking at a project as part of a class of projects, as “one of those”).
- black swan management: cut the tail of a big, complex project.
- T5 terminal project : gold standard in mega projects and incentives. (one team mentality, With a shared sense of identity, purpose, and standards, open communication is easier, but BAA further cultivated the feeling that everyone on the project had both a right and a responsibility to speak up.
- There are five project types that are not fat-tailed. They are solar power, wind power, fossil thermal power (power plants that generate electricity by burning fossil fuels), electricity transmission, and roads. In fact, the best-performing project types in my entire database, by a comfortable margin, are wind and solar power.
- Modularity delivers faster, cheaper, and better, making it valuable for all project types and sizes. But for building at a truly huge scale—the scale that transforms cities, countries, even the world—modularity is not just valuable, it’s indispensable.
- Manufacturing in a factory and assembling on-site is far more efficient than traditional construction because a factory is a controlled environment designed to be as efficient, linear, and predictable as possible.
- Only proven technologies—those with a high degree of “frozen experience” —were used.
- The following are eleven of my favorite heuristics, developed during decades of studying and managing big projects. (great summary of heuristics at end of book)
5/5. June 2024 (a must-read for project managers).
Highlights
Understanding what distinguishes the triumphs from the failures has been the life’s work of Oxford professor Bent Flyvbjerg, dubbed “the world’s leading megaproject expert.” In this book , he identifies the errors in judgment and decision-making that lead projects, both big and small, to fail, and the research-based principles that will make you succeed with yours:
I call the pattern followed by the Empire State Building and other successful projects “Think slow, act fast.”
The pattern was so clear that I started calling it the “Iron Law of Megaprojects”: over budget, over time, under benefits, over and over again.
In total, only 8.5 percent of projects hit the mark on both cost and time. And a minuscule 0.5 percent nail cost, time, and benefits. Or to put that another way, 91.5 percent of projects go over budget, over schedule, or both. And 99.5 percent of projects go over budget, over schedule, under benefits, or some combination of these.
So the critical question is this: Are project outcomes distributed “normally,” or do they have fat tails? My database revealed that information technology projects have fat tails.
Haste makes not only waste but tragedy. The mighty Caesar Augustus, whose personal motto was “Festina lente,” or “Make haste slowly.”
To understand the right way to get a project done quickly, it’s useful to think of a project as being divided into two phases. This is a simplification, but it works: first, planning; second, delivery. The terminology varies by industry—in movies, it’s “development and production”; in architecture, “design and construction”—but the basic idea is the same everywhere: Think first, then implement.
Not only is it safer for planning to be slow, it is good for planning to be slow, as the directors at Pixar well know. After all, cultivating ideas and innovations takes time. Spotting the implications of different options and approaches takes more time. Puzzling through complex problems, coming up with solutions, and putting them to the test take still more time. Planning requires thinking—and creative, critical, careful thinking is slow.
“Act in haste, repent at leisure” is a centuries-old chestnut.
Caro constantly looks at his summary and compares it with what he is currently writing. “Is this fitting in with those three paragraphs?,” he asks himself. “How is it fitting in? What you wrote is good, but it’s not fitting in. So you have to throw it away or find a way to make it fit in.”
What sets good planning apart from the rest is something completely different. It is captured by a Latin verb, experiri. Experiri means “to try,” “to test,” or “to prove.” It is the origin of two wonderful words in English: experiment and experience.
As the old Latin saying goes, “Repetitio est mater studiorum”—“Repetition is the mother of learning.”
A good plan is one that meticulously applies experimentation or experience. A great plan is one that rigorously applies both.
Aristotle said that experience is “the fruit of years” and argued that it is the source of what he called “phronesis”—the “practical wisdom” that allows us to see what is good for people and to make it happen, which Aristotle saw as the highest “intellectual virtue.”[1] Modern science suggests that he was quite right.
“uniqueness bias,” which means they tend to see their projects as unique, one-off ventures that have little or nothing to learn from earlier projects.[5] And so they commonly don’t.
shift your mindset from forecasting a single outcome (“The project will cost X”) to forecasting risk (“The project is X percent likely to cost more than Y”), using the full range of the distribution. In a typical fat-tailed distribution in project management, about 80 percent of the outcomes will make up the body of the distribution.
If we consider only stories, survivorship bias will always favor Hirschman’s account because projects that overcome adversity with a burst of creativity and deliver great triumphs are like dropouts who become billionaires; they’re great stories, so they get noticed.
Its name was Monju, meaning “wisdom.”
“negative learning”: The more you learn, the more difficult and costly it gets.
Repetition is the genius of modularity; it enables experimentation. If something works, you keep it in the plan. If it doesn’t, you “fail fast,”
To put them in perspective, a 2020 study funded by the German government estimated that the total cost to end global hunger by 2030 would be $330 billion over ten years —a fraction of what could be gained by doing big projects a little better.
Over the same ten years, the percentage of Denmark’s electricity generated by fossil fuels fell from 72 percent to 24 percent, while the share contributed by wind power soared from 18 percent to 56 percent.
Heuristics are fast and frugal rules of thumb used to simplify complex decisions. The word has its origin in the ancient Greek word Eureka!, the cry of joy and satisfaction when one finds or discovers something.
The greatest threat Lasko faced wasn’t out in the world; it was in his own head, in his behavioral biases. This is true for every one of us and every project. Which is why your biggest risk is you.