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DE-ESCALATING INFORMATION TECHNOLOGY PROJECTS: LESSONS FROM THE DENVER INTERNATIONAL AIRPORT1
Abstract
Project failure in the information technology area is a costly problem, and troubled projects are not uncommon. In many cases, these projects seem to take on a life of their own, continuing to absorb valuable resources, while failing to deliver any real business value. While prior research has shown
that managers can easily become locked into a cycle of escalating commitment to a failing course of action, there has been comparatively little research on de-escalation, or the process of breaking such a cycle. Through de-escalation, troubled projects may be successfully turned around or sensibly abandoned. This study seeks to understand the process of de-escalation and to establish a model for turning around troubled projects that has both theoretical and practical significance. Through a longitudinal case study of the IT based baggage handling system at Denver International Airport (DlA), we gathered qualitative data on the de-escalation of commitment to a failing course of action, allowing us to inductively develop a model of the de-escalation process as it unfolded at DIA. The model reveals deescalation as a four-phase process: (1) problem recognition, (2) re-examination of prior course of action, (3) search for alternative course of action, and (4) implementing an exit strategy. For each phase of the model, we identified key activities that may enable de-escalation to move forward. Implications of this model for both research and practice are discussed.
Keywords: Information systems (IS) project management, escalation, de-escalation, IS project failure, systems implementation, field study
ISRL Categories: EE, EE0101, EE0504, EL0201, EL0202, FD05
Introduction
Twice the size of Manhattan, the Denver International Airport (DIA) at 53 square miles was designed to be the USA's largest airport. By 1992, there was a growing realization that baggage handling would be critically important in an airport of this size and that this issue could not be off loaded to the airlines that would be operating out of DIA. Consequently, commitment began to grow for the inclusion of an airport-wide, information technology (IT) based baggage handling system that could dramatically improve the efficiency of luggage delivery. BAE Automated Systems, Inc., a world leader in the design and implementation of material handling systems, was commissioned by...