The reason you underestimate how long everything takes
Every project plan starts from the version where nothing goes wrong. The estimate is the best case labelled as the expected case.
Filed by The Archivist 2 min read
Intuition test — answer before you read on
A task estimated at two weeks takes five. Why does the next estimate repeat the error?
Correct answer: B
Buehler and colleagues showed the error persists even when past overruns are recalled. The planner does not forget; they plan from the scenario rather than the statistics, and the scenario is always the version where nothing goes wrong.
The task was supposed to take two weeks. It took five. The previous, similar task also overran, and so did the one before that. Each time the estimate was made with full knowledge of the previous overrun, and each time it was made the same way.
What everyone sees
The overrun is treated as an anomaly each time it occurs: unexpected complications, bad luck, unusual circumstances. The pattern across projects is not noticed because each project is planned from its own interior, where the complications have not yet appeared and therefore do not exist.
What is actually happening
Kahneman and Tversky described the planning fallacy: estimates are generated by constructing a scenario of how the task will unfold rather than by consulting the base rate of similar tasks. Buehler, Griffin and Ross confirmed that people consistently underestimate completion times even when reminded of past overruns. Flyvbjerg showed the same pattern at the scale of major infrastructure, where cost and time overruns are the statistical norm, not the exception.
Why it stays hidden
The fallacy persists because each new plan feels different from its predecessors. The planner does not experience themselves as repeating the same error; they experience themselves as addressing a specific problem whose specifics will go as imagined. Base-rate data is available in principle but is never consulted, because the inside view feels like knowledge and the outside view feels like statistics about other people’s projects.
The plan is the best case given a name. Every project is estimated from its interior, where nothing has gone wrong yet.
The plan is the best case given a name. Every project is estimated from its interior, where nothing has gone wrong yet.
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The plan is the best case given a name. Every project is estimated from its interior, where nothing has gone wrong yet.
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Sources & further reading 3
- Kahneman & Tversky, "Intuitive Prediction: Biases and Corrective Procedures", 1979
- Buehler, Griffin & Ross, "Exploring the Planning Fallacy", Journal of Personality and Social Psychology, 1994
- Flyvbjerg, "What You Should Know about Megaprojects and Why", Project Management Journal, 2014
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