The Problem of Withholding Information in Organizations - Risks under Surface
November 5, 2015
It is well known that project managers withhold critical project information. This is in fact part of the management culture that incentives take on the risk. In fact, this phenomena extends beyond just the problem of middle management in organizations. For example project staff and skilled labor are often aware of the pending problems but fail to communicate them to up the chain. Why? "It is not my problem" "This is not what my boss wants to hear" "We may get in trouble" "There is no benefit to me if come ahead with this information" These are some of the statements in hindsight analysis of project failures. Recent MITSloan Management Review article touches on this topic. OWL systems provide a means to address this issues by incentivizing disclosure of private information to monitor against hidden risks.