Beating the Iron Law: How to Finish Big Projects on Time and Under Budget
Beating the Iron Law: How to Finish Big Projects on Time and Under Budget
Darrell Velegol, PhD
2024jun26
As a business owner or project manager, you've likely heard about the infamous "Iron Law of Megaprojects." This grim principle, highlighted by Bent Flyvbjerg in his insightful book “How Big Things Get Done”, suggests that large-scale projects are almost destined to exceed budgets, miss deadlines, and deliver fewer benefits than promised. It's a discouraging reality, but thankfully, it's not inevitable.
My former PhD student, Dr. Abhishek Kar, recommended Flyvbjerg's work to me, and it prompted me to reflect on the lessons I learned from Dr. John Anderson, a mentor who always found a way to get important things done. Combining these insights with the wisdom of Eliyahu M. Goldratt's "The Goal" and "Critical Chain," here are three actionable strategies to help you beat the Iron Law:
Focus on the Critical Chain: Identify the sequence of tasks that determine the project's overall duration. Goldratt's “Critical Chain” method emphasizes prioritizing these critical tasks and ensuring they have the resources they need to succeed. This approach minimizes delays and helps keep the project on track.
Find the bottleneck: Every project has constraints, whether it's limited resources, tight deadlines, or regulatory hurdles. And at any time, there is ONE critical constrain that is the bottleneck to the project. Identify these constraints early on and develop strategies to manage them proactively. As Goldratt's Theory of Constraints teaches us, focusing on the weakest link can significantly improve overall performance.
Build a Culture of Communication and Collaboration: Open communication and collaboration are essential for any project's success. Flyvbjerg emphasizes the importance of engaging stakeholders early and often to ensure everyone is aligned on project goals and expectations. A collaborative team can identify potential risks and obstacles early on, enabling faster and more effective solutions.
You don’t have to be a passive victim of the Iron Law. Take control of your projects by focusing on the critical path, managing constraints, and fostering a collaborative environment. By learning from the experiences of others and applying these proven strategies, you can increase your chances of delivering big projects on time and under budget.
