ABSTRACT
Escalation refers to a predicament where decision makers find themselves trapped in a losing course of action as a result o f previous decisions. Costs are incurred; there is an opportunity to withdraw or to persist; and the consequences of withdrawal or persistence are uncertain. Typically, the response of such dilemmas is irrational persistence.*
It has long been believed that in order to deliver an information systems project successfully there must be a sustained level of commitment. Commitment provides the necessary level of energy and enthusiasm to make the project a success. However, no matter how vital, organizations can sometimes become overcommitted to a project, to the point where they ignore some of the basic warning signs that the project is failing. Such excessive commitment, termed ‘escalation', also prevents the decision to terminate a project from being made early enough. In such circumstances, organizations continue to sink additional money and resources into the project, and in doing so increase their commitment to it. This creates a vicious circle of increasing commitment, costs and probability of failure.
