Doomed projects

SIR – Forty years ago, I had the privilege of hearing a lecture by Professor F Warren Mcfarlan, of Harvard Business School, on the subject of large, technically based projects that trundled into failure long after their sponsors and all involved could see the impending disaster.

He made it clear that the fear of owning up to – or, worse, taking responsibilty for – “sunk cost” is what terrifies management, bureaucrats and politicians into continuing while knowing that failure is certain. By admitting it, they might be blamed or punished for it – whereas continued spending might allow them to move on before the sky fell in.

Looking at the billions of sunk costs looming over HS2, smart meters, Hinkley Point, Universal Credit, Type 45 destroyers and other governmentsponsored disasters, I believe it is time for one vital change to be made in all project authorisations. Those approving a project must identify any situations that would result in the project being killed off without recrimination, to prevent good money being hurled after bad. Such situations would include technical failures, implementation impossibilities, cost overruns and political changes.

During the euphoric days of obtaining a go-ahead, this process would be challenging – but it is essential.

P M M Collings

Henley-on-thames, Oxfordshire