De-escalating information technology projects: Lessons from the denver international airport

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 commitme nt to a failing course of action, there has been comparatively little resea rch on de-escalation, or the process of breaking such a cycle. Through de-e scalation, 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 the oretical and practical significance. Through a longitudinal case study of t he IT-based baggage handling system at Denver International Airport (DIA), we gathered qualitative data on the de-escalation of commitment to a failin g course of action, allowing us to inductively develop a model of the de-es calation process as if unfolded at DIA. The model reveals de-escalation 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) impl ementing an exit strategy. For each phase of the model, we identified key a ctivities that may enable de-escalation to move forward. Implications of th is model for both research and practice are discussed.