WHITE PAPER: HOW THE SUNK COST FALLACY APPLIES TO PROJECT MANAGEMENT INVESTMENTS

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This white paper explores the Sunk Cost Fallacy and how it not only applies to projects but also to project management investments. Do we ignore a better situation simply because we fear wasting the time or money we have already spent? Do we sink more cost into a failing project because otherwise, it would mean admitting failure? Some companies have made significant investments into their project controls processes and tools only to realize that they are at a crossroads. While it may be tempting to include sunk costs in the decision-making process, it is important to recognize the associated repercussions.