Loss Aversion bias and Project Management

Communications Management Leadership Organizational Culture Procurement Management Risk Management Strategy

Joao Sarmento Senior Project/Program Manager| UNITEL Luanda, Luanda, Angola

Hi

After reading in a blog about Daniel Kahneman's book "Thinking, Fast and Slow", the examples of tests on people prefering not to loose instead of trying to gain, and investigating a bit about Loss Aversion Bias I got curious.

I was wondering how many decisions we make in project management influenced by this bias and the effects it has in the Project outcomes... Things like risks that have become certainties, terminating severely underperforming contracts (either company or personal level, proposing to cancel a project where the business justification doesn't make sense anymore...

Ever felt biased by this? Do you know of different cases and clever ways of dealing with this?

Share your experiences :)

Posted: Jan 26, 2020 6:02 PM (Updated by author: Jan 27, 2020 2:42 AM)

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Loss Aversion bias and Project Management

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