Calling time on projects

To The Daily Telegraph

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 projects that trundled into failure long after all involved could see the impending disaster.

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

Looking at the billions of sunk costs looming over HS2, smart meters, Hinkley Point, Universal Credit, Type 45 destroyers and other government-sponsored disasters, I believe it is time for one vital change to be made in all project authorisations. Those approving a project must identify the 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