Preventing optimism bias

27  To minimise the level of optimism bias in appraisal, best practice6 suggests that the following actions should be taken:

❑  Project managers, suitably competent and experienced for the role, should be identified;

❑  Project sponsor roles should be clearly defined;

❑  Recognised project management structures should be in place;

❑  Performance management systems should be set up; and

❑  For large or complex projects:

❑  Simpler alternatives should be developed wherever possible;

❑  Consideration should be given to breaking down large, ambitious projects into smaller ones with more easily defined and achievable goals; and,

❑  Knowledge transfer processes should be set up, so that changes in individual personnel do not disrupt the smooth implementation of a project.

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6  'Review of Large Public Procurement in the UK', Mott MacDonald (2002), available at www.hm-treasury.gov.uk/greenbook