Your most expensive tech projects: The ones nobody questions
Right now, somewhere in your company, a renewal notice is waiting to be signed for a system nobody has seriously questioned in years. It will go through. Meanwhile, a new project that is a fraction of its size is being put through a business case, a steering committee, and a procurement review, defended line by line. The larger the spend, the less anyone asks. I have spent my career around…
In today's business landscape, significant investments are often made in technology projects without questioning their necessity or value. This pattern is prevalent among companies across various industries. The larger the budget allocation, the less scrutiny it typically receives. Organizations tend to prioritize renewals and support for existing systems, while new projects undergo extensive evaluation and approval processes.
This phenomenon can be attributed to several factors. Firstly, decisions made years ago carry a sense of authority, even if the individuals who approved them have since left the company. This inertia can make it difficult to revisit and reassess these commitments. This phenomenon is referred to as the "escalation of commitment" by psychologists, where the more invested one becomes in a project, the more challenging it becomes to let go.
The most expensive tech projects often go unnoticed, despite potentially costing millions of dollars. These include license renewals, platforms that other projects rely on, and maintenance lines that have not been reviewed in years. While some of these longstanding systems may be valuable and stable, it is crucial to question whether their continued use remains justified in today's context.
A study conducted by Boston Consulting Group in 2024 revealed that only 30% of large-scale technology programs successfully delivered on time, within budget, and with the originally promised scope. Furthermore, nearly one in five projects failed to deliver the expected scope at all. These failures are primarily attributed to weak governance structures rather than technical complexity.
The irony lies in the fact that even projects that receive close attention can fall short of expectations. On the other hand, the commitments that are rarely questioned remain untouched. To address this issue, it is essential to scrutinize all significant investments, regardless of their visibility. By asking fundamental questions such as whether these projects would still be pursued today, organizations can identify areas where cost savings and efficiency improvements are possible.
One crucial aspect of effective governance is regularly reviewing and re-evaluating large commitments. Treat these investments like loans, with periodic assessments and decision-making as if the decision were being made anew. By implementing this approach, organizations can ensure that their technology investments remain aligned with current needs and priorities.
Ultimately, the most valuable question in any technology budget is a simple one: Would we choose this again? If the answer is uncertain, it may be a sign that the spending is out of control. By embracing a mindset that values questioning and re-evaluation, organizations can regain control over their spending and make informed decisions about their technology investments.
Written by urgent.news from Fast Company's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
